Henkel is one of the companies that I hardly notice in my portfolio.
Even now we can see why. The company appears to be coming through the crisis halfway successfully and is keeping its dividend stable.
The stable balance sheet and its current undervaluation based on historical multiples make the company a good choice for long-term investors.
Henkel (OTCPK: HELKF/OTCPK: HENKY/OTCPK: HENOY) is one of my anchor companies in my broadly diversified bond portfolio. I define anchor investments as those companies that give my portfolio long-term stability, whose business model is future-proof, which are primarily defensive, plan for the long term and pay a reliable dividend. Such companies are not very thrilling. I just leave them in my portfolio and buy shares from... more
National Bank remained very profitable in Q2 2020 despite boosting its credit loss provision by 4-500%.
Lower interest expenses are boosting the underlying result, and the dividend appears to be safe.
Using normalized credit loss provisions, National Bank will generate an underlying EPS of around C$7.5.
The CET1 ratio remains decent at 11.2%, compared to the 9.0% required by the regulator.
The financial sector will undoubtedly be hit hard by the COVID-19 outbreak and I have been trying to look for banks that are trading cheap and could be added to a long-term portfolio. Canadian banks have had to deal with several problems that surfaced at the same time: COVID-19, an overheating residential real estate market and low oil prices that will see some banks have a... more
Whilst many investors are wary of Master Limited Partnerships due to their high leverage and frequent reliance on debt to fund distributions, some are different.
One such example is Westlake Chemical Partners who currently sports a massive double-digit distribution yield of around 10%.
Throughout their recent history they have easily covered their distributions with free cash flow, which is very positive and also provides a margin of safety.
Their leverage is low and thus even if they were temporarily forced to reduce their distributions, it could quickly be reinstated once operating conditions recovered.
Since this massive distribution yield is very attractive and supported with healthy fundamentals, I believe that a bullish rating is appropriate.
SYF.PA is fixed-rate non-cumulative preferred stock of the parent company Synchrony Financial.
SYF.PA shouldn't perform worse that other comparable preferrds if SYF doesn'n perform worse than it comparable commons.
There is an upside potential of around 5% relative to other comparable preferred stocks on top of a tasty 7% qualified current yield.
We are starting our articles again and will most likely be announcing our portfolios in the coming days. In our opinion, a lot of the fixed income we follow is quite undervalued at the moment, so it is about time to "catch" the laggards that still have large sellers.
Note: The current idea was first presented to our chat room on May 14th, 2020 (Figure 1).
Figure 1. Chat room excerpt.
SYF.PA and... more
Caleres (NYSE: CAL,calers.com) today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.07 per share to be paid on July 1, 2020, to shareholders of record as of June 12, 2020.... more
I transferred $3,000 from my Ally Savings Bank account to my new Capital One account in order to benefit from the latter’s new savings account that offered an interest rate of 1.5%, higher than that on all of my current cash accounts.
This is a small move that will increase my interest income over $100 for the next year and took less than 30 minutes.
There is one major downside with high yield savings account. The banks can change the interest rates quickly as interest rates change in the market.
On your road to financial freedom, you look to maximize every aspect of your budget. Your goal is to maximize your income and minimize your expenses. While many transactions or activities may result in large dollar gains, the reality is that you must win a lot of the small transactions... more
Altria, a dividend king tobacco company, has provided strong growth of its key financial metrics over the last decade due to the solid performance of its core businesses.
Currently, Altria boasts a historically impressive ~9% dividend yield that is well supported by its free cash flow.
Although Altria faces challenges with a number of its recent acquisitions, its smokeable and oral tobacco products will likely support future growth for the company.
Taken together, the strength of Altria’s core business has the potential to offer a secure high yield dividend, which could make this a potentially appealing dividend stock for investors.
Altria (NYSE: MO) is a major tobacco company focused in the United States that offers a potential buying opportunity for investors. During Q1... more
FDVV focuses on large-cap, high-yield dividend stocks.
The fund has a high exposure to cyclical sectors and these sectors may underperform in a post-COVID-19 world.
Despite the stock market selloff in March 2020, FDVV’s shares are not trading at a discount.
Fidelity High Dividend ETF's (FDVV) fund has not performed well since March 2020's broader market selloff. Looking forward, FDVV's portfolio construction approach that focuses on past information does not guarantee the sustainability of its dividends in the future. In addition, FDVV has a high exposure to cyclical sectors and these sectors may not perform well in the next few years due to the outbreak of COVID-19. Therefore, investors may want to seek opportunities elsewhere.
Data by YCharts
GLAD has rebounded strongly off its lows but remains well below its prior highs.
With the distribution having been cut already, the new payout looks safe.
With a huge yield and relatively cheap valuation, Gladstone looks like a strong income pick.
The turmoil caused by COVID-19 earlier this year seems largely to have abated at this point. Investors appear to be acting like the worst is behind us, and that has created a set of winners and losers in the stock market. One area that hasn't recovered is BDCs, which are companies that lend to smaller, non-public entities that cannot easily access the capital markets. One such company is Gladstone Capital (GLAD), and with shares having rebounded only partially from the early-2020 selloff, I think it offers... more
The Board of Directors of Turning Point Brands (NYSE: TPB) declared a regular quarterly dividend of $0.05 per common share. The dividend is payable on July 10, 2020, to shareholders of record on the close of business on June 19, 2020.... more