The 9 positive things about today’s market CRASH
Well, that was fun. About as much fun as a hot needle in the eye – ouch! Today‘s drop of over 500 points on the DOW wasn’t exactly the dead-cat bounce I was looking for after yesterday’s drop – but it *will* come.
The real question now seems to be what is going to help sustain this market from falling further? Well today there were at least nine positive factors, want to know what they were?
Today’s dividend increases came from a broad mix of companies in industries such as technology, investment banking, chemicals and real estate (yes, real estate).
Here’s a quick run down of the 9 companies boasting a dividend increase today:
- Buckeye Technology (ticker: BKI) dividend: old .20 / new .24 = 20% dividend increase
- CBOE Holdings (ticker: CBOE) dividend: old .40 / new .48 = 5% dividend increase
- Harris Corp (ticker: HRS) dividend: old 1.00 / new 1.12 = 12% dividend increase
- JMP Group (ticker: JMP) dividend: old .10 / new .12 = 20% dividend increase
- LyondellBassell Industries (ticker: LYB) dividend: old .40 / new .80 = 100% dividend increase
- Resources Connection (ticker: RECN) dividend: old .16 / new .20 = 25% dividend increase
- Medallion Financial (ticker: TAXI) dividend: old .68 / new .72 = 6% dividend increase
- Monsanto (ticker: MON) dividend: old 1.12 / new 1.20 = 7% dividend increase
- Retail Opportunities Investments (ticker: ROIC) dividend: old .36 / new .40 = 11% dividend increase
After reviewing this list there were two stocks that especially stood out to me for different reasons.
LyondellBassell Industries (ticker: LYB) was the first equity to catch my eye. This mostly unheard of company that claims to be “one of the world’s largest plastics, chemical and refining companies.” announced a MONSTER increase of 100% in it’s quarterly dividend. The increase raises it’s yield from roughly 1.1% to 2.2% as of it’s next payment in September 2011.
Medallion Finance is the second company stood out, for a number of reasons. First off, it has the largest yield of any of today’s notables, with a higher than average yield of 7.3%, but even more interesting than the yield, is the business itself. Medallion engages in, “…originating, acquiring, and servicing loans that finance taxicab medallions and various types of commercial businesses.”
How is that for a niche business? As a company that provides loans for taxicab medallions – that is definitely a business with a large moat! A business that would be hard for many other competitors to enter and compete with. Medallion is one of those unique businesses that is not only increasing it’s dividend but appears to be well positioned to continue generating consistent cash flow and I will definitely be considering it for addition to the DDI portfolio.
Even on the worst of days in the stock market, there are always reasons to be optimistic about the future. The market can’t always go up and while there are hurdles ahead for the economy, I’m going to keep building the DDI portfolio to accelerate the amount of income it can produce.
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