Bemis Company, Inc. (BMS) reported third quarter earnings of 48 cents per share, above the Zacks Consensus Estimate of 39 cents and year-ago EPS of 43 cents. Earnings growth in the quarter was primarily driven by strong operating performance in the Flexible Packaging business, helped by improved sales mix and successful cost controls by the company. Quarterly sales dropped 8.7% year over year to $898.9 million. The second quarter acquisition of the South American rigid packaging operations of Huhtamaki Oyj contributed 1.9% to the third quarter sales. This was more than offset by a negative currency translation effect of 3.6%. The remaining 7.0% decline in sales came from lower volumes and selling prices, partially offset by improved sales mix. Sales in the Flexible Packaging segment were down 7.5% compared to last year, as positive contribution from acquisition and improved sales mix were more than offset by ...

* Samsung (NASDAQ:SSDIF), the world's top maker of memory chips and flat screen TVs, reported its second quarter operating profit may have increased fivefold from its first, coming in above $1.74 billion. Bank of America (NYSE:BAC) raised its rating on the firm to "buy" from "underperform," noting expected earnings growth

* Rio Tinto (NYSE:RTP) said it agreed to sell its Alcan Packaging Food Americas division to Bemis for $1.2 billion in cash and Bemis shares

* Morgan Stanley (NYSE:MS) reportedly may sell its 1.8% stake in Japanese brewer Sapporo Holdings

* PepsiCo (NYSE:PEP) announced plans to invest $1 billion in Russia over the next three years

Zacks Investment Research

In theory, equity income investing creates a reasonably steady and growing income stream from stock investments — a good chance of maintaining real purchasing power of the stream.  That contrasts with bonds which create a more reliable, but constant income stream that has no chance of maintaining real purchasing power (inflation protected Treasuries and perhaps some variable rate bonds excepted).

In practice lately, however, the equity income theory isn’t working so well. Dividends are being cut at an historic rate, particularly among banks, but to some degree in other industries as well.

Dividend investing isn’t for everybody, but it is attractive and important to some, particularly those who rely on their portfolios to generate cash flow to support their lifestyle.

S&P Dividend Aristocrats:

Standard and Poor’s may even have to reduce the performance requirements for its Dividend Aristocrats (proxy SDY) to keep the index going.  Because the index rules require at least 40 issues,

...