The next Dividend paying companies
The Share Market has some good piece of news coming from a we companies who are likely to pay a good dividend to the investors. Cisco, a technology company has announced to pay the shareholders to pay about 14 cents which was 8 cents on the last occasion. This announcement has increased the stock prices from 1.8% to 3.2%.
Immediately, after hearing this news the investors started buying the stocks of this company and the prices went up further by 10%.
All these days’ investors seem to be reposing faith in real estate firms with an expectation of getting good returns.
The investors have another reason to divert their attentions. In the recent past the yield from the bonds have become quite unstable. With the dividend yield coming from some of the companies the investors have now got an option.
Now the second most important factor for the investors is to look for a stock where they can make investments.
There are more than 400 dividend payers in the market, which is highest in the last one decade.
There is suggestion to look beyond the dividend payers who have been paying traditionally and look for technology company’s like Cisco who pay the investors not in cents but in dollars. These companies have surely edged up the traditional companies.
There are other companies like AGF Management and Bird Construction who are dividend payers and they pay the investors at least once a year.
The top 500 companies have given a dividend of 12% or more. Companies like united Health Group have increased the payment by 31%. Walt Disney announced a payment which is 50% more than last year’s payment.
According to information, the companies paying dividends have less of debts and more e of available cash to meet the current expenditure and make long term investments on behalf of the company.
However, the other side of the story could be that if a company is not paying a dividend then it is doing well. On contrary to this one can always understand that the company might be using the money to grow even bigger with the same amount of money instead of paying the same to the investors. There are good companies like Microsoft who have recently started paying dividends to the investors, and before this they kept on using the money for a giant growth of the company.