Coca Cola Company
Splits Stock For 11th Time -- Charles Schwab Offers New Global
Some subscribers were worried this week
when it appeared that Coca Cola's (KO) stock price fell sharply.
Rest assured that the price change was due to the company
splitting its stock 2-for-1. This is the 11th time the company
has split its stock since it began trading in 1919.
Since being recommended for our High-Dividend
Blue Chip Stock Portfolio, Coca Cola's stock has
provided a total return of 77.9%, assuming reinvestment
For investors looking to buy
stocks directly on foreign exchanges, Charles Schwab has introduced
account which offers trading in 12 of the top-traded foreign
markets in their local currencies. Investors can trade online
commission-free through March 2013. Check here
for our list of recommended discount brokers.
Hungry For Dividends? PepsiCo
Boosts Dividend Payout. McDonald's Declares Latest
Today, PepsiCo, Inc. (PEP)
announced its latest quarterly dividend. The company has increased
its quarterly dividend to $0.5375 per share, equivalent to
an annual rate of $2.15. Based on today's closing price of
$69.96, that gives the company a 3.07% dividend yield. The
company has raised its dividend 40 consecutive years. Over
the least 8 years, the company's dividend has grown
at a compound annual rate of 15.6%. The beverage
company has paid a quarterly dividend each year since 1965.
The dividend is payable September 28, 2012, to stockholders
of record on September 7, 2012.
PepsiCo is part of our High-Dividend
Blue Chip Stock Portfolio which has provided a total return
of 245.5% (14.5% annually) since its inception
in May of 2003. Equal investments in the S&P 500 would
have returned 46.9% (4.3% annually).
Another member of the portfolio, McDonald's
Corp. (MCD), also announced a dividend this week. McDonald's
latest quarterly dividend ($0.70 per share) will be payable
on September 18, to stockholders of record on September 4,
2012. Over the last 9 years, the company's dividend
has grown at a compound annual rate of 11.9%. Since
being recommended for our High-Dividend
Blue Chip Stock Portfolio, McDonald's stock has
provided a total return of 120.3%. The company's
current dividend yield is 3.05% based on today's closing price
Sign for Stocks: Consumer Finances Have Largest Quarterly
Improvement in 13 Years
Just how important is consumer spending
to our economy? Extremely important, as it make up 70% of
the U.S. economy. And the more cash that is available for
consumers to spend, the better the outlook for the economy.
One measure of consumer finances is the
ratio of bank deposits, stock accounts, and other assets to
debt. In the fourth quarter of last year, consumers had 1.99
times more in these types of assets than debt. In the first
quarter of 2012, that number jumped to 2.11 times, the largest
quarterly increase in 13 years according to Joseph LaVorgna,
an economist at Deutsche Bank.
With consumers in good shape to spend, the
stock market could have a great second half that matches or
exceeds the 8.3% gain that the S&P
500 delivered in the first half.
-Rex M. Jacobsen
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