I have written a series of articles analyzing the performance of high-yield portfolios composed of CEFs, mREITs, MLPs and BDCs. Studied from multiple angles, I found that high-yield portfolios have consistently underperformed the market as a whole over the past 4 1/2 years. [Study #1: Model High-Yield Portfolios Holding BDCs, MREITs And CEFs Fail Multi-Year Performance Tests, Study #2 High-Yield Investment Strategy Fails and Study #3: High Yield Strategy Fails Again]
Although the high-yield investments recommended by several SA writers in 2014 pay out high dividends, that income is offset by erosion of both share value and dividend payments over time. My studies concluded that a diverse group of dozens of recommended high-yield investments have produced less than 70% of the yield of... more
Written by Bob Ciura for Sure Dividend
Real Estate Investment Trusts are popular stocks among income investors. Many REITs have high dividend yield in excess of 5%. But not all REITs are created equal. In some cases, extreme high-yielders are in troubled financial position, and their high dividend yields are a warning sign of an impending dividend cut.
Omega Healthcare (OHI) is currently our top-ranked REIT, because of its growth potential, and its high (and secure) dividend yield of 8.5%. Omega is in prime position to capitalize on an emerging demographic shift in the U.S. - the aging population - yet the stock has fallen in the past one year. We believe the stock decline, due to issues with certain tenants, is short term. The long-term case for Omega is still very much... more
Compass Minerals International (CMP) is an interesting choice for dividend-oriented investors thanks to the company’s formidable economic moat and stable product demand. Shares trade at a higher yield than usual mainly due to transitory factors that don’t have anything to do with CMP’s competitive positioning. Interest coverage has decreased in recent years but the dividend is safe and margins should expand again as conditions normalize.
CMP is a leading provider of salt for winter roadway safety and other consumer, industrial, and agricultural uses, and sulfate of potash (“SOP”), a specialty fertilizer that improves crop yields. The company operates in two segments: salt (56% of 2017 sales) and plant nutrition (44% of sales). CMP’s main assets... more
In accordance with the terms of RiverNorth Marketplace Lending Corporation’s 5.875% Series A Term Preferred Stock (“Series A Preferred Stock”) (NYSE: RMPL), the Board of Directors of RiverNorth Capital Marketplace Lending Corporation has declared a Series A Preferred Stock cash dividend for the third quarter of 2018 of $0.3672 per share of Series A Preferred Stock.... more
Abbott Laboratories (ABT) is one of the most recession-resistant companies around. Remarkably, the company managed to grow its dividend each year of the 2007-2009 financial crisis.
Abbott Laboratories is also very shareholder-friendly. In fact, the company has increased its dividend for 46 consecutive years, which makes it a member of the exclusive Dividend Aristocrats Index. You can see the full list of all 50+ Dividend Aristocrats here.
In many cases, the old and established businesses that populate the Dividend Aristocrats list are perceived as boring, slow-growth investment opportunities. Abbott Laboratories is the perfect example of how this is not always the case.
In fact, Abbott's recent financial performance has been more characteristic of a growth stock (rather... more
The Board of Directors of Barnes Group Inc. (NYSE: B) has declared a quarterly cash dividend of sixteen cents ($0.16) per share. The dividend will be payable September 10, 2018 to shareholders of record at the close of business on August 28, 2018.... more
Rayonier Inc. (NYSE: RYN) announced today that the Company’s board of directors has declared a third quarter cash dividend of $0.27 per common share. The dividend is payable on September 28, 2018, to shareholders of record on September 14, 2018.... more
An Overlooked Dividend Growth Stock for Income Investors
When it comes to paying dividends, being able to raise one’s payout every year is already considered a solid achievement. So when KeyCorp (NYSE: KEY) announced two dividend hikes in less than two months, it was quite a pleasant surprise.
Here’s a brief description of what happened.
From 2009 to 2017, KeyCorp has raised its quarterly dividend rate every single year—a very commendable feat indeed. By the beginning of 2018, the company had a quarterly dividend rate of $0.105 per share.
Fast forward to May 2018, and the company’s board of directors declared a cash dividend of $0.12 per share. This was a 14.3% increase from the prior payment. (Source: “KeyCorp Declares Increased Quarterly... more