Johnson Controls Shutting PlantsShares of Johnson Controls ( JCI) were down slightly in early trading after the automotive supplier announced it was shutting 10 plants and would be cutting jobs. This restructuring announcement follows a recent $495 million restructuring program announced during the fourth quarter of fiscal 2008. Management does expect to manage through this environment from a position of strength and enhance its ability to gain further market share while improving its margins.
Pepsi Bottling Raises Dividend Payout 6%Shares of Pepsi Bottling Group ( PBG) were relatively unchanged this morning after the company announced that its board of directors authorized an increase in the company's quarterly dividend, raising it 6% from 17 cents to 18 cents. It marks the sixth consecutive year that the board has increased the dividend. The increased quarterly dividend of 18 cents per share will be paid on June 30 to all PBG shareholders of record as of June 6. We have avoided shares of PBG since our early June coverage began, and the stock was trading at $31.46. The company has a dividend yield of 3.24%, based on last night's closing stock price of $22.19. The stock has technical support at the $18 level, and if that fails to hold, it can test $12 a share. If the shares can firm up, we see overhead resistance around the $24-$26 price points. We would remain on the sidelines for now, but we are happy to see the dividend increase.
Pepsi Bottling Group is not recommended at this time, holding a Dividend.com Rating of 3.3 out of 5 stars.
Tyson Foods Shutters Another Plant, Cutting JobsShares of Tyson Foods ( TSN) are down nearly 4% in early trading following the announcement that the meat processing company will be closing its Ponca City, Okla., processed meats plant and is shifting production to other company facilities. The Ponca City plant closing will affect approximately 580 people, and is expected to result in a noncash charge to Tyson's fiscal second-quarter earnings of approximately 2 cents per share. We have avoided shares of TSN since our early June coverage began, and the stock was trading at $16.17. The company has a dividend yield of 1.61%, based on Friday's closing stock price of $9.35. The stock has technical support in the $5-$6 price range. If the shares can firm up, we see overhead resistance around the $12-@14 levels. We would remain on the sidelines for now. Tyson Foods is not recommended at this time, holding a Dividend.com Rating of 2.7 out of 5 stars.
Accenture Shares Tumble on Weaker OutlookShares of Accenture ( ACN) were down 12% in today's trading following the company's second-quarter earnings report, which was $411.4 million, or 63 cents per share, compared to $406.6 million, or 64 cents per share, a year earlier. The company said revenue fell 6 percent to $5.27 billion from $5.61 billion, as the company felt the effects of an uncertain environment that affected business broadly and had a dramatic impact on some of its clients. Looking ahead, management sees full-year EPS in the range of $2.60 to $2.67 per share, below its previous estimate of $2.78 to $2.85. The consensus is for earnings of $2.79.
We had removed shares of ACN from our "Recommended" list on Oct.6, when the stock was trading at $35.19. The company has a 1.56% dividend yield, based on last night's closing stock price of $31.96. The stock does have some technical support in the $27 area, but if that fails to hold, we may see $21-$22 as the next level of support. If the shares can firm up and rebound, we see the $34 mark as a level of overhead resistance. We would remain on the sidelines for now. Accenture is not recommended at this time, holding a Dividend.com Rating of 3.4 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.