The U.S. Treasury just announced that its reopening of CUSIP 912828V49 - a 9-year, 10-month Treasury Inflation-Protected Security - auctioned with a real yield of 0.466%.
The after-inflation yield was up slightly from where this TIPS was trading earlier Thursday on the secondary market. The yield is also slightly above CUSIP 912828V49's originating auction on January 19, which generated a coupon rate of 0.375% and yield of 0.436%.
Because today's auction generated a yield above the coupon rate, buyers got this TIPS at a discount, with an adjusted price of about $99.63 for $100.51 of value, when accrued inflation is added in.
Even as the Federal Reserve inches up short-term interest rates, yields on TIPS and nominal Treasurys have continued in a fairly unattractive... more
In January, Leggett and Platt (NYSE: LEG) released its Q4 results that missed analysts’ forecasts. EPS and revenue missed by $0.05 and $18.2 million. This was the sixth consecutive miss by the company. The company attributed the weakness in earnings to the volatile steel prices. In this article, I will explain the reasons I believe LEG is a good dividend company to own for income investors.
Leggett and Platt is a furniture manufacturing company specializing on residential, commercial, industrial, and specialized products segments. The company has 126 manufacturing plants with 77 of them located in the United States. In a near future, this could be an important advantage for LEG. Republicans are proposing a border adjusted tax which intends to tax imports. Considering that most... more
By Parke Shall
We have had on an automotive pair trade over the last couple of months that we believe will continue to generate fantastic returns for investors. Months ago, in December 2016, we first proposed going long Ford (NYSE: F), mostly to capture its dividend which is getting juicy around 5% and is very much sustainable, while at the same time shorting Credit Acceptance Corporation (Nasdaq: CACC), a company that originates, brokers and maintains subprime loans in the automobile space. We continue to think that this trade will generate Alpha and so today we wanted to look in on its progress and talk about why we want to keep the trade on.
We certainly think there is an opportunity in the automobile space for one big reason. The narrative right now in the media is that the... more
A Prime Yield
Washington Prime Group (NYSE: WPG) has become well known on Seeking Alpha for its towering 12.5% dividend yield that was just 55% of the company's 2016 FFO (funds from operations). This is a nice payout level, and seems to leave plenty of room for the company to cover other immediate operations at the same time as fund this great-looking dividend. Others think along the same lines, particularly here and here. However such a high yield signals that the market is discounting the company because of unfavorable factors. The declines in brick-and-mortar retail sales have caused this mall-based REIT to decline as well. Brad Thomas has detailed some great research on WPG over the past couple years and has been a good source while I've been learning about WPG. However... more
Compass Group (CODI) looks primed for growth in 2017 after it has disposed of assets that no longer represent strong growth. At the same time, CODI has also acquired new businesses that should add a strong revenue source for the company. CODI has a strong history of performance over the last decade and based on its current portfolio, it looks like it is ready to make a repeat performance.
Where Does CODI Find These Opportunities?
CODI finds value in small and middle market companies that typically have cash flows of $60 million or less. Here is a summary of why CODI likes businesses in this category:
Few acquirers in the market for these businesses. Third party financing for these deals can be difficult to come by. Sellers of these businesses are... more
Earlier this week, I discussed whether chip giant Intel's (Nasdaq: INTC) purchase of Mobileye (NYSE: MBLY) could have an impact on a potential dividend raise coming in the next few months. Management had guided to a payout increase in Q2 2017, but that was before the $15 billion acquisition was announced. On Thursday, Intel announced its latest quarterly dividend, and investors will be quite happy.
The company's press release stated that the board has declared a quarterly dividend of $0.2725 per share, or $1.09 on an annual basis. This payout will be on June 1, for shareholders of record on May 7th, so investors have more than a month to get in on it. This represents a 4.8% increase, and the chart below shows Intel's dividend history over the past couple of years.
This post was written by Bob Ciura on March 23rd, 2017, for Sure Dividend.
Seth Klarman is the chief executive officer and portfolio manager of The Baupost Group, an investment management firm with an $8 billion stock portfolio. Seth Klarman is a well-known value investor, with a fondness for high dividend yields. Baupost's portfolio includes many cheap, high-yield dividend stocks.
One of the biggest holdings in Seth Klarman's portfolio is Syngenta (NYSE: SYT).
As of December 31, 2016, Baupost held roughly 745,000 shares of Syngenta, worth approximately $60 million. Syngenta has an uneven dividend history. Since it is based outside the U.S., its dividend fluctuates, in part, due to foreign exchange translations.
As a result, it is not a Dividend Achiever, a group... more
Intel Corporation’s board of directors has declared a quarterly dividend of $0.2725 cents per share ($1.09 per share on an annual basis) on the company’s common stock. This represents a dividend increase of five percent on an annualized basis. The dividend will be payable on June 1, 2017, to stockholders of record on May 7, 2017.... more
This research report was jointly produced with High Dividend Opportunities co-author Philip Mause.
American Midstream Partners, LP (AMID) is an MLP which closed recently at $15.30 a unit. It has been paying a distribution of $1.65 per unit for a yield of 10.8% and it issues a K-1 form. In March 2017, AMID closed a merger with JP Energy Partners LP (JPEP). The merger was a unit-for-unit transaction and after the merger was completed AMID will have a unit count of 51.4 million common units.
The New Business - AMID's business has been very focused on several oil regions with comparatively strong results - most especially on the central Gulf offshore area where it has extensive gathering and pipeline facilities and has been acquiring increasing percentage ownership in Delta... more