By Liyu Zeng
Dividend investing is an ever popular topic across different markets. Market participants have been using ETFs to implement various dividend strategies for more than a decade. The first dividend ETF, the iShares Select Dividend, was launched in 2003. Nevertheless, dividend ETPs have experienced tremendous growth in assets since year-end 2009. As of June 30, 2017, the total assets of purely dividend screened or weighted ETPs reached USD 178.6 billion, with a compound annual growth rate of 35.5% since year-end 2009 (see Exhibit 1).
Despite rising AUM in the low/minimum volatility and multi-factor ETPs in the past two years, dividend ETPs have remained the leading category of strategic-beta ETPs by assets across many regions and countries.1 In the first three quarters... more
With its 25th straight annual dividend increase, General Dynamics (NYSE: GD) has finally joined the Dividend Aristocrats list here.
However, even more impressive than the length of this streak is the torrid pace of payout growth GD investors have enjoyed.
Specifically, the company has grown its dividend at 14.1% annually since 1992, helping General Dynamics' shares nearly double the broader market's annual total return (15.7% vs 8.8%).
Let's take a closer look at this defense contractor to see what gives it such a wide moat and allows it to treat dividend growth investors so well.
More importantly, learn if GD's excellent payout growth track record is likely to continue for many more years to come.
Business Overview Founded in 1899 in Falls Church,... more
First, let me be very clear that this is my personal portfolio tailored to my specific financial situation, risk profile, time horizon, and personality traits.
I am NOT recommending anyone mirror this portfolio, which is merely designed to show my unique rule-based, methodical approach to value-focused, long-term, dividend growth investing.
For a detailed explanation of my methodology, please read my introductory article to the EDDGE 3.0 portfolio.
What Happened This Week Genesis Energy (GEL), one of the high-yield/high-risk stocks that I founded my portfolio on, just announced it was cutting its distribution 30%, in order to focus on deleveraging, investing in new opportunities, and promising "at least" 8% annual dividend growth.
The reason I had bought Genesis... more
It is the main event between two heavy-weight ETFs 'duking it out' to see who can claim the title as the Dividend Growth Champion ETF of my article!
In the SSGA Funds Management corner, weighing in with an annualized 10-year return of 8.58%, we have the SPDR Dividend ETF (SDY). This roughly 12-year-old fund packs a punch by weighting its position according to dividend yield.
In the ProShares corner, we have a newcomer. This dividend growth ETF is only 4 years old. Please welcome the ProShares S&P 500 Dividend Aristocrats ETF (NOBL).
Let’s begin. Ding ding!
Round 1 – Dividend Growth History Both of these funds require any potential stock to have an extensive dividend growth history. SDY requires at least 20 consecutive years of growing... more
I want to continue last week’s look at high-yield, well-valued MLP closed-end funds. If you read that article, you’re familiar with the principles I outlined and the basis for my having selected these five. I’m not looking at this group of MLP CEFs for identifying the best, long-term, buy-and-hold funds; the goal is to find the best combinations of high yield and discount. For one thing, I do not consider a category as inherently volatile as energy broadly or MLPs specifically as a buy-and-hold category. I think a look at category returns will bear adequate witness in support of that point of view. One enters MLP space when there is reason to believe an upswing is in the offing. Like many, I consider that midstream MLPs meet that criterion.
Using an initial screen... more
The commercial real estate (or CRE) market has largely recovered from the global financial crisis that began in mid-2007. However, one legacy of the credit boom that preceded the economic recession in 2008 and 2009 is that many existing loans originated at the peak of the market and are scheduled to mature in the near term, resulting in the continuation of a wave of CRE loan maturities that will need to be refinanced or recapitalized.
These days, there is strong demand for CRE debt capital, driven by a high volume of over-leveraged and near-term loan maturities that provide for strong transaction volume fueled by improved economic conditions.
In the US, $398.9 billion of CRE loans, including $136.1 billion of CMBS, are scheduled to mature in 2017 alone, and according to... more
Looking for a sustainable 5% Yield with 3% to 4% expected growth?
Here’s an excellent fit for buy-and-hold investors.
A little history Macerich (MAC) is the third largest of the traditional mall REITs. Here’s some history on the company:
There’s only so much that can be said on half a presentation slide. However, there is some history you may want to know. Simon Property Group (SPG) offered to buy MAC. Management of MAC rejected not one, but two takeover offers from SPG. The higher of the two valued MAC at $95.5 per share. MAC’s management claimed this valuation was materially below the value of their real estate assets.
The fair value of their assets is dramatically higher than total share value. Recent prices are mid $50s. Share price has... more
Editor's note: Originally published at tsi-blog.com on October 16, 2017.
The yield curve is a remarkably useful leading indicator of major economic and financial market events. For example, its long-term trend can be relied on to shift from flattening to steepening ahead of economic recessions and equity bear markets. Also, usually it will remain in a flattening trend while a monetary-inflation-fueled boom is in progress. That's why I consider the yield curve's trend to be one of the true fundamental drivers of both the stock market and the gold market. Not surprisingly, when the yield curve's trend is bullish for the stock market it is bearish for the gold market, and vice versa.
A major steepening of the yield curve will have one of two causes. If the steepening... more
Gold Price Outlook Gold Resource Corporation (GORO) relies primarily on the gold and, to some extent, the silver mining environment. Before diving into the company itself, it helps to look over likely gold and silver prices in the near future.
"2018 Gold Price Forecasts" by TrustableGold explains that with steady supply, demand will be the main variable affecting gold prices into next year. The kicker is that demand from investors is hard to gauge. Gold is considered a buffer to sinking currency value, geopolitical stress, recessions, and other generally unpleasant phenomena. The article quickly zooms in on the Trump Administration's antics and Saudi Arabia-Iran, in particular, tensions as a key driver of risk and uncertainty; therefore greater demand and price.... more
It wasn’t too long ago that dividends were extremely rare in the tech sector. But after the bursting of the Tech Bubble, investors increasingly demanded the steady cash flow of regular dividends, even from tech companies.
As a result, many tech stocks have since made it onto the list of Dividend Achievers, a group of stocks with 10+ consecutive years of dividend increases. You can see the entire list of all 265 Dividend Achievers here.
The best tech stocks generate huge cash flow and have lots of cash on the balance sheet, with low debt. This allows them to increase their dividends at high rates each year.
This article will discuss the top five dividend growth stocks from the technology sector.
Top Tech Dividend Stock #1: Apple, Inc. (AAPL) Dividend Yield: 1.6%