The coronavirus pandemic is disrupting many industries in the short term, including senior housing. Welltower (WELL) generates over 60% of its net operating income, or NOI, from this industry (primarily senior apartments, independent living, and assisted living). About two-thirds of the REIT's exposure to senior housing comes from properties Welltower runs directly by partnering with [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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, [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]