Is Anheuser-Busch InBev’s Dividend Safe?

The continued slump in Anheuser-Busch InBev's (BUD) stock price has caused some income investors to worry about the safety of the company's dividend. Fortunately, based on the facts we know today, a dividend cut seems unlikely. AB InBev primarily produces and distributes beer and other alcoholic beverages. The company generates over $50 billion in revenue each year, derives more than 70% of its volume in emerging markets, has approximately 27% share of the global market, and enjoys excellent profitability with an operating margin north of 30%. So what's weighing on this non-cyclical, global brewing giant that some investors worry could potentially jeopardize its payout? Debt.

October 8th, 2018|

High Dividend Stocks: 27 High Yield Stocks for Income – October 2018 Update

High dividend stocks appeal to many investors living off dividends in retirement because their high yields provide generous income.   Many of the highest paying dividend stocks offer a high yield in excess of 4%, and some even yield 10% or more.   However, not all high yield dividend stocks are safe. Let’s review what high dividend stocks are, where stocks with high dividends can be found in the market, and how to identify which high dividends are risky.   At the end of the article, we will take a look at 27 of the best high dividend stocks, providing analysis on each company. Almost all of these high yield stocks offer a dividend yield greater than 4%, have increased their [...]

October 5th, 2018|

Southern Company Reaches Agreement to Continue Nuclear Project, Reducing Short-term Risk

Southern Company (SO) shareholders received good news this week. The four co-owners of the Vogtle nuclear power plant voted to continue construction on the troubled $27 billion project despite the latest set of cost overruns. Had the project been canceled instead, Southern Company's shareholders, rather than its ratepayers, could have potentially been on the hook for billions of dollars of unrecoverable losses. That's a key reason why SO's stock rallied moderately on the news. A short-term hit to the firm's financial health appears to have been avoided, and its dividend safety outlook remains unchanged. But there's more to the agreement reached this week that could have implications for Southern Company's longer-term outlook. As a refresher, the nuclear project has four [...]

September 28th, 2018|

Dominion Energy Offers to Buy Out Its MLP Dominion Midstream Partners

Dominion Energy (D) has managed to significantly outperform most other regulated utilities over the past decade, establishing itself as a quality dividend growth investment. A large driver was the utility's expansion into midstream infrastructure, specifically natural gas and liquified natural gas (LNG) storage, transportation, and export capacity. However, in recent years the midstream industry has faced major headwinds, and now Dominion Energy has announced it feels it has to radically change its midstream growth strategy by offering to buy out its MLP, Dominion Midstream Partners (DM). Let's take a look at what this means for investors in both stocks, but especially what implications it has for the future growth prospects of Dominion Energy's earnings and dividend.

September 25th, 2018|
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