I know. It sounds counter-intuitive. Most investors look for stocks like the Dividend Aristocrats that have increased their dividends for 25 consecutive years or more. The Dividend Aristocrat list contains those companies in the S&P 500 Index that have increased dividends every year for the last 25 years without interruption. Most investors have found this a pretty reliable way to generate higher amounts of income with each passing year. If that's what you're after, the full list of 53 S&P 500 Dividend Aristocrat companies as of January 25, 2018, is as follows:
53 S&P 500 Dividend Aristocrat Companies as of January 25, 2018 3M Company (NYSE: MMM) AFLAC Inc. (NYSE: AFL) AbbVie Inc. (NYSE: ABBV) Abbott Laboratories (NYSE: ABT) Air Products & Chemicals Inc (NYSE:... more
Due to a generous 8.7% discount to its post-buyout price/unit, we just increased our holdings of Southcross Energy Partners (SXE), a smaller midstream LP, which is being bought by American Midstream Partners LP (AMID).
The deal is supposed to close by the end of Q2 2018, and it has already been approved by SXE and AMID unitholders, and has received final state approval.
Deal highlights - Among many other positive attributes, AMID's mgt. sees this deal as being immediately accretive to its Distributable Cash Flow. This makes sense - SXE used to pay $.40/unit quarterly, but eliminated its payout in February 2016. However, SXE generated $25.36M, and AMID generated $89.88M in DCF over the past four quarters.
(Source: AMID site)
The new entity will also have a... more
Actionable Conclusions (1-10): Brokers Estimate 35.26% To 65.37% Net Gains For Ten 9%+ Dividend WallStars By June, 2019 Three of ten top 9%+by yield WallStars were among the top ten gainers for the coming year (based on analyst 1-year targets). So, this yield-based forecast for 9%+Summer WallStars, as graded by brokers, was 30% accurate.
Projections based on dividends from $1000 invested in the highest yielding stocks and aggregate one year analyst median target prices of those stocks, as reported by YCharts, created the 2019 data points. Note: one-year target prices from one analyst were not applied (n/a). Ten probable profit-generating trades to June 20, 2019 were:
Telecom Argentina (TEO) was projected to net $653.67, based on dividends, plus median target price estimates from... more
Actionable Conclusions (1-10): Analysts Predicted Top Ten 'Safer' Dividend Industrials Could Net 5% to 51% Gains Six of the ten top 'safer' dividend-yielding Industrials by yield (shaded in the chart above) were verified as being among the top ten gainers for the coming year based on analyst 1 year target prices times $1,000. Thus, the dog strategy for this 'safer' dividend industrials group, as graded by analyst estimates for June, proved 60% accurate.
The following probable profit-generating trades were flagged by estimated dividend returns from $1000 invested in each highest yielding stock. That dividend and the aggregate one year analyst median target price, as reported by YCharts, created the 2018-19 data. Ten probable profit-generating trades projected to... more
FedEx (FDX) is one of the easiest stocks for me to own in today’s market environment. Unlike many of the other high quality DGI names with strong growth prospects that I follow, FDX isn’t irrationally overpriced. Actually, at ~16x 2018 EPS expectations, I would say that the shares are trading close to fair value. What’s more, FDX appears to offer strong growth prospects looking out to the medium/long term as it is propelled forward by several secular headwinds, including globalization, urbanization, and the retail shift from brick and mortar to eCommerce.
FDX has posted double-digit growth for 3 consecutive years now and analysts expect to continue to see strong growth looking ahead to 2018, 2019, and 2020. Because of this, I think it’s one of the strongest... more
Altria (NYSE: MO) conjures up all kinds of nice feelings for me. It's pretty much everything I look for in a dividend growth stock: Juicy dividend, nice earnings growth, and consistent earnings growth. The only thing that stands in the way of it being a perfect company is that the tobacco business is a bit more risky than the regular consumer staples business.
To say that this company is shareholder-friendly would be an understatement. 52 consecutive increases over a 49-year time-span are hard to beat. Bar a third world war or another super extreme event, it will become a Dividend King next year when it will increase its dividend for the 50th consecutive year.
MO data by YCharts
From 2014 until the summer of 2017, this graph was developing exactly as I would want it to.... more
Actionable Conclusion (1-10): Analysts Allege Top 10 SML 'Safer' Dividend MoPay Stocks Net 10.5% To 49.1% Gains By June 2019 Five of the 10 top gain 'safe' dividend MoPay dogs (tinted gray in the chart above), based on analyst one-year target prices, were among the 10 highest yielders for the coming year. So the yield selection strategy for this group, this month, as graded by analysts' estimates, proved 50% accurate.
The following probable profit-generating trades were culled by estimated dividend returns made from $1k invested in each top yielding stock. That dividend, plus the aggregate one-year analysts' median target price, as reported by YCharts, created the 2018-19 data. 10 probable profit-generating trades projected to June 18, 2019 were:
The Fed will publish this year's CCAR (Comprehensive Capital Analysis and Review) results on Thursday, June 28. We expect Bank of America (BAC) to deliver the largest dividend increase among large-cap U.S. Banks. According to our estimates, BAC will increase its quarterly dividend from $0.12 to $0.21. That would correspond to around 30% of FY 2017 earnings adjusted for non-cash items. In addition, we forecast a $19B buyback program. That would drive a total payout ratio to around 100%.
We see four reasons why BAC is most likely to raise its dividend and pay out almost 100% of its earnings in capital returns.
First, Bank of America has a 11.3% CET1 ratio, which is well above its minimum requirement of 9.5%. Even assuming a 100-150bps management buffer, Bank of America is still... more
Introduction This article is written about a Spanish financial institution, which is also one of the largest banks in the world - Banco Santander (SAN). I started looking at this company by mistake during a short period of time I have heard several news pieces about the recovering Spanish economy, the political situation in Spain, and the ECB policies in Europe.
If you follow my article, you will know that I am a great fan of diversification. I also like to diversify my portfolio in terms of currencies and markets. It's much harder to find foreign-based dividend growth stocks, and therefore, I am not going to miss a chance to look at a leading financial institution with business in Europe and Latin America.
When I analyze this major bank, I will analyze it according to my... more
Fund overview – The Western Asset Investment Grade Defined Opportunity Trust, Inc (IGI)
(Source: Fund Factsheet)
With exposure to a diversified portfolio of short duration securities and an unlevered balance sheet, IGI seeks to deliver high current income and limited interest rate sensitivity. The trust, set to terminate in December 2024, does allocate assets to low quality bonds in an effort to enhance yield so there is a bit extra credit risk. In this article we will analyze this fund for its potential to deliver current income and an acceptable total return.
Investing for income
(Source: Original Image – Data from Yahoo Finance)
Historically, this fund has delivered a stable yield which is important to investors that rely on their portfolios for... more