Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of CF Industries Holdings, (NYSE: CF ) jumped 10% today after the company said it would reevaluate its dividend.
So what: A presentation at the Citi Basic Materials Symposium included a nugget that said management would "continue to evaluate increasing dividend over time." That's what activist investor Dan Loeb has been pushing for, and it looks like management is warming to the idea.
Now what: Dividends and share buybacks only amounted to 42% of the company's EBITDA over the past 12 months, which leaves room for dividend growth. That's the hope for investors today, but it's important to note that nothing was officially announced. I think there will be better buying opportunities, and chasing yield that doesn't yet exist is dangerous at this point.
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