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Huge Appetite. M.I.T.'s aggressive leadership spawned a whole line of imitators and variations: ¶ The unrestricted common stock funds such as M.I.T., which like to keep a balance between dividend and growth stocks. ¶ The growth funds, which are concerned not with dividends but with long-term capital gains (M.I.T.'s own growth fund). ¶ The balanced funds (Philadelphia's Wellington Fund), which keep their money in both stocks and bonds and shift the balance as the market changes. ¶ The income funds, liked by elderly or retired investors, which concentrate on high-yielding stocks (Manhattan...

Author: /time Magazine | Title: WALL STREET: The Prudent Man | 6/1/1959 | See Source »

...most Wall Streeters and nearly all stockholders like splits. A split produces an optimistic psychology among investors; it seems to promise that things are going well with the company, especially when the split is accompanied by a hike in the dividend. Corporations like splits because they keep the price low, broaden the market for their securities. Many an investor would rather buy 100 shares at $15 a share than ten shares at $150. Atlantic Refining was selling at $86 and losing stockholders when it split its stock in 1952. In the following few months its list of stockholders increased...

Author: /time Magazine | Title: STOCK SPLITS: An Old Way to Make New Friends | 5/18/1959 | See Source »

Many investors believe that splits bring higher prices, but this is not necessarily so. To push up the price the company must also raise the dividend. After a two-year study, C. Austin Barker reported in the Harvard Business Review that 75 companies that split their stock and raised the dividend quickly gained 18% in price over and above the rise in the market, held the gain six months later. But a group of 13 companies that split their stock without raising dividends temporarily gained only 5% in price, dropped back 8% below the market level...

Author: /time Magazine | Title: STOCK SPLITS: An Old Way to Make New Friends | 5/18/1959 | See Source »

American Motors earned $2.10 for its second fiscal quarter, boosting first-half earnings to $5.66 per share v. $1.25 during the same period last year. For the first time since 1954, American returned to a quarterly cash dividend program, declared a 60? payment. With the peak sales season coming up, President George Romney said he "anticipates an even higher level" of production, sales and earnings...

Author: /time Magazine | Title: Business: To Higher Roads | 5/4/1959 | See Source »

...signed up. Lear profits in the first quarter of its fiscal year ran 33% ahead of 1958 (which registered an 87% gain over 1957) to better than $400,000. The backlog of firm orders was up to $77 million, biggest in the company's history, and a 10? dividend was declared, the third such quarterly dividend in a row. Last week Bill Lear was looking for more. He got ready to fly to Japan to line up Japanese engineering and manufacturing talent for production of a new private plane to cash in on the world market for private flying...

Author: /time Magazine | Title: CORPORATIONS: Mr. Navcom | 5/4/1959 | See Source »

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