A Sad Day for Dividend Income Stocks

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, Managerial Accounting.

Last week signaled a sad turn for the “widows and orphans” stocks — classic income providers that were once bread-and-butter favorites of investors. Questions: 1. Why was it a sad time for “widows and orphans” stocks? 2. What did Anheuser-Busch do that also signaled bad times? 3. Why does dividend income matter? 4. How many… Read more »

The Fate of GE Dividends

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized, Video Updates.

General Electric’s 119-year-old dividend is a source of pride inside this once-dependable company. Questions: 1. Why is a dividend cut expected? 2. What is the estimate of how much might be cut? 3. Even with the cut, the dividend is expected to do what to GE’s financials? Source: Egan, M. (2018). GE’s 119-year-old dividend is… Read more »

Huge Food Merger

Posted by & filed under Accounting Principles, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

Heinz is going to buy 51% of Kraft in a deal brokered that is by Berkshire-Hathaway and the Brazilian-based private equity company 3G. As a result, Kraft shareholders will get a $10 billion special dividend (about $16.50 a share) under the deal. Questions: 1. What happened to the price of Kraft shares after this deal… Read more »