Medtronic raises dividend 9%, to buy back 60 Million more shares

Medical device maker Medtronic Inc. said Thursday its board of directors increased its dividend by 9 percent to an annual rate of 82 cents. The increase raises the quarterly amount to 20.5 cents.

The increase is effective for the 2010 fiscal year. The quarterly dividend is payable July 31 to shareholders of record as of July 10.

The board also approved the buyback of an additional 60 million shares of common stock under a current plan. The company has about 1.12 billion shares of common stock outstanding.

Shares of Medtronic rose 74 cents, or 2.3 percent, to $33.67 in afternoon trading.

ABOUT MEDTRONIC(MDT)

Founded in 1949, Medtronic has grown to become the world's largest independent medical technology company. At the core of all we do is our Mission: to alleviate pain, restore health and extend life. It provides a clear path for all employees as we work together to take Medtronic to the next level.

Medtronic was first incorporated April 23, 1957 and became a public company as the result of a convertible debenture offering. The first shares were issued under these debentures on December 17, 1959 to our company founders, Earl Bakken and Palmer Hermundslie. Medtronic shares were traded Over-the-Counter (OTC) until we were listed on the NASDAQ in 1964. Medtronic began trading on the New York Stock Exchange on November 21, 1977 and continues to be traded on the NYSE today under the ticker symbol MDT.

Disclosure I am long MDT shares.

Look for ETFs in retirement plans with BlackRock's deal with iShares

Laurence Fink has big plans for exchange-traded funds in the retirement market if he gets his hands on the largest ETF provider.

His firm, BlackRock Inc. (BLK-Quote) , has unveiled a widely expected deal to purchase Barclays Global Investors for $13.5 billion, one of the largest transactions ever in the asset-management business. See coverage of the deal.

Among other things, the Barclays (BCS-Quote) unit is the largest provider of ETFs, with 369 global iShares ETFs and assets of nearly $300 billion at the end of the first quarter.

"I believe with our strength in mutual funds and, importantly, the overwhelming position of iShares, that we can now bring a comprehensive solution to our retail clients, providing both solutions in the mutual-fund space and in the ETF space," Fink, the chief executive officer of BlackRock, said during a conference call Friday to discuss the proposed deal.

"We will continue to expand the iShares platform in different countries," he said.

Fink also said BlackRock could use its weight and influence to get ETFs into more retirement plans, which are dominated by mutual funds. One big hurdle for ETFs is that most 401(k) back offices aren't set up to handle ETFs, which are baskets of securities that trade like individual stocks.

"I think one of the real long-term trends is going to be lower-cost products," Fink said.

"I think the expenses associated with many retirement products overwhelm some of the relative returns," he said. "Some passive strategies will have a larger component to the future of our retirement strategies."

Most of the larger iShares ETFs are index-linked funds tied to recognizable stock and bond benchmarks.

Won't raise iShares ETF fees

Fink on Friday told Fox Business he has no plans to raise expense ratios at BGI's lineup of exchange-traded funds.

"I could say with total clarity they're not going higher," Fink said during an interview with Fox Business. "We're going to keep them where they are or bring them down."

The BlackRock CEO said he expects ETFs to continue their fast rate of growth and that the firm could introduce actively managed ETFs.

10 Steps To Better ETF Investing

Whether you’re new to the exchange traded fund (ETF) game, or an old hand at investing, sometimes it’s worth brushing up on the characteristics that successful investors tend to have in common.

In an attempt to amass wealth, investors should know general themes that may help in the long term. We have provided some defining characteristics and other good habits a good trader should attempt to muse over:

1. Preparedness. Have a strategy for entry and stick to it. It’s best to be fully prepared and have it before you do anything - know when you’ll buy and, more importantly, when you’ll sell. When the time comes to do either, stick to the plan.

2. Education. Do you know what you’re investing in? Have you done the research, both on what it holds and how it fits into your portfolio? Do you know the tax consequences and the expenses? Have you researched the fundamentals on your position?

3. Emotions. We all have them, but they should play no role in your investing. Examine the reasons you’re buying or selling. Are you buying because you’re in an excited frenzy, or are you playing the markets with cool logic and waiting for signals?

4. Patience. Success does not happen overnight. It can take years of careful investing. Do you have it in you to wait awhile for results? Are you okay with not getting rich overnight? There are no get-rich-quick schemes in the markets that work over and over again.

5. Risk. All investing carries with it a certain level of risk. Smart investors know their limits. Are you taking on a level of risk that you’re comfortable with?

6. Loss. Traders are not always on a constant winning streak. There are going to be trades that simply never pan out. The questions you have to ask yourself is: Are you comfortable with the idea that you might lose a little? Or are you gripped with fear at the thought?

7. Being able to let go. Eventually, all things come to an end. When the time comes, do you have an exit strategy? Will you be able to confidently say goodbye and either take the loss or use the cash you’ve gained toward something else?

8. Looking forward. Looking back is nice, but past history is no guide for what might happen in the future. Are you looking ahead, always on the hunt for new opportunities? Or are you stuck in the past and waiting for it to come back?

9. Self-control. When it comes time to buy or sell, you should have a plan and follow it. Wise investors don’t rationalize their way out of executing a trade if all the signals say that they should do so. Do you have the discipline?

10. Forgiveness. We’re all human, and we’re going to make mistakes. If you’ve made one, have it in you to dust yourself and move on. Flogging yourself over a bad trade is fruitless - use that energy to find new opportunities.

Disclosure I am long many different etfs.

Copper, aluminium rise high on China imports

LONDON : Global copper prices recorded an eight month high Thursday mainly on reports of increase in China’s copper imports.

Copper for three-month delivery MCU3 on the London Metal Exchange traded at $5,285 a tone from a close of $5,180 on Wednesday. It earlier hit $5,300, the highest since October 14.

A recent spate of improving economic data has helped lift copper prices by more than 10 percent so far in June.

Data showed China's May imports of unwrought copper and semi-finished copper products hit a fresh high for the fourth straight month on continued arbitrage trade.

Adding to speculation China could potentially lead an economic recovery, data showed a surge in investment in May for the world's third-largest economy and top copper consumer. But optimism was tempered by confirmation of a record slump in Japan's first-quarter GDP.

Also underpinning gains, copper stocks at LME warehouses continued their trend of drawdowns, falling 1,100 tones to 293,175 tones and compared with a peak of around half a million tones in late February.

Aluminium prices also surged Thursday owing to drawdown in stocks.

Aluminium MAL3, used in transport and packaging, traded at $1,673 from $1,645. Stocks dropped for the second time this week, down 1,675 tones but holding near a record high close to 4.3 million tones.

Stocks also fell on two days the week before, marking the first stocks declines since April 20.

Analysts also warned demand the outlook for aluminium remained weak, as a potential economic recovery would likely be slow and drawn out, and ahead of a series of possible production restarts in China.

Disclosure I am long IYM and XLB shares.

Caterpillar sets 42-cent quarterly dividend, Despite "Worst Economic Crisis Since the Great Depression"

Caterpillar Inc's (CAT - News) chief executive said on Wednesday there was a good chance revenues would return to the $50 billion mark they topped last year "in the next five years" -- though he warned that progress toward the goal "won't come smoothly."

Speaking at the annual shareholder meeting, Jim Owens said he thought there was "an 80 percent chance some time in the next five years of going back above the $50 billion threshold."

Caterpillar, which reported its first quarterly loss in 17 years two months ago, expects sales of between $31.5 billion and $38.5 billion in 2009, down from $51.3 billion in 2008.

That would be the worst one-year revenue decline since the 1930s.

Sales of the company's distinctive yellow construction and mining machinery have tumbled as result of lower commodity prices and lower oil production.

As in previous years, the meeting drew critics protesting Caterpillar's sales to Israel, whose defense forces have used the company's equipment as part of its effort to put down the Palestinian uprising.

But the protesters did not disrupt the meeting as they have previous gatherings -- even after a resolution they supported failed to pass, which would have forced Caterpillar to publish a report on foreign military sales.

Caterpillar contends that such sales accounted for about $30 million in sales in 2008, or about 0.06 percent of total revenue, and that it believes it would be an inappropriate use of the company's resources to complete the requested report.

All seven shareholder proposals up for vote this year failed to garner enough support, including a push to split the position of chair and CEO and to elect directors annually.

Owens took the unusual step last week of writing to institutional investors as a group to explain the company's opposition to four of the seven items stockholders were voting on.

"Changing our governance practices and corporate structure, as contemplated by the stockholder proposals presented below, will only divert attention and resources," Owens wrote.

"While these types of proposals may have merit at some companies, for the reasons provided below, we strongly encourage you to afford Caterpillar the benefit of individual consideration."

Caterpillar shares were little changed in after-hours trading after closing down 1.62 percent at $37.62.

For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2008 sales and revenues of $51.324 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company also is a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services.

Disclosure I am long CAT shares

Overseas Shipholding (OSG) Announces $.4375 Per Share Quarterly Dividend

Overseas Shipholding Group, Inc. (NYSE: OSG - News), a market leader in providing energy transportation services, today announced that its Board of Directors has declared a regular quarterly dividend of $0.4375 per share on the common stock outstanding, payable on August 27, 2009 to stockholders of record on August 7, 2009.

Overseas Shipholding Group, Inc. (NYSE: OSG - News), a Dow Jones Transportation Index company, is one of the largest publicly traded tanker companies in the world. As a market leader in global energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets, OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is recognized as one of the world’s most customer-focused marine transportation companies and is headquartered in New York City, NY. More information is available at www.osg.com.

Disclosure I am long OSG shares.

Clorox increases dividend 9 percent, Confirms FY10 Outlook

Clorox Co., (CLX-Quote)the maker of bleach and other household products, said Thursday that it boosted its dividend 9 percent to 50 cents per share and is on track to deliver financial results for fiscal 2010 in line with previous guidance.

The dividend will be paid Aug. 14 to shareholders of record July 27. Previously, the dividend was 46 cents.

The Oakland, Calif.-based company said it still expects to earn $4 to $4.15 per share on sales growth of 1 to 2 percent for fiscal 2010. Analysts predict Clorox will earn $4.16 per share. The sales growth range includes an estimated negative impact of 2 percentage points from declining foreign currencies.

In addition to its namesake bleach, Clorox makes a variety of consumer products from Glad trash bags to Hidden Valley salad dressing and Burt's Bees beauty products.

In its most recent quarter ending in March, the company's profit rose 53 percent as lower commodity costs and cost cuts helped offset weakness from a stronger dollar. Sales remained flat because of the dollar's strength.

U.S. companies that do business overseas are hurt when the dollar grows in strength since sales revenue is translated from local currencies into dollars, effectively shrinking profits.

Shares of Clorox rose 73 cents to $54.22 in premarket trading.

Disclosure I am long CLX shares.

Alpine Total Dynamic Dividend Fund and Alpine Global Dynamic Dividend Fund Declare Regular Monthly Distribution for June, July and August

The Board of Trustees of the Alpine Total Dynamic Dividend Fund (NYSE:AOD - News) and Alpine Global Dynamic Dividend Fund (NYSE:AGD - News) declared the same regular monthly distribution for June, July and August as in the past three months:


Alpine Total Dynamic Dividend Fund (AOD): $0.12 cents per share
Alpine Global Dynamic Dividend Fund (AGD): $0.11 cents per share

Since its inception, January 26, 2007, AOD has declared $5.58 in total distributions. Similarly, AGD, since its August 26, 2006 inception has declared $7.37 in total distributions.

“Notwithstanding the largest number of dividend reductions in decades, the Alpine dividend investment strategies find continuing dividend opportunities as well as growth potential,” said Steve Lieber, Alpine’s Chief Investment Officer.

The Alpine Total Dynamic Dividend Fund offers a unique and balanced approach to optimizing both dividend income and long-term growth of capital.* Alpine scans the globe looking for the best dividend opportunities for investors, employing a multi-cap, multi-sector, and multi-style investment approach. The Fund combines four research-driven investment strategies – Growth, Value, Special Dividends, and Dividend Capture Rotation – to maximize the amount of distributed dividend income and to identify companies globally with the potential for dividend increases and capital appreciation.

Disclosure I am long AOD shares

PIMCO Launches First ETF (TUZ); Files For Six More

Mutual fund behemoth PIMCO has been conspicuously absent from the ETF market. Today that changed with the launch of PIMCO 1-3 Year U.S. Treasury Index Fund (NYSE: TUZ). Combine this with reports that Vanguard is bidding to buy the iShares ETF label from parent company Barclays, and it looks like we may be entering a new era of competition in the ETF business.

First, let's take a look at TUZ. At first glance the new fund appears very similar to the iShares 1-3 Year Treasury Fund (NYSE: SHY). PIMCO is waiving fees to bring the expense ratio down to 0.09%, below the 0.15% found in SHY. Look for iShares to respond with lower fees soon. Both TUZ and SHY are aimed at income investors who want the potential for a higher yield than is available in short-term Treasury bills which mature in a year or less, while also keeping interest rate risk relatively low. See the Fact Sheet and Prospectus for more info on TUZ.

For PIMCO to make its very first ETF launch a near-clone of an existing ETF, and then to compete on expenses, is a very bold move. PIMCO also has the trading and marketing muscle to keep its funds active and liquid. The other large fund sponsors cannot ignore this development. At the same time, they will have a hard escaping the high-fee, performance-based culture that served them well for decades.

TUZ is only the beginning; PIMCO has other ETFs on the drawing board including its recent filing for six more - three TIPS and three additional Treasury ETFs. Whatever happens, it seems clear the ETF industry is due for some big changes.

Disclosure: I am long TUZ shares.

Silver Flirts with $16 Mark: Where Will It Trade from Here?

Silver, which has topped gold and platinum to become the fastest rising precious metal this year, has a chance to keep outperforming thanks to its double use as both an inflation hedge and industrial material, analysts are forecasting.

But with higher returns come greater risks. Silver has proved much more volatile than gold, partly because fewer people trade the white metal than gold.

If "prices of precious metals turn higher across the board, silver will tend to move up faster," said Neil Meader, research director at London-based precious metals consultancy GFMS.

"If all the prices come off, you will see silver prices collapse much faster," he said.

The London fixing, a global benchmark for silver's spot trading, has rallied nearly 50% this year to near $16 an ounce, the highest level in 10 months, as investors piled into coins, bars, and silver exchange-traded funds such as iShare Silver Trust. Holdings in SLV ishares Silver ETF, hit a record high this week.

The year-to-date gain in silver easily outpaced gold's 12% advance and has also outrun platinum's 30% increase.

Monday's metals trading on the COMEX featured anomalous action in gold and silver. Last week, silver, as reported in "Silver Breaks Out, Aims for $17," punched through resistance with a lot more vigor than gold. The metals followed through yesterday with disparate results. The active July silver contract finished more than 12 cents higher at $15.735. Nearby June gold, however, gave up 20 cents to settle at $978.60.

Disclosure I am long both SLV and GLD shares