Co-produced with Philip Mause and PendragonY for High Dividend Opportunities.
Apollo Global Management (APO) is a limited partnership (with K-1 filing requirements) which is a leader in the asset management space. APO closed recently at $ 26.30; its most recent quarterly distribution is 48 cents for an annualized yield of 6.8%. APO posted solid third-quarter numbers but has traded down lately and has not recovered. This may be partially due to a difficult year-over-year comparison with last year’s third quarter in which large performance fees were earned.
APO had net income of 77 cents a share in Q3 and fee-related earnings of 48 cents with distributable earnings of 55 cents. Fee-related earnings were actually up year over year from $162.2 million to $197.1 million. But, as... more
Reven Housing REIT, Inc. (the “Company”, “Reven”) (Nasdaq: RVEN), an owner and operator of single-family residential properties, today announced that its Board of Directors declared a quarterly distribution on the Company’s common stock of $0.01 per share. The distribution is payable February 15, 2019 to stockholders of record on January 25, 2019. The dividend represents an annual distribution rate of approximately 1.14% based on the closing sale price of the Company’s common stock on January 14, 2019.... more
One of the most important and perhaps least well-known metrics for the U.S. stock market is the growth rate of dividends for the S&P 500, which is why we started a new series to feature it last year.
The following chart visualizes the year-over-year growth rate of the S&P 500's trailing year dividends per share for each month of the 21st century, starting from the beginning of the last year of the 20th century and continuing through December 2018, with a bonus projection of the currently expected future for S&P 500 dividend growth through March 2020.
We've also indicated the National Bureau of Economic Research's official periods of recession in the 21st century (so far!) on the chart.
As for how to best use this data, you really want to pay... more
This post originally appeared on Dividend Growth Investing & Retirement.
Each month I update readers of all the dividend increases in the Canadian Dividend All-Star List (Canadian companies that have increased their dividend for 5 or more years in a row.) along with a summary of these companies.
Tracking recent dividend increases can be a good way to generate new dividend growth stock ideas as dividend increases can be a sign from management that they feel good about the future.
Enlightened investors have grasped the point that it is usually one condition - higher earnings or management's reasonable expectation of higher earnings - that prompts a dividend increase."
Source: Geraldine Weiss/Janet Lowe, Dividends Don't Lie, Chapter 2
This month there... more
There are few things investors fear more than an inverted yield curve.
Why? 2 reasons…
The last 9 recessions in the U.S. were all preceded by an inverted curve (1-yr yield higher than 10-yr yield).
Data Sources for all charts/tables herein: FRED, Bloomberg.
2. Weaker stock market returns tend to follow flat/inverted curves.
Note: yield curve range is based on (10-yr yield minus 1-year yield).
In December 2018, part of the yield inverted for the first time since 2007. At month-end, the 6-month Treasury bill yield stood at 2.56%, 5 basis points higher than the 5-year yield (2.51%).
Naturally, many investors are afraid, with 45% predicting an imminent recession in a recent poll…
Is this a reasonable expectation? Let's... more
Asset management firm T. Rowe Price (TROW) has one of the highest dividend yields among the Dividend Aristocrats Index. This has led some investors to question the safety of the company's current dividend payment.
In this article, we examine the company's dividend safety by looking at earnings, free cash flow, and recession performance. If you prefer learning through videos, you can watch a video analysis on the topic below:
To begin, let’s talk about T. Rowe Price’s business model. T. Rowe Price Group is one of the largest publicly traded asset managers. The company has a market capitalization of $22 billion and assets under management of more than $1 trillion. T. Rowe Price Group was founded in 1937 and is headquartered in... more
Illinois Tool Works (ITW) currently trades with one of the highest dividend yields among the Dividend Aristocrats Index.
This has led some investors to question the safety of the firm's dividend payment.
In this article, we examine the company's dividend safety by looking at earnings, free cash flow, recession performance, and debt. If you prefer learning through videos, you can watch a video analysis on the topic below:
To begin, let’s talk about Illinois Tool Works’ business model. Illinois Tool Works is a diversified industrial manufacturer with a market capitalization of $23 billion. The company has seven unique operating segments and generates more than half of its revenue from outside of the United States. Illinois Tool... more
I recently had a chat with Jay Hatfield, the CEO of Infrastructure Capital Management, and manager of AMZA, the InfraCap MLP ETF. Just before our conversation, I noticed he also manages the much smaller InfraCap REIT Preferred ETF (NYSE: PFFR). The fund seemed interesting, so I did some research, asked him a few questions and reached an opinion. PFFR offers investors a strong, and safe, 6.2% dividend yield, albeit little opportunity for growth or capital appreciation. As such, it is an ideal investment choice for income investors.
PFFR is an index ETF, administered by Infrastructure Capital Advisors, which exclusively invests in REIT preferred shares. The ETF tracks the Indxx REIT Preferred Stock Index. It is, as per management comments and my own research, the only... more
Warren Buffett is widely hailed as one of the best investors of all time. The Oracle of Omaha recommends that laymen opt for index funds when saving for retirement. He argues that the index returns are generally better than most actively managed funds over time and those actively managed funds have high fees because they have professional managers. These fees cut down on the performance even more.
Another popular strategy was first popularized by Michael O'Higgins. This is the Dogs of the Dow strategy, and it recommends buying components of the Dow Jones Industrial Average that have the highest dividend yields. He recommended purchasing an equal amount at the beginning of each year with the same strategy - buy the 10 highest-yielding stocks on the Dow. He estimated that this would... more
Apartment Investment and Management Company ("Aimco") (NYSE: AIV and AIVPrA) announced today the 2018 dividend allocation for federal income tax purposes for its Class A Common Stock and its Class A Cumulative Preferred Stock.... more