Up until the financial crisis, when many U.S. banks were nearly destroyed by disastrous amounts of leverage and risky bets on mortgage backed securities and complex derivatives, banks were a favorite sector among dividend investors thanks to their generous yields and solid histories of payout growth. The memory of the great financial crash is [...]
One investing school of thought is that you should find an amazing investor and ride his or her coat tails to fun and profit. This certainly worked out well for those who bet on history’s greatest investor, Warren Buffett, by investing in Berkshire Hathaway (BRK.A, BRK.B). You can view Buffett’s high dividend stock portfolio [...]
CSI Compressco LP (CCLP) surprised many income investors last week when it announced a 50% cut to its distribution, sending its stock price tumbling by nearly 20%. The company has been in business for more than 45 years and paid steady dividends until 2016, adding to the surprise and disappointment. However, CSI Compressco was [...]
Grainger (GWW) has seen its stock price slide by more than 20% since early February, catching the attention of many value-focused dividend growth investors. After all, it’s rare to see such a high quality business tumble so quickly, and one of the most effective habits of dividend investing is to let market volatility work [...]
Cardinal Health (CAH) updated its guidance Tuesday morning, causing its stock price to plunge nearly 12% on the day. The company previously cut its profit guidance in October 2016, but today's news was clearly still a big surprise. Many investors like owning dividend aristocrats such as Cardinal Heath because they have been less [...]
One of our members emailed me after reading through my recent Verizon article, which analyzed the scary-looking drop in free cash flow that the company reported. Many investors worried that the company's dividend could be at risk. I dug through Verizon's financial statements to show why I believe Verizon's dividend remains safe and why the lower [...]
Many of the most popular high yield stocks are real estate investment trusts (REITs), master limited partnership (MLPs), and business development companies (BDCs). All of these industries are designed to pay very high dividends. When it comes to regular corporations, however, a very high dividend yield can be a warning sign that something [...]
A number of readers have emailed me in recent weeks wondering about Verizon’s (VZ) dividend safety. Their anxiety developed after reading several articles online that suggested Verizon’s dividend was no longer sustainable because the company’s free cash flow did not cover it last year. However, Verizon scores a 93 using our Dividend Safety [...]
American Tower (AMT) is unlike most real estate investment trusts (REITs). The company’s business model has very low maintenance capital needs, throws off excellent free cash flow each year, provides recession-resistant services, and consistently enjoys renewal rates close to 100%. While American Tower isn't one of the 28 best high dividend stocks for [...]
In this age of record low interest rates, yield-hungry investors have a vast array of high-yield industries to choose from, including Real Estate Investment Trusts (REITs), Master Limited Partnerships (MLPs), YieldCos, and Business Development Corporations (BDCs). While these sectors have business models that make for naturally high-yields, they come with their own inherent risks [...]
Earlier this week, I did something that I really don't like to do. I sold a stock from our Top 20 Dividend Stocks and Long-term Dividend Growth portfolios, exiting my position in T. Rowe Price (TROW). T. Rowe Price, perhaps best known for being one of the 51 dividend aristocrats, is one of [...]
Microsoft (MSFT) is a company legendary for making many investors very wealthy over the decades. In fact, Bill Gates' dividend stock portfolio would not exist if it weren't for Microsoft's incredible growth story. Over the past 14 years the company has become a favorite among many dividend investors, thanks to its dividend achiever status and [...]
When it comes to high-yield stocks, few companies offer higher income than mortgage REITs such as Annaly Capital Management (NLY). However, it’s vitally important for dividend investors to realize that this industry is one of the hardest to consistently profit from, for numerous reasons. Let’s take a closer look at Annaly Capital, one [...]
As the market continues to climb to new record highs, many investors are searching for safe dividend stocks paying high dividends (see 28 such companies here). The healthcare sector, pharmaceuticals in particular, is generally considered a defensive sector thanks to the recession-resistant nature of its product sales. However, while this is true as [...]
Many founder-led companies can make for solid long-term investments, specifically when it comes to dividend stocks. That’s because the founder and CEO owns a large stake in the business and often has a natural incentive to pay a generous and growing dividend, an appealing proposition for income investors seeking to live off dividends. [...]