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//March

Suncor’s Actions Help Protect Dividend But Balance Sheet Runway Won’t Last Forever

Suncor (SU) is an integrated energy company focused on developing Canada’s oil sands. Oil sand is a heavy mixture of bitumen, sand, fine clays, and water. Because it does not flow like conventional crude oil, it must be mined or heated underground before it can be processed. Oil sands production historically generated around 60% of [...]

March 30th, 2020|Uncategorized|

Toronto-Dominion Remains One of the Strongest Canadian Banks as Coronavirus Threat Grows

The Canadian banking industry has had quite a run. Not a single bank has failed in over 20 years, and the largest banks have paid stable or higher dividends for more than a century: Royal Bank of Canada (RY): since 1870Canadian Imperial Bank of Commerce (CM): since 1868Toronto-Dominion Bank (TD): since 1857Scotiabank (BNS): since 1833Bank of [...]

March 29th, 2020|Uncategorized|

RBC’s Financial Conservatism Appears Supportive of Dividend as Pressure on Banks Rises

The Canadian banking industry has had quite a run. Not a single bank has failed in over 20 years, and the largest banks have paid stable or higher dividends for more than a century: Royal Bank of Canada (RY): since 1870Canadian Imperial Bank of Commerce (CM): since 1868Toronto-Dominion Bank (TD): since 1857Scotiabank (BNS): since 1833Bank of [...]

March 29th, 2020|Uncategorized|

CIBC’s High Housing Market Exposure a Risk But Dividend Looks Secure For Now

The Canadian banking industry has had quite a run. Not a single bank has failed in over 20 years, and the largest banks have paid stable or higher dividends for more than a century: Royal Bank of Canada (RY): since 1870Canadian Imperial Bank of Commerce (CM): since 1868Toronto-Dominion Bank (TD): since 1857Scotiabank (BNS): since 1833Bank of [...]

March 29th, 2020|Uncategorized|

BMO’s Limited Housing Market Exposure a Plus as Canadian Economy Faces Uncertainties

The Canadian banking industry has had quite a run. Not a single bank has failed in over 20 years, and the largest banks have paid stable or higher dividends for more than a century: Royal Bank of Canada (RY): since 1870Canadian Imperial Bank of Commerce (CM): since 1868Toronto-Dominion Bank (TD): since 1857Scotiabank (BNS): since 1833Bank of [...]

March 29th, 2020|Uncategorized|

Scotiabank’s International Reach, Oil Exposure Pose Risks But Dividend Appears Safe For Now

The Canadian banking industry has had quite a run. Not a single bank has failed in over 20 years, and the largest banks have paid stable or higher dividends for more than a century: Royal Bank of Canada (RY): since 1870Canadian Imperial Bank of Commerce (CM): since 1868Toronto-Dominion Bank (TD): since 1857Scotiabank (BNS): since 1833Bank of [...]

March 29th, 2020|Uncategorized|

Comerica Faces Some Uncertainty from Falling Rates, High Commercial Real Estate Exposure

America's banks have come a long ways since the 2007-09 financial crisis. They are generally much better capitalized and have sizable capital buffers to absorb losses from unexpected shocks. For example, the Fed's 2019 stress test on the nation's largest and most complex banks indicated that these institutions could maintain adequate capital levels, as well [...]

March 27th, 2020|Uncategorized|

Phillips 66 Takes Action to Ensure Security of Its Dividend

On March 24, Phillips 66 (PSX) announced its response to the challenging business environment caused by extreme volatility in energy markets and the coronavirus pandemic. Despite facing industry conditions that are worse than the last down cycle in 2016, the firm's dividend remains a priority: "We are taking action to maintain our financial strength to ensure security [...]

March 26th, 2020|Uncategorized|

JPMorgan’s Short-term Outlook for Shareholder Distributions Faces Some Uncertainty as Political Pressure Rises

America's largest banks have come a long ways since the 2007-09 financial crisis. Based on data from the Federal Reserve, they are well capitalized and have sizable capital buffers to absorb losses from unexpected shocks. The Fed's 2019 stress test on the nation's largest banks such as JPMorgan Chase (JPM) indicated that these institutions could [...]

March 26th, 2020|Uncategorized|

Rising Political Pressure Creates Some Uncertainty for Bank of America’s Shareholder Distributions

America's largest banks have come a long ways since the 2007-09 financial crisis. Based on data from the Federal Reserve, they are well capitalized and have sizable capital buffers to absorb losses from unexpected shocks. The Fed's 2019 stress test on the nation's largest banks such as Bank of America (BAC) indicated that these institutions [...]

March 25th, 2020|Uncategorized|

Wells Fargo Under Review for Sale in our Portfolios as Political Pressure Clouds Outlook for Distributions

America's largest banks have come a long ways since the 2007-09 financial crisis. Based on data from the Federal Reserve, they are well capitalized and have sizable capital buffers to absorb losses from unexpected shocks. The Fed's 2019 stress test on the nation's largest banks such as Wells Fargo (WFC) indicated that these institutions could [...]

March 25th, 2020|Uncategorized|

Dominion’s Dividend Continues to Look Safe, but Dividend Growth Prospects May Weaken Further as Debt Markets are Under Stress

Shares of Dominion and other utilities have been dragged down with the broader market over the past month, a surprise to many since utility stocks are normally seen as safe havens during a downturn. In fact, Dominion's dividend yield spiked to 6.3% on Monday (its highest level in over a decade) and now sits at [...]

March 25th, 2020|Uncategorized|

Chevron Says Its Focus is on Protecting the Dividend

Chevron (CVX) this morning announced a series of actions to preserve capital in response to the unprecedented decline in oil prices. As part of the plan, management pledged to protect the dividend: “Chevron’s financial priorities remain unchanged. Our focus is on protecting the dividend, prioritizing capital that drives long-term value, and supporting the balance sheet.” – Chevron [...]

March 24th, 2020|Uncategorized|

Advertising Headwinds, Stalled Asset Sale Weigh on ViacomCBS’s Outlook

CBS and Viacom completed their merger in December 2019 to form ViacomCBS (VIAC). The global media and entertainment company creates content and owns a variety of cable and broadcasting networks. Source: ViacomCBS Investor Presentation The coronavirus outbreak has created several headaches for ViacomCBS which seem likely to slow the company's progress in reaching its deleveraging [...]

March 23rd, 2020|Uncategorized|

Labor Market Disruption Seems Unlikely to Affect Paychex’s Dividend

Paychex (PAYX) provides payroll and human resource services to small- and mid-sized businesses across a wide range of industries. The firm's operations historically generated predictable free cash flow and high margins. Even during the 2007-09 financial crisis, Paychex's payroll services segment only experienced 2-3% annual revenue declines, and its human resources division grew each year. [...]

March 23rd, 2020|Uncategorized|