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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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. [...]
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 [...]
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 [...]
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 [...]
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, [...]
Are there any dividend stocks you are considering buying but want to be sure their dividends are safe before going any further? Leave a comment at the end of this article with a stock you would like me to evaluate for dividend safety. This week, I will be taking a look at the [...]
After failing to increase its dividend in June like it has in past years and continuing to report double-digit declines in sales and earnings this week, Caterpillar has many dividend investors wondering about the safety of its current payout. Caterpillar’s revenue has declined from $66 billion in 2012 to a projected $40 billion in [...]
Linear Technology (LLTC) is a company I have owned in our Top 20 Dividend Stocks portfolio since July 2015. Since initiating a position in the company, LLTC's stock has returned more than 50%. News surfaced this afternoon that Analog Devices (ADI) was planning to make a bid to acquire Linear Technology. LLTC's stock jumped nearly 30% [...]
Warren Buffett’s investment advice is timeless. I have lost track of the number of investing mistakes I have made over the years, but almost all of them fall into one of the 10 buckets of investment tips given by Warren Buffett below. By keeping Buffett’s investment advice in mind, investors can sidestep some of [...]
With more than four consecutive decades of dividend increases, Automatic Data Processing (ADP) is one of my favorite dividend aristocrats. The company’s excellent dividend growth track record is the result of its reliable business model. ADP benefits from providing mission-critical services, generating a high percentage of recurring revenues, maintaining a strong client retention [...]