Corporate Profits Hit 18-Year High
Thursday, March 17, 2011
Profit margins are expected to climb nearly 9% this year among companies in the Standard & Poor’s 500 Index, marking an 18-year high.
The third consecutive year of the bull market will see profits increase 8.9% in 2011, which would be the highest level since 1993. That’s good news for investors, who could see higher dividends. Bloomberg reports that of 380 companies in the S&P that pay dividends, 378 are projected to maintain or increase them.
The situation is less encouraging for non-investors. Back in that banner year of 1993, the unemployment rate fell from 7.3% to 6.5%. According to the most recent figures released by the Bureau of Labor Statistics, the unemployment rate is 8.9%.
-Noel Brinkerhoff, David Wallechinsky
Profit Margins at 18-Year High Signal Bigger Dividends Coming for S&P 500 (by Whitney Kisling and Lynn Thomasson, Bloomberg)
- Top Stories
- Unusual News
- Where is the Money Going?
- U.S. and the World
- Appointments and Resignations
- Latest News
- Top Private Prison Firm Tries to Prevent Public Disclosure of Documents Exposing Prison Operations
- U.S. Justice Dept. Sues Georgia for Widespread Discrimination of Disabled Students
- At 8 Deaths a Day, Accidental Overdose Fatalities Hit Record High in Ohio
- Study Finds Most Teens Vape Non-Nicotine Fruit Flavors, But CDC Skeptical
- Court Rules against Michigan for Cutting Food Stamps for People it Misidentified as Fleeing Felons