Blue Mark Analysis

Disentangling Investment Trends

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Stocks Boosted by Recent Dividend Increases and Stock Splits 05-22-2013

Are AAON and FLO set up for a reversal after dividend increase and stock splits threw some momentum into the stocks? A paper cited below there is a clear trend for such news releases to drive abnormal returns for a few days after a substantial news release. At the same time, VIA, VIAB, WRB, and XEL look like they might be ready for a boost as they have preformed poorly after their recent dividend increase announcements.

Average Standardized Cumulative Abnormal Returns by Event Type with Accumulation Commencing Two Trading Days Before Event Day : Paper Source Here

5d10d20d40d
Dividend Up20.013.57.31.7
Stock Split33.418.10.121.5

Dividend Increase

  • 05/21 WRB boosts its dividend by 11%
  • 05/22 VIA & VIAB boost dividend by 9%
  • 05/21 XEL boosts its dividned by 3.7%

Dividend Increase and Stock Splits

  • 05/22 FLO three for two stock split and a 5.5% dividend increase
  • 05/22 AAON three for two stock split and a 25% dividend increase

 

Stocks With News of May 21
WRB Chart

WRB data by YCharts

Stocks With News on May 22
SPY Chart

SPY data by YCharts

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