Baxter’s Dividend and Fiserv’s New High

I knew this week was going to be slow for market news, but it’s duller than I had imagined it would be. Coming after a week jammed with elections, the Fed meeting, the jobs report and more earnings, this week is a nice relief.

The best news today is that Baxter International (BAX) decided to raise its dividend. That’s a nice vote of confidence by the board and it’s also a good present for shareholders. As I’ve said many times, I greatly prefer cash dividends over stock buybacks.

Shares of Fiserv (FISV) also broke out to a new 52-week high today of $56.12. The stock gets ever closer to its all-time high of $59.59 reached three years ago. The stock is going for just 12.5 times next year’s earnings. I find it amazing that Fiserv is trading at the same valuation as the rest of the market. This is a company whose earnings climbed steadily during the recession. Earnings-per-share this year will be more than double the EPS from 2004.

Posted by on November 9th, 2010 at 3:04 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.