Dividend Policy Captures Attention

September 12, 2016

Dividend policy gathers lots of crowd’s attention over the weekend, from Dow Chemical issuing a new quarterly dividend to discussions in Australia regarding the possibility of the disappearance of bank dividends for investors in next recession. Stay tuned to Sentifi for the latest updates on dividend.

Sentifi Top Attentions September 12

1/ Dividend Policy: Investors won’t get bank dividends in the next recession

That’s the matter being discussed in Australia, supported by Wayne Byres, chairman of the Australia Prudential Regulation Authority. The reason is that the banks have to rebuild capital eroded by loan losses in a recession, thus they will have to stop paying dividends.

2/ Chipotle: The crowd’s still abuzz about Bill Ackman’s investment

The crowd is saying Ackman is wrong for betting on Chipotle, the restaurant chain plagued with health issues. Stephen Anderson of Maxim Group said: ““He’s wrong about Chipotle at this point. … The company isn’t what it once was. If he gets anything done, it’s going to be in the realm of operations and border management makeup.” Chipotle is known to use promotion such as buy-one-get-one or free burrito offers to drive traffic. But considering all the health issues and food safety incidents Chipotle has on its plate, the traffic of course takes a hit and is dwindling. The chain is also exposed to $15 per hour minimum wage mandates, which could prove problematic as well.

3/ Energy Crisis: Pakistan asks for loan from Asian Development Bank to cope with energy crisis

The country has requested to double its loan, from $400 million to $800 million, to beef up its energy sector reforms. Its growing population is putting pressure on its energy sector which has failed to grow at the same pace to keep up with the demand. Pakistan has a five-year plan in place to solve the crisis, something that Denmark would like to lend a helping hand. Denmark’s ambassador to Pakistan Ole Thonke said the Danish government wants to support Pakistan in energy production, policy reform, safety enhancements, and loan and grid management.

4/ Wells Fargo: Reputation is damaged due to a string of scandals

Wells Fargo's string of scandals help it make it to Sentifi Top Attentions September 12.
Wells Fargo has a long way to repair its image. (Justin Sullivan/Getty Images)

Illegal fees charged to student loan borrowers, bad mortgage loans, predatory lending and creating 2 million fraudulent customer accounts are all some of the scandals Wells Fargo has found itself in. Its reputation is damaged, and the bank said it will fix the problems. Many analysts believe the bank will be able to bounce back because some of its rivals are dealing with much more adversity and sever crisis situations.

5/ Alstom: Plans to stop making trains at Belfort, France

The trainmaker’s decision to shift production from its Belfort plant to Reichshoffen plant in eastern France caught many off guard, including French President Francois Hollande. He plans to meet Prime Minister Manuel Valls to discuss the matter on Monday. Valls said Alstom’s decision was “unacceptable,” and should not make this type of decision on its own.

6/ Groupon: Shares raised 27.54 percent over the past six months

The company is doing relatively well, with stock being -9.12 percent for the month and 65.52 percent for the quarter. Wall Street brokerage firms are giving the company a Hold reccomendation.

7/ Gawker Media: New owner deletes six posts involved in lawsuits

Gawker continues to make headlines and on Sentifi Top Attentions
Gawker Media was asked by Univision to delete six posts involved in lawsuits.

The executives at Univision have ordered Gawker Media to delete six posts that were “under active litigation against Gawker Media and that Unimoda had been authorized only to purchase the assets, and not the liabilities, of the company.”

9/ Vijay Mallya: The Enforcement Directorate’s attempt to bring back Mallya hits roadblocks

The ED is running into trouble for trying to execute a non-bailable warrant for the arrest of Mallya for money laundering and tranfer him to India after the Ministry of Home Affairs has notified the ED that it cannot do so. The ED was using the provisions of MLAT between the U.K. and India for its attempt, and now it plans to write to MHA and MEA to seek legal clarification on the issue.

10/ Rolls-Royce: HS 2 CEO Simon Kirby is joining Rolls-Royce

Head of British high-speed rail project HS2 is joining Rolls-Royce as its COO, but instilling more uncertainty to the £55 billion project.

If you want to harness the wisdom and insights from the crowd to monitor your portfolio free of charge, sign up at Sentifi.