Joe Tigay's blog

05/11 Morning Brief

CPI data came in lower than analysts estimates, indicating that inflation fears are easing. The U.S., Canada and Mexico are focusing on rewriting the auto rules at the
center of the North American Free Trade Agreement as negotiators face hard deadlines to wrap up a new deal. That could mean less drastic changes to
other controversial parts of Nafta. Congress has advised the White House to "modernize Nafta in ways that expand trade opportunities without curtailing American consumers' freedom."

May 10th Morning Brief

Thursday, May 10, 2018

On the economic calendar this morning is the monthly CPI numbers which were just released. The consumer price index rose 0.2% in April. The consumer price index has risen 2.5% in the past 12 months - the highest rate in 14 months. Yet the yearly increase in the core rate was unchanged at 2.1%, a softer than expected reading that's likely to give comfort to a Federal Reserve on inflation watch

Wolverine: 1Q Earnings Snapshot

ROCKFORD, Mich. (AP) _ Wolverine World Wide Inc. (WWW) on Wednesday reported first-quarter net income of $45.8 million.

The Rockford, Michigan-based company said it had profit of 48 cents per share. Earnings, adjusted for non-recurring costs, came to 50 cents per share.

The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 37 cents per share.

Read the full report here.

The Great Dividend Conundrum

More often than not, dividend-paying stocks form the foundation of any successful long-term investment portfolio. They also, coincidentally, tend to handily outperform their non-dividend-paying peers over time.

But aside from sheer outperformance, dividend stocks bring three benefits to the table that investors seem to appreciate. First, dividend stocks usually have time-tested business models and relatively clear long-term outlooks -- otherwise they wouldn't be sharing a percentage of their profits with shareholders. Second, dividend payouts act as a means to partially hedge against the inevitable "hiccups" the stock market undergoes. Finally, dividends can be reinvested back into more shares of dividend-paying stock, supercharging your ability to build wealth.


The Great Dividend Conundrum 

However, dividends also offer investors quite the conundrum: We want the highest yield possible, but we also want the payout to be sustainable over a long period of time. Though each case varies, the higher the yield, the more unsustainable the payout. Remember, dividend yield is a function of the total payout and a stock's share price. As an example, if a company's underlying business model is in trouble, and its share price loses 50%, its dividend yield will double, providing a dangerous lure for unsuspecting investors.


Click here to read the full story


Exclusive: Apollo Global approaches Xerox about possible acquisition - sources

By Liana B. Baker and Greg Roumeliotis

(Reuters) - Buyout firm Apollo Global Management LLC (APO.N) has approached Xerox Corp (XRX.N) to express interest in a possible acquisition, casting new uncertainty over the U.S. printer company's $6.1 billion sale to Japan's Fujifilm Holdings <4901.T>, people familiar with the matter said on Wednesday.

The development marks the latest twist in Xerox's saga. On Tuesday, Xerox said its chief executive, Jeff Jacobson, and most of its board will step down to settle a lawsuit by activist shareholders Carl Icahn and Darwin Deason.

Read the full story here.