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 [...]
StoneMor Partners (STON) was the latest master limited partnership (MLP) to shock investors with a distribution cut (learn about the main risks of investing in MLPs here). After increasing its distribution each year since 2005, Stonemor announced last week that its third quarter distribution would be reduced by 50% to 33 cents per share. [...]
Citigroup (C) more than tripled its quarterly dividend earlier this year, but few people can forget the terror of the 2008-2009 financial crisis. Unlike our favorite recession-resistant dividend stocks, some of the world’s largest financial institutions were on the brink of utter collapse and threatened to plunge the global economy into a prolonged depression. [...]
AT&T (T) recently agreed to acquire Time Warner (TWX), and this deal has a number of implications for dividend investors. AT&T believes it is buying “the world’s best premium content” and now has the largest film and TV studio in the world. Assuming the deal isn’t blocked by regulators, Time Warner will represent roughly [...]
Since its founding in Seattle in 1985, Starbucks (SBUX) has grown into the world’s largest coffee empire and the 67th most valuable brand on earth. Along the way, Starbucks’ amazing growth story has made countless investors amazingly rich. For example, $10,000 invested in Starbucks 20 years ago would today be worth $283,520.03 compared to [...]
Telecom companies have long been a favorite among income investors thanks to their utility-like business models, which make for steady cash flow and allow for generous, secure, and slowly growing dividends (learn about the best sectors for dividend income here). With global interest rates at their lowest levels in human history, it’s understandable why high-yield [...]
With the current oil crisis dragging on far longer than initially anticipated, many big oil dividend stocks such as BP, Chevron (CVX), and Royal Dutch Shell (RDS.A) are offering tantalizing high-yields. However, given the capital intensive nature of this business, the cyclical nature of the industry, and the unpredictable nature of crude and natural [...]