DirecTV vs. Viacom - Don't Mess With Distributors!

The fee dispute among DirecTV and Viacom has been settled. DirecTV agreed to a $600 million per year Viacom payment. The agreement is for 7 years, that's a 20% increase from their previous agreement. The squabble has ended and 30 Million plus DirecTV subscribers can continue to watch Snooki (MTV), SpongeBob Squarepants (Nick) and all of their favorite Viacom characters. 

Viacom and DirecTV's issues will most likely be remembered as a turning point in distributor-programmer negotiations. The distributor, DirecTV, won the battle. DirecTV stood tall and were willing to have a blackout of Viacom channels to prove their point. DirecTV and their subscribers are not willing to pay more for channels in which they were already receiving as part of their normal bill. DirecTV was not willing to be bullied and pass along the increase in Viacom's rates to their subscribers.  

Viacom, Inc, stock ticker VIAB on the Nasdaq pays a sweet 2.37% dividend yield, 28 cents per share and a market cap of 24.5 billion dollars. 

DirecTV, stock ticker DTV on the Nasdaq does not pay a dividend, however their market cap is 31.66 billion dollars. 

DTV has agreed to pay VIAB 600 million dollars for 

If you would like to sign up for DirecTV today, please click here or on the link below. They are a great company and should be supported! Please reference Account# 50518350 when signing up for one of their sweet channel package deals. Thanks!

http://refer.directv.com/a/clk/4GC0zD   Account# 50518350

Feel free to watch the DirecTV/Viacom related YouTube videos below, discussing the dispute and resolution.

Update: Dividend Stock Picks for the Week of 7/16/12 to 7/20/12

Welcome back to Dividend Stock Investing for the Common Man! Thank you stopping by and supporting the idea of investing in dividend paying stocks for the long term. I wanted to recap last week's picks for you since it is important to review all investments on a weekly, if not daily, basis.


It was a 13 for 20 week. 65% of my picks increased in value. Mattel, Inc. (NASDAQ:MAT) and Tiffany & Co. (NYSE:TIF) really popped with excellent weekly gains.  E I Du Pont De Nemours And Co (NYSE:DD),  Macy's, Inc. (NYSE:M) and Huntsman Corporation (NYSE:HUN) were also the big winners of the week. 


Although we made some serious cash this week it is not how many times you win short term, but rather which investments can provide you with a steady income stream over the long term. When investing in dividend paying stocks you are protecting yourself from stock market volatility. If the market goes down one quarter, the dividend payment will help recoup the losses.


Let these companies work hard so they can maintain their dividend and increase it year over year. As a shareholder, it is like receiving a raise each year. Reinvest your dividends to maximize your profits!


Until next time friends, keep investing as much as you can on a weekly basis. Perform your due diligence and invest in companies that you feel comfortable with. Do not risk your hard earned dollars by investing in unknown, unreliable companies.


Feel free to watch the great videos below, featuring some of this week's winners!


Company Name/Stock Ticker/Current Price/7/16/12 Price/7/20/12 Price (end of day)

Apple Inc.(NASDAQ:AAPL) $604.97 $604.30
E I Du Pont De Nemours And Co (NYSE:DD) $47.63 $48.87
Hewlett-Packard Company (NYSE:HPQ) $18.98 $18.60
Huntsman Corporation (NYSE:HUN) $11.63 $12.36
Masco Corporation(NYSE:MAS) $14.05 $14.15
Microsoft Corporation(NASDAQ:MSFT) $29.39 $30.11
Sunoco, Inc. (NYSE:SUN) $47.94 $48.10
Valero Energy Corporation (NYSE:VLO) $24.86 $25.54
BP plc (ADR) (NYSE:BP) $40.95 $41.55
Tiffany & Co. (NYSE:TIF) $52.16 $55.97
Alcoa Inc. (NYSE:AA) $8.42 $8.26
Universal Health Realty Income Trust (NYSE:UHT) $43.13 $42.71
Johnson & Johnson (NYSE:JNJ) $68.61 $68.63
Mattel, Inc. (NASDAQ:MAT) $31.23 $34.39
The Walt Disney Company (NYSE:DIS) $48.19 $48.59
The Hershey Company (NYSE:HSY) $72.54 $71.26
Macy's, Inc. (NYSE:M) $33.64 $35.60
Deere & Company (NYSE:DE) $77.48 $75.88
Johnson Controls, Inc. (NYSE:JCI) $27.56 $25.28
FirstEnergy Corp. (NYSE:FE) $49.34 $50.37

Mattel

Macy's

Dupont

Prospect Capital Corporation - PSEC

Prospect Capital Corporation (Prospect Capital), NASDAQ stock ticker PSEC, is a financial services company that lends to and invests in middle market privately-held companies. Prospect Capital is a closed-end investment company. PSEC's investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. They focus on making investments in private companies and invest primarily in first and second lien senior loans and mezzanine debt, which in some cases includes an equity component. First and second lien senior loans generally are senior debt instruments that rank ahead of subordinated debt of a given portfolio company.

PSEC's investments include other equity investments, such as warrants, options to buy a minority interest in a portfolio company, or contractual payment rights or rights to receive a proportional interest in the operating cash flow or net income of such company. Its investment adviser is Prospect Capital Management LLC.

Today's share price provides a good entry point for long term growth and their dividend looks solid. PSEC has an excellent management team and pays a very healthy dividend. PSEC is a conservative loan underwriter with large collateral positions and equity provisions.

That being said, PSEC makes for a sound loan portfolio. It has been noted that their management team has made significant purchases of their own stock, which makes this company a go to stock for dividend yield and capital gains.

I suggest picking up some shares of PSEC under $12.00 and hold for life! Watch your cost basis improve and exceed all expectations over time. Always reinvest your dividends!

Recent PSEC Statistics:
52 week 7.41 - 12.00
Open 11.25
Vol / Avg. 1.65M/2.41M
Mkt cap 1.81B
P/E 6.66
Div/yield $0.10/10.94%
EPS 1.67
Shares 162.88M
Beta 0.85
Inst. own 24%

PSEC In The News:

• Prospect Capital Provides $28 Million in Senior Secured Financing to Support Acquisition of Total Fleet Solutions by CI Capital Partners, Resulting in Nearly $800 Million in Originations to Date in Calendar Year 2012
• PSEC Named Top 10 Financial at Dividend Channel With 11.14% Yield
• Prospect Capital Named Top Dividend Stock With Insider Buying

Check out PSECs current portfolio as of 12/31/11, here!

What Can A Roth IRA Do For Me?

Hi everyone! I hope you have had a successful and profitable week thus far. Posted below are some of my favorite Roth IRA related YouTube videos. It is very important to invest in stocks within a Roth IRA. Feel free to click here to read more about the best retirement tool on the planet Earth. 

Sit back and enjoy the videos below. Let me know if you have any questions. Thanks for your interest and support!