Actionable Conclusions (1-10): Analysts Assert Ten 'Safer' Dividend Energy Equities To Net 16.4% to 46.4% Gains By June, 2019 Five of the ten top-gain "safer" dividend energy equities, based on analyst 1-year target-prices (tinted gray in the chart above), were verified as being among the top ten yielders for the coming year. Thus the dog strategy for this group, as graded by analyst estimates, proved 50% 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 June 14, 2019 were:
Dividend strategies have always been a popular way to invest your money, never more so than in the low-interest rate environment that has existed now for a decade. A simple google search for 'Best way to invest in safe dividend stocks' reveals a deluge of opinions that are often at odds with each other.
As seasoned dividend investors we know we should be looking at earnings and dividend growth rates, consecutive years of dividend growth, low payout ratios, high yields and low debt levels to name just a few factors. But how do we really know what makes a dividend stock a good investment opportunity?
This is the first in a series of articles researching what effect these factors have on the stocks we invest in, with the aim of identifying the ones we should be using and... more
This research report was produced by The REIT Forum with assistance from Big Dog Investments.
Arlington Asset Investment (AI) should be able to sustain the current dividend level.
We knew this cut was coming:
The dividend has been cut to $0.375/share per quarter. Now the question is: is the dividend sustainable? No, it is not. They could cut the dividend by 31.8% again tomorrow and it still wouldn’t be sustainable.
What has happened? I will go over many of the reasons AI’s dividend isn’t sustainable. They are all metrics I’ve been calling out for over a year. When AI was overpriced before I had numerous sell rating and published Your Dividend Is Doomed on On Oct. 8, 2017. That was one of your final warnings and then this happened in... more
Actionable Conclusions (1-10): Targets & Dividends Projected 22.5% To 46.42% Net Gains Powering Ten Top Energy Stocks To June 2019 Six of ten top-gaining Energy sector stocks, based on analyst 1-year target prices, were also part of the top ten dividend-yielders for the coming year (as tinted in the chart above). Thus, the yield-based forecast for the Energy sector, as graded by the Wall St. wizards, was 60% accurate.
The following probable profit-generating trades were selected by estimated dividends from $1,000 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 June 14, 2019 were:
CrossAmerica Partners (CAPL) was... more
The Dairy Crest Group (OTC:DRCSF) (OTCPK: DRCSY) is a British dairy company producing cheese, spreads and butter with milk sourced from a few hundred farmers. It's a business concept I do like, as people generally won't drink less milk (I would imagine kids are still being incentivized by their parents to drink sufficient quantities of milk), and even as an adult, I personally don't mind having a cup of warm milk before bedtime. A sore throat? Nothing a cup of hot milk and honey can't handle. So, yes, I do like milk, and if I can make money with a milk-related investment, that's a nice bonus.
Dairy Crest's main listing is (obviously) on the London Stock Exchange, where it's trading with DCG as its ticker symbol. The current... more
We hear a common refrain all the time, especially in comment sections here on Seeking Alpha. Readers and investors are in a constant state of fear whenever interest rates rise. They ask:
"Should I sell my REITs?"
"REITs are the worst equity class to own when rates rise".
You'd think, with each bump-up of interest rates, the world is coming to an end.
The FOMC committee of the Federal Reserve announced on Wednesday that it had raised the benchmark Fed funds rate by .25%, the second such raise this year.
Not only that but also it pronounced the economy so healthy, so strong, that its intention is to raise this closely watched rate two more times before the end of this year.
The U.S. economy is in "great... more
Looking for a high-yield niche play? Maybe you should consider Hoegh LNG Partners LP (HMLP), the only publicly traded pure play on FSRU's.
FSRU stands for "Floating Storage & Regasification Unit" and it has a rapidly growing presence in the LNG shipping industry. HMLP's parent/sponsor, Höegh LNG Holdings Ltd., is the largest provider of FSRUs in the market.
FSRU leasing/chartering solves many problems for charterer companies and countries. It's slow and expensive to build an LNG import terminal, so FSRUs are being increasingly used to give countries access to LNG. Like many of the firms we cover, HMLP operates on long-term contracts - its current average is 11 years for its five-vessel fleet, which includes two JV vessels. This is among the longest... more
We started with a fairly simple question. If we were to invest in five large-cap, safe, and dividend-paying companies trading at relatively cheap valuations, which companies would make the cut?
Note: In our opinion, for a well-diversified portfolio, one should have at least 15-20 stocks.
Income Vs. Total-returns: Before we get to the filtering process to select five companies, we should be clear in our objectives. Our goals are reasonable and growing income, the safety of the principal, and the total returns, in that order. By and large, our goals are in alignment with income investors.
If you are one of those, who believe in total returns and draw income by selling shares, more power to you. However, we do not like the option of selling shares to draw income; we feel it is... more
Own FedEx Stock for Growing Dividends
For the most part, FedEx Corporation (NYSE: FDX) hasn’t been a staple for income investors. While the company is decades old and runs an established business, it did not have a dividend policy until 2002.
Since then, however, FedEx’s dividend growth has been nothing short of impressive. When the company first set up its dividend policy, it was paying investors $0.05 per share each quarter. Management has raised the payout at least once every year. Today, the company’s quarterly dividend rate stands at $0.65 per share, representing a total increase of 1,200%. And that’s no misprint. (Source: “Dividends,” FedEx Corporation, last accessed June 13, 2018.)
Still, consistent dividend increases don’t... more
I'm as surprised as anyone that the AT&T (T)-Time Warner (NYSE: TWX) deal was approved without any conditions. While I do believe that AT&T paid a premium for the acquisition, a deal with no conditions is a big win for AT&T. Common sense would dictate that the company now has more leverage to control pricing in the future, which could be bad for consumers and good for AT&T's bottom line. The stock price has not responded positively to this news, which I view as a great opportunity to buy the stock (I just opened up a position myself) for the following reasons:
1 year after the acquisition, AT&T expects the deal to be accretive to both adjusted earnings and free cash flow. Dividend coverage is expected to be strengthened as well. I've projected what this... more