Recent Tweets

Recent Tweets

//April

TJX May Skip Next Dividend Payment; No Plan to Sell Our Shares

On March 20, we published a note detailing actions that TJX was taking to strengthen the firm's financial position in the wake of nationwide store closures. One somewhat surprising component of TJX's plan was to reevaluate its dividend, which the retailer has increased every year since going public in 1987. About a week later, the company filed [...]

April 9th, 2020|Uncategorized|

Starbucks Maintains Dividend, Expects Full Recovery Over Time

On April 8, Starbucks (SBUX) provided a business update in response to the coronavirus pandemic.  The company's board of directors recently approved Starbucks' next dividend, which will be paid in May, and management confirmed that they do not anticipate reducing the dividend going forward despite temporary store closures: To further enhance our financial flexibility, we have also [...]

April 9th, 2020|Uncategorized|

MSC Industrial Expects Dividend to Remain Safe as Demand Surges for Safety and Janitorial Products

On April 8, MSC Industrial (MSM) reported earnings that were better than feared and voiced support for the dividend. Here's what Treasurer John Chironna said on the conference call:  Turning to our ordinary dividend. We have ample liquidity to continue running the business and paying the current level of our dividend in all but the most severe [...]

April 9th, 2020|Uncategorized|

AT&T Reiterates Confidence in Dividend Despite Economic Uncertainty

On April 7, AT&T (T) provided a brief financial update on its business in light of the coronavirus pandemic. Management reiterated their confidence in AT&T's dividend, issuing the following statement: As it has for the past 36 years, the company looks forward to continuing to pay a quarterly dividend to shareholders. On March 27, the Board of [...]

April 8th, 2020|Uncategorized|

Urstadt Biddle’s 50-Year Dividend Streak Faces Off Against COVID-19

Urstadt Biddle Properties (UBA) owns over 80 neighborhood and community shopping centers located in the suburbs surrounding New York City. The small-cap REIT has paid uninterrupted dividends since its founding in 1969 and increased its dividend for 26 consecutive years. However, the coronavirus pandemic poses arguably the biggest challenge Urstadt Biddle has ever faced, creating [...]

April 8th, 2020|Uncategorized|

Exxon Reduces Spending, Reaffirms Commitment to Dividend

Exxon Mobil (XOM) announced today plans to reduce its capital expenditures by 30%, slash cash operating expenses by 15%, and lean on its balance sheet to preserve the dividend. The company's CEO Darren Woods explained his perspective on the dividend during his interview with CNBC: A lot of our shareholders are retail shareholders, people who depend on that [...]

April 7th, 2020|Uncategorized|

Coronavirus Pandemic Creates Some Uncertainty for Ryder’s Dividend

As we discussed in our November 2019 note, Ryder (R) wasn't firing on all cylinders prior to the coronavirus pandemic. The company's largest segment, Fleet Management Solutions (61% of revenue), provides vehicles, maintenance, and related services to businesses that need a fleet of trucks to move products to their customers. About two thirds of the segment's [...]

April 7th, 2020|Uncategorized|

Genuine Parts Plans to Continue Paying Its Regular Dividend

Genuine Parts (GPC) distributes automotive parts (57% of sales), industrial parts (34%), and business products (9%). While these segments are each classified as "essential" businesses and have remained open, the coronavirus pandemic has significantly affected the market conditions across Genuine Parts' operations. Fewer miles are being driven (reduces auto repairs), cyclical industries (oil & gas, [...]

April 6th, 2020|Uncategorized|

Barring an Extremely Adverse Scenario, JPMorgan Hopes to Maintain Dividend

Over the weekend, JPMorgan Chase (JPM) Chairman and CEO Jamie Dimon published his annual letter to shareholders. Mr. Dimon laid out the bank's response to the coronavirus pandemic and did his best to set expectations for the firm's future financial performance, including JPMorgan's dividend. First, Mr. Dimon said he expects a "bad recession" with financial stress [...]

April 6th, 2020|Uncategorized|

Disney’s Visibility Remains Low But Long-term Outlook Appears Stable

On March 12, we downgraded Walt Disney's (DIS) Dividend Safety Score from Very Safe to Safe.  We believed the coronavirus could threaten Disney's credit rating and increase pressure on management to pay down debt as cash flow slumped across Disney's theme parks and studio films. As we discussed, the coronavirus-related demand shock came at a less than ideal time as [...]

April 5th, 2020|Uncategorized|

Magellan Provides Business Update, Expects to Maintain Distribution

On March 20, we published a note on Magellan Midstream Partners (MMP) and maintained our Safe rating after concluding that the firm appeared "to have the balance sheet, distribution coverage, and commitment to its payout to wait out better times." Less than a week later on March 26, Magellan said it was indeed maintaining its distribution guidance for the year, which [...]

April 4th, 2020|Uncategorized|

TD’s CEO: “No Plans to Change our Dividend Policy at This Time”

On April 2, Toronto-Dominion (TD) hosted its annual shareholder meeting (by webcast only).  When asked about the safety of the bank's dividend, TD's CEO Bharat Masrani said there are no plans to change the dividend policy at this time: "We entered this period with considerable strength and strong capital position, and we are in a position, we [...]

April 4th, 2020|Uncategorized|

Walgreens Expects to Continue Dividend For Now

Walgreens Boots Alliance (WBA) is one of the few retailers with a Safe Dividend Safety Score. The coronavirus pandemic has forced most businesses to temporarily close, but pharmacies are designated essential services and have therefore remained open, boosting demand for many of their products. On April 2, Walgreens reported earnings and said it was on track to meet its [...]

April 4th, 2020|Uncategorized|