Consumer staples giant Kimberly-Clark (KMB) has proven to be a very stable dividend stock.
Kimberly-Clark meets our definition of a “blue chip” stock. It has been in business for over 100 years, and it currently has a dividend yield above 3%. This places it on Sure Dividend’s list of blue chip stocks.
Kimberly-Clark has paid a dividend for 83 years, and has increased its dividend for 45 years in a row. It is on the prestigious Dividend Aristocrats list. These are companies in the S&P 500 Index with at least 25+ years of consecutive dividend increases each year. You can see all 51 Dividend Aristocrats here.
Kimberly-Clark’s consistent dividends over the past several decades are due to the company’s strong brand portfolio. But sales are under... more
Omega Healthcare (OHI) tempts investors with a dividend yield exceeding 8%, but it has also struggled lately. Shares have declined 15% over the past year. Omega is a real estate investment trust, or REIT.
As a real estate investment trust, the prospect of higher interest rates has weighed on the stock.
On the other hand, Omega has a lot of appeal for income investors. It has a high yield, and a track record of dividend growth. This is a rare combination. Omega is a Dividend Achiever, a group of stocks that have raised dividends for 10+ consecutive years. You can see all 265 Dividend Achievers here.
It also has a very high current yield of 8.3%. It is one of 400 stocks with a 5%+ dividend yield. You can see the full list of established 5%+ yielding stocks here.
Omega has a... more
For "Fed Model" fans, a S&P 500 earnings yield of 5.70% with a 10-year Treasury rate of 2.19% continues to indicate that stocks are more reasonably valued than Treasuries from a relative perspective, but the Fed Model always needs to be taken with a grain of salt.
You can never, or its very dangerous to, sum up the S&P 500 in one statistical measure and then draw broad conclusions from it.
But here is what struck me running the weekly Thomson Reuters data today and updating the internal spreadsheet: with the Tech sector up roughly 20% YTD and the S&P 500 up roughly 10% YTD as of Friday, August 18, 2017, and the seeming eternity that investors have endured without a 5% correction, the S&P 500 "earnings yield" is still 5.70%.
Looking back at... more
Actionable Conclusions (1-10): Analysts Projected 8.5% To 22.1% Net Gains For Ten Aristocrats Dividend Dogs By August 2018 Five of ten top Aristocrats by yield were verified as being among the top ten gainers for the coming year based on analyst 1-year target prices. (They are tinted gray in the chart above). Thus, this yield-based forecast for Aristocrats dogs was graded by Wall St. wizards as 50% accurate.
Ten probable profit-generating trades were revealed in YCharts data for August 2018:
Nucor (NUE) was projected to net $221.14, based on dividends, plus median target price estimates from sixteen analysts, less broker fees. The Beta number showed this estimate subject to volatility 51% more than the market as a whole.
Leggett & Platt (LEG) was projected to net $209.90,... more
Canadian investors wasted no time reacting to the Bank of Canada's first interest rate increase in seven years last month. Bond yields began to rise from the first hint in late June of the central's bank's hawkish shift in policy, and have moved even higher since as markets moved aggressively to fully price in the mid-July hike of 25 basis points.
Two-year Government of Canada bond yields have risen more than 50 basis points since the end of May to 1.21% on Friday, August 11, according to Bloomberg data, while 10-year yields have jumped close to 45 basis points to 1.85% over the same period. As the Globe and Mail pointed out in a recent article, this stretch represents the biggest two month jump in sovereign bond yields (and fall in bond prices) in 23 years.
So what... more
Remember the song, "What A Difference A Day Makes"? We'd like to abridge that title to "What A Difference A Quarter Makes" for KNOT Offshore Partners LP (NYSE: KNOP), one of our long-term holdings, which just did a complete turnaround vs. a sub-par Q1 '17. It reported record revenues (up by 18%), EBITDA (up by 27%), and distributable cash flow (up by 27%). Although net income wasn't a company record, it grew by 46% in Q2.
KNOT Offshore Partners LP owns and operates shuttle tankers under long-term charters in the North Sea and Brazil. The company provides crude oil loading, transportation, and storage services under time charters and bareboat charters. KNOT Offshore Partners GP LLC serves as the general partner of the company, and Knutsen... more
Honeywell (HON) released their Q2 results on July 21, announcing earnings per share of $1.80. The company also updated guidance for the rest of the year, calling for earnings per share of $7.00 to $7.10. The forecast also called for increased margins across all four business segments. The quarter represented a strong start to new CEO Darius Adamczyk's tenure. Honeywell achieved a total shareholder return of 579% during the 15-year tenure of the previous CEO, David Cote. With new leadership in place, now is a good time to take a closer look at Honeywell's future.
Business Status Honeywell is a diversified business that generated $39.3 billion in sales in 2016. Although Honeywell is primarily a manufacturing company, they have increasingly turned to software to fuel growth; the... more
Community Healthcare Trust (NYSE: CHCT) is a small-cap healthcare REIT focused on buying what I deem the most attractive properties to own within the healthcare space: medical office buildings (MOBs), clinics, and surgical centers. I have spent quite a bit of time looking at nursing home REITs, hospital REITs, ALF REITs, MOB REITs and everything in between. CHCT appears to offer the best growth prospects, owns properties most immune to reimbursement risk, and has a management team that owns significant equity stakes in the stock (and takes all of its compensation in stock too).
Not only that but also CHCT has virtually no debt, trades at 12.5x forward FFO figures, and continues to buy niche suburban properties at attractive 9-11% cap rates. At $25 per share today, I expect CHCT will... more
Target Corporation (NYSE: TGT) is still struggling to grow its business in the changing retail environment. Analysts’ forecasts for EPS growth show it should be able to support and grow its current dividend payment. I see the results from the latest quarter as supporting the idea that TGT is on target to deliver solid dividend growth. Based on that growing dividend payment, I see the current market price offering a good opportunity for dividend growth investors to pick up shares in a great company at a low price.
What did I think last time? I last took a look at how Target Corporation was doing on March 17th. At the time I did something different and inverted how I normally look at a company. This time I looked at what dividend growth I wanted and then looked at the company to... more
We recently made Paychex (PAYX) the newest holding in our dividend portfolio. We think that the company will continue to benefit from a growing job market and slow but steadily rising interest rates. Even though this isn’t a groundbreaking investment thesis, we think it’s still not been fully priced into the stock as we’ll show in the valuation section at the end of the article.
Long Growth Runway for Jobs Market At first blush, it may seem odd to be buying a stock that benefits from rising payrolls when we are nine years into an economic recovery. After all, one would think we are closer to the end of the economic cycle than to the beginning. However, when it comes to jobs, we believe there is more slack in the economy than many people think. The chart below, taken... more