📅 On This Day
WorldCom Fraud Exposes the Danger of Fake Free Cash Flow
On June 26, 2002, the SEC filed civil fraud charges against WorldCom after the company admitted to $3.8 billion in accounting irregularities, triggering an immediate trading halt. WorldCom had been a favored income stock, its dividend appearing well-covered — until investigators revealed the company had been capitalizing routine operating expenses as capital expenditures, artificially inflating free cash flow. It stands as a sobering reminder that headline yield can mask a dividend funded not by genuine earnings, but by debt.
When FCF looks too clean, dig deeper — WorldCom showed that payout ratios are only as honest as the books beneath them.
🇺🇸 US
Source: SEC v. WorldCom, Inc., No. 02 Civ. 4963 (S.D.N.Y. filed June 26, 2002)
🌍 Around the World
Spain's Scrip Dividend Gives Shareholders a Meaningful Choice
Spain pioneered the dividendo flexible — scrip dividend programs where shareholders choose between receiving cash or newly issued shares. Major names like Banco Santander, founded in 1857, and Iberdrola leaned heavily on these structures, particularly during the financial-crisis era. For income investors, understanding whether a Spanish distribution arrives as cash income or a capital-management tool is essential before counting it as yield.
A Spanish 'dividend' can be more than it appears — knowing the form of your payout matters as much as the amount.
🇪🇸 ES
Source: BME; Banco Santander investor relations
🔥 Dividend Streak
Just 57 U.S. Companies Earn the Rare Dividend King Title
Out of roughly 6,000 U.S.-listed stocks, only 57 have raised their dividend for 50 or more consecutive years — fewer than 1% of the entire market. The newest additions include Pentair, which logged its 50th consecutive increase in early 2025. Among those with the longest active streaks, SJW Group stands out on Sure Dividend's tracked list for 2026.
Fifty years of unbroken raises isn't luck — it's a portrait of businesses built to endure almost anything the economy can deliver.
🇺🇸 US
Source: Sure Dividend 2026 Dividend Kings list
💡 Did You Know
Finnish Scissors Maker Fiskars Traces Its Roots to 1649
Fiskars — the Finnish company behind those instantly recognizable orange-handled scissors — was founded in 1649, placing its corporate roots nearly 50 years before the Bank of England even opened its doors. Still connected to a public equity market today, it stands as a quiet testament to how deep European dividend history can run. The company is a living reminder that some income stories predate modern stock indices by centuries.
Fiskars has been a going concern since 1649 — proof that a humble product and patient ownership can outlast almost any era.
🇫🇮 FI
Source: Fiskars Group corporate history