Chevron Corp. (CVX) has upside potential in a rising oil environment and offers investors a high-quality, sustainable dividend. The energy company's shares slumped in February as part of a broader market sell-off, and shares have yet to recover from the drop. I think the correction is a good opportunity to gobble up shares for a DGI portfolio. Chevron Corp. has an attractive risk-reward ratio and will continue to raise its dividend long-term. An investment in the oil and gas company comes with an entry yield of 3.91 percent, and the yield on cost can be expected to rise going forward.
Chevron Corp.'s shares have not yet recovered from the extreme sell-off in February which was triggered by growing concerns over higher interest rates and surging bond yields. Year-to-date,... more
The Board of Directors of Marsh & McLennan Companies, Inc. (NYSE: MMC) today declared a quarterly dividend of $0.375 per share on outstanding common stock, payable on May 15, 2018, to shareholders of record on April 10, 2018.... more
The Stock BT Group plc (NYSE: BT) (OTCPK: BTGOF) is a British multinational telecommunications company with its head office in London. It has operations in around 180 countries and is the largest Telco in the UK. Since reaching its 2015 peak, the stock has fallen over 50%. While a fall was certainly warranted, this dramatic fall has created an opportunity for investors interested in its dividend yield of over 6%.
(Source: Google Finance)
Revenue has been stable/growing for several years, despite slight weakness this quarter:
(Source: BT Group 1H18 Report)
Consumer numbers for each of BT's divisions was steady/rising over the third quarter, and the Openreach fiber program continues to rapidly expand (more on this later):
(Source: BT Group 2Q17... more
Legal & General plc (OTCPK: LGGNY) is one of UK's leading insurers. It specialises in life insurance products such as health insurance, annuities, pensions, etc. It also has an investment management business that provides index funds and actively managed funds for UK investors.
Growth Prospects The insurance industry in the UK is relatively mature, while revenue growth does not show significant implications towards investment decisions, profit growth caught more attention. In LGGNY's FY2017 results, net income grew over 50% YoY to £1.89B ($2.65B). The significant increase was mainly due to slowing life expectancy growth in North America and the UK, where virtually all of LGGNY's business is based (~97% UK, ~2% US and ~1% Europe). This has led to growth in profits... more
USB Stock Provides Growing Dividends
Banks are one of my favorite types of businesses. They lend out money at higher interest rates than they borrow at, creating a tidy income stream which can then be distributed to shareholders. And U.S. Bancorp (NYSE: USB), one of the major bank holding companies in the country, just proved the point again.
On March 19, U.S. Bancorp declared a quarterly cash dividend of $0.30 per share. The dividend will be paid on April 16, 2018 to shareholders of record as of March 29. (Source: “U.S. Bancorp Announces Quarterly Dividends,” U.S. Bancorp, March 19, 2018.)
While the newly declared dividend is of the same amount as the payment in the previous quarter, it represented a seven percent increase year-over-year. Moreover, since 2010,... more
Running out of money in retirement is a dreaded fear by so many of us. In fact, more people fear running out of money than they do of dying.
One major reason for all of this stress is that people's expenses in retirement exceed their after-tax income. This can happen across all wealth spectrums too. I have seen couples with $2 million that didn't realize that their income won't cover their expenses once they retire. This means they are dipping into principal, and at that point it's just a race against the clock as their investment balances dwindle over time.
It Used To Be Easier When bond yields were higher a decade ago, planning for retirement was so much easier.
A ten Treasury yield of 6.5% vs. today's 2.9% makes an enormous difference over... more
My high-yield dividend growth retirement portfolio has one core strategy. Buy the right company at the right price, in order to achieve my long-term total return goal of about 11.5%.
Specifically, this means buying companies when they are most beaten down, largely due to overblown short-term market fears that don't actually affect the fundamentals. Well over the last three months, utilities have been the worst performing sector. That's because the market is worried that $1.8 trillion in stimulus (tax cuts and $300 billion in extra spending over the next two years) will overheat the economy. This might cause inflation to rise and send long-term interest rates higher.
That in turn could make high-yield dividend stocks less attractive and cause... more
As I continue to accumulate shares in EPR Properties (EPR) on the recent weakness, it is slowly becoming one of my largest portfolio holdings.
The reason why I feel so confident about EPR is simple: EPR is an above average quality REIT selling at a below average valuation.
I would go as far as to say that it is one of the bluest blue chips of its sector because:
EPR has one of the strongest track records of all REITs since going public in 1997. During the last 20 years, EPR produced a total return about 3x higher than the broad REIT index (VNQ). We believe that this is proof of superior management qualities with best-in-class capital allocation skills and a strong focus on shareholder value creation. EPR is the leader of its niche industry as one of the largest landlord of... more
Jerome Powell is not an economist, and as such, has the potential to try to remake the way the Fed does monetary policy. Rather than hold onto outmoded ideas ideas like the Phillips Curve, which may have made sense when the US was a more insular economy, there are better ways to think of monetary policy from a structural standpoint of how financial firms work.
(Note: the Phillips Curve relies on a very simple assumption that goods and services price inflation stems from wage inflation, and that wage inflation occurs when domestic unemployment is low. In a global economy, those relationships are broken when labor can be easily added from sources outside of the US.)
Financial firms tend to grow rapidly when the yield curve is steeply sloped. Borrowing short and lending long is... more
The Board of Directors of Lazard World Dividend & Income Fund, Inc. (the “Fund”) (NYSE: LOR) has authorized the Fund to declare today, pursuant to a level distribution policy, a monthly distribution of $0.07409 per share on the Fund’s outstanding common stock. The distribution is payable on April 23, 2018 to shareholders of record on April 12, 2018. The ex-dividend date is April 9, 2018.... more