In an earlier article on why U.S. companies should raise their dividend payments now I mentioned that even if higher taxes are levied on dividends next year it is beneficial for investors to earn higher dividends if companies are unable to use their excess cash productively. A study by Allianz Global Investors confirms that dividend …
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The global automotive industry is one of the complex industries for investors to analyze and seek investment opportunities. This is because the industry is subject to various forces that are unique to the industry such as political protectionism, fierce competition, labor issues, etc. In addition, earnings are highly cyclical and returns decline over time. In …
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U.S. companies are hoarding almost $1 Trillion in cash and cash equivalents in their balance sheets according to a Bloomberg report. Despite the sluggish economic recovery companies are fearful of putting this money to work. The S&P states: “The second quarter of 2010 marked the sixth straight quarter of record cash levels, amounting to $842 …
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Some investors are completely avoiding European stocks due to the current Irish debt crisis. However they be missing on some excellent investment opportunities. There are many European multinationals with strong presence in foreign countries especially in the fast-growing emerging markets(EM). In fact, European multinationals derive more than 10% of their revenue from EM compared to …
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The chart below shows the historical investment returns for various indices from 1995 thru 2009: Click to enlarge Some observations: Since 2003, the MSCI Emerging Markets Index has yielded double-digit returns except in 2008 when it fell 53%. On 15-year annualized returns basis, the small-cap Russell 2000 Index and the REIT Index have performed better …
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