Boston, MA 10/14/2013 (wallstreetpr) – EMC Corporation (NYSE:EMC) recently started dividend payment 1.6% on a payout ratio of 8% and the company is quickly falling in favor with investors. Looking at the stock, it’s a good add-on into investment portfolio.
At the Friday’s trading session, the stock continued its upward rally, gaining 0.58% to settle up $25.30. The stock had a good show hitting the ceiling at $25.44 in the day. As trading opens today Monday, the market will be watching to see if its rally still has enough gas to surprise the market. Otherwise having traded 12.46 million shares short of the daily average volume 16.99 million, the stock is expected to see a higher market activity today.
In the recent times, EMC has begun to betray its “quite tech company” status as investors warm up to its clear promise of fat dividends in the near future. Unlike its tech peers, EMC’s CEO is never in those big conferences or the company making a lot of business news headlines despite the fact that EMC is a $52.65 billion company. But considering the recent developments in the company, it is safe to say that CEO wasn’t dodging the media for all that long, he was plotting how best to put more money to investors wallet.
The company has quite a clean balance sheet speaking in the region of $11.15 billion in cash with a debt of $7.2 million. This is quite good consideration that due to the near violent competition in the tech industry, a lot of its peers are sinking into the reds.
The fact that the company has also initiated an ambitious shares buyback with a budget of $6 billion goes a long way to win it favor among investors. The company is targeting at least 12% of its shares in the buyback.
The greatest hope in this stock has nothing to do with its position as a data storage leader, but its strong hold on VMware. Then there is also Pivotal whose spin-off is expected to rake in $300 million in revenue this year with potential for huge billions in the coming 5 years.
