The Dividend Investing Blog

The Oracle made a move today and we were the beneficiaries. I really want to believe that Warren Buffett is a honest, hard-working billionaire, but does anyone believe that to get to his position in life you can be honest? I wonder the more I follow him. Just a month or so ago he proclaimed that the stock market in the United States will not deliver the same historical returns and the recession would continue for some time. He likened the United States to a farm that keeps selling off its assets to pay bills. Yet here he is buying Wrigley. Makes you wonder doesn’t it?

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Tina Turner is a legend. She is one of the most beloved vocalists of the late 20th century. She even has a highway named after her. Today when I read that National City and Washington Mutual were trying to raise private equity cash to stay solvent, the Tina Turner hit “Private Dancer” started running through my mind. It’s like watching the same tragic tale over and over with these companies. They finally have to report their pathetic performance, cut their dividend, and beg for private money to keep going. Read the rest of this entry »

Just when things were looking bright and sunny, Wachovia steps up to spread gloom.  The company reported yesterday higher than expected losses and a dividend cut.  I never cease to be amazed at the fact that in this age of free-flowing information, a  company like Wachovia can “surprise” investors with a loss of $350 million and a 41% dividend cut.  Maybe we were all lulled into a dream-state by Wachovia CEO, G. Kennedy Thompson.  In January he proclaimed:

Will Wachovia cut its dividend? And the answer to that question is we have no plans to cut the dividend, because we don’t need to cut the dividend. We are confident in our ability to meet our 2008 business plan and that plan, as we have said before, will generate cash earnings that will cover our dividend payments, continue to build necessary credit reserves, improve our capital ratios and support growth in our business lines.

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A friend of mine has created problems for himself with the IRS.  It is nothing serious.  However, I thought it would be a good idea to remind people that the tax deadline is approaching.  With this in mind, you should also take care if you are preparing your taxes yourself.  You see my friend forgot one of his 1099–DIV forms.  He has already filed his taxes.  This means he will have to file a 1040X to correct the mistake.  Like I said, nothing serious but a pain nevertheless.  Please make sure you have all your tax paperwork in order.

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