Johnson & Johnson (NYSE: JNJ) is extremely well diversified in the medical health field with new drugs leading the way and is a defensive business that will make money even in a recession. This article is about why Johnson & Johnson is a dividend income growth and total return investment.
JNJ has increased its dividend for 55 years, making it a Dividend King, and has in the last 52 months had an above average total return. Johnson & Johnson should be a cornerstone of all portfolios and is 8.0% of The Good Business Portfolio. JNJ products cover the full line of medical needs, drugs, medical devices, and consumer products. It's a defensive growth and income company that will not make you rich overnight but will make you a good total return over time. In 2013 JNJ... more
The Board of Directors of Schnitzer Steel Industries, Inc. (Nasdaq: SCHN) declared a cash dividend of $0.1875 per common share, payable on May 22, 2017, to shareholders of record on May 8, 2017. Schnitzer has paid a dividend every quarter since going public in November 1993.... more
Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, announced today that its Board of Directors has declared a regular quarterly cash dividend of $0.29 per share, payable May 31, 2017, to shareholders of record on May 17, 2017.... more
A high-conviction, bottom-up approach to finding sustainable profit margins
By Meggan Walsh, CFA, Senior Portfolio Manager. Posted on Expert Investment Views: Invesco US Blog.
As dividend value investors, my team is focused on sustainability of profit margins over a full profit cycle. I believe that we are in the later stages of the profit cycle, with corporate profit margins at about 1%1 below their peak levels in late 2014. What does that mean for us as high-conviction, bottom-up investors?
First and foremost, we are not macro investors. However, our fundamental research process does offer insights, particularly with respect to the profit cycle. We want to understand how companies are over- or under-earning over time.
A key focus for us is knowing how much of the... more
Invesco Fixed Income shares its views of rates around the world
By Rob Waldner, Chief Strategist and Head of Multi-Sector. Posted on Expert Investment Views: Invesco US Blog.
At Invesco Fixed Income, we believe strong global growth should ultimately pressure U.S. interest rates upward as global monetary policy tightens. In the short term, however, the U.S. Federal Reserve (Fed) has indicated that it does not intend to tighten interest rates quickly. Moves from other central banks, such as the European Central Bank (ECB), will likely drive price action in longer-dated U.S. Treasuries, in our view. As global growth continues to improve, other global central banks' actions may catalyze a move higher in U.S. Treasury yields.
Below is an overview of the Invesco Fixed... more
The Board of Directors of PerkinElmer, Inc. (NYSE: PKI), declared a regular quarterly dividend of $0.07 per share of common stock on April 28, 2017. This dividend is payable on August 10, 2017 to all shareholders of record at the close of business on July 21, 2017.... more
Up until the financial crisis, when many U.S. banks were nearly destroyed by disastrous amounts of leverage and risky bets on mortgage backed securities and complex derivatives, banks were a favorite sector among dividend investors thanks to their generous yields and solid histories of payout growth.
The memory of the great financial crash is still fresh in the minds of many, which is why some income investors have sworn off banking stocks entirely.
While most bank stocks fall outside of my circle of competence and have opaque balance sheets, there are a select few banking institutions that have truly impressive track records of very conservative banking principles and deserve a high Dividend Safety Score.
Toronto-Dominion Bank (NYSE: TD) could be one such bank, but because... more
Oracle (NYSE: ORCL) is a low-growth stock with a dividend yield of 1.4%. However the question is whether Oracle will be able to keep up its dividend growth rate and maintain its current payout ratio. Since I think that they cannot, it follows that the dividend stream is overvalued. I'll be demonstrating this through a dividend discount model (DDM). The inputs needed for the DDM are derived from revenue and free cash flow growth expectations.
Before we can get to the DDM, we need to have an idea of what future revenues will look like.
The above chart shows the revenue between 2012 and 2016. Although it seems like the revenue made huge jumps in this chart, this is because of the chart scaling on the left side. The average growth... more
The market can remain irrational longer than you can remain solvent. -John Maynard Keynes.
We believe the market is extrapolating recent strong performance for Business Development Companies ("BDCs") too far into the future. We have no interest in shorting BDCs, however we did reduce our exposure earlier this year because we believe many of them will underperform and there are better opportunities elsewhere (such as select high-yield healthcare REITs, more on this in our conclusion). This article offers three explanations for the recent strong performance from BDCs, three reasons why we believe they'll be challenged going forward, we consider three counterpoints to our thesis, and finally we highlight three specific BDCs (Prospect (Nasdaq: PSEC), Main Street (NYSE: MAIN)... more