Matthews International Corporation (Nasdaq: MATW) announced that its Board of Directors declared, at its regularly scheduled meeting today, a dividend of $0.19 per share on the Company’s common stock. The dividend is payable August 13, 2018 to stockholders of record on July 30, 2018.... more
Executive Summary After having analyzed Sampo (OTCPK: SAXPF)(OTCPK: SAXPY) for the first time, more than one year ago, I looked afterward to Topdanmark’s (OTCPK: TPDKY) business model and results, as the Danish insurer was an associate company. Nevertheless, I never dipped dive into Nordea’s (OTCPK: NRBAY)(OTCPK: NRDEF) business model or reported figures, while Sampo owns more than 20% of Nordea's shares. Furthermore, I consider that thinking out of the box, by analyzing new companies, involving in other sectors, is always intellectually stimulating. So let’s combine the pleasant (analyzing a new company!) and the useful (having a better view on Sampo’s dividend sustainability).
A Higher Profit Due To A Positive Business Momentum And Non-Recurring Effects... more
I was craving chocolate the other day, and what better bar to go for, than the chocolate wrapper, the Hershey Bar. It is classic and sweet. Yes, but is it sweet for a dividend investor to deploy capital? I heard of a few events that The Hershey Company (NYSE: HSY) has undergone the last year, the most significant being their acquisition of Amplify snack brands, which created the 'Skinny Pop' and 'Oatmega' bars. This acquisition, which complemented the chocolate brands of Hershey, Kit Kat, Reese, York, and even the other areas - gum (Ice Breakers), closed in the first quarter. I wanted to perform a stock analysis on The Hershey Company to see how they are performing post close of the acquisition, how their dividend metrics stand, and if the company is worthy of a capital... more
Why is the treasury yield curve important? As a value investor, I do not care that much about macro factors like GDP growth, interest rate, inflation rate, income growth, etc. However, one macro factor stands out from the crowd is the yield curve for treasuries. Because treasuries have no credit risk, the yield curve gives a baseline about what a company can earn if its primary business model is to "borrow short, lend long". In my opinion, the most susceptible industry is mortgage REITs. As you can see, from 2013 to 2016, the difference between 10-yr treasury yield and 2-yr treasury yield dropped from around 2.5% to around 1%, and the mortgage REITs which have a high concentration of agency debts performed poorly:
(Source: Federal Reserve Bank of St Louis)
The Key to the Five-Year mREIT Outlook Someone considering an investment in mREITs, and especially UBS ETRACS Monthly Pay 2x Leveraged Mortgage REIT ETN (NYSEARCA: MORL), with a five-year horizon, should ask themselves "in the next five years, how many increases and decreases in the target interest rate will be made by the Federal Reserve?" Since the end of 2015 the Federal Reserve has increased the target Federal Funds interest rate seven times, each in increments of 25 basis points. The December 2015 increase in the target rate was the first change in the rate since the Federal Reserve finished lowering rates in 2008.
Most market participants focus on the questions of how many additional rate increases will the Federal Reserve make, what the timing of those increases will... more
Xerox (NYSE: XRX) announced today that its board of directors declared a quarterly cash dividend of $0.25 per share on Xerox common stock. The dividend is payable on Oct. 31, 2018 to shareholders of record on Sept. 28, 2018.... more
Sanderson Farms, Inc. (Nasdaq: SAFM) today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.32 (thirty-two cents) per share payable August 14, 2018, to stockholders of record on July 31, 2018.... more
Packaging Corporation of America (PKG) offers dividend growth investors the opportunity to gain exposure to the rapid growth of e-commerce at an attractive yield. Though the packaging industry is growing increasingly competitive, pressuring businesses to leverage their balance sheets to outmaneuver the competition via acquisitions, the strong growth trend leaves plenty of space for multiple competitors. PKG management appears to be managing its balance sheet prudently while still positioning the company for success. Meanwhile, the low payout ratio, high free cash flow yield, and strong growth momentum imply continued robust dividend growth is ahead.
Safety PKG's dividend appears to be quite safe, backed by a solid balance sheet, stable operating results, and a low payout ratio... more
Rayonier Advanced Materials Inc. (NYSE: RYAM) announced today that the Company’s board of directors has declared a third quarter cash dividend of $2.00 per share of Mandatory Convertible Preferred Stock of the Company. The dividend is payable on August 15, 2018 to stockholders of record on August 1, 2018.... more
The Western Union Company (NYSE: WU), a global leader in cross-border, cross-currency money movement, announced today that its board of directors declared a quarterly cash dividend of $0.19 per common share, payable September 28, 2018 to stockholders of record at the close of business on September 14, 2018.... more