Daily dividend news for investors in dividend stocks

3 Best Dividend Aristocrats And Kings, And 3 To Avoid

Dividend Kings and Aristocrats are exceptionally stable companies that have increased their dividend payments annually for the past 50 and 25 years, respectively.
Selecting which specific dividend-generating companies to invest in is a balancing act.
Yield, growth and coverage need to be considered, as well as how the company is doing as a business (return on assets, debt levels and trends).
Financial statement trend analysis indicates three Aristocrats and Kings with particularly favorable characteristics (plus two honorable mentions), and three to avoid.
This article was co-authored with DM Martins Research
As of 2020, 63 companies in the S&P 500 (SPY) qualified as dividend Aristocrats. These companies have increased their dividend payments for 25 consecutive years... more


Dividend Champions For June 2020

Monthly update of the Dividend Champions List.
31 companies declared higher dividends in the past month, with an average increase of 4.45% over their previous payouts.
No new Champions, Contenders, or Challengers.
About the Dividend Champions List
The Dividend Champions list is a monthly publication tracking companies with a history of consistently increasing their dividends. Wider in scope than the well-known S&P 500 Dividend Aristocrats and Nasdaq Dividend Achievers, the Dividend Champions covers all companies listed on exchanges in the United States. In order to be included in the list, the annual split-adjusted dividend payout of a company (based on calendar year) must be consistently increasing. The Dividend Champions list is separated into three categories based on... more


Laurentian Bank: A 40% Dividend Cut Isn't The End Of The World

Laurentian was barely profitable in Q2 as the bank had to use almost its entire pre-provision income to cover expected losses.
This means the dividend, even after the 40% reduction, isn't fully covered and will further reduce the CET1 ratio.
While the balance sheet and capital ratio can handle a temporary situation of uncovered dividends, it's a situation I don't like to see.
Even after the cut, Laurentian is yielding 5.6%, but an additional cut will be necessary if earnings don't bump back up soon.
After being positively surprised by the financial results of National Bank (OTCPK: NTIOF) (OTC:NTIFF) last week, I also wanted to check the much smaller Laurentian Bank (OTCPK: LRCDF). While other Canadian banks kept their dividends unchanged,... more

SeekingAlphaStock symbol(s): NTIFF,NTIOF

CareTrust REIT: The 11% Dividend Raise Is Music To My Ears

CareTrust is a growing skilled-nursing landlord with solid debt metrics and a strong base of operators.
Management has been proactive in helping its operators address the COVID-19 crisis.
With plenty of balance sheet flexibility, CareTrust can weather this crisis and continue growing in the near term.
Investment Thesis
CareTrust REIT (CTRE) has seen its share of volatility over the past three months, hitting a multi-year low before recovering to the current price of $19.33 as of writing. While there has been plenty of headline risk surrounding skilled nursing facilities and seniors housing, CareTrust has managed this environment well with a relatively low infection rate in its facilities. With an active pipeline, solid debt metrics, and low payout ratio, I believe CareTrust... more


The Tech Impact On Dividend Growth

Stocks that have paid investors rising dividend payouts over time have outperformed the market over multiple business cycles.
Companies that have had the financial wherewithal to return increasing cash to shareholders through different economic environments have tended to prove defensive in risk-off environments.
The S&P 500 Dividend Aristocrats, which have a 25-year or longer history of increasing dividends, have outperformed the market over time, with much of those gains coming in down years.
The Dividend Aristocrats are lagging in the down market in 2020, with much of the underperformance attributable to a tech and Amazon underweight.
If you tracked the performance of the S&P 500 Dividend Aristocrats over the first ten years of the available history from its... more

SeekingAlphaStock symbol(s): AMZN,FRT,O,SPY,XLK

First Republic Bank Declares Dividends on Four Series of Perpetual Preferred Stock for Second Quarter 2020

First Republic Bank (NYSE: FRC), a leading private bank and wealth management company, today announced that it has declared cash dividends on the following outstanding series of its perpetual preferred stock.... more

BusinessWireStock symbol(s): FRC

One Cheer For Yield Curve Control

It's a mistake for the Fed to try to reduce long-term interest rates.
Lower interest rates are not, by themselves, expansionary.
Two reasons why I cheer for yield curve control.
Here's Bloomberg:
Federal Reserve Bank of New York President John Williams said policy makers are "thinking very hard" about targeting specific yields on Treasury securities as a way of ensuring borrowing costs stay at rock-bottom levels beyond keeping the benchmark interest rate near zero.
It's a mistake for the Fed to try to reduce long-term interest rates. In the vast majority of cases, falling long-term interest rates are associated with slower expected NGDP growth. Lower interest rates are not, by themselves, expansionary.
So why do I give one cheer for yield curve control? Two... more


Flexsteel Industries, Inc. Announces Quarterly Dividend and Business Update

Flexsteel Industries, Inc. (Nasdaq: FLXS) (“Flexsteel” or the “Company”), one of the largest manufacturers, importers and online marketers of furniture products in the United States, today announced its quarterly dividend and provided a business update. In light of the continued economic uncertainty and dampened demand for furniture related to COVID-19, the Company and its Board of Directors (the “Board”) have implemented conservative cash strategies to ensure the viability of the Company and to maximize its financial flexibility until economic conditions stabilize.... more

BusinessWireStock symbol(s): FLXS

The 2020 Dividend Kings List + My Top 5 Kings

Dividend Kings are companies that have had 50 consecutive years with a dividend increase. Do not confuse this with 50 years of consecutive payments.
You will not find stocks in the energy or technology sectors. You can bet many future dividend kings will eventually come from the tech sector.
The Dividend Kings have done incredibly well in the past, but their recent performance has not been comparably impressive.
My favorite long-term dividend growth companies with dividend triangle trend (revenue, earnings per share, dividend for 5 years), my investment thesis and potential.
Dividend Kings are companies that have been showing the longest streaks of dividend increases in stock market history. In fact, they show more than 50 consecutive years with a dividend increase. To be part... more

SeekingAlphaStock symbol(s): GPC,JNJ,MMM,PG,SYY

Style-Box Update, Small-Cap And High-Yield, And Sector Returns

Nothing has really changed yet in terms of “style-box” returns with Growth outpacing Value and Large-Cap beating Small-Cap.
The last time the small cap asset class beat large-caps was 2016.
Ready to allocate some small-cap exposure when the numbers justify that allocation.

Nothing has really changed yet in terms of “style-box” returns with Growth outpacing Value and Large-Cap beating Small-Cap.
Late in the week of May 222nd, The CFA Society of Chicago held a webinar with Gina Adams of Bloomberg (one of Bloomberg’s Equity Strategists), which was very informative.
One area of interest Gina covered on the call was the small-cap sector’s out-performance attribution tends to be correlated with high-yield credit out-performance.
Readers should look at the... more