Valued at over $3 billion each, these mega-sized blue-chip companies
have managed to pay out dividends for decades. Some have paid a dividend
for the past century or even longer.
But to earn their coveted status, they've had to increase their
dividend every year for the past 25 years. And to keep the status, they
have to keep paying a larger dividend every year from now on -- no easy
feat.
That's why only 54 out of the 500 stocks in the S&P 500 have made the cut. (more)
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zerohedge.com / by Tyler Durden / 05/22/2014 13:43
It is common knowledge among those that
prefer to see the glass of aggregate demand always half-full (in need
of fiscal or monetary stimulus and thus always time to BTFD) that stocks
“climb a wall of worry” and that stocks can’t drop if so many people
are negative. However, while we are sorry to steal the jam from their exuberant ‘cash on the sidelines’ donut,
the truth is that eventually ‘strong hand’ short positions build to a
point where they dominate and provide the tipping point of weakness in
stocks. As Goldman Sachs highlights in the following two charts of short interest ratio (days to cover) and aggregate short interest (dollars), the last time there was this much money short was mid-2007… and that didn’t end well.
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