UBS Investment Bank today announced coupon payments for the ETRACS Alerian MLP Index ETN (NYSE Arca: “AMU”) and ETRACS Alerian MLP Index ETN Series B (NYSE Arca: “AMUB”), both traded on the NYSE Arca.... more
Kroger (KR) stock has plunged 25% since early September and has thus underperformed the market by a wide margin during this period, in which the S&P 500 Index has advanced 7%. Consequently, while the S&P is hovering around its all-time highs, Kroger is trading near its 5-year lows.
The advantage of buying beaten-down stocks is they have more appealing valuations, and higher dividend yields. Kroger's dividend yield is approaching a 5-year high. And, Kroger is a dividend growth stock. It has raised its dividend for 12 consecutive years and it is a member of the Dividend Achievers, a list of stocks that have at least 10+ years of consecutive dividend increases. You can see the entire list of 264 Dividend Achievers here.
As such a pronounced divergence sometimes leads to... more
PennyMac Mortgage Investment Trust (NYSE: PMT) announced today that its Board of Trustees has declared cash dividends for the second quarter of 2019 on its 8.125% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Shares of Beneficial Interest (the “Series A Preferred Shares”) (NYSE: PMT PrA) and its 8.00% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Shares of Beneficial Interest (the “Series B Preferred Shares”) (NYSE: PMT PrB).... more
Having struggled with the twin problem of tepid growth and high leverage, Vodafone's (VOD) 40% dividend cut is a welcome step at this stage. It will help the company stay near the lower end of its 2.5x - 3.0x leverage range, and give it some breathing space to expand 5G coverage through capex investment which it desperately needs in order to sustain long term growth. Vodafone will also utilize a part of ~€1.5B cash saved from the dividend cut to follow through its rapid transformation journey.
Fundamentally, mobile customer churn continues to reduce and fixed broadband customers continue to increase. Yet, the company still lacks clear revenue drivers over the short to medium term.
Spain and Italy also continue to be a problem. The company missed its UK and Spain growth numbers... more
The Board of Directors of The Kraft Heinz Company (Nasdaq: KHC) today declared a regular quarterly dividend of $0.40 per share of common stock payable on June 14, 2019, to stockholders of record as of May 31, 2019.... more
Despite worries over slowing economic growth, global dividends continue to rise. According to the latest Janus Henderson Global Dividend Index, payouts climbed by 7.8% on a headline basis during the first quarter. What's more, global dividends look set to have another record year in 2019.
Global dividends shrugged off concerns about the world economy, rising 7.8% on a headline basis in the first quarter, according to the latest Janus Henderson Global Dividend Index (JHGDI), which tracks long-term dividend trends among the world's 1,200 largest companies (as measured by market capitalization). Underlying growth of 7.5% followed the same trend as large special dividends were offset by negative exchange-rate effects.1 In total, global dividends reached a first-quarter record of $263.3... more
Investing when the market is high is not a simple task. You may think you found the right company, but the stock is clearly overvalued. Therefore, you wait until the market offers you an opportunity.
With one of the strongest starts of the year in the modern stock market history, it's even more difficult to find fairly priced dividend stocks. It's like trying to find water in the desert, right?
Believe it or not, there are opportunities in this all-time high market. Some companies are being punished for the wrong reasons and it's up to you to pick them up. Here are two examples of what's on my list right now.
UPS Didn't Deliver Last Quarter United Parcel Service (NYSE: UPS) is the world's largest package and delivery company. It employs over 430,000 employees in 2,500... more
JPMorgan Chase (JPM) is a best-of-breed bank which is really a shareholder yield story, as its improved balance sheet and underlying financials have allowed it to deliver tremendous shareholder returns of cash. At just 12 times earnings, shares are a bargain and a strong buy.
Best Of Breed
JPM is well-known in the banking industry as being “the best of the best.” After all, CEO Dimon is consistently ranked as one of the top, if not the top, CEOs around.
That is not without good reason. JPM is one of the few banks to have emerged from the 2008 financial crisis with even greater earnings per share:
(Source: 2018 10-K)
In fact, if we compare its stock performance with that of peers Bank of America (BAC) and Citigroup (C), we can see that while the latter two... more
Global high yield bonds sold off amid the latest spike in market volatility, along with other risk assets. Yet this does not change our view that exposure to the asset class is important for fixed income investors in an environment where carry, or coupon income, is becoming the main driver of bond returns.
Chart of the week Global high yield bond spreads, 2017-2019
Past performance is not a reliable indicator of current or future results. It is not possible to invest directly in an index. Sources: BlackRock Investment Institute, with data from Bloomberg Barclays, May 2019. Notes: The spread is the difference between the yield of a certain index and that of corresponding comparable-duration government bonds. The indexes used are the Bloomberg Barclays Global High Yield, Asia... more