Hope Bancorp, Inc. (Nasdaq: HOPE) today announced that its Board of Directors declared a quarterly cash dividend of $0.14 per common share. The dividend is payable on or about August 9, 2019 to all stockholders of record as of the close of business on July 26, 2019.... more
Shares of BT (BT) have been beaten up because of poor growth and fears about the sustainability of the dividend. In my view, the dividend is safe from a cash flow perspective, but I expect the management to follow through on their plan to reduce the dividend to fund capex in the coming years. The selloff caused by those unwilling to accept a lower dividend creates an opportunity for others to buy an undervalued company.
Poor growth but steadfast profitability
While revenue growth for BT has been flat for the past 2 years, earnings increased by 6% p.a. during the same time period. Operating cash flow has been volatile but remains at healthy levels. 2019 cash flow was impacted by 1.9 billion worth of changes in liabilities (including pension obligations) which... more
Today AVANGRID, Inc. (NYSE: AGR) announced that its Board of Directors declared a quarterly dividend of $0.44 per share on its Common Stock. This dividend is payable October 1, 2019 to shareholders of record at the close of business on September 6, 2019.... more
For many years in the business, broker dealers have been held to a limited standard of recommending only products that meet suitability requirements of an investor. I'm not going to go into detail about the standards of brokers verses advisors and suitability versus fiduciary responsibility. I am, however, going to bring up a point that applies not just to investments and finance, but to virtually everything in life: Trust but verify!
How do you know what the broker is representing to you actually is what they say it is? Do you understand why the particular investment or product is suitable for you? What purpose does it serve in your portfolio, and how does it fulfill that purpose? Lastly, is it in your best interest, or is there something better out there?
As with most of the large banks, the market is overlooking the extreme value in Citigroup (C) after the Federal Reserve board again didn't object to substantial capital returns for 2019. The market is so focused on net interest margin questions related to lower interest rates that the bank stock still offers near unprecedented value over 10 years into recovery from the financial crisis. The investment thesis remains highly bullish on Citigroup.
Image Source: Citigroup website
Capital Return Boost
Lots of investors will focus on Citigroup boosting the dividend from $0.45 to $0.51, but the stock buybacks remain the big reason to own this stock. The large bank plans to return a total of $21.5 billion to shareholders with $17.1 billion focused on share buybacks.
Cambridge Bancorp (Nasdaq: CATC) (the “Company”), the parent of Cambridge Trust Company, today announced unaudited net income of $4,272,000 for the quarter ended June 30, 2019, a decrease of $1,839,000, or 30.1%, compared to net income of $6,111,000 for the quarter ended June 30, 2018. Diluted earnings per share were $0.90 for the second quarter of 2019, representing a 39.2% decrease over diluted earnings per share of $1.48 for the same quarter last year. Net income for the first and second quarters of 2019 included merger expenses of $3.5 million, which the Company considers to be non-operating.... more
Baxter International Inc. (NYSE: BAX), a leading global medical products company, today announced that its Board of Directors has declared a quarterly cash dividend of $0.22 per share of common stock. The dividend is payable on October 1, 2019, to shareholders of record as of August 30, 2019. The indicated annual dividend rate is $0.88 per share of common stock.... more
The Board of Directors of The AES Corporation (NYSE: AES) declared a quarterly common stock dividend of $0.1365 per share payable on August 15, 2019, to shareholders of record at the close of business on August 1, 2019.... more
Looking for Dividend Growth? Read This
With products like “Lays,” “Cheetos,” and “Mountain Dew,” some of PepsiCo, Inc.’s (Nasdaq: PEP) offerings probably don’t seem like the best choices if you’re on a diet. However, if you want to supplement your income stream with some healthy dividends, few companies can do a better job than this Purchase, New York-based food and beverage giant.
To see why PEP stock is special, here’s a number: 47. That’s the number of consecutive years in which the company has increased its dividend. (Source: “Dividend Information,” PepsiCo, Inc., last accessed July 11, 2019.)
Just think about that for a second. The world economy has gone through plenty of ups and downs in the past 47 years. But in every one of those... more
Co-produced with Samuel Smith
Despite Washington Prime Group (WPG) trading at a steep discount to net asset value today and offering investors a mouth-watering dividend yield of 27%, we remain on the sidelines for two reasons:
(1) We believe there are other opportunities that offer a better risk-reward proposition in the beaten-down retail REIT sector. (2) The combined uncertain macroeconomic outlook, retail sector headwinds, and strained cash flow situation at WPG will likely lead to a dividend cut in the near term In the remainder of this article, we will discuss our conviction for the second reason we are staying away from WPG common shares for now.
Uncertain Macroeconomic Outlook
There have been numerous projections by the Federal Reserve and numerous... more