ADP shares fell about 1.5% in morning trading Wednesday. We had removed shares of ADP from our "Recommended" list back on Oct.6 when the stock was trading at $41.28. The company has a 3.61% dividend yield, based on last night's closing stock price of $36.56. The stock has technical support in the $30-$33 price area. If the shares can firm up, we see overhead resistance at the $39-41 levels. We would remain on the sidelines. Automatic Data Processing is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.
In order to control costs, the company has canceled 17 vessel acquisition contracts totaling $2 billion. Charges relating to three of these cancellations will result in a $116.4 million loss in the fiscal first quarter. DryShips, whose stock has lost more than 97% of its value since hitting all-time highs in mid 2008, said it is in talks with lenders regarding additional covenant waivers on its debt. Shares of DryShips fell 78 cents, or 14%, in morning trading Wednesday. Shares of DRYS are way off their all-time highs of $116 hit in 2007. The stock is trading near all-time technical lows and support is basically shaky. If the shares can manage to stop the downtrend, we see initial overhead resistance at the $7-$9 levels. We do not currently rate this non-dividend paying stock, but do follow the name closely. DryShips suspended dividends in late January.
Jabil said it will likely suffer goodwill impairment charges for the current quarter, which will lead to a loss of between 7 and 23 cents per share, on revenue between $2.5 billion and $2.7 billion. Wall Street analysts currently expect a profit of 11 cents per share, excluding items, on revenue of $2.75 billion. Jabil shares dropped sharply into Tuesday's market close, but rebounded more than 28% in morning trading Wednesday. We had removed shares of JBL from our "Recommended" list on Sept. 3, when the stock was trading at $15.59. The company has a 4.33% dividend yield, based on last night's closing stock price of $6.46. The stock has technical support in the $3-4 price area. If the stock can continue to gain on this morning's rebound, we see overhead resistance around the $6-$8 mark. We would remain on the sidelines for now. Jabil Circuit is not recommended at this time, holding a Dividend.com Rating of 2.7 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.