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Sunday, April 20, 2014

Is this BMW's superluxury 9 Series?

BMW is dropping heavy hints that it's brand of luxury can be even more luxurious.
That, in turn, is making some wonder if we're getting the first look at what could be come a superluxury BMW, a 9 Series
The car mockup being shown at the 2014 Beijing Motor Show is a supersleek, low-slung large sedan with rear-hinged rear doors, also known as "suicide doors." BMW pulled out all the design stops, leading to the conclusion that this sedan might be stepped above the 7 Series. Archrival Mercedes-Benz has rolled out an extra luxury, stretched version of the S Class in place of the Maybach line that it used to use to appeal to the superrich. It's easy to see why BMW would want some of that high-priced action.
To get there, BMW has incorporated just about every technology it could think of into the design.
For instance, the driver and front passenger don't even have to talk to each other. BMW Vision Future Luxury, as the concept car is being called, gives each their own touch screen in which they can exchange information. it allows them to use services like booking tickets to cultural events.
There are, of course, displays in the back seat as well. They are connected to the front displays.
"Innovative technology and modern luxury have always been an important part of BMW's brand DNA," says Adrian van Hooydonk, a BMW senior vice president, in a statement.

Wall Street is awash in cash

With the help of low interest rates and record corporate earnings, Wall Street is awash in cash. While a large amount of cash simply sits on balance sheets, many companies are returning capital to investors by issuing dividends and conducting share repurchases at a record pace.
Dividends continue to gain popularity with companies and investors. In the first quarter of 2014, there were 1,078 dividend increases reported by domestic companies, topping the record of 1,069 set in 1979, according to data from S&P Dow Jones Indices. Overall, dividend net increases totaled $17.8 billion. Of the approximately 10,000 U.S. traded issues, only 102 companies lowered dividends the first three months of the year, representing a 27% improvement from the 139 reductions seen a year earlier.
"U.S. domestic common issues set a first-quarter record for dividend increases, as the 'shareholder' return theme continued. Increases have been made easier by record earnings and record cash holdings," explained Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. "Additionally, many issues (especially large-caps) have heard the knocking at the boardroom door – from activists. I expect strong dividend growth to continue in 2014, as 'shareholder return' continues to be the battle cry from boardrooms and those knocking at the boardroom door. I expect the actual cash payments for 2014 to post a double-digit increase over the record setting 2013 level."
Dividends play an important role for many investors. They can provide a stable source of cash flow that exceeds the rate on bonds or savings accounts and also help investors lock in returns through years of stable payments. Dividends are also becoming a standard in America's largest companies. Within the S&P 500, some 421 companies (84.2%) currently pay a dividend, the most since September 1998. Meanwhile, all 30 companies in the Dow Jones industrial average pay a dividend.
In addition to dividends, corporations are spending billions on share buyback programs. S&P Dow Jones Indices reports that repurchases in the Standard & Poor's 500 totaled $475.6 billion in 2013, up 19.2% from the $398.9 billion spent in 2012. Looking forward, a recent report from Goldman Sachs estimates that S&P 500 companies will return $1 trillion to shareholders in 2014 via dividends and share repurchases.