Credit: Mike Mozart
I've read a few pieces on Seeking Alpha lately that have questioned the ability of AT&T (NYSE: T) to maintain and/or grow its dividend.
The gargantuan telecommunications company is renowned as a dividend champion with 33 years of payout increases. 2017 saw a 2% raise on the previous year.
With a sizeable yield (now 4.85%), enormous annual cash flows and a strong credit rating, T has established itself as a leading income stock.
As you probably know from perusing the articles and comments on this site, the majority of AT&T shareholders are primarily in it for the steady dividend.
Let's examine the figures and check whether there is any danger to the payout.
The Earnings Perspective
In 2016, AT&T had operating revenues of... more
Exxon Mobil (NYSE: XOM) has continued its streak of hiking its dividend, announcing another increase in its payout to shareholders on Wednesday. The oil major has boosted its dividend every year for more than three decades, but the collapse of oil prices since 2014 has resulted in more scrutiny over the company's payments to shareholders.
Exxon has defied the oil market downturn, stepping up shareholder payments even though the company has seen its debt pile balloon over the past three years. Exxon is viewed as one of the most rock-solid stocks for investors, and the confidence that shareholders have in the ever-increasing dividend is one of the reasons why.
The dividend is treated as sacred - Exxon, and other oil majors, refused to touch their dividend policies over the past... more
The Dividend Dogs Rule
Stocks earned the "dog" moniker by exhibiting three traits: (1) paying reliable, repeating dividends, (2) their prices fell to where (3) yield (dividend/price) grew higher than their peers. Thus, the highest yielding stocks in any collection became known as "dogs." More precisely, these are, in fact, best called, "underdogs".
50 Top S&P MidCap 400 Dividend Dogs By Yield
Actionable Conclusion (1) 10 Top S&P 500 Dividend Stocks By Yield
Top ten S&P MidCap 400 stocks selected 4/21/17 by yield represented two of eleven Morningstar sectors. Top yielding stock, Washington Prime Group (WPG)  was the one of nine real estate sector representatives in the top ten.
The other real estate representatives... more
This research report was jointly produced with co-author Big Dog Investments.
The preferred share market has been a great place to invest, especially in the mREIT sector where almost identical preferred shares can have drastically different values.
The average price among the preferred shares we are tracking increased from $25.05 to $25.19. Time frame is April 16 to April 22.
Dividend accrual tends to run around $.04 per week, so an average price gain of $.14 easily outpaces the dividend accrual.
Recently, we saw rates move both higher and lower, but the ending values were roughly in line with where they were before. Consequently, the price targets are only moving slightly. Across the model they are down about $.03 for stripped prices, so regular prices for execution... more
The board of directors of Valvoline Inc. (NYSE: VVV) today declared a quarterly cash dividend of 4.9 cents per share on ValvolineTM common stock. The dividend is payable on June 15, 2017 to shareholders of record on June 1, 2017. As of March 31, 2017, there were 204,531,221 shares of Valvoline common stock outstanding.... more
CF Industries Holdings, Inc. (NYSE: CF) today reported that its Board of Directors has declared a $0.30 per share dividend on its common stock. The dividend will be payable on May 31, 2017 to stockholders of record as of May 15, 2017.... more
FIS™ (NYSE: FIS), a global leader in financial services technology, today announced a regular quarterly dividend of $0.29 per common share. The dividend is payable on June 30, 2017, to shareholders of record as of close of business on June 16, 2017.... more
KKR Income Opportunities Fund (the “Fund”) (NYSE: KIO) today announced its monthly distributions of $0.125 per common share, payable on the dates below. Based on the Fund’s initial public offering price of $20.00 per share and current share price of $17.35 (as of its close on April 27, 2017), the distributions represent an annualized distribution rate of 7.5% and 8.6% respectively (calculated by annualizing the distribution amount and dividing it by the IPO share price or current price, as the case may be).... more
At the Board of Directors Meeting held April 26, 2017, First National Bank Alaska (OTCBB: FBAK) declared a cash dividend of $20.00 per share, payable on June 15, 2017, to shareholders of record as of June 1, 2017.... more
Papa John’s International, Inc. (Nasdaq: PZZA) today announced that the Board of Directors has declared a quarterly dividend of $0.20 per common share, payable May 19, 2017, to shareholders of record at the close of business on May 8, 2017. At this quarterly dividend rate, the annual dividend is equivalent to $0.80 per common share.... more