The 2012 Dividend Sinners: 20 Companies That Don't Pay Dividends But Should
Our review focuses on Amazon.com, Inc. (NASDAQ: AMZN), Bed Bath & Beyond, Inc. (NASDAQ: BBBY), Berkshire Hathaway Inc. (NYSE: BRK-A), Cincinnati Bell Inc. (NYSE: CBB), Dollar General Corporation (NYSE: DG), Dollar Tree, Inc. (NASDAQ: DLTR), eBay Inc. (NASDAQ: EBAY), Electronic Arts Inc. (NASDAQ: EA), EMC Corporation (NYSE: EMC), Express Scripts, Inc. (NASDAQ: ESRX), Flextronics International Ltd. (NASDAQ: FLEX), Google Inc. (NASDAQ: GOOG), Jack In The Box Inc. (NASDAQ: JACK), Symantec Corporation (NASDAQ: SYMC), Teradyne Inc. (NYSE: TER), United Continental Holdings, Inc. (NYSE: UAL), Urban Outfitters, Inc. (NASDAQ: URBN), Western Digital Corporation (NYSE: WDC), Yahoo! Inc. (NASDAQ: YHOO), and Zebra Technologies Corporation (NASDAQ: ZBRA).
You will see that not all of these are old technology giants meant solely as a chase of the fresh Dell Inc. (NASDAQ: DELL) dividend announcement. Our aim is to identify companies which can make payouts but which have been holding the cash for a rainy day for far too long. Some of the more obvious Dividend Sinners are the same as you have seen criticized before, but many of these are overlooked by the media and by investors alike.
Cisco Systems, Inc. (NASDAQ: CSCO) waited far too long to adopt a dividend policy and look what happened to its shares after inaction. Kohl’s Corporation (NYSE: KSS) was the last of the big department stores to have a payout. We have finally seen in the last year that Amgen Inc. (NASDAQ: AMGN), Apple Inc. (NASDAQ: AAPL), and NASDAQ OMX Group Inc. (NASDAQ: NDAQ) capitulated and finally decided to declare a dividend policy over the last year or so; and Dell Inc. (NASDAQ: DELL) finally jumped on board with a good dividend policy.
Of the 2011 Dividend Sinners there were only one-fifth (4 of 20) of the companies covered a year ago which have since decided to institute a dividend policy. We would like to propose that one-fourth or more begin a dividend policy as 2012 merges closer to 2013.
Here is our list of The 20 Dividend Sinners in 2012 and why…