This article is about Johnson & Johnson (JNJ) and why it's a buy for the dividend growth investor and total return investor. Johnson & Johnson is one of the largest manufacturer and distributor of medical products and pharmaceuticals. JNJ is a conservative investment that should be in all portfolios being defensive when the market and economy are weak.
Johnson & Johnson is 8.8% of The Good Business Portfolio. The company has steady growth and has plenty of cash it uses to buy bolt on companies and increase the dividend.
When I scanned the five-year chart, Johnson & Johnson has a good chart going up and to the right in a steady, strong slope for four of the five years with a pause in 2015 when the market was a bit negative.
JNJ data by YCharts
Medical Facilities Corporation (OTCPK: MFCSF) owns controlling interest in multiple surgical facilities in the United States. It shares some of this ownership with the top surgeons at these facilities and uses this co-ownership structure to drive a common vested interest in the long term returns from these facilities.
Source: MFCSF presentation
Interestingly, MFCSF has chosen a primary listing on the TSX, where it is listed under the symbol TSX:DR even though all its revenues are derived from the US. The stock yields 8.8% at current price. We examined this stock recently and took a position based on the following thought process.
1) A significantly better payor mix Healthcare in the US has been riled with uncertainty with multiple healthcare stocks trading down to... more
Offshore drilling sector is going through the deepest crisis in its history. Day rates collapsed more than two times since 2014. Across all rig types, the average utilization rate is 60% (according to infieldRigs). Many drilling rigs are being stacked without contracts for a long time.
Companies in this sector should be divided into 3 groups 1) financially stable companies that are strong enough to survive the downturn in the sector - Transocean (NYSE: RIG), Ensco (NYSE: ESV), Diamond Offshore (NYSE: DO), Rowan (NYSE: RDC), Noble (NYSE: NE) 2) gigantic Seadrill (NYSE: SDRL) that is facing restructuring 3) other companies with modest fleet and/or liquidity issues, such as Pacific Drilling (OTC:OTCPK: PACDQ), Ocean Rig (Nasdaq: ORIG), Paragon Offshore, Atwood Oceanics, Songa Offshore,... more
In March 2017, I established a yieldco focus group of stocks, including NextEra Energy Partners (NEP), NRG Yield (NYLD), 8Point3 Energy (CAFD) and Pattern Energy (PEGI). I produced series of articles in which I issued “buy” recommendations for NEP, NYLD, and PEGI.
In this comparison, I am adding two more yieldcos to the group. Those are Atlantica Yield (ABY) and TerraForm Power (TERP). Since I did not perform a detailed analysis on the additions, my position on their prospects is rated currently as “neutral.”
The table below (Tab 1.) shows pricing at the time of original articles and a current share price for each company.
Tab 1. Yieldco Focus Group - Price Recommendation. Source: R.Dydo, prices based on the market data
In this review, my... more
I like monitoring dividend increases for stocks on my watch list of dividend growth stocks because I consider such stocks to be candidates for further analysis. Companies can only increase their dividends regularly if earnings grow sufficiently. In the last week, 11 companies on my watch list announced dividend increases, including one of the stocks I hold in my portfolio. The following table presents a summary.
The table is sorted by the percentage increase, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for the market close Price on the date listed. Yrs are years of consecutive dividend increases, while 5-yr DGR is the compound annual growth rate of the dividend over a 5-year period. 1-yr %Incr is the percentage increase from... more
Ladenburg Thalmann Financial Services Inc. (NYSE American:LTS, LTS PrA), a diversified financial services company, today announced its Board of Directors has declared a quarterly cash dividend of $0.01 per share of common stock, payable on December 28, 2017 to shareholders of record as of the close of business on December 15, 2017.... more
This research report was jointly produced with High Dividend Opportunities co-authors Jussi Askola and Philip Mause.
Introduction Many claim to be “contrarian” investors but quickly change their minds on any potential bad news. We are all eager to outperform the market and one way to achieve this objective is to become a “value investor”. It requires investors to understand business fundamentals, but most importantly, it requires great discipline, patience and emotional stability.
In this sense, human emotions are the worst enemy of the “value investor”, and the story of CBL & Associates Properties (NYSE: CBL) is a prime-time example here.
The share price just keeps dropping lower and lower, and almost as a self-reinforcing cycle,... more
Health care REIT Omega Healthcare Investors (OHI) reported worse-than-expected third quarter earnings at the end of October which resulted in a steep drop in the company's share price. Omega Healthcare Investors revealed (temporary) problems with one of its tenants, Orianna Health Systems, and lowered its full-year AFFO guidance as a result. The market currently seems to price a dividend cut into the REIT's valuation. Lack of a rebound in valuation is a good opportunity for contrarian-minded income investors to gobble up shares on the cheap.
Omega Healthcare Investors recently revealed that one of its tenants, Orianna Health Systems, was burdened by low occupancy rates which in turn led to a major impairment charge related to the existing direct financing lease totaling $194.7... more
Yesterday, I wrote an article titled "A New Paradigm For The Mall REIT Sector," in which I explained:
“I expect to see shares in higher-quality retail REITs to trade up. The GGP (NYSE: GGP) and Taubman (NYSE: TCO) news last week signal the fact that lines are no longer blurred within the Mall REIT sector, and the flight to quality is underway.Consider this a “harbinger” of sorts for Washington Prime (NYSE: WPG) and CBL (NYSE: CBL) investors, as I don’t see bidders for these properties and when the “music is over” (i.e. Sears (Nasdaq: SHLD) files bankruptcy) investors could be left without a chair.”
To put that into perspective, and as I have consistently explained:
“... there is a clear and present bifurcation underway... more
Black Friday and Cyber Monday are looming, folks. While others will spend hours upon hours waiting in line to capture those “Doorbusters,” I’ll be engaging in a different form of shopping. Shopping for dividend growth stocks! Each month, Lanny and I will put together a short list of stocks that have caught our attention and are strong contenders to be purchased when the timing is right. I’m hungry to add some forward dividend income to my portfolio this week, so let’s dive right in and see which stocks are on my November dividend stock watch list.
Dividend Stock #1 – Cardinal Health (NYSE: CAH) – The Dividend Aristocrat that just cannot seem to catch a break. CAH made an appearance on my October watch list and was also on Lanny’s... more