LAS VEGAS, March 24, 2009 (GLOBE NEWSWIRE) -- Dividends are often regarded as a key indicator of a company's health and can contribute significantly to a stock investor's long-term wealth, and thus can be a crucial factor in evaluating a company for long-term investment. In today's turbulent market, it's even more critical to identify quality companies with the financial strength necessary to issue dividends.
A recent research study found that the year after large cap companies raised their dividends, they outperformed their peers (based on total return) by an average of 1.8 percentage points. Those that began paying dividends for the first time, or reinstated them after a lapse, outperformed their peers by 2.7 percentage points. Small-cap and microcap companies have also issued various types of dividends to reward existing investors as well as attract new investors.
Although the dividend payable dates for these companies have passed, some of the recently announced microcap dividends include Evergreen Bancorp, Inc.'s 5% stock dividend and cash dividend of $0.035; Colorado Goldfields Inc.'s 30% stock dividend; and American Green Group, Inc.'s preferred stock dividend. Companies that have upcoming dividend payable dates include United Community Banks, Inc.'s quarterly dividend that will be paid in common stock on April 1, 2009; Syndication Inc.'s upcoming 5% stock dividend to be paid on April 29, 2009; and TIB Financial Corp.'s stock dividend that is payable on April 10, 2009.
Kraig Biocraft Laboratories, Inc. (OTCBB:KBLB), a development stage biotechnology company focused on developing high performance polymers and technical fibers, has also recently approved a stock dividend. Shareholders of record as of the close of business on the record date will be issued nine additional shares for each share of Common Stock held. The company has made significant process in the labs over the past few months and is closer than ever to finding a solution for producing commercial quantities of spider silk, a super-strength fiber that has an unparalleled capacity to absorb energy and dissipate it in a very controlled manner.
From January 1926 through December 2004, the annualized total return for the S&P 500 was 10.46% per year. Surprisingly, the dividend component consisted of 41.28% of that return. With dividends making such a profound impact on investors' long-term returns, it is crucial that investors take dividends in consideration when making investments.
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Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results. Integrity Media Inc. (IMI) provides no assurance as to the subject company's plans or ability to effect proposed actions and cannot project capabilities, intent, resources, or experience. The subject companies have not always approved the statements made in this report. This report is neither a solicitation to buy nor an offer to sell securities but is for information purposes only and should not be used as the basis for any investment decision. IMI isn't an investment advisor, analyst or licensed broker dealer and this report isn't investment advice. IMI has been paid $2,000 for this report and other services by Quality Stocks for the benefit of KBLB. Paid reports constitute a conflict of interest as to IMI's ability to remain objective in its communication regarding the subject company.