Set Your TV on January 28, 2018 For Sunday Morning Weekend Today in Central NY on NBC 3

Are the U.S. Companies handing out bonuses sending a message to investors?

• American Airlines, Bank of America, JetBlue, Wells Fargo, Walmart and recently Apple are just a few of the companies handing out bonuses of $1000 or more to thousands of employees.
• Bonuses are usually paid out of the company’s current cash flow.
• Since wages are a significant portion of a company’s fixed costs, a bonus does not add to its future liability.
• The impact of the bonus is immediate to the economy since it can be used by the employee to make purchases, pay down debt or be invested.
• The bonus and the PR associated with it will boost morale and it may contribute to a more loyal workforce.
• Investors may want to look at investing in these companies since the message is they have favorable cash flow, are not adding to their future fixed costs, and are continuing to build a loyal workforce. All are very positive fundamentals for investors to consider.