I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis. Companies that regularly raise their dividend payments show confidence in future earnings growth potential. Recently, 4 companies on my watch list announced dividend increases. The table below presents a summary of these increases.
The table is sorted by 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 consecutive dividend increases, while 5-yr DGR is the compound annual growth rate of the dividend over a 5-year period. 1-yr %Incr is the percentage increase from the year-ago dividend. (Some companies increase their... more
I wrote something on Friday called "An Interesting Dynamic Emerges In High Yield."
It was largely overlooked.
And that's fine. It was Friday, which means most people had already tuned out for the week and on top of that, I used the word "synthetic" twice, which is two times too many if you want retail investors to pay attention.
But while I don't expect you to go and read that piece, what I do expect you to do is consider the fact that we're at a veritable tipping point in high yield.
The space as a whole has remained largely resilient in the face of falling oil prices. Crude fell into a bear market this week and spreads on HY energy blew out commensurately.
The point I made in the post linked above is that the HY CDS-cash basis had... more
If you're looking for distribution growth over the next few years, you may want to check out Delek Logistics Partners LP (NYSE: DKL) - a midstream company with a presence in the Permian Basin that's poised to become much larger.
DKL has 2 operating segments - Pipeline & Transportation and Wholesale & Terminalling.
(Source: DKL Q1 '17 presentation)
DKL's parent/general partner Delek US Holdings (NYSE: DK) is set to buy the remaining 53% of Alon USA Energy (NYSE: ALJ) on July 1st, which will transform the company into one of the leading Permian midstream firms:
(Source: DKL Q1 '17 presentation)
The Permian Basin has emerged as one of the lowest-cost areas for crude production:
Production growth in the Permian... more
This research report was jointly produced with High Dividend Opportunities co-author Philip Mause.
NGL Energy Partners, L.P., (NYSE: NGL) has just issued 9% preferred stock - the NGL Energy Partners LP, 9.00% Class B Fixed/Float Cumulative Redeemable Perpetual Preferred Units.
Terms of the Preferred
Coupon & Par Value: The new issue has a par value of $25/share and will pay a 9% dividend (coupon rate). The dividend is cumulative: This feature makes cumulative preferred shares more valuable than non-cumulative preferred shares or common shares because in the event that payments are suspended, they accumulate and are owed to the shareholders, and will be repaid in full if and when the payments are restored. Furthermore they must be completely repaid before the common... more
1 Top Dividend Stock for the Next 10 Years
Today’s chart highlights my favorite way to find top dividend stocks, picks and shovels.
Rather than taking the all-or-nothing route of searching for the next big strike, these companies provide tools and services to a commodity boom. They represent the safer (and sometimes more profitable) way to invest in the resource business.
Case in point: Hoegh LNG Partners LP (NYSE: HMLP). Investors have made a fortune on the natural gas gold rush and this partnership sits on the front line of the boom. For owners, that has translated into a lucrative income stream.
New technologies have turned the United States into the Saudi Arabia of natural gas. We have so much in the way of supply that drillers literally flare the stuff off... more
Today’s chart highlights one of the most common traits of a top dividend stock: a slumping stock price.
See, many analysts would have you believe that a stock is worth buying only if it has positive momentum working in its favor. In other words, they recommend that you buy “high” and sell “higher.”
Now, that kind of strategy might make sense if you’re a short-term trader looking to make a quick profit. However, if you approach stocks as a businessperson with long-term wealth-building in mind, there’s really only one time to buy: when they are cheap.
As regular readers know, I’m always on the prowl for a solid dividend stock that has been beaten down in price (for whatever reason). Why? Well, because if the company can somehow... more
on June 23, 2017
If you were to base your investment decisions solely on the news headlines, you might be convinced that Kroger (NYSE: KR) is going out of business. In fact, Kroger's stock lost one-third of its value... in two trading days.
First, Kroger announced lower 2017 earnings guidance in its first-quarter results. This caused the stock's price to tumble. The next trading day, Amazon.com (Nasdaq: AMZN) announced its $14 billion pending takeover of organic grocer Whole Foods Market (Nasdaq: WFM), which caused Kroger's stock price to fall further.
Investors fear that what Amazon did to department stores - undercutting them on price to take market share - it could soon do to grocery stores. But Kroger isn't going away anytime soon - it is the largest... more
on June 22, 2017
Surprisingly, several members of the Dividend Aristocrats - stocks in the S&P 500 Index with 25+ consecutive years of dividend increases - come from the industrial sector.
In fact, of the 51 Dividend Aristocrats, nine are industrials, such as 3M (NYSE: MMM), Emerson Electric (NYSE: EMR), and more.
You can see the entire list of 51 Dividend Aristocrats here.
This could come as a surprise, since industrials are very economically-sensitive. When the economy goes into recession, these stocks should be among the hardest-hit.
And yet, many continued to raise their dividends during the Great Recession.
United Technologies (NYSE: UTX) is no exception. While it is not a Dividend Aristocrat, it is a Dividend Achiever, a group of stocks with 10+ years of... more
Actionable Conclusions (1-10): Analysts Assert Top Ten "Safer" Consumer Cyclical Dog Stocks Could Net 12.2% to 97% Gains By May 2018
Six of the ten top "safer" Consumer Cyclical dogs (tinted gray in the chart above) were verified as also being among the Top ten yielders for the coming year based dog metrics. Thus the dog strategy for this group, as graded by analyst estimates for June, proved 60% accurate.
The ten probable profit generating trades illustrated by YCharts analytics for 2018 were:
Tailored Brands (TLRD) netted $419.22 per estimates from five analysts, plus dividends less broker fees. The Beta number showed this estimate subject to volatility 68% more than the market as a whole.
International Game Tech (IGT) netted $348.88 based on... more