Just Eight Billionaires Own The Same Wealth As 3.6 Billion People

Posted by on

The World Economic Forum 2017 holds it annual meeting of the global elite in Davos, Switzerland. This meeting is for the wealthy and powerful to get together in a beautiful country to talk about all  the world’s problems among themselves and with the media.

To coincide with this pow pow, British charity Oxfam released a report showing global inequality. According to this report, the world’s 8 billionaires own the same wealth as the bottom 3,600,000,000 of humanity (or 3.6 Billion people).

Click to enlarge

Source: Eight billionaires ‘as rich as world’s poorest half’, The BBC, Jan 16, 2017

British American Tobacco ADR: Upcoming Stock Split

Posted by on

UK-based tobacco giant British American Tobacco PLC(BTI) has announced a stock split in the ratio of 2:1 with a ADR Record Date of 02/06/17.  The ADR closed at $115.21 on Friday. Last year, competitor Imperial Brands PLC(IMBBY) had a 2 for 1 stock split.

5-year return chart:

Click to enlarge

Source: Google Finance

As a sin sector stock, BTI has performed well over the past decade. It has more than doubled in the past 10 years in terms of price appreciation alone. Currently the stock has a juicy dividend yield of 3.79%. Since the UK has no dividend withholding taxes for US investors, this stock is a good pick to dig deeper for long-term income and growth investors.

Full Details of the stock split:

Ticker: BTI

Ratio (ORD:ADR): 2 : 1

Type of Distribution: Stock

ADR Record Date: 02/06/17

ADR Payable Date: 02/13/17

Stock Rate: 100%

British American Tobacco PLC has informed Citibank that it will change the ratio of its ADS from one (1) ADS representing two (2) ordinary shares to one (1) ADS representing one (1) ordinary share effective February 14, 2017. As a result of this ratio change, ADS holders will receive 1 additional ADS for every ADS held as of February 06, 2017.

The cusip will remain the same. No action on the part of Holders or Beneficial Owners is required.

Ratio Change Information:

Old Ratio: 2 Ordinary Shares : 1 ADS

New Ratio: 1 Ordinary Share : 1 ADS

The Effective Date for this ratio change is February 14, 2017

Source: Citi Depository Services

Disclosure: No Positions

The Callan Periodic Table of Investment Returns 2016: A Review

Posted by on

Update: The Callan Periodic Table of Investment Returns 1998-2017

Callan Associates has published their “The Periodic Table of Investment Returns for 2016”. This fascinating chart shows the returns of various of classes such as stocks, bonds, US and foreign stocks, etc. The importance of diversification among asset classes is vividly illustrated by the Callan chart each year.

The Callan Periodic Table of Investment Returns for 2016 is shown below:

Click to enlarge

Source: Callan Associates

Download: The Callan Periodic Table of Investment Returns 1997-2016 (in pdf format)

In 2016, the S&P 500 had a total return of 11.96%. While this is a good return, the small caps as represented by the Russell 2000 earned even higher with a return of over 21%. Emerging markets also performed well last year. But European stocks were the worst performers as the MSCI EAFE Index had a return of just 1%.

For the Year 2017 version of Callan Chart go here.

Previous Year Callan Charts:

Related ETFs:

  • iShares Dow Jones Select Dividend ETF (DVY)
  • SPDR S&P Dividend ETF (SDY)
  • Vanguard Dividend Appreciation ETF (VIG)
  • SPDR S&P 400 Mid Cap Growth ETF (MDYG)
  • iShares Russell Midcap Index Fund (IWR)
  • iShares MSCI Emerging Markets Indx (EEM)
  • SPDR S&P 500 ETF (SPY)
  • SPDR STOXX Europe 50 ETF (FEU)

Disclosure: No Positions