Hot Dividend Stocks 2011 - MARCH 23, 2011, 10:27 A.M. ET
US HOT STOCKS: Adobe, Jabil, Bank Of America, Discover, Cintas
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U.S. stocks traded lower Wednesday as the Dow Jones Industrial Average lost 31 points to 11988, the Standard & Poor's 500 slipped 8 points to 1286 and the Nasdaq Composite shed 16 points to 2668. Among the companies whose shares are actively trading in the session are Adobe Systems Inc. (ADBE), Jabil Circuit Inc. (JBL) and Bank of America Corp. (BAC).
Adobe Systems' ($31.37, -$1.51, -4.59%) fiscal first-quarter earnings grew 84% on especially strong product and services revenue, although the software maker warned of weakness in the current quarter as a result of business uncertainty in Japan.
Jabil Circuit's ($20.91, +$1.98, +10.46%) fiscal second-quarter bottom line climbed 86%, and the contract electronics manufacturing company's core profit trumped its own upbeat guidance as sales rose. Shares gained as Jabil also predicted stronger-than-expected results in the current quarter.
The Federal Reserve rejected a plan by Bank of America ($13.52, -$0.36, -2.59%) to "modestly" increase its dividend this year, a potential setback for the nation's biggest bank in its attempt to regain its footing.
Discover Financial Services (DFS, $22.80, +$0.55, +2.47%) reported it swung to a fiscal first-quarter profit as spending on its cards continued to rise and it set aside less to cover loan losses.
Cintas Corp. (CTAS, $29.29, +$1.15, +4.09%) said Tuesday its fiscal third-quarter profit rose 21% on strong sales from the company's business services segment, continuing a trend of rebounding revenue. The results sharply beat Wall Street estimates.
UBS raised its stock-investment rating on AOL Inc. (AOL, $19.39, +$0.42, +2.21%) to buy from neutral, saying web traffic stabilization combined with deeper ad monetization could be near-term catalysts. Expect continued declines in AOL's subscription business, the firms said, but buy for premium-content and high-quality ads strategy.
Hot Dividend Stocks 2011