This article is a follow-up to "Prospect Capital: Downgrade" from earlier this year (see chart below) that mentioned the following:
Prospect Capital (Nasdaq: PSEC) had a material decline in interest income from recurring sources that will continue to put pressure on upcoming dividend coverage. The reduced coupon for First Tower and "lower future expected cash flows" from CLO investments are some of the drivers. I have downgraded PSEC to a Dividend Coverage Level 4 implying that a dividend reduction is likely later this year. The current market pricing for PSEC does not take into account an upcoming dividend reduction This article is also a follow-up to "Prospect Capital: Expected Dividend Cut Of 20% To 30%" from last week and I will be focusing on whether... more
Actionable Conclusions (1-10): Brokers Expected 18.1% To 41 % Net Gains For August Top Ten Nasdaq 100 Dogs Four of ten top yield Nasdaq 100 dividend dogs were verified as being among the top ten of thirty gainers for the coming year based on analyst 1-year target prices. They are tinted gray in the chart above). So, this yield-based forecast for Nasdaq 100 dogs was graded by Wall St. brokers as 40% accurate.
Ten probable profit-generating trades were revealed in YCharts for August 2018:
Viacom (VIAB) was projected to net $410.10, based on dividends, plus a mean target price estimate from twenty-eight analysts, less broker fees. The Beta number showed this estimate subject to volatility 72% more than the market as a whole.
Mattel (MAT) was expected to net $309.48, based on... more
Analysis Kimberly-Clark (NYSE: KMB) shares haven't had a great year. While not showing a loss, shares are only up 6.7% from the beginning of the year, lagging the S&P by 0.7%.
It's not surprising when you look at Kimberly-Clark's growth over the last few years. Earnings growth has been constrained by a weak sales environment, stiff competition and higher input costs. And it doesn't look like the environment is going to get much better in the near future.
KMB has trimmed its full-year 2017 net sales and organic sales expectations to be only slightly better than 2016, versus previous guidance of a 1-2% improvement in net sales and organic sales. It further refined its full-year 2017 EPS guidance to the low end of its target range of $6.20-6.35. At the low-end EPS... more
The Board of Directors of CTS Corporation (NYSE: CTS) declared a cash dividend of $0.04 per share, payable November 3, 2017, to shareholders of record at the close of business on September 29, 2017.... more
Subscribers of The Mortgage REIT Forum had early access to this article over the weekend and receive real-time text message alerts.
Cherry Hill Mortgage Investment (CHMI) has a decent option for investors seeking an 8% dividend yield. CHMMP carries a fierce 8.2% dividend rate. This is a security with no floating-rate at the end of call protection.
Price targets CHMMP won't get strong pricing targets because of their strategy shift. CHMMP's portfolio is primarily in agency RMBS, but looking through their filings shows they intend to move more of the portfolio into MSRs. That's an effective way to create negative duration, but I've seen too many mREITs get burned on positions in MSRs. Two Harbors (TWO) is one of the rare winners and New Residential (NRZ) seems... more
Volatility and uncertainty have raised the appeal for dividend investing lately. Though the broad equity markets are showing up after two consecutive weeks of losses on steady economic fundamentals and renewed hopes of U.S. tax reform, geopolitical tensions and doubts over Trump's administration continue to weigh on stocks.
In such a scenario, dividend-paying securities are the major sources of consistent income for investors when returns from the equity market are at risk. Meanwhile, bond yields have also declined sharply, boosting demand for dividend-paying stocks. Notably, 10-year Treasury yield dropped to the lowest level in eight weeks on August 21 following its longest streak of declines in more than 11 weeks. Additionally, weak inflation might put the third interest rate... more
American Financial Group, Inc. (NYSE: AFG) announced that its Board of Directors has approved an increase in the Company’s regular annual dividend from $1.25 to $1.40 per share of common stock. The increased dividend, when declared, will be paid on a quarterly basis of $0.35 per share of common stock beginning in October 2017. The new dividend rate represents a 12% increase over the annual rate paid thus far in 2017. The Company has increased its dividend in each of the last twelve years.... more
OFG Bancorp (NYSE: OFG) today announced its Board of Directors declared a regular quarterly cash dividend of $0.06 per common share for the quarter ending September 30, 2017, payable on October 16, 2017, to holders of record on September 29, 2017, with an ex-dividend date of September 28, 2017.... more
Investment Thesis Northland Power Inc. (OTCPK: NPIFF) had a one year strategic review that resulted in keeping the company as an independent company. Following its Q2 earnings release, its dividend payout continues to improve due to its Gemini offshore wind farm reaching COD. With its Nordsee One offshore windfarms expecting to reach COD by the end of 2017, Northland's revenue and EBITDA is expected to continue to grow for the remainder of 2017. With an improving dividend payout ratio, management indicated the likelihood of reviewing its dividend and perhaps even raising its dividend.
Source: Company Website
Q2 2017 Financial Highlights In Q2, the company's sales, and adjusted EBITDA increased by 82.5% and 61.8% respectively. This was mainly due to the contributions... more