One way to identify dividend growth stocks for further analysis is to monitor dividend increases. Companies can only increase their dividends regularly and sustainably if earnings grow sufficiently.
I use the CCC List as a starting point and apply the following screens:
Dividend Yield ≥ 1.0% Market cap ≥ $1 billion No stocks that are being acquired No Over-The-Counter or Pink Sheet stocks This past week, nine companies that announced dividend increases passed these screens, including one of my DivGro holdings.
The following table presents a summary.
The table is sorted by the percentage increase, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for the market close Price on the date listed. Yrs are years of... more
Investors may be attracted to high-yield oil & gas producers, such as Vermilion Energy (VET, TSX:VET). However, the stock price getting shaved 36% in the past 12 months indicates that there are heightened risks in the juicy yield. A year ago, Vermilion offered a yield of nearly 6%. Today, it offers a whopping yield that's over 9%!
There may be a place in investors' portfolios for higher-risk stocks like Vermilion that offer an above-average yield and upside potential at the right price.
However, if that's not for you, here are two lower-risk dividend stocks that offer safe income because lower oil prices have little impact on their profitability. At the same time, lower oil prices may still trigger some dips in the stocks.
Bank of Nova Scotia
Bank of Nova Scotia... more
Let me tell you this: if you meet a loner, no matter what they tell you, it's not because they enjoy solitude. It's because they have tried to blend into the world before, and people continue to disappoint them.” ― Jodi Picoult, My Sister's Keeper
Today we look at one of the most prominent high yield plays within my own portfolio. It is cheap, in the process of integrating a major new business and sees consistent and significant insider buying as well.
Entercom Communications Corporation (ETM) is a Bala Cynwyd, Pennsylvania, based radio broadcasting company with ~237 stations in 48 U.S. markets. The company was founded in 1968 and went public in 1999. Entercom dramatically increased in size after merging with CBS Radio in November 2017. It has ~4,400... more
Chimera Investment Corp. (CIM) released a good set of financials for its first fiscal quarter at the beginning of May. The mortgage real estate investment trust offers income investors a dividend yield in excess of ten percent and once again covered its payout with core earnings in Q1-2019. That being said, though, major mortgage REITs have guided for lower dividend payouts in April and May, which raises questions about whether Chimera's dividend is sustainable or not. An investment in CIM at today's price point yields 10.6 percent.
Chimera Investment Corp. - Business Overview
Chimera is structured as a mortgage real estate investment trust, and it has an equity value of ~$3.5 billion. It is a hybrid mortgage REIT, since the company invests in both agency and non-agency mortgage... more
Looking at Verizon (NYSE: VZ) and AT&T (NYSE: T), investors are being shown two different ways to approach the future. On the one hand, Verizon is essentially sticking to its knitting. The company isn’t involved in any huge deals, claims to not be interested in one, and is laser-focused on building out the promise of 5G. On the other hand, AT&T has transformed itself with purchases of DirecTV and Time Warner over the past many years. Though AT&T has a bigger yield and its diversity may seem appealing, there are three reasons to believe that Verizon should keep moving higher.
Less debt and more focus
One reason Verizon should keep rising is that it plans on paying down debt, while building its 5G capabilities. The company made its dual focus very clear during the last... more
Columbia Seligman Premium Technology Growth Fund (STK) is a fund that offers investors the opportunity to benefit from the long-term growth potential of technology and technology-related stocks. It focuses on capital appreciation and current income. Besides owning equity in technology-based stocks, the fund also writes call options on the Nasdaq 100 Index or its exchange-traded (ETF) fund equivalent.
STK provides investors access to a diversified portfolio of technology-based stocks and in addition, it has a quarterly distribution program. In that past three years, the fund performed significantly better than the S&P500. However, in 2018 the fund underperformed the S&P North American Technology Sector Index, returned 2.88% in 2018 whilst STK only... more
Medical Facilities Corporation (OTCPK: MFCSF) (TSX:DR) delivered poor first quarter 2019 earnings result as the company saw a significant decline in revenue in its UMASH facility. We believe MFC’s quarterly results can be lumpy from time to time and hence investors should desire a higher margin of safety. Looking forward, MFC’s healthy balance sheet should help it to continue to pursue acquisitions especially in the area of ambulatory surgery centers. MFC’s shares are currently significantly undervalued when compare to its peers. It also offers an attractive 8.7%-yielding dividend. We believe this company is a fine choice for investors with a long-term investment horizon seeking both capital appreciation and dividend income.
We are in the midst of bank earnings season. After mixed results last week, the rest of Canada’s banks are expected to report over the next couple of weeks. This week, there are three that are expected to raise dividends along with earnings.
It has been a couple of weeks since the last report, and I do have some unfortunate news to share before we jump into this week. Of note, all figures are in Canadian dollars unless otherwise noted.
Last Week’s Results
One of Canada’s most reliable dividend growth companies – Lassonde Industries (OTC:LSDAF)[TSX:LAS.A] – disappointed shareholders. The company has a poor website and there were no indication as to when it was scheduled to release results.
I was keeping a close eye on the company because the company was expected... more
By Nate Parsh
Investors often turn to real estate investment trusts, or REITs, when looking for income. This makes sense as REITs are required by law to pay out at least 90% of their income in the form of dividends. This often leads to outsized dividend yields.
One of our favorite REITs is W.P. Carey (WPC), which yields more than 5% currently. This is more than double the average yield of the S&P 500. You can see all of the 5%+ yielding stocks here.
Shares of W.P. Carey are up 27% year-to-date, easily beating the 12.6% return of the S&P 500. This article will analyze W.P. Carey’s business performance, dividend history and valuation to see if the stock is worth purchasing at the current price.
Overview and Recent Events
W.P. Carey is one of the largest real... more
The S&P 500 earnings yield was 6.05% as of Friday's close, and the 2nd week in a row where the key benchmark's earnings yield was above 6%.
There was a string of 22 consecutive weeks from October 5th, 2018 to February 22nd, 2019, where every week the S&P 500 earnings yield was above 6% and even above 7% on December 21st, so don't use the EY as a timing tool, but the metric does indicate that the S&P 500 is relatively cheaper once again.
S&P 500 Earnings data (by the numbers - Source: IBES by Refinitiv)
Fwd 4-qtr est: $171.60 vs. last week's $171.76 PE ratio: 16.5x PEG ratio: 3.48x S&P 500 earnings yield: 6.07% vs. last week's 6.01% Year-over-year growth of fwd estimate: 4.73% vs. last week's 4.85% Summary/conclusion: To be frank with readers, the S&P... more