Meet the Newest Dividend Stock in the Dow Jones. It May Be the Next Stock-Split Stock Too.
The Dow Jones Industrial Average (DJINDICES: ^DJI) tracks 30 blue-chip companies, meaning its constituents are stocks of the highest quality. The index is not governed by strict rules, but the selection committee prioritizes well-known companies with sterling reputations and histories of sustained growth.
Generally speaking, blue-chip companies produce consistent cash flows, and many divvy up a portion of their profits among shareholders. Indeed, 29 of the 30 companies in the Dow Jones currently pay dividends, and Salesforce (NYSE: CRM) is the newest member of that group. The software giant declared its first-ever quarterly dividend in February; shareholders of record as of March 14 will receive $0.40 per share on April 11.
However, Salesforce may have another exciting announcement in the near future. This is pure speculation, but with its share price around $300, the company may decide to split its stock this year. Of course, whether that happens or not matters very little. Salesforce would be the same business in either scenario. But what does matter are the circumstances that made the stock split plausible.
Source Fool.com
