Shoe Carnival, Inc. (Nasdaq: SCVL) a leading retailer of moderately priced footwear and accessories, announced today that its Board of Directors has approved the payment of a quarterly cash dividend.... more
Lipper’s High Yield Funds peer group (including both mutual funds and ETFs) has taken in almost $5.0 billion in net new money over the last two fund-flows trading weeks. This is the best two-week result for the group since mid-December 2016, when high yield funds had total net inflows of $5.8 billion. This surge has corrected a mini-slump that the peer group suffered through in August (net outflows just shy of $5.0 billion) and puts it back on track to record its first annual net inflow since 2016. To put this in perspective, high yield funds have taken in $15.7 billion in net new money for the year to date after experiencing their worst annual net outflow ever in 2018 (-$45.7 billion) and seeing money leave their coffers in five of the previous six years.
In general, high yield... more
Following their share price plunging during the last twelve months from the mid-twenty dollar range to the low and mid-teens, Goodyear Tire & Rubber (GT) has seen their dividend yield expand rapidly with it exceeding 5% at times. This is well above their long-term average, which frequently saw their shares trading with a dividend yield under 2%. Despite this seemingly attractive high yield, especially with bond yields sitting near all-time lows, investors should be very wary when considering this investment as it appear their dividend durability is sitting on shaky ground.
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Whilst in absolute terms their debt has remained broadly flat since 2013, their cash has dwindled significantly, falling from $2.996b to... more
The Board of Directors of Graco Inc. (NYSE: GGG) has declared a regular quarterly dividend of 16 cents ($0.16) per common share, payable on Nov. 6, 2019, to shareholders of record at the close of business on Oct. 21, 2019. The Company has approximately 166.8 million shares outstanding.... more
Looking for distribution growth? The management of midstream operator Delek Logistics Partners LP (DKL), the yieldco arm of Delek US (DK), has raised DKL's quarterly payouts in 26 straight quarters since the company's IPO in 2013. They raised it from $.82 to $.85 for their August Q2 '19 distribution.
DKL's logistics assets exist mainly to serve general partner DK's petroleum refining assets and transportation services. In this type of arrangement, the parent/sponsor sells/drops down assets to the yieldco LP, which in turn funds these acquisitions via a combination of equity and debt. The yieldco usually has an attractive distribution yield in order to garner support for its publicly traded units.
DKL and DK both share the same management, and DK owns 94.6% of the GP... more
By Kathy A Jones
Investors have watched bond yields in Europe and Japan slide below zero into negative territory, and some have wondered: Could it happen here?
Although you can never say never when it comes to markets, I believe the odds are slim, for reasons discussed below.
First, some background: As central banks around the world have struggled to revive inflation and support economic growth, short-term interest rates ("policy rates") set by the Bank of Japan and the European Central Bank have been at or below zero for quite some time. However, the recent decline in intermediate and long-term bond yields to negative territory has been unprecedented. There are currently about $13.6 trillion in negative-yielding bonds around the world.
Various countries' shares of... more
The U.S. Treasury's offering Thursday of $12 billion in a reopened 10-year Treasury Inflation-Protected Security resulted in a real yield to maturity of 0.174%, the lowest for this auction term in three years.
This is CUSIP 9128287D6, and the reopening created a 9-year, 10-month TIPS with a 0.250% coupon rate, which was set at the originating auction in July. Because today's auction yield came in lower than the coupon rate, investors had to pay a premium, about $101.04 for about $100.30 of value, after accrued inflation is added in.
A TIPS is a Treasury investment that pays a coupon rate well below that of other Treasury investments of the same term. But with a TIPS, the principal balance adjusts each month (usually up, but sometimes down) to match the current U.S. inflation rate.... more
Ventas, Inc. (NYSE: VTR) (“Ventas” or the “Company”) has declared a regular quarterly dividend of $0.7925 per share, payable in cash on October 11, 2019 to stockholders of record on October 1, 2019. The dividend is the third quarterly installment of the Company’s 2019 annual dividend.... more
With interest rates at extreme lows, investors continue to frantically search for investments that generate an acceptable yield. Interest rates want to go higher. As witnessed by the ongoing repo market fires, the world is running out of cash and the free market is beginning to demand higher rates.
If rates go higher, people will put more money into their savings accounts and the repo market shortage would end due to an increase in excess reserves (which would stabilize IOER). Despite this, the Fed lowered rates again, which only serves to further decrease cash and push investors into increasingly risky investments.
One of those riskier-yielding investments is junk bonds. Indeed, high-yield bonds have generally missed out of the recent bond market rally as corporate credit spreads... more
This article was co-produced with Dividend Sensei.
On Sept. 16, Energy Transfer (ET), announced it was buying SemGroup (SEMG), a small midstream corporation, in a $5 billion (including debt) deal that would be paid for with 60% stock and 40% debt.
Given that Energy Transfer's attempts to buy Williams Companies (WMB) led to a nearly two-year soap opera that crashed its stock price and resulted in zero benefits to the MLP (either ETE or ETP at the time), it's not hard to understand why news of the acquisition sent ET's price down 5% over the next two days.
We've closely examined the deal, because, while management says this is a sound collection of growing assets its acquiring, and at a good value, given investors' understandable skepticism about big MLP M&A these days, we... more