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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Wowzer who wrote (45764)	12/2/2011 1:02:04 PM
From: Wowzer	Respond to of 78673

More info on UGI S&P Alters Methodology On High Yield Dividend Aristocrats Index 12/02 09:46 AM NEW YORK (Dow Jones)--S&P Indices has adjusted the methodology for its High- Yield Dividend Aristocrats Index in order to include companies that have issued special cash dividends in the last 25 years. The methodology change precedes the index's annual rebalancing, set to be implemented Dec. 7 after the market close. While index rebalancing can generate unusually heavy trading volume in stocks that are being dropped and added to an index, the change in methodology magnified some of the Aristocrats Index members' moves. The High-Yield Dividend Aristocrats index includes companies in the Standard & Poor's 1500 index that have increased their dividends every year for at least 25 years. Under the old methodology, special cash dividends were included when determining a company's total dividend payments in a calendar year. If those companies didn't repeat their special dividends the following year or increase their regular dividend accordingly, they risked losing their spot in the index. This clause previously prevented AT&T Inc. ( T:$29.02,00$0.1800,0.62%) from being included in the index. As of the annual rebalancing, it will be added. "It's now a much better index," said Steve Abel, senior director at S&P Indices. "We're capturing more of the aristocrats." The index must include 80 stocks, but there aren't necessarily 80 companies that have increased their dividends every year for the past 25 years. In this case, the index must reduce the time requirement. If the index hadn't removed the clause requiring the inclusion of special dividends, Abel said the High-Yield Dividend Aristocrats index would have had to go to the easier requirement of companies increasing their dividends every year for 20 years versus 25 years. Typically, annual rebalancings result in a turnover of about 21%, Abel said. This year, however, the turnover for the index is 25%. Among the companies added to the index, Old Republic International Corp. ( ORI:$9.1100,$1.0400,12.89%) jumped 9.2% to $8.81 on heavy volume, and Brady Corp.'s ( BRC:$31.8100,$1.7300,5.75%) Class A shares added 5.1% to $31.60. Among the deletions, Atmos Energy Corp. ( ATO:$32.44,00$-1.7000,-4.98%) shed 5.3% to $32.33, Hormel Foods Corp. ( HRL:$29.1000,$-0.8300,-2.77%) slipped 3.4% to $28.97 and UGI Corp. ( UGI:$28.7100,$-1.0500,-3.53%) lost 4.2% to $ 28.52. Universal Corp. ( UVV:$42.00,00$-3.7200,-8.14%) declined 5.5% to $43.21. -By Corrie Driebusch, Dow Jones Newswires; 212-416-2143; corrie.driebusch@ dowjones.com; (END) Dow Jones Newswires 12-02-111246ET Copyright (c) 2011 Dow Jones & Company, Inc.

To: Wowzer who wrote (45764)	12/2/2011 1:51:46 PM
From: Paul Senior	Respond to of 78673

"The drop in UGI may be a buying opportunity. Goes x-dividend 12/13 and at 28.5 yields 3.7%." Okay, Wowzer, I'll take some now at $28.65 Ten years of steadily rising stated book value. Good history of raising dividends. ROE seems to be dropping. Seems like d/e ratio is falling too though (not sure) Should work out okay as either a short-term trade or for a steady-eddy, buy-and-hold, conservative investment. Jmo. As I learn more about the company, I'll understand more clearly.