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Dividend Safety Analysis: Southern Company (SO)

This week, I will be taking a look at the dividend safety of Southern Company (SO). If there are other companies you would like me to analyze for dividend safety, please leave a comment at the bottom of this article.   My full thesis on Southern can be seen here, but I will be focusing [...]

August 31st, 2016|Dividend Stocks, High Safety|

A Review of Dividend Safety Scores

Dividend safety serves as the foundation for conservative income investing and stress-free retirement living.   Companies that are able to continue paying and growing their dividends help us meet our investment goals and build wealth over time.   We created Dividend Safety Scores to help investors build safe dividend portfolios and avoid companies that are most [...]

August 30th, 2016|Dividend Investing|

Eli Lilly (LLY): Dividend Growth is About to Change

Eli Lilly (LLY) is a blue chip stock that has paid a consistent dividend since the early 1970s.   The company’s total dividends paid have increased from 4.55 cents per share in 1972 to a projected $2.04 per share in fiscal year 2016.   However, the company’s dividend growth rate has materially slowed, and the [...]

August 29th, 2016|Dividend Stocks|

7 Habits of Highly Effective Dividend Investors

Dividend investors come in all different shapes and sizes. Many of us are living off dividends in retirement, while others are investing for long-term income growth and capital appreciation.   Regardless of our objectives, we are united by our desires to reduce risk and make responsible investment decisions.   However, even the best of us [...]

August 26th, 2016|Dividend Investing|

7 Safe Dividend Stocks That Beat Bear Markets

In the midst of the second-longest bull market ever recorded, many conservative dividend investors are feeling increasingly anxious.   The S&P 500's forward P/E ratio of 17.1 sits approximately 20% above its 10-year average.   To make matters even more uncomfortable for income investors, lower-for-longer interest rates have made safe haven companies such as utilities and [...]

August 24th, 2016|High Safety|

Merck (MRK): Slow and Steady Dividend Growth

Merck is a blue-chip dividend stock that has paid a consistent dividend since 1970 and has grown its dividend at a 1.8% annual rate over the last 10 years.   They have been able to continually pay a dividend during difficult times thanks to a recession-resistant business model, attractive operating margins, and reliable free cash flow [...]

August 23rd, 2016|High Safety|

Kroger (KR): A Bargain Dividend Growth Stock or Value Trap?

Kroger (KR) is starting to get the attention of value and dividend growth investors alike after its year-to-date stock price decline of 22%.   Kroger’s stock now trades for less than 15x forward earnings guidance and offers double-digit annual total return potential if management’s growth guidance is to be trusted.   Even better, most of [...]

August 22nd, 2016|High Safety|

Valero (VLO) Offers a High Yield, But is the Dividend Safe?

As Warren Buffett continues adding to his stake in oil refiner Phillips 66 (PSX), many investors are wondering if Valero (VLO), another refiner, is an equally attractive dividend stock.   Valero offers a high yield of 4.4%, trades at less than 10x trailing earnings, and has more than doubled the S&P 500’s return over the [...]

August 20th, 2016|High Yield|

Target (TGT) Lowers 2016 Guidance. What About the Dividend?

Target (TGT) reported disappointing second-quarter earnings results this morning, sending the stock down more than 5%.   The company lowered its full-year guidance and, like many other brick-and-mortar retailers, remains challenged as it tries to navigate the evolving consumer landscape.   With Warren Buffett recently reducing his stake in Wal-Mart by nearly 30%, many dividend investors [...]

August 17th, 2016|Dividend Aristocrats|

Dividend Safety Analysis: General Motors (GM)

The record level of new car sales registered in the U.S. in 2015 certainly has many in the automotive industry celebrating. General Motors (GM) is even one of Warren Buffett’s top dividend stocks.   However, industry groups are predicting the auto production seasonally adjusted annual rate (SAAR) to decline over the next few years.   [...]

August 15th, 2016|High Yield|

Dividend Safety Analysis: Cummins (CMI)

Cummins (CMI) reported a double-digit sales decline during the second quarter of 2016 and expects full-year revenue to slump about 10%.   Lower truck production in North America and dismal global demand for off-highway vehicles and power generation equipment are weighing on the company.   As the company’s key end markets continue reeling, investors are [...]

August 12th, 2016|Dividend Stocks|

Coca-Cola (KO): Excellent Historical Dividend Growth, But What Does the Future Hold?

Coca-Cola (KO) is one of Warren Buffet’s dividend stocks that has paid a consistent dividend since 1920 and  increased its payout for the past 54 years.   More recently Coke has grown its dividend at a 9% compound annual growth rate (CAGR) over the last 10 years. Its extraordinary track record and stable business model put [...]

August 8th, 2016|Dividend Kings, High Safety|

Williams (WMB) is the Latest Energy Infrastructure Company to Cut Dividend

Williams Companies (WMB) had paid higher dividends each year since 2004, grown its dividend by 38% per year over the last five years, and earned most of its income from regulated assets generating "safe" fee-based revenue from long-term contracts.   The company had even been in business for more than 100 years, more than proving itself as [...]

August 3rd, 2016|High Yield|

Nintendo and Pokemon Go: A Lesson on Behavioral Investing

There is a famous investment tip that says, “Buy the rumor, sell the news.”   Stocks sometimes trade higher (or lower) heading into “major” news announcements before reversing course immediately following the event.   Anticipated market-moving news items can include quarterly earnings reports, business rumors, macroeconomic trends, new product launches, and more.   Not surprisingly, [...]

August 2nd, 2016|Investing Principles|