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| Subject: dividends Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend. Many corporations retain a portion of their earnings and pay the remainder as a dividend. US Equity Market By John Schroy, on March 6th, 2006 |  Leave a comment  On January 28, 2006, an Associated Press dispatch proclaimed: “Corporate Earnings Good Despite Headlines”, stating that “corporate profits remain very healthy overall, and the majority of corporations are beating expectations.” Are these assertions true and does this mean that the outlook is rosy for the average investor in US equities? This article argues that the answer depends on who you are. March 6th, 2006 | Print Article |  Email Article |  Topics: Asset-lite Movement, cash flows, Corporate Governance, depreciation, dividends, earnings-per-share, executive stock options, Legg Mason, pension plans, price earnings ratios, profits, Stock Buybacks, US SEC, US taxation | Category: Security Analysis | Leave a comment |  Short url'Defined Benefit' Pension Plans By John Schroy, on February 26th, 2006 | Leave a comment  The sponsors of ‘defined benefits’ pension plans controlled, as of December 2004, about US $2.5 trillion in equities. Common stocks, even after the crash of 2000-2001, were substantially over-valued. In order for stock prices to reflect values that were customary before the advent of stock buybacks, prices would have to drop between 20% (earnings basis) and 50% (dividend yield basis). In the case of ‘defined benefits’ pension plans, this would represent a loss of between US$500 billion and US$1.2 trillion in market value of pension portfolios. February 26th, 2006 | Print Article | Email Article | Topics: Baby Boomers, capital flow analysis, defined benefit pensions, dividends, FASB, FASB Rule 132R, FASB Rule 151, mark-to-market, pension fund, pension plans, SEC Rule 10b-18, Total Returns, US SEC | Category: Stock Buybacks, featured | Leave a comment | Short urlRetirement plans By John Schroy, on February 23rd, 2006 | Leave a comment  Between 1999 and 2002, US private pension funds lost US$ 1.2 trillion in value. It would almost seem that pension fund managers had been speculating with retirement money, attempting to beat each others’ short-term performance statistics, with little interest in safeguarding the assets of plan beneficiaries. Political intrusion and trade unionism have debilitated the pension fund industry over many generations. The end of the pension industry may now be in sight. February 23rd, 2006 | Print Article | Email Article | Topics: 401(k) plans, Alan Greenspan, annuities, Arthur Levitt, Benjamin Graham, Bill Clinton, CFA, common stock legend, Corporate Governance, defined benefit pensions, Democratic Party, dividends, Enron, ERISA, Financial Economists Roundtable, Franklin Roosevelt, insurance company, Lyndon Johnson, Myron Scholes, Pension Benefits Guarantee Corporation, pension fund, pension plans, price earnings ratios, Robert B Reich, Robert E Rubin, Ronald H Brown, Sarbanes-Oxley Act, Total Returns, trade unions | Category: US Politics, featured | Leave a comment | Short urlFeatured articles on inside pages
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