Number of UK Publicly Listed Companies Continue to Decline

The total number of British companies traded publicly on the equity markets continue to decline for many years due to many reasons. Unlike in the past, many companies do not find a compelling need to go public. In addition, companies are able to fund their capital requirements through internal funding and issuing debt. The explosive …

Continue reading ‘Number of UK Publicly Listed Companies Continue to Decline’ »

Corporate Profits and Share Buybacks Are Up But Dividend Payout Ratio Remains Low

U.S. Corporate Profits reached all-time highs recently this year despite all the ills plaguing the economy such as high unemployment rate, debts issues, political uncertainty, etc. Click to enlarge     via Decisions Based on Evidence from St.Louis Federal Reserve What are companies doing with the profits? The current yield on the S&P 500 is 2.01%. …

Continue reading ‘Corporate Profits and Share Buybacks Are Up But Dividend Payout Ratio Remains Low’ »

Relationship between Stock Market, GDP and Earnings

In an article last year on the relationship between economic growth and equity returns in emerging markets I wrote: “In a study of 16 major markets by the Vanguard group, the correlation  between economic growth as measured by GDP per capita and long run stock returns since the 1900 was effectively zero.” However a recent …

Continue reading ‘Relationship between Stock Market, GDP and Earnings’ »

Dividend Yield and P/E Ratio by Country

The dividend yield and P/E ratios of select markets at the end of September, 2012 are shown in the graphic below: Click to enlarge   Source:  Income alternatives: The power of global dividends, DWS Investments The U.S. dividend yield continues to stay at about 2%. Among the emerging markets India has he lowest dividend yield …

Continue reading ‘Dividend Yield and P/E Ratio by Country’ »