Significantly larger and more profitable, having greater cash flows, ownership structure and some growth opportunities.
For the study the sample of 320 non financial listed firms listed on the Karachi Stock Exchange (KSE) are selected. The 320 non financial firms cover the 85% of the total firms in the market (KSE and in 2007. The data is collected from Securities Exchange Commission of Pakistan, State Bank of Pakistanand the Karachi Stock Exchange. The variables of the study are calculated from the Audited Annual
Accounts 4 of 320 firms for the period of 2001 to 2006 which is about 1830 observations for each variable and it is a long period enough to smooth out variable fluctuations (Rozeff, 1982)The relationship between the investment opportunities or slack and
dividend payout policies is negative and highly significant with all four models. The firms with large financial opportunities pay less dividends. Therefore, we can say that growing firms with moreinvestment opportunities pay less dividends to their shareholders in Pakistani market. Hafeez Ahmed ….Attiya Y. Javid, 2009
http://www.eurojournals.com/irjfe_29_07.pdf
As far as the dividend policy in the Greek market is concerned, there is a number of papers testing alternative dividend policy models. Patsouratis (1989) investigated empirically the Greek corporate dividend behavior employing analysis of covariance. The basis of this research is the classic work of Brittain (1964). His sample consists of 25 firms and covers the period 1974 - 1983. Next, Joannos and Filippas (1997) examined the dividend policy of 34 firms listed in the Athens Stock Exchange during the period 1972 - 1988. Their empirical results lead to the general conclusion that Lintner's model best describes the dividend policy of the Greek firms. Current profits constitute the most important variable that tends to influence the change in dividends (Nikolaos Eriotis,,2005)
http://www.cluteinstitute-onlinejournals.com/PDFs/2005169.pdf
One explanation was that a firm tended to
use internal funding sources to finance investment projects if it had large growth
opportunities and large investment projects. Such a firm chooses to cut, or pay fewerdividends, to reduce its dependence on costly external financing. On the other hand,firms with slow growth and fewer investment opportunities pay higher dividends to prevent managers from over-investing company cash.
Duha Al-Kuwari*,2009
http://wbiaus.org/3.%20Duha.pdf
of Greek firms and found that Greek firms set their dividend policies not only by net distributedearnings, but also by change in dividend, the change from last year earnings and size of the firm. Theempirical findings of the study suggested that distributed earnings and size of firms are included as asignal about the firms dividend. The Greek firms also having the long term dividend payout ratio wasstudied by the author using two variables to determine the corporate dividend payout decisions,distributed earnings and size of the firm. The panel regression (Cross Section Weights) were done and
the results of the model gave significant estimations with the explanatory power (R2) 95.4%. Theevidence of the model suggested that dividend at time (t) can be expressed as the long run target dividend payout represented by both changes in dividend and in distributed earnings and its speed of adjustment towards distributed earnings and the last year dividend of the firm at (t). So the conclusion of the study is that Greek firms have a general dividend policy to distribute, each year dividend
according to their target payout ratio, which is distributed earnings and size of the firm.
Osuala (2005) in his study, determinants of corporate dividend policy in Nigeria found that profitability (EAT) and return on equity (ROE) affect dividend payments. Naceur et al (2006), conducted the study on the determinants and dynamics of dividend policy of Tunisian stock exchange.They selected 48 firms (non financial) and examined weather the managers of the listed firms smooth their dividends or not. They attempted to explain if the Tunisian firms follow stable dividend policy? Do dividend yield differ across the industry sector? What are the main factors that determine the dividend policies in Tunisia. Baker et al (2007), conducted the study on the perception of dividends by
Canadian managers by taking the sample of 291 listed firms on Toronto Stock Exchange (TSE). The results of the studies regarding the factors influencing dividend policy, matters involving with dividend policy and explanation of why firms pay dividend show that the most important factors for determinants of dividend are level of expected future earnings, stable earnings, pattern of past dividends and the level of current earnings. The evidence of the study suggests thatmostly managers of TSE listed firms are still making the decision regarding the dividends consistent with survey results and behavioural model of Lintner (Okpara,2010)
http://www.eurojournals.com/ajsr_8_07.pdf
Weygand and JIANG Yi-macro way of a questionnaire survey examined the distribution of China's listed companies issue dividends and found that no distribution of cash dividends of listed companies, mainly because there is a good investment projects, rather than because shareholders do not like the flow of cash dividends. Free Papers,2009
http://eng.hi138.com/?i159345#
Suspension of dividend payout for 2008 to strengthen liquidity position
Wienerberger AG, the world's largest brick producer and Europe's No. 2 in clay roof tiles. Liquidity takes top priority - no dividend payout planned for 2008 "On account of the growing economic uncertainty of recent weeks and concerns about a further deterioration of markets, we propose to suspend dividend payout for 2008. This has not been an easy decision for us, but strengthening liquidity is a matter of absolute priority in the current situation. Many of our shareholders expect this step and signaled their agreement in numerous conversations we had with them. 2010 by Wienerberger AG
http://www.wienerberger.com/servlet/Satellite?pagename=Wienerberger/WBArticle/ArticlePress05&c=WBArticle&cid=1236017661170&sl=wb_com_home_en
Evonik Degussa GmbH (Degussa, or the company) reflect its full ownership by Evonik Industries AG
(Evonik, or the group, not rated), the Germany-based industrial conglomerate operating in chemicals, energy, and real estate
factor in further material near-term debt reductions, because strong 2010 cash flows will likely be absorbed by working capital outflows, sustained high capital spending, and dividends. We qualify Evonik's liquidity position as strong. On March 31, 2010, its liquidity consisted of:
ï‚·ï€ â‚¬1.4 billion of reported cash and cash equivalents, the bulk of which we understand sits at the parent company (Karl Nietvelt, and Tobias Mock,2010)
http://corporate.evonik.com/sites/dc/Downloadcenter/Evonik/Corporate/de/Investor-Relations/Boersengang/Evonik-Degussa-SP-Summary-Analysis.pdf
Beckman Coulter, Inc. (BEC) provides biomedical testing instrument systems, tests, and supplies for clinical laboratories worldwide. The company raised its quarterly dividend by 5.60% to 19 cents/share. This marked the 18th consecutive annual dividend increase for this dividend achiever. This dividend growth stock has managed to increase distributions by 8.40% per year over the past decade. Unfortunately, the company's dividend history will be cut short because it is being acquired by Danaher (DHR).
Atom,2011
http://www.dividendgrowthinvestor.com/
with these risk factors in mind, I went in search of likely candidates for dividend cuts.
Barnes & Noble (NYSE: BKS)
Yield: 7.5%
On the surface, Barnes & Noble looks attractive. After all, it offers a $1.00 dividend and rich yield. But looks can be deceiving. This bookseller faces eroding sales and growing competition from the likes of Amazon.com (Nasdaq: AMZN). Barnes & Noble recorded consecutive quarters of operating losses and cash flow of only $29 million in the last three quarters. This fell far short of the $43 million it needed for dividend payments. Debt is high at $630 million and cash reserves are small at only $27 million. Barnes & Noble is exploring "strategic alternatives," which usually means seeking a buyer. The most likely suitor, Borders (NYSE: BGP) would eliminate the dividend entirely.
Nucor Corporation (NYSE: NUE)
Yield: 3.6%
Steel-maker Nucor has been plagued by soft demand from construction markets in 2010. Company management says this year's fourth quarter could be its most challenging. Nucor made a token one penny increase in the annual dividend to $1.45 this month, but the current rate isn't sustainable if Nucor's markets don't rebound soon. At present, the dividend payout rate for Nucor is 225%. The company produced $448 million of cash flow in the past 12 months - less than the $500 million needed for dividend payments. Nucor has a $2 billion war chest to cover shortfalls for a while, but the dividend could be in jeopardy next year if cash flow doesn't improve.
Lisa Springer,2010
http://jutiagroup.com/20101212-these-5-dividends-are-likely-to-be-cut-very-soon/
Everyone loves to slag Microsoft. It's lazy. It doesn't know how to innovate. It has weak growth prospects. But one thing it does have is lots and lots of cash: About $37-billion, or more than $4 a share, in cash and short-term investments as of June 30.
Now, investors are agitating to get some of that money back in the form of rising dividends. The software giant last hiked its dividend in 2008, but Mr. Riach said "significant" dividend increases could resume soon.
With the current dividend covered more than five times by operating cash flow, Microsoft could certainly afford a hike. And with a P/E of 10 times this year's earnings, "at this price I think it represents good value," he says. (John Heinzl,2010)
http://www.theglobeandmail.com/globe-investor/investment-ideas/five-foreign-dividend-stocks-that-can-afford-to-boost-payouts/article1704968/
TOKYO (AFX) - Japan's big three shipping lines today all posted record earnings for the past year to March, as higher freight rates and cargo volumes more than offset the impact of rising fuel prices and exchange rate losses.
But all three shippers forecast more difficult conditions ahead, causing the share prices of two to fall in trading on the Tokyo Stock Exchange.
Industry leader Nippon Yusen KK said its net profit for the past year to March more than doubled to 71.3 bln yen, as revenue rose 15 pct to a record 1.606 trln yen.
'Both shipping volumes and freight rates stayed at high levels throughout the past year,' senior managing director Yukio Ozawa told a news conference.
Net profit at Mitsui OSK Lines Ltd, Japan's second-largest shipping company, surged 77.4 pct to a 98.3 bln yen, on a 17.7 pct jump in revenue to an all-time high of 1.173 trln yen.
Mitsui OSK posted record earnings even after booking a special loss of 20.3 bln yen to write down the value of assets to market rates, as all Japanese companies will be required to do, beginning this year.
'We benefited significantly from the enlarged scale of our fleet and sharp increases in freight rates amid buoyant shipping demand,' Mitsui OSK Lines executive officer Kenichi Yonetani said.
Kawasaki Kisen Kaisha Ltd, the third-largest shipping line, reported its net profit soared 80.3 pct to 59.8 bln yen, on a 14.3 pct increase in revenue to 828.4 bln yen.
'Thanks to buoyant handling volumes and the recovery in freight rates, we achieved a record-breaking performance,' managing director Mamoru Shozui said.
Kawasaki Kisen, commonly known as the K-Line, also posted record profit despite booking 11.5 bln yen in special charges to improve its balance sheet.
All three companies announced big dividend increases.
Nippon Yusen boosted its annual dividend payout per share to 18 yen from 10 yen in the previous year. Mitsui OSK hiked its payout to 16 yen per share from 11 yen, and Kawasaki Kisen raised its annual dividend to 16.50 yen from 10.00 yen (vBulletin.2005)
http://www.skyscrapercity.com/showthread.php?t=212940
