At is nice to know that corporate America had its highest profit margins in 18 years which will bring about bigger dividends for the shareholders, but, where are all of those jobs that the Republicans keep promising that those tax cuts will bring?. Overseas, where else?
Here's a snapshot of just how bad business has it in America.
Margins will climb to 8.9 percent in 2011, the highest level in at least 18 years, according to data compiled by Bloomberg on non-financial companies in the Standard & Poor’s 500 Index through March 11. Greater profitability combined with dividend cuts during the credit crisis have pushed earnings to 6.53 percent of the gauge’s price, or 3.5 times more than its payout rate, close to the record 3.6 multiple in January.
A total of 95 companies led by Aetna Inc. (AET) and Carnival Corp. have raised dividends as the fastest economic expansion in six years and five straight quarters of earnings growth increased confidence among chief executive officers. Of the 380 that pay dividends, 378 are forecast to maintain or increase them, according to data compiled by Bloomberg using options prices, profits, management statements and peer comparisons.
Things are going so well for the business climate that many corporations are even buying back their own shares of stock after a decline in the past few years.
Analysts say S&P 500 profits will rise 16 percent this year and surpass $100 a share for the first time in 2012, helping persuade executives at companies from CBS Corp. (CBS) to Pioneer Natural Resources Co. (PXD) and Wal-Mart Stores Inc. (WMT) to boost payouts. U.S. companies increased stock buybacks in 2010, making it the fifth-biggest year for share repurchases since at least 1985, according to Birinyi Associates Inc. With $76 billion announced, February was the best month for buybacks since December 2007.
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