International Paper (IP)

Founded in 1898, International Paper (IP) is the world's largest global paper and packaging company with a No. 1 position in all of its key markets, which span North America, Europe, Latin America, North Africa, India, and Russia. The company owns over 290 facilities and has a total capacity of more than 20 million tons of paper and paper products per year.   International Paper operates through three segments: Industrial Packaging (69% of 2017 revenue): manufactures containerboards, which are the linerboards that primarily get used in packaging products such as cardboard boxes. Printing Papers (19% of 2017 revenue): produces printing and writing papers, such as uncoated papers for end use applications, including brochures, pamphlets, greeting cards, books, annual reports, and [...]

July 21st, 2018|

An Update On The Wells Fargo Scandals: What Dividend Investors Need To Know

Wells Fargo has been fighting a number of scandals that are impacting its fundamentals. Let's take a look at how the bank's turnaround efforts are going and what they mean for dividend investors.   More Scandals Continue To Surface At this point, Wells Fargo has become well-known for its ever-growing list of scandals which include: An independent third-party review of the bank's accounts revealed that the total number of unauthorized accounts opened was actually 3.5 million, 67% more than initially thought. The bank incorrectly charged 800,000 car loan customers for unnecessary insurance that, according to Wells Fargo, could have caused around 20,000 customers to default on their payments and have their vehicles repossessed. Wells Fargo Merchant services apparently overcharged thousands [...]

July 21st, 2018|

AT&T: More Merger Drama

On July 12, just one month after the Justice Department's antitrust lawsuit to block AT&T's merger with Time Warner was rejected by U.S. District Court Judge Richard Leon, the Justice Department appealed the ruling.   What does this mean for dividend investors? After all, AT&T already merged with Time Warner on June 15. Let's take a closer look to understand if this event is news or noise.   In his 172-page opinion issued in June, Judge Leon made it clear that the Department of Justice (DOJ) had failed to meet its burden of proof that the AT&T/Time Warner merger would harm consumers. He even warned that any appeal would be likely to fail, and strongly urged the DOJ to not [...]

July 21st, 2018|

Royal Dutch Shell (RDS.A) (RDS.B)

Founded in 1833, Royal Dutch Shell (RDS.B) is one of the world's largest integrated oil companies with operations in over 70 countries. In addition to exploring for and extracting crude oil, natural gas, and natural gas liquids, Royal Dutch Shell owns a number of refineries, distribution terminals, and LNG tankers.   The company also has a midstream master limited partnership (MLP) called Shell Midstream Partners (SHLX). This is used to monetize its North American midstream (storage, transportation, and processing) facilities. Shell owns 44% of Shell Midstream's common units, a 2% general partner stake, and its lucrative incentive distribution rights (IDRs). Thanks to this structure, about 70% of Shell Midstream's cash flow comes back to the parent company.   Shell operates [...]

July 21st, 2018|
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