Peace Dividends That Pay Dividends of Peace
The peace dividend is a political slogan purporting to describe the economic benefit of a decrease in defense spending. It is used primarily in discussions relating to the guns versus butter theory. The term was frequently used at the end of the Cold War in the early 1990’s, when many Western nations significantly cut military spending.
While economies do undergo a recession after the end of a major conflict as the economy is forced to adjust and retool, a "peace dividend" refers to a potential long-term benefit as budgets for defense spending are assumed to be at least partially redirected to social programs and/or economic growth. The existence of a peace dividend in real economies is still debated, but some research points to its reality.
During this season of the year when we profess to honor the Masters of Peace, we thought it would be refreshing to discuss dividends from companies that have little or nothing to do with war.
The fact that these companies pay dividends at all is, to our way of thinking, an act of peace. Maybe these companies believe that “…it is more blessed to give than to receive”. Perhaps they know it helps give their shareholders peace of mind when they receive part of the profits of the company?
First let’s talk about a company that pays a whopping 6% dividend. United Online (Nasdaq: UNTD). As you can learn from the profiles on our web site (just enter the symbol, press “get quote” and then click on the word “profile”) United Online is a provider of consumer Internet subscription services through a number of brands, including NetZero, Juno and Classmates Online.
The company’s subscription services include dial-up Internet access, social-networking, Voice-over-Internet Protocol (VoIP) telephony, personal Web-hosting, premium email, Internet security and online digital photo-sharing. Co. also provides advertising-supported versions of many of its services at no charge to consumers. As of Dec 31 2005, United Online had approximately 5.0 million pay accounts representing approximately 6.4 million total subscriptions, and approximately 17.6 million active accounts.
Do they do anything that supports the business of war? Not that we are aware of. Please go to their web site at http://www.untd.com/ and you will learn why they are growing and how they are able to pay such a generous dividend…6%...that’s awesome!!
UNTD is making money, and their forward PE/ ratio of a little over 12 makes Jim Cramer and his staff feel this is a cheap stock…undervalued. These are the smart people who brought the world PrivatePhone™.
What is PrivatePhone? ``We launched PrivatePhone primarily as a way for people to give out a phone number without compromising their privacy,'' said Matt Wisk, chief marketing officer at United Online. ``While many of our members do use it for that purpose, it has really morphed into a way for people to communicate by voice online. Bloggers are putting their PrivatePhone number on their blogs to allow readers to post voicemails instead of comments, people are adding it to their MySpace pages, and DJs, bands and other entertainment types are recording outgoing messages to tell their fans where they're playing or what they're up to. We took a look at what these members were doing to promote themselves online and came up with three new features to help them do it.''
The more we study about this company the more we see why they peacefully pay abundant dividends. We are a bit concerned that they have a plan for growth that will consecutively allow them to be so generous. Before you invest any of your money here better do your research and carefully examine their web site http://www.unitedonline.net.
Next, let’s look at a financial service company that has been increasing their dividends for 35 consecutive years and currently pays out at a 4.4% rate. US Bancorp (NYSE:USB).
Our CheckTheMarkets site had this to say about Minneapolis-based USB, “U.S. Bancorp is a multi-state financial services holding company. Co.'s banking and investment services are provided through a network of 2,419 banking offices mainly operating in 24 states in the Midwest and West.
The Company provides a range of financial services including lending and depository services. Co. also engages in credit card, merchant, and ATM processing, mortgage banking, insurance, trust and investment management, brokerage, and leasing activities principally in domestic markets. Co.'s non-banking subsidiaries primarily offer investment and insurance products to its customers within its markets and mutual fund processing services. At Dec 31 2005, Co. had assets of $209.47 billion.”
Recently the company updated this information. “U.S. Bancorp, with $217 billion in assets, is the 6th largest bank holding company in the United States. The company operates 2,467 banking offices and 4,943 ATMs in 24 states, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp is the parent company of U.S. Bank. Visit U.S. Bancorp on the web at www.usbank.com.”
They are trading at a 52-week high, partly because they just announced a generous 21% increase in their dividend rate.
Richard K. Davis, president and chief executive officer of U.S. Bancorp noted, "We are very proud of U.S. Bancorp's long history of paying a dividend, which provides our shareholders with an additional reward for investing in our company. Increasing the dividend by 21 percent is an important part of our strategy to continue our commitment to return at least 80 percent of our earnings to our shareholders through dividends and a stock repurchase program. We believe shifting the total payout to shareholders toward a higher mix of dividends is a more effective means to transfer the company's superior profitability directly to the shareholders. The decision to move to a greater proportion of dividends in no way diminishes the growth prospects of the company, since we will continue to retain 20 percent of earnings to support expected asset growth, capital expenditures and cash acquisitions. A higher dividend payout such as this is consistent with our strategy of low risk, dependable earnings and financial discipline."
The only war this company is supporting is the war against bad corporate leadership and stingy payouts. The USB “peace dividend” is reflected in the fact this company chooses to take the “high road” when it comes to how they take care of their shareholders.
We are also quite stoked about BB&T Corp. (NYSE:BBT), a Winston-Salem, NC based financial services and banking company. Check out their web site to learn more.
BB&T does well by their shareholders, as is witnessed by their dividend policies. The five-year compound growth rate for BB&T's quarterly dividend payment is 10.1 percent. BB&T has paid a cash dividend to shareholders every year since 1903. The corporation has increased its quarterly cash dividend payments for 35 consecutive years.
On Dec. 12th the board of Directors declared the 2007 first quarter dividend of $0.42 per share, a 10.5 percent increase over the $0.38 paid in the first quarter of 2006. The dividend will be paid Feb. 1 to shareholders of record as of Jan. 12.
BB&T operates more than 1,450 financial centers in the Carolinas, Virginia, Maryland, West Virginia, Kentucky, Tennessee, Georgia, Florida, Alabama, Indiana and Washington, D.C.
With $118.5 billion in assets, BB&T Corporation is the nation's 11th largest financial holding company. More information about BB&T Corporation is available at http://www.BBT.com.
“Peace dividends” make a lot of sense to us. Now all we have to do is invest in the companies with the best ones available. Look carefully and then invest with confidence.
While economies do undergo a recession after the end of a major conflict as the economy is forced to adjust and retool, a "peace dividend" refers to a potential long-term benefit as budgets for defense spending are assumed to be at least partially redirected to social programs and/or economic growth. The existence of a peace dividend in real economies is still debated, but some research points to its reality.
During this season of the year when we profess to honor the Masters of Peace, we thought it would be refreshing to discuss dividends from companies that have little or nothing to do with war.
The fact that these companies pay dividends at all is, to our way of thinking, an act of peace. Maybe these companies believe that “…it is more blessed to give than to receive”. Perhaps they know it helps give their shareholders peace of mind when they receive part of the profits of the company?
First let’s talk about a company that pays a whopping 6% dividend. United Online (Nasdaq: UNTD). As you can learn from the profiles on our web site (just enter the symbol, press “get quote” and then click on the word “profile”) United Online is a provider of consumer Internet subscription services through a number of brands, including NetZero, Juno and Classmates Online.
The company’s subscription services include dial-up Internet access, social-networking, Voice-over-Internet Protocol (VoIP) telephony, personal Web-hosting, premium email, Internet security and online digital photo-sharing. Co. also provides advertising-supported versions of many of its services at no charge to consumers. As of Dec 31 2005, United Online had approximately 5.0 million pay accounts representing approximately 6.4 million total subscriptions, and approximately 17.6 million active accounts.
Do they do anything that supports the business of war? Not that we are aware of. Please go to their web site at http://www.untd.com/ and you will learn why they are growing and how they are able to pay such a generous dividend…6%...that’s awesome!!
UNTD is making money, and their forward PE/ ratio of a little over 12 makes Jim Cramer and his staff feel this is a cheap stock…undervalued. These are the smart people who brought the world PrivatePhone™.
What is PrivatePhone? ``We launched PrivatePhone primarily as a way for people to give out a phone number without compromising their privacy,'' said Matt Wisk, chief marketing officer at United Online. ``While many of our members do use it for that purpose, it has really morphed into a way for people to communicate by voice online. Bloggers are putting their PrivatePhone number on their blogs to allow readers to post voicemails instead of comments, people are adding it to their MySpace pages, and DJs, bands and other entertainment types are recording outgoing messages to tell their fans where they're playing or what they're up to. We took a look at what these members were doing to promote themselves online and came up with three new features to help them do it.''
The more we study about this company the more we see why they peacefully pay abundant dividends. We are a bit concerned that they have a plan for growth that will consecutively allow them to be so generous. Before you invest any of your money here better do your research and carefully examine their web site http://www.unitedonline.net.
Next, let’s look at a financial service company that has been increasing their dividends for 35 consecutive years and currently pays out at a 4.4% rate. US Bancorp (NYSE:USB).
Our CheckTheMarkets site had this to say about Minneapolis-based USB, “U.S. Bancorp is a multi-state financial services holding company. Co.'s banking and investment services are provided through a network of 2,419 banking offices mainly operating in 24 states in the Midwest and West.
The Company provides a range of financial services including lending and depository services. Co. also engages in credit card, merchant, and ATM processing, mortgage banking, insurance, trust and investment management, brokerage, and leasing activities principally in domestic markets. Co.'s non-banking subsidiaries primarily offer investment and insurance products to its customers within its markets and mutual fund processing services. At Dec 31 2005, Co. had assets of $209.47 billion.”
Recently the company updated this information. “U.S. Bancorp, with $217 billion in assets, is the 6th largest bank holding company in the United States. The company operates 2,467 banking offices and 4,943 ATMs in 24 states, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp is the parent company of U.S. Bank. Visit U.S. Bancorp on the web at www.usbank.com.”
They are trading at a 52-week high, partly because they just announced a generous 21% increase in their dividend rate.
Richard K. Davis, president and chief executive officer of U.S. Bancorp noted, "We are very proud of U.S. Bancorp's long history of paying a dividend, which provides our shareholders with an additional reward for investing in our company. Increasing the dividend by 21 percent is an important part of our strategy to continue our commitment to return at least 80 percent of our earnings to our shareholders through dividends and a stock repurchase program. We believe shifting the total payout to shareholders toward a higher mix of dividends is a more effective means to transfer the company's superior profitability directly to the shareholders. The decision to move to a greater proportion of dividends in no way diminishes the growth prospects of the company, since we will continue to retain 20 percent of earnings to support expected asset growth, capital expenditures and cash acquisitions. A higher dividend payout such as this is consistent with our strategy of low risk, dependable earnings and financial discipline."
The only war this company is supporting is the war against bad corporate leadership and stingy payouts. The USB “peace dividend” is reflected in the fact this company chooses to take the “high road” when it comes to how they take care of their shareholders.
We are also quite stoked about BB&T Corp. (NYSE:BBT), a Winston-Salem, NC based financial services and banking company. Check out their web site to learn more.
BB&T does well by their shareholders, as is witnessed by their dividend policies. The five-year compound growth rate for BB&T's quarterly dividend payment is 10.1 percent. BB&T has paid a cash dividend to shareholders every year since 1903. The corporation has increased its quarterly cash dividend payments for 35 consecutive years.
On Dec. 12th the board of Directors declared the 2007 first quarter dividend of $0.42 per share, a 10.5 percent increase over the $0.38 paid in the first quarter of 2006. The dividend will be paid Feb. 1 to shareholders of record as of Jan. 12.
BB&T operates more than 1,450 financial centers in the Carolinas, Virginia, Maryland, West Virginia, Kentucky, Tennessee, Georgia, Florida, Alabama, Indiana and Washington, D.C.
With $118.5 billion in assets, BB&T Corporation is the nation's 11th largest financial holding company. More information about BB&T Corporation is available at http://www.BBT.com.
“Peace dividends” make a lot of sense to us. Now all we have to do is invest in the companies with the best ones available. Look carefully and then invest with confidence.
posted by Marc Mentor at 1:08 PM
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