Newell Rubbermaid Cuts Dividend Second Time in Six Weeks
Shares of Newell Rubbermaid ( NWL) were down nearly 10% in early trading after the company's board of directors authorized a reduction in the quarterly common stock dividend to 5 cents per share from 10.5 cents per share. Management believes that the reduced payout level demonstrates a strong commitment to maintaining its current investment grade rating while still providing a competitive and appropriate dividend yield. We had removed shares of NWL on July 9, when the stock was trading at $16.16. We had recommended the shares briefly from the $19 level. The company will now have a 2.76% dividend yield, based on last night's closing stock price of $7.25. The stock has technical support near all-time technical lows in the $4-$5 price range. If the shares can manage a rebound, we see overhead resistance around the $8-$10 level. We would remain on the sidelines for now. Newell Rubbermaid is not recommended at this time, holding a Dividend.com Rating of 2.5 out of 5 stars.
Carnival First-Quarter Profit Beats Views
Cruise-ship operator Carnival ( CCL) reported fiscal first-quarter earnings that easily beat Wall Street estimates Tuesday but trimmed its full-year guidance. The Miami-based company said it earned $260 million, or 33 cents per share in the first quarter, up from $236 million, or 30 cents per share, in the year-ago period. Net revenue fell 9% to $2.9 billion from $3.2 billion, however, as a decline in consumer demand outweighed the benefits of lower fuel costs. The EPS results easily beat the average Wall Street estimate of 19 cents per share.