When I saw the announcement that Bank of America (BAC) would acquire Merrill Lynch, I was concerned about the combined company's ability to sustain its dividend. Unfortunately, my concerns were validated with an after the market announcement that BAC would cut its dividend to $0.32/share, down from $0.64/share. Below are excepts from the news release:

Sometimes when companies are tight on cash, they will declare and pay a stock dividend in lieu of a cash dividend. Most shareholders feel like they are getting something. But are they really? Below are several select companies that recently decided to create real value for their shareholders by raising their cash dividends:

Earlier this week we looked at my top 5 high fliers for 2008. Unfortunately, for every up, there is a down and that is certainly true for my portfolio. As before, we will look at results through July 31, 2008. Here they are my cellar dwellers with comments:

Chevron Corporation (formerly ChevronTexaco) is a global integrated oil company that has interests in exploration, production, refining and marketing, and petrochemicals. Linked here is a detailed stock analysis and commentary.

Now that more than half the year is behind us, I thought it would be interesting to look at my top 5 performers through July 31, 2008. As dismal as the stock market has been this year, there are still some bright spots. One bright spot is that my top five performers have all achieved double-digit positive total returns since I owned them and positive returns in 2008. Here they are with comments:

I've updated my dividend pre-screen stock model to calculate a target price based on a back-solved yield needed to generate a specified NPV of MMA Differential. In addition, I updated the default MMA Yield to 4.61%. The updated model is linked on the Tools page as D4L-PreScreen.xls.

Stanley Works is a worldwide producer of tools, hardware and specialty hardware for home improvement, consumer, industrial and professional use. Linked here is a detailed stock analysis of SWK and commentary.

All in a matter of weeks we have gone from "the sky is falling" to dropping gas prices. People weren't happy before and they are not happy now. Is change and misery the only constants left in the world? Not from where I am sitting.

Sherwin-Williams Co. is the largest U.S. producer of paints, is also a major seller of wallcoverings and related products primarily in North and South America with additional operations in the United Kingdom, Europe, India and China. Linked here is a detailed stock analysis of SHW and commentary.

In an utopian world, the perfect dividend stock would be one that is both high-yield and provide a high dividend growth rate. Its share price would appreciate ratable with its increasing dividend. All of this would be driven by increasing earnings and cash flow. Ok, so much for my fantasies, the perfect dividend stock just may be a balanced compromise. Consider the following:

The Kimberly-Clark Corporation leading global consumer products company produces tissue, personal care and health care brands include Huggies, Pull-Ups, Kotex, Depend, Kleenex, Scott and Kimberly-Clark. Linked here is a detailed stock analysis of KMB and commentary.

With Bank of America's (BAC) big announcement this week, there appears to be life after financial crisis. Will it last? Who knows. If you are a dividend/value investor, it doesn't matter. If the market goes up, you can enjoy your paper-profits on recent purchases. If it goes down, it provides more opportunities to pick up some value-priced bargains.