The Dividend Daily

Risk and strategy consultants Marsh & McLennan Companies, Inc. (MMC) on Wednesday said it swung to a third quarter profit, helped by cost-cutting measures amid still declining revenue.

The New York-based company reported third quarter net income of $221 million, or 41 cents per share, compared with a net loss of $8 million, or 2 cents per share, in the year-ago period. Excluding items, adjusted profit was 48 cents per share.

Revenue fell 11% from last year, to $2.52 billion.

On average, Wall Street analysts expected a much smaller profit of just 26 cents per share, albeit on slightly higher revenue of $2.6 billion.

Marsh & McLennan shares rose 15 cents, or +0.6%, in morning trading Wednesday.

The Bottom Line
We had removed shares of MMC from our “recommended” list last Oct. 7, when shares were trading at $30.13. The company currently has a dividend yield of 3.42%, based on last night’s closing price of $23.37. The stock has technical support in the $18 price area. If the shares can continue to rebound higher, we see overhead resistance around the $24-26 price area. We would remain on the sidelines for now.

Marsh & McLennan Companies, Inc. (MMC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.