Centerpoint Energy Increases Dividend
Today’s chart shows that you can earn big profits from firms that “sell the basics.”
Regular readers know we love boring businesses. People always need to buy “simple” products like food, water, and home heating. And, unlike hot tech stocks, these companies don’t have to invent the next hot gadget every other year.
Take Texas utility CenterPoint Energy, Inc. (NYSE: CNP), for example. The company lights more than five million homes across the South. This cash cow operation provides the funds needed for the company to expand into new businesses, such as energy services and natural gas pipelines.
Needless to say, its shares don’t get a lot of airtime on CNBC. The power bill, though, usually... more
Landstar Announces Special Dividend
For some investors, Christmas will come a little early this year.
Every December, companies often announce dividend increases. For firms reporting blowout profits and sitting on large piles of cash, they often spread the wealth around through special dividends. Investors love these announcements, as they often result in one-time payouts as high as 10%, 25%, and even 50%.
Case in point: Jacksonville-based trucking firm Landstar System, Inc. (Nasdaq: LSTR). In the latest Landstar dividend news Wednesday, management announced a one-time special dividend of $1.50 per share. In the same report, the board of directors also approved a $312.0-million share buyback program.
The special dividend announcement comes after reporting a... more
Investors love triple net lease REITs.
Source: O investor presentation
Among their favorite is Realty Income Corporation (O). O has several advantages over other REITs.
Source: O investor presentation
One of those advantages is their dividend history. Investors love Realty Income because of the monthly dividend and the history of dividend increases.
Modern portfolio theory Financial analysts are prone to liking Realty Income Corporation because of how well it fits in the portfolio under modern portfolio theory.
Source: O investor presentation
As you can see, Realty Income Corporation does extremely well under modern portfolio theory. The excellent performance of O under modern portfolio theory is impacted by both their high returns and the... more
These indices are not well known or well followed, but they give us a window into the longer term potential of higher yielding dividend payers. These indices look for the sweet spot of just enough greater yields, but while managing the risks of paying out that greater 'juicier' dividend. Yes, I am guilty of using the phrase Juicy Dividends.
It's an approach that certainly relies on the compounding approach or effect when those juicy dividends are then used to purchase more shares and increase that investor's share count and ownership of the businesses that make up the indices. While that investor is increasing his or her share count, the dividends are also growing. There's a double compounding effect. It's a virtuous cycle of greater income enabling an investor... more
Summary Pattern Energy (PEGI) is an owner/operator of 20 wind farms primarily in the United States, with a huge backlog of growth projects. Today, PEGI owns 2,700 MW of wind power operating under a variety of Power Purchase Agreements (PPA’s), with a goal of owning 5,000 MW by 2020. Wind power output is contracted for 15 years on average to A rated investment grade counterparties, with 92% of output at fixed prices. Overall, this is a great high margin business, with long dated contracted cash flows from solid customers, little maintenance capex, and a tailwind of significant growth.
With Pattern stock down almost 20% from its September highs, PEGI now trades at an 8.0% yield compared to NYLD at 6.1%, CAFD at 7.6%, BEP at 5.6% and NEP at 4.0%. An equity offering in October, poor... more
Pfizer is a strong dividend stock. It has a 3.5% dividend yield, which is well above the S&P 500 average, and is also above many of its peers in the Big Pharma space. Pfizer is one of 203 dividend stocks we track in the healthcare sector. You can see all 203 dividend-paying healthcare stocks here.
In addition, Pfizer is a dividend growth company. Investors no doubt remember Pfizer’s painful dividend cut in 2009, to help finance its massive $68 billion takeover of Wyeth. But since then, the company has returned to increasing its dividend on an annual basis.
Last year, Pfizer announced its dividend increase on December 12th. It has paid a flat dividend for four quarters, implying it is likely another dividend increase is on the way. This article will review Pfizer’s... more
Aerospace giant Boeing (BA) is a very shareholder-friendly company, evidenced by its massive cash returns. The company has a dividend yield well above the S&P 500 Index average, and it raises its dividend and share buybacks on an annual basis.
Most recently, on December 11th the company announced a 20.4% dividend hike, along with a new $18 billion share repurchase authorization.
Such huge cash returns are highly impressive. The buyback represents more than 10% of the market capitalization. And, Boeing has paid quarterly dividends for more than 75 years. It is one of 747 dividend-paying industrial stocks.
But at the same time, Boeing’s valuation has taken flight over the past year. The stock now trades for a forward price-to-earnings ratio near 30, which is rather... more
Investment Thesis Nucor (NYSE: NUE) is a fascinating company. It is one of the rare basic materials companies to show stability in a volatile environment. Nucor is a leader in the steel industry and it is also a Dividend Aristocrat with 45 consecutive years with a dividend increase. With the Trump administration’s plan to invest massively in infrastructure in the upcoming years, NUE will be among the first companies to benefit from this tailwind. Unfortunately, the stock lagged the market in 2017 and it is still overvalued in my view. Let’s dig deeper to see if NUE fits your portfolio.
Understanding the Business
Nucor is the largest producer of steel in the U.S. The company, showing a production capacity of 27 million tons each year, is also the U.S. largest recycler.... more
In April of 2015, I skimmed 15 of the largest cap Dividend Achievers (VIG). Of course, the index is available in ETF form thanks to Vanguard. Here are the 15 Achievers that I skimmed and purchased in 2015:
Nike (NYSE: NKE), CVS (NYSE: CVS), Walgreens (Nasdaq: WBA), Microsoft (Nasdaq: MSFT), 3M (NYSE: MMM), Colgate-Palmolive (NYSE: CL), Johnson & Johnson (NYSE: JNJ), Qualcomm (Nasdaq: QCOM), Medtronic (NYSE: MDT), Abbott (NYSE: ABT), PepsiCo (NYSE: PEP), Texas Instruments (NYSE: TXN), Wal-Mart (NYSE: WMT), United Technologies (NYSE: UTX) and Lowe's (NYSE: LOW).
The Dividend Achievers 15 has closely tracked the underlying total index ETF. But had I skimmed further down the list in 2015, to the next largest Achievers I would have purchase these 20 companies. Costco (COST),... more
Actionable Conclusions (1-10): Brokers Predicted Top Ten Wall St Most Hated 'Safer' Dividend Stocks Net -3.75% to -21.78% Losses To December, 2018 One of the ten top Wall St. Most Hated 'Safer' DiviDogs by yield (shaded in the chart above) were verified as being among the top ten losers for the coming year based on analyst 1 year target prices. Thus the dog strategy for this group as graded by analyst estimates for this month proved 10% accurate.
Ten probable loss-generating trades were culled by YCharts for 2018:
Pier 1 Imports (PIR) was forecast to lose $217.80 based on a median price estimate from fifeen analysts plus dividends less broker fees. The Beta number showed this estimate subject to volatility 91% more than the market as a whole.
AU Optronics (AUO)... more