PepsiCo: A Consistent Dividend Aristocrat
Dobromir Stoyanov submits:
Most dividend investors require consistency from their stock positions. As a result companies which are able to generate rising dividend income over time are viewed more favorably in comparison to companies such as Pfizer (PFE) or General Electric (GE), which have followed an inconsistent dividend policy over the past two years.
Just last week General Electric forecasted that there is a high chance for a dividend increase in 2011, coupled with a resumption of the company’s stock buyback plan and retirement of the company’s preferred stock. General Electric has had a pretty terrible timing of its share buyback plan over the past decade. The company spent billions between 2005 and 2007 repurchasing 513 million shares when prices were high. By 2009 the company had issued 517 million shares at much lower prices, in order to obtain liquidity in the wake of the global financial crisis. If the company does start increasing dividends in 2011 however, this could be a bullish sign. It would take at least a decade of consistent dividend raises however in order for the dividend to reach its previous levels of 31 cents/share.
Investing, Long Term Investment, stock market | admin March 22, 2010
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