By Schwab Newsroom
The yield curve has appeared in quite a few news headlines recently. Why is this technical-sounding tidbit of financial jargon suddenly getting so much attention?
The short answer is that the yield curve has a reputation for predicting recessions, and some market watchers are worried recent changes to the curve's shape are sending a warning signal about the economy.
Are they right? Let's take a closer look.
What's in the curve? The yield curve is basically a snapshot of the yields on a collection of bonds of different maturities, from the very short to the very long. The "curve" is the line you could plot connecting those yields.
Normally, the yield curve slopes upward from the shorter maturities to the longer ones, because... more
Innovative Industrial Properties, Inc. (the “Company”) (NYSE: IIPR), the leading provider of creative real estate capital solutions to the medical-use cannabis industry, announced today that its board of directors has declared a fourth quarter 2018 dividend of $0.35 per share of common stock. The dividend is equivalent to an annualized dividend of $1.40 per common share, and is the seventh consecutive quarterly dividend payable to common stockholders declared since the Company completed its initial public offering in December 2016.... more
The year is now coming to an end, and the final scheduled significant event is the December 18-19 meeting of the Federal Reserve's FOMC where the members of the committee will decide if the Fed Funds rate will rise for the fourth time this year.
In 2015, the Fed hiked rates once and followed the same path in 2016. In 2017, the central bank picked up the pace of increasing the short-term rate with a total of three 25 basis point hikes. At the final meeting last year, the FOMC indicated the market should expect another three hikes in 2018. At the same time, in October 2017 the central began its program of balance sheet reduction. Unlike short-term rate hikes which drive monetary policy, allowing the legacy of asset purchases to roll off the central bank's balance sheet amounts... more
Texas Instruments (TXN) has one of the higher yields among the Dividend Achievers Index. This gives the company an appealing mix of current dividend yield and future dividend growth.
However, the company's above-average 3%+ yield has led some investors to question the safety of its current dividend payment.
In this article, we measure Texas Instruments' current dividend safety by looking at earnings, free cash flow, recession performance, and debt (including an interest rate stress test). If you prefer learning through videos, you can watch a video analysis on the topic below:
Texas Instruments Business Model
To begin, let’s talk about Texas Instruments’ business model. Texas Instruments is a semiconductor company that operates two business units:... more
Waste Management, Inc. (NYSE: WM) today announced that its Board of Directors has approved a 10.2% increase in the planned quarterly dividend rate for 2019, from $0.465 to $0.5125 per share. On an annual basis, the per share dividend increases from $1.86 to $2.05. This marks the sixteenth consecutive year that the Company has increased its planned quarterly dividend.... more
On December 13, 2018, the Board of Trustees of Dreyfus High Yield Strategies Fund (NYSE: DHF) declared from net investment income a monthly cash dividend of $0.0235 per share of beneficial interest, payable on January 15, 2019 to shareholders of record at the close of business on December 28, 2018. The ex-dividend date is December 27, 2018. The previous dividend declared in November was $0.0235 per share of beneficial interest.... more
Equity Residential (NYSE: EQR) today announced that its Board of Trustees declared quarterly dividends on the Company’s common and preferred shares. A regular common share dividend for the fourth quarter of $0.54 per share will be paid on January 11, 2019 to shareholders of record on January 2, 2019.... more
Argan, Inc. (NYSE: AGX) announced that on December 12, 2018, its Board of Directors declared a regular quarterly cash dividend in the amount of $0.25 per share of common stock, payable January 31, 2019 to stockholders of record at the close of business on January 24, 2019.... more
The Board of Directors of Independent Bank Corp. (Nasdaq Global Select Market: INDB), parent of Rockland Trust Company, today announced a $0.38 per share dividend. The dividend will be payable on January 11, 2019, to stockholders of record as of the close of business on December 31, 2018.... more