Master Limited Partnerships, or MLPs have been an increasingly popular stock sector in recent years thanks to their preferential tax treatment that results in a business model that pays out the majority of cash flow in the form of very generous high-yields. However, as with most high-yield stocks on Wall Street, one needs to [...]
When it comes to long-term blue chip investing, it’s hard to go wrong with dividend aristocrats. Of course, the only thing better than a company that has grown its dividend 25 or more consecutive years is a dividend king, like Coca-Cola (KO), which has one of the best payout growth track records in America [...]
Over the last few years, record low interest rates have made Master Limited Partnerships, or MLPs, one of the hottest high-yield equity classes on Wall Street. While it’s true that this sector has its own risk factors that investors need to be aware of, certain midstream MLPs (those that operate gathering, processing, storage, and [...]
Few investors will ever forget the terror of the financial crisis of 2008-2009, when the global financial system was on the verge of complete collapse and many people were convinced we were headed for another depression. Shareholders of U.S. megabanks such as Bank of America (BAC) were especially brutalized, when one of America’s largest [...]
Master Limited Partnerships, or MLPs have become an increasingly popular equity class, and for good reason. With most MLPs concentrated in the midstream sector (i.e. gathering, storage, and transportation of oil & gas), the business model for many MLPs is built around long-term contracted, fixed-fee, tollbooth style cash flow. Since most MLPs pay out [...]
As a dividend growth investor knows, it’s not exactly a secret that the U.S. stock market has been one of the greatest long-term wealth generators in history. In fact, between 1871 and 2015 the S&P 500 has recorded a compound annual growth rate, or CAGR, of 9.1%, increasing a staggering 285,436.41 times in value. [...]
Over the past decade, as interest rates have essentially been pegged near zero, income-hungry investors have been attracted to higher-yielding equity classes such as: Master Limited Partnerships, Business Development Companies, and Real Estate Investment Trusts. One class of REITs in particular, mortgage REITs, has been especially popular thanks to its sky-high dividends, which often [...]
Over the coming decades, the aging of the U.S. population is going be one of the largest demographic and economic megatrends, creating potential investment opportunities for long-term dividend investors. Let’s take a look to see if Ventas (VTR), America’s second largest medical Real Estate Investment Trust, or REIT, could be a sensible choice for [...]
Donald Trump stunned many investors around the world when he beat Hillary Clinton to win the U.S. presidential election. Markets initially tumbled in overnight trading, with the S&P 500 Index down as much as 5%. Many long-term dividend investors, me included, went to sleep excited for some incremental buying opportunities in the morning. [...]
Despite the market’s recent pull back in recent weeks, the S&P 500 is still trading close its all-time high and at a historically elevated P/E multiple of 24.5. However, that doesn’t mean that there still aren’t great bargains to be found, even when it comes to high-quality dividend growth stocks. CVS Health (CVS) [...]
Over the past few years, Business Development Companies, or BDCs, have proven very popular with yield-starved income investors. Given their sky-high yields, this is understandable. But it’s important for dividend investors to realize that this isn’t a “set it and forget it” industry, which means that successful long-term investing in BDCs requires being very [...]
Since the depths of the financial crisis, plenty of big banks such as Bank of America (BAC), Citigroup (C), and JPMorgan Chase (JPM) have managed to rebound nicely and beat the market. However, pure play investment banks such as Goldman Sachs (GS) and Morgan Stanley (MS) have lagged the S&P 500 by large margins. [...]
Since its founding in sleepy Beaverton, Oregon, in 1964, Nike (NKE) has grown into the world’s most dominant sports apparel supplier, and 18th most valuable brand in the world. Along the way they have made countless long-term dividend investors very rich. In fact, from 2006 through 2015, Nike has returned 20.9% per year (including [...]