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Tenant Struggles Continue, Magnifying Concern for Omega’s Dividend Coverage Outlook

Despite a broad economic recovery, the struggles of skilled nursing facilities (SNFs) amplified by the pandemic continue to loom large.With SNFs accounting for nearly 80% of Omega's portfolio, not much has improved since our note last August. Dividend coverage remains stretched as SNF operators, the REITs tenants, continue to struggle with reduced occupancy rates and labor [...]

February 25th, 2022|Uncategorized|

Intel’s Turnaround Plan Carries Risk But Dividend Continues to Look Sustainable

Intel on February 17 hosted an analyst day to provide more details on its turnaround strategy, which seeks to restore the chip maker's technological leadership position while also building a foundry business to manufacture semiconductors for others. Expanding existing production and constructing new fabs, or chip factories, will require substantial capital investment. For example, Intel expects to [...]

February 23rd, 2022|Uncategorized|

Magellan’s Distribution Remains Well Covered But Energy Transition Uncertainty Weighs on Sentiment

While many energy stocks have experienced a strong recovery from pandemic lows, midstream providers have struggled to keep up. This underperformance has even included industry leaders like Magellan, which trades with an attractive dividend yield of over 8%.The market's failure to reward Magellan triggers questions about what risks have kept hesitant investors at bay.To be [...]

February 22nd, 2022|Uncategorized|

Lumen’s Substantial Fiber Investment Plans Keep Pressure on Dividend

Lumen's stock has slumped more than 20% since reporting earnings on February 9, pushing its dividend yield north of 10%.Formerly known as CenturyLink, the telecom provider issued disappointing 2022 guidance, which caused some investors to worry about Lumen's plan to ramp spending on fiber delivered to consumers and small businesses. Management's big bet on fiber [...]

February 18th, 2022|Uncategorized|

Enterprise’s Distribution Remains Well Covered Despite Lower Production

When the pandemic struck in the spring of 2020, and much of the developed world began sheltering in place, demand for fuel quickly evaporated, leading to tumbling oil prices that turned negative for the first time in history.This sudden and drastic hit to the energy market was short-lived following a quick economic rebound. After being [...]

February 15th, 2022|Uncategorized|

3M’s Dividend Growth Likely to Remain Subdued as PFAS, Earplug Liabilities Develop

3M on Monday provided 2022 financial guidance and a strategic update on its sprawling businesses. The industrial conglomerate's presentation contained few surprises or shifts in strategy. But management did not offer many updates on the biggest issue looming over 3M: legal liabilities tied to the firm's legacy PFAS chemicals and military earplugs. 3M manufactured PFAS from the [...]

February 15th, 2022|Uncategorized|

Clorox’s Dividend and Long-term Outlook Appear Intact Despite Inflationary Headwinds

Clorox shares were hammered Friday, down nearly 15%, following an earnings report that fell short of analyst expectations.In 2020, the maker of disinfecting wipes and bleach was an early pandemic darling whose stock price soared as demand for sanitization products exceeded supply.Management had predicted this pandemic-induced spike in demand would persist as part of the [...]

February 4th, 2022|Uncategorized|

AT&T Elects Spin-off Structure for Media Separation, Reveals Post-Close Dividend in Line With Expectations

On Tuesday, AT&T provided an update on its plan to separate and combine WarnerMedia with Discovery. Most notably, AT&T elected to structure the separation as a spin-off rather than a so-called exchange offer. This surprised some investors since management seemed to be leaning towards an exchange offer up until last week. An exchange offer would have allowed [...]

February 1st, 2022|Uncategorized|