Bright Side of 'The New Boring'

The new boring: the economy muddles along, with no growth. The balance sheet of corporate America is in good shape. Corporations are starting to say, we have a ton of cash, let's go out and buy someone and cut expenses.

1) Genzyme , a $55 stock, rejects a $69 offer from Sanofi for all cash!

2) Potash , $105 stock, rejects a $130 cash offer from BHP Billiton and continues to trade at $140!

3) 3Par , a $10 stock, ignites a bidding war between Dell and Hewlett and still may not have settled at HPQ's bid of $30!

4) The McAfee deal with Intel is all cash!

5) HPQ, with $14 billion in cash, announces a $10 billion stock buyback.

Meanwhile, investors anticipating a prolonged period of low inflation and low growth are reaching for yield — driving up prices of higher-yielding stocks. That's why the only sectors in the S&P 500 that are up this month are the high-dividend paying sectors: telecom (up 1.7 percent) and utilities (up 1 percent).

High dividend payers in the S&P 500:
(dividend yield)

Altria 6.7%

Verizon 6.4%

AT&T 6.4%

Progress Energy 5.8%

Integrys Energy 5.6%

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