To first understand dividends, you must understand that not all companies pay stock
dividends. Whether it is that they use the profits from their stock as
capital
for acquiring other companies, or for redistribution amongst its other
corporate divisions.
The two
primary
functions that must be considered when purchasing stock for the purpose
of
dividend investment is the actual history of performance I.E. quarterly
earnings, yearly earnings, and the price to earnings ratio (known as
P/E) all
these things should be used when deciding on stock for dividend
investment
purposes.
Some of
these stocks
with a history of high dividends and performance are,
Div
p/e ratio
SID
Companhia Siderurgica
Nacional (ADR) 3.05 18.9
CLP
Colonial Properties
Trust 2.70
6.1
AIV
Apartment
Investment and Management 2.40 5.8
Some Wall
Street
Brokers consider the Euro-dollar a worthwhile investment. Since its
inception
in 1999, the Euro has fluctuated. The first years of the euro brought
with it
lower value to the American dollar, but in the spring of 2002 the Euro
Dollar
has increasingly gained value to the American dollar. Eventually the
Euro
surpassed the American dollar in value, making it a very lucrative
investment
with solid growth potential.
Another
speculative
market is stocks, while highly volatile these can yield high returns.
One such
firm is Citigroup which administrates Citibank, Citibank credit, and
several
small banking and mortgage institutions.
Speculation
on
Citigroup’s desire to break into new markets is plentiful. In 2001
Citigroup
bought Mexico's
Grupo Financiero Banamex-Accival for 12.1 billion dollars, expanding
its
international front. Deutsche Bank AG was recently rumored to be in
negotiations with Citigroup for possible acquisition, which was
considered the
catalyst for a 7.3% rise in its stock price. Many on Wall Street
consider this
stock to be somewhat shaky, because as the economy continues to
stagnate, a
risk of default from its large credit card operations is considered
imminent.
In Nov. of
2004 Phil
Knight the founder of The Nike Corporation stepped down and
relinquished
control of the company he started from the trunk of his car, causing
the stock
price to drop 3%. But a solid corporate plan and a dedicated consumer
base
brought their earnings back within days. While experiencing a 52 week
low of
$68.61 their high is $92.43 and trading at this time is in the $84.46
range.
Nike posted a 3rd quarter profit of 15% which yielded a
$1.16
dividend, but was a lower than anticipated gain. Nike still controls
the
largest piece of the shoe market and there are no expectations for
anyone to
surpass them any time soon.
Lowes
originally
offered as a public stock on October 10 1961, has continued to grow in
both
earnings and facilities. Their dedication to steady growth and customer
service
has served to help build a vast network of stores that are as
profitable now as
they were 1961. February 24 brought an equity offering of an additional
62
million shares of stock, available for public purchase. Lowes 52 week
low is
$45.90 and their 52 week high is $67.01 with shares trading at $65.80
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