From Barron's 7-30-07: "Assuming shareholder approval and regulatory clearances, Transocean (ticker: RIG) will acquire Global (GSF) for about $18 billion in Transocean stock and cash. Then, Transocean will retire its existing stock and issue to its shareholders a smaller number of new shares and some $33 in cash per retired share. Even though the cash and stock will be disbursed simultaneously, Willens observes, Transocean "is taking the position that the cash payout is a separate transaction" that should be evaluated as any special distribution would be. To Willens, this seems like a reasonable position under the tax law. If the IRS agrees, Transocean shareholders will be sitting pretty. That's because the company "has a substantial deficit in retained earnings and therefore probably has a deficit in earnings and profits, as well." (E&P is a tax-accounting concept designed to measure a corporation's dividend-paying capacity.) So if Transocean doesn't generate any E&P in 2007, the entire $33 distribution will be a tax-free return of capital. "It's not often you see a return-of-capital distribution emanating from a merger," notes Willens, "and you certainly never see one of this magnitude."

From Barron's 7-30-07: "Anheuser-Busch (BUD) on Wednesday reported a 6% gain in second-quarter profit and increased its quarterly common dividend 11.9%, to 33 cents a share from 29.5 cents. This marks the 31st consecutive year of dividend enhancements by Anheuser (BUD). Disbursements have been ongoing since 1932..."Led by U.S. beer operations, all of our business segments reported improved earnings in the second quarter," said CEO August Busch IV. For all of 2007, the company expects to exceed its long-term annual earnings-per-share growth target range of 7% to 10%."

From Barron's 7-30-07: "Gannett, the largest U.S. newspaper publisher, posted an 18% gain in second-quarter profits by cutting costs and selling some publications. Tuesday, Gannett (GCI) sweetened its dividend 29%, to 40 cents a share from 31 cents. The payment and record dates are Oct. 1 and Sept. 14, and the stock goes ex-dividend Sept. 12. Yield: 3.25%. Since 2000, Gannett has returned about $6.2 billion to investors via dividends and stock buybacks. CEO Craig A. Dubow credited Gannett's strong cash flow and financial position for the dividend enhancement. The stock is trading around 50, down from a 52-week high of 63.50."

From Barron's 7-30-07: "Despite a drop in Q2 earnings per share, Reynolds American (RAI), the No. 2 U.S. tobacco company after Altria Group (MO), Wednesday hiked its quarterly common payout 13%, to 85 cents a share from 75 cents. That gives the stock a 5.45% yield. Disbursement will take place Oct. 1 to investors of record Sept. 10. The ex-date is Sept. 6. The shares, listed on the Big Board, are a bit under their 52-week high of 67.60. CEO Susan M. Ivey said that the payout boost "keeps us in line with our policy of returning about 75% of our current-year net to shareholders" through dividends."