Debt-Free Company With An Asset-Light Business Model Dividend growth investors primarily seek to purchase the stock of companies with growing but safe dividends. Paychex, Inc. (PAYX) is a company that has growing dividends but little short-term debt and no long-term debt, providing a very safe dividend for small investors. I recently covered another debt-free company with growing dividends in my article “T. Rowe Price Is A Dividend Aristocrat That Should Be On Your Watch List.” Paychex is known for payroll and other human resource function outsourcing. The company has an asset-light business model and requires minimal capital expenditures to grow its businesses allowing it to payout a large percentage of its earnings as dividends. Small investors should keep an eye on this... more
United Bankshares, Inc. (Nasdaq: UBSI) today announced that its Board of Directors declared a fourth quarter dividend of $0.34 per share for shareholders of record as of December 14, 2018. Dividends per share of $1.36 for the year 2018 represents an increase over the $1.33 per share paid for the year of 2017. The dividend is payable January 2, 2019.... more
As Hong Kong property prices log back-to-back monthly losses from August highs, home buyers have turned cautious as banks raised the prime rate for the first time in more than a decade in September. Home prices in Hong Kong are one of the least affordable on Earth and a correction seemed overdue. While I do expect residential properties to face headwinds in 2019, Hong Kong office space is likely to remain resilient and Swire Properties (OTCPK: SWPFF) (1972 HK) is landlord to several key office parks.
Defensive Property Portfolio About 94% of the gross asset value come from rent generating investment properties, leaving only 2% of the GAV as development properties that could be subject to prevailing market prices at sale. Hotels make up about 4% of the GAV... more
Written by Nate Parsh for Sure Dividend
The markets have been prone to some volatile swings in recent weeks. Some investors start to become skittish when they see their investment gain 2% one day only to lose 3% the next day. This rollercoaster ride can affect an investor’s ability to make rational decisions when it comes to their portfolios.
However, income and dividend growth investors should be primarily concerned with a company’s ability to pay and raise its dividends over long periods of time. Keeping this front and center helps investors shrug off sudden short term moves. Dividends help smooth out the emotional impact of day-to-day fluctuations of the market. In fact, when share prices decrease, the reinvestment of dividends purchases more shares, which in turn... more
My previous article outlined my more bullish view on Cisco Systems (CSCO) due to a change of heart on the prospects of the stock. The shift to higher margin, recurring software revenues were becoming too could to ignore. Ultimately though, the massive share buybacks provided too much downside protection to pass up the more positive view.
Image Source: Cisco System Instagram
Noticeable Yield Shift My last article was written on September 20, just a few weeks prior to the bear market in tech stocks. The analysis further discussed switching out of NetApp (NTAP) and into Cisco Systems due to the net payout yield support of the latter.
Based on initial trading action, the theory is paying off big time that the cheaper Cisco Systems repurchasing shares at a fast clip was a better... more
Main Thesis In this article we will take a look at OFS Capital Corp's (OFS) exchange traded 2025 notes 6.375% (OFSSL) and 6.5% (OFSSZ) With a rather defensive BDC investment strategy, a solid margin of interest safety, and improving loan performance, the notes are a reasonable bet to pick up a high-yield.
High Yield and Capital Growth Potential In an effort to find a sustainable high-yield investment, I came across OFS' subordinated, unsecured 2025 notes. With both offering current yields over 6% and at least a year of call protection, either note seems like a great opportunity to pick up a short duration bond that's trading below par value.
(Source: Latest investor presentation)
Notwithstanding the fact that the BDC sector as a whole is a... more
Actionable Conclusions (1-10): Analysts Estimated 25% To 93% Net Gains For Top Ten WallStars By November 2019 Three of ten WallStars, based on analyst 1-year target prices, were also placed on the top ten dividend-yielding list for the coming year (as tinted in the chart above). Thus, the yield-based forecast for the Consumer Cyclical dogs as graded by Wall St. wizards was 30% accurate.
The following probable profit-generating trades were selected 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 November 14, 2019 were:
Entravision Communications (EVC) was projected to net $943.75,... more
Actionable Conclusions (1-10): Analysts Estimate Top Ten Communications Services 'Safer' Dividend WallStars To Net 20% to 95.63% Gains By November 2019 Seven of ten top-yield 'safer' dividend communication services equities (tinted gray in the chart above) were among the top ten gainers for the coming year based on analyst one-year target prices as of 11/13/18. Thus, the yield strategy for this group, as graded by analyst estimates for this month, proved 70% accurate.
Projections based on estimated dividend returns from $1,000 invested in the thirty-one highest yielding stocks and their aggregate one-year analyst median target prices, as reported by YCharts, created the 2018-2019 data points. One-year target prices by lone analysts were not applied. Ten probable... more
Co-produced with Samuel Smith and PendragonY for High Dividend Opportunities.
The Opportunity Macquarie Infrastructure Corp. (MIC) is a highly diversified company operating in the infrastructure segment. The stock recently traded at $37.25 for a yield of 10.7%.
Today, the stock represents a perfect situation of a mispriced, high-yield quality dividend stock, the type we like to target at High Dividend Opportunities. Shares first fell off a cliff back in February following Q4-17 results which revealed that:
Free Cash Flow produced in 2018 will decline by 8% to 10% compared to that of 2017. Management decided to cut the dividend to $1.00 per quarter (or $4.00 per year), which represents a 30% reduction in the dividend. The stock plunged by 44% following the news and has still... more
The Board of Trustees of Bancroft Fund Ltd. (NYSE American: BCV) (the “Fund”) declared a $1.65 per share cash distribution payable on December 28, 2018 to shareholders of record on November 27, 2018.... more