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Preferred Apartment Retains Borderline Safe Rating But Transformation Creates Uncertainty

Preferred Apartment Communities (APTS) was founded in 2011. The REIT focuses on multifamily buildings (e.g. apartments), student housing properties, office buildings, and grocery-anchored retail centers. It also originates real estate loans to developers, receiving interest payments and the option to purchase finished projects.

September 12th, 2019|Uncategorized|

Kroger: Paying Higher Dividends Each Year Since 2006

Founded in 1883, Kroger (KR) is America's second largest grocer behind only Walmart with over $120 billion in annual sales. The company operates over 2,700 supermarkets, many with pharmacies and fuel centers on premise. Kroger's stores are in 35 states and serve more than 11 million shoppers each day. In addition to traditional grocery shopping, [...]

September 10th, 2019|Uncategorized|

Costco: A Resilient Retailer Paying Higher Dividends Since 2004

Costco (COST) was founded in 1976 and pioneered the membership warehouse business model. The company is one of the world’s largest sellers of groceries, alcohol, diamonds, electronics, prescription drugs, tires, gasoline, and even travel services. Costco operates over 775 store locations, mostly in North America.

September 9th, 2019|Uncategorized|

Meredith’s Dividend Safety Score Downgraded to Borderline Safe due to Time Acquisition Challenges

On September 5, Meredith (MDP) issued weak guidance for the year ahead. The company's leverage profile and payout ratio will now remain elevated for longer than we expected, and execution risk has also increased. As a result, we downgraded Meredith's Dividend Safety Score from Safe to Borderline Safe. Meredith's dividend still seems unlikely to be cut for now and the [...]

September 6th, 2019|Uncategorized|

Meredith: 70-plus Years of Uninterrupted Dividends But Facing Dynamic Media Industry

Meredith (MDP) is one of the nation's oldest media and publishing companies, having been founded in 1902 as an agricultural publisher. At its core, Meredith provides consumers with content by leveraging print, digital, mobile, video, and broadcast TV media platforms. Nationally, the firm reaches over 180 million American consumers. Advertising accounts for a little over [...]

September 6th, 2019|Uncategorized|

Macy’s Dividend Safety Score Downgraded to Unsafe due to Ongoing Struggles and Outlook

Earlier this year, we published a note reviewing Macy's dividend safety profile and struggles turning around its brick-and-mortar retail business. In the note, we said that Macy's Borderline Safe Dividend Safety Score was predicated in part on the company's turnaround efforts not stalling more than they already have. Unfortunately, Macy's turnaround efforts have appeared to do just that. Despite [...]

September 5th, 2019|Uncategorized|

Initiating Dow’s Dividend Safety Score With a Borderline Safe Rating

In December 2015, Dow (DOW) and DuPont (DD) announced plans to merge, then break up into three independent companies. The idea was to create larger, more focused businesses by combining the areas of overlap in their complementary portfolios. Here's a look at each company's 2015 revenue mix. As you can see, Dow and DuPont each had large [...]

September 5th, 2019|Uncategorized|

Philip Morris’s Potential Merger With Altria Has Trade-offs; No Change to Dividend Safety Score

Philip Morris International (PM) surprised investors last week when the firm confirmed it was in discussions with Altria (MO) about a potential all-stock, merger of equals. After all, these two tobacco giants had separated just over a decade ago when Altria spun off Philip Morris International in 2008. The idea of a potential reunion has not been received well [...]

September 3rd, 2019|Uncategorized|

Toronto-Dominion Bank: Uninterrupted Dividends Since 1857

Toronto-Dominion Bank (TD) was founded in 1855 and is one of North America's largest banks. The firm's revenue is fairly balanced between net interest income, or lending businesses (57% of sales), and non-interest income operations (43% of revenue is from non-lending businesses such as insurance policies, card services, service charges, asset management, credit fees, brokerage [...]

September 2nd, 2019|Uncategorized|

Cracker Barrel: A Quality Dividend Payer in a Tough Market

Cracker Barrel Old Country Store (CBRL) has been in business since 1969 and operates a chain of more than 650 company-owned restaurants located throughout the U.S. Cracker Barrel's country-themed, full-service restaurants offer diners a variety of breakfast (24% of sales), lunch (39%), and dinner (37%) foods with meals costing about $10 on average.  Each restaurant [...]

September 2nd, 2019|Uncategorized|

Altria’s Potential Merger With Philip Morris International Seems Favorable in the Long Term

In 2008, Altria (MO) spun off Philip Morris International (PM) with hopes of unlocking value from its faster-growing international business, which was underappreciated by investors who worried about the decline in U.S. cigarette consumption and the threat from tobacco litigation. Now, more than a decade later, both companies announced on August 27 that they are exploring a [...]

August 29th, 2019|Uncategorized|

Home Depot: Uninterrupted Dividends Since 1987

Home Depot (HD) began operating in 1978, 32 years after Lowe’s (LOW) was founded. Despite its later start date, Home Depot is now the world’s biggest home improvement retailer with over $100 billion in annual sales. The company has more than 2,200 retail stores and maintains the number one market share position in the U.S., [...]

August 25th, 2019|Uncategorized|

Bank of Nova Scotia: Paying Dividends Since 1833

Founded in 1832, Bank of Nova Scotia (BNS) is one of Canada's largest and most diversified banks. The firm provides a broad range of products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets.   The bank, commonly referred to as Scotiabank, generates about 56% [...]

August 25th, 2019|Uncategorized|

Eaton: Paying Dividends Every Year Since 1923

Founded in 1911, Eaton (ETN) is an industrial conglomerate that provides a wide range of energy-efficient products and systems. The company's solutions help customers manage power across electrical, hydraulic, and mechanical applications. Eaton operates in five main business segments:  Electrical Products (33% of sales, 36% of profits): consists of electrical components, industrial components, residential products, single [...]

August 19th, 2019|Uncategorized|

CenturyLink: A High-Yield Telecom Stock Combatting Secular Decline

Incorporated in 1968, CenturyLink (CTL) started off as a regional telecom company. Thanks to a series of large acquisitions over the years, CenturyLink is now one of America’s largest telecom services provider with about 10 million customer connections.Today CenturyLink operates through two business units: Business Segment (75% of revenue): provides internet, hybrid networking, cloud connectivity, security [...]

August 19th, 2019|Uncategorized|