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)
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