Altria’s Dividend Continues to Look Safe Despite Recent Cigarette Declines, Regulatory Fears

Longtime tobacco investors know a thing or two about the challenges this industry can face. From regulatory pressures to costly settlement agreements, over the years income investors have had to stomach bouts of severe volatility. In fact, Altria's (MO) share price was nearly cut in half in the early 1990s when the Supreme Court ruled [...]

May 31st, 2019|Uncategorized|

Tanger’s Dividend Safety Profile Downgraded to Borderline Safe Due to Weak Results Across Key Tenants

In March 2019, I published a note reviewing Tanger's dividend safety. In my concluding remarks, I had stated the firm's dividend still looked safe, but investors needed to watch the performance of Tanger's tenants (emphasis added): Tanger's operating results have significantly deteriorated in recent years, driven largely by its exposure to troubled apparel retailers. While Tanger's [...]

May 31st, 2019|Uncategorized|

Opioid Lawsuits Unlikely to Affect Johnson & Johnson’s Dividend Safety

Opioids are a class of drug that includes prescription pain relievers such as OxyContin and Vicodin, synthetic opioids such as fentanyl (similar to morphine but much more potent), and illegal drug heroin.  In 2017 the U.S. Department of Health and Human Services (HHS) declared a public health emergency to address the national opioid crisis. The HHS believes [...]

May 31st, 2019|Uncategorized|

GM’s Dividend Profile Remains Stable Despite Potential Tariff on Mexican Imports

News broke last night that the U.S. will impose a 5% tariff on all Mexican imports beginning on June 10 unless Mexico agrees to do more to address illegal immigration problems.  The tariff will increase 5% each month, reaching a maximum of 25% in October. Trump tweeted the 25% level would hold there "until Mexico [...]

May 31st, 2019|Uncategorized|

Amgen: A Biotech Paying Dividends Since 2011

Amgen (AMGN) was founded in 1980 and is one of the world's leading biotechnology companies with operations in more than 100 countries. The business develops and manufactures treatments for oncology/hematology, cardiovascular, inflammation, bone health, nephrology, and neurological diseases.  About 77% of the firm's sales are derived from the U.S., and Amgen's product portfolio is concentrated [...]

May 24th, 2019|Uncategorized|

Qualcomm Loses Antitrust Case, Retains Borderline Safe Dividend Profile

Shares of Qualcomm (QCOM) fell as low as $49 earlier this year as investors fretted over the significant legal risks the company's core licensing business faced. Simply put, the firm was accused by Apple and others of abusing its monopolistic position in wireless chips and charging excessive royalty rates. Investors received good news in April [...]

May 22nd, 2019|Uncategorized|

Archer-Daniels-Midland: 43 Straight Years of Dividend Increases

Founded in 1898, Archer Daniels Midland (ADM) procures, transports, and processes corn, oilseeds, wheat, and other commodities which are turned into products for food, beverage, animal feed, chemical, and energy uses around the world.  The firm's end products include vegetable oil, protein meal, flour, corn sweeteners, starch, ethanol, and many other food and feed ingredients.  [...]

May 20th, 2019|Uncategorized|

Kinder Morgan: Working to Deliver More Reliable Dividends

Since 1997, Kinder Morgan (KMI) has spent more than $60 billion building one of North America's largest midstream infrastructures, providing gathering, storage, transport, and processing services to the oil & gas industry. Kinder Morgan's immense footprint (84,000 miles of pipelines and over 150 distribution and storage terminals) means the company is vertically integrated into almost [...]

May 20th, 2019|Uncategorized|

Federal Realty Investment Trust: A Dividend King REIT

Founded in 1962, Federal Realty Investment Trust (FRT) is one of the oldest REITs in the world. The company specializes in high-quality, neighborhood shopping centers that are anchored by grocery stores and located in large, affluent markets such as Silicon Valley and New York. Today the REIT owns 104 properties, comprising 24 million square feet [...]

May 20th, 2019|Uncategorized|

Cummins: Paying Higher Dividends Since 2006

Founded in 1919 in Columbus, Indiana, Cummins (CMI) is the largest dedicated global industrial diesel and natural gas engine manufacturer.The company’s primary markets are highway and heavy-duty vehicles, construction, and general industrial markets, where it serves customers such as Chrysler, Daimler, Volvo, PACCAR, Navistar, CNH Global, Komatsu, and Ford. PACCAR is the largest customer accounting [...]

May 20th, 2019|Uncategorized|

Bayer’s Dividend Safety Downgraded in Light of Mounting Liabilities

Shares of Bayer (BAYRY) have slumped nearly 50% over the past year. The German manufacturer of chemicals and pharmaceuticals has remained under pressure following its June 2018 acquisition of Monsanto for $63 billion. Buying Monsanto made Bayer the world's largest seed and crop-chemical business, according to The Wall Street Journal. The firm's agriculture business shot up from [...]

May 17th, 2019|Uncategorized|

A.O. Smith Remains a Hold Following Short Report

Shares of A.O. Smith (AOS) have slumped about 11% over the last two days following a bearish research report released by short seller J Capital Research.  You can read their 66-page report here, but the firm makes the following key allegations against A.O. Smith's business practices and outlook: Short-term performance in China, which accounts for 34% [...]

May 17th, 2019|Uncategorized|

Vodafone Faces More Uncertainty Amid Dividend Cut Rumors

In October 2018, we reviewed Vodafone's (VOD) dividend safety and made the following remarks (see our full note here): Vodafone's "Borderline Safe" Dividend Safety Score is hanging by a thread. With the dividend consuming the bulk of Vodafone's free cash flow, plus rising leverage from the Liberty Global deal, the capital-intensive nature of its businesses, and [...]

May 13th, 2019|Uncategorized|

Hershey Has Paid Uninterrupted Dividends Since 1930

Founded in 1894 in Hershey, Pennsylvania, Hershey (HSY) manufactures and sells chocolate and non-chocolate confectionery products including gum and mints; baking ingredients such as toppings, beverages, and syrups; and snack items, including spreads, meat snacks, bars, mixes, popcorn, protein bars, and cookies.These products are marketed under over 80 leading brands including: Hershey’s, Reese’s, Kisses, Jolly [...]

May 13th, 2019|Uncategorized|

Simon Property Group: A High-Yield REIT Adapting to the Times

Simon Property Group (SPG) is America’s largest mall owner, with full or partial ownership interest in over 230 properties across North America, Europe, and Asia. In 2018 Simon's U.S. mall tenants generated over $60 billion in retail sales.  Most of Simon's locations are anchored by department stores, and the vast majority of net operating income, [...]

May 13th, 2019|Uncategorized|