Archer-Daniels-Midland: 43 Straight Years of Dividend Increases

Founded in 1898, Archer Daniels Midland (ADM) procures, transports, and processes corn, oilseeds, wheat, and other commodities which are turned into products for food, beverage, animal feed, chemical, and energy uses around the world.  The firm's end products include vegetable oil, protein meal, flour, corn sweeteners, starch, ethanol, and many other food and feed ingredients.  [...]

May 20th, 2019|Uncategorized|

Kinder Morgan: Working to Deliver More Reliable Dividends

Since 1997, Kinder Morgan (KMI) has spent more than $60 billion building one of North America's largest midstream infrastructures, providing gathering, storage, transport, and processing services to the oil & gas industry. Kinder Morgan's immense footprint (84,000 miles of pipelines and over 150 distribution and storage terminals) means the company is vertically integrated into almost [...]

May 20th, 2019|Uncategorized|

Federal Realty Investment Trust: A Dividend King REIT

Founded in 1962, Federal Realty Investment Trust (FRT) is one of the oldest REITs in the world. The company specializes in high-quality, neighborhood shopping centers that are anchored by grocery stores and located in large, affluent markets such as Silicon Valley and New York. Today the REIT owns 104 properties, comprising 24 million square feet [...]

May 20th, 2019|Uncategorized|

Cummins: Paying Higher Dividends Since 2006

Founded in 1919 in Columbus, Indiana, Cummins (CMI) is the largest dedicated global industrial diesel and natural gas engine manufacturer.The company’s primary markets are highway and heavy-duty vehicles, construction, and general industrial markets, where it serves customers such as Chrysler, Daimler, Volvo, PACCAR, Navistar, CNH Global, Komatsu, and Ford. PACCAR is the largest customer accounting [...]

May 20th, 2019|Uncategorized|

Bayer’s Dividend Safety Downgraded in Light of Mounting Liabilities

Shares of Bayer (BAYRY) have slumped nearly 50% over the past year. The German manufacturer of chemicals and pharmaceuticals has remained under pressure following its June 2018 acquisition of Monsanto for $63 billion. Buying Monsanto made Bayer the world's largest seed and crop-chemical business, according to The Wall Street Journal. The firm's agriculture business shot up from [...]

May 17th, 2019|Uncategorized|

A.O. Smith Remains a Hold Following Short Report

Shares of A.O. Smith (AOS) have slumped about 11% over the last two days following a bearish research report released by short seller J Capital Research.  You can read their 66-page report here, but the firm makes the following key allegations against A.O. Smith's business practices and outlook: Short-term performance in China, which accounts for 34% [...]

May 17th, 2019|Uncategorized|

Vodafone Faces More Uncertainty Amid Dividend Cut Rumors

In October 2018, we reviewed Vodafone's (VOD) dividend safety and made the following remarks (see our full note here): Vodafone's "Borderline Safe" Dividend Safety Score is hanging by a thread. With the dividend consuming the bulk of Vodafone's free cash flow, plus rising leverage from the Liberty Global deal, the capital-intensive nature of its businesses, and [...]

May 13th, 2019|Uncategorized|

Hershey Has Paid Uninterrupted Dividends Since 1930

Founded in 1894 in Hershey, Pennsylvania, Hershey (HSY) manufactures and sells chocolate and non-chocolate confectionery products including gum and mints; baking ingredients such as toppings, beverages, and syrups; and snack items, including spreads, meat snacks, bars, mixes, popcorn, protein bars, and cookies.These products are marketed under over 80 leading brands including: Hershey’s, Reese’s, Kisses, Jolly [...]

May 13th, 2019|Uncategorized|

Simon Property Group: A High-Yield REIT Adapting to the Times

Simon Property Group (SPG) is America’s largest mall owner, with full or partial ownership interest in over 230 properties across North America, Europe, and Asia. In 2018 Simon's U.S. mall tenants generated over $60 billion in retail sales.  Most of Simon's locations are anchored by department stores, and the vast majority of net operating income, [...]

May 13th, 2019|Uncategorized|

Why 3M Remains a Long-term Hold

Shares of 3M (MMM) have slumped 20% since April 24th, falling to their lowest level since early 2017. The stock's dividend yield now sits at 3.3%, a level not seen other than in 1995 and during the financial crisis. Investors aren't giving 3M much credit for its long-term track record of creating meaningful shareholder value [...]

May 10th, 2019|Uncategorized|

Why PetMed’s Dividend Looks Risky

PetMed Express (PETS) reported disappointing earnings on May 6, causing the firm's Dividend Safety Score to fall from our lowest "Borderline Safe" rating into the "Unsafe" bucket.  A low score does not necessarily mean a dividend cut is imminent. However, these companies have higher risk of reducing their payouts in the future and often depend on favorable [...]

May 8th, 2019|Uncategorized|

Why Annaly Cut Its Dividend

Last week Annaly Capital Management (NLY) announced plans to cut its dividend by 17%, beginning with its second-quarter payout. The timing of this announcement likely came as a surprise to some income investors.  After all, Annaly's earnings about matched its dividend payment in recent quarters, the firm's portfolio was growing at a double-digit pace, shares traded at  [...]

May 7th, 2019|Uncategorized|

Thoughts on AbbVie’s Underperformance and High Yield

Despite raising its 2019 guidance last week, shares of biotech giant AbbVie (ABBV) remain mired in a bear market and sit almost 40% below their all-time high set back in early 2018. The stock's 5.4% dividend yield is also at an all-time high, causing some investors to worry that AbbVie's dividend might no longer be safe. Let's review [...]

May 2nd, 2019|Uncategorized|

Iron Mountain: An Interesting High-Yield Stock Facing Several Risks

Founded in 1951, Iron Mountain (IRM) is one of the oldest REITs in America, though it didn’t officially convert to a REIT structure until 2014. While the company initially started off as a paper document storage facility for New York City-based corporations, Iron Mountain has since expanded to become one of the largest data storage [...]

May 2nd, 2019|Uncategorized|

Clorox: An Impressive Dividend Aristocrat With 41 Straight Years of Higher Payouts

Clorox (CLX) started in 1913 when five businessmen invested $100 each to start manufacturing and selling one product, Clorox bleach. Impressively, the company remained a one-product business for its first 56 years. Today, Clorox has over 8,500 employees, sells its products in more than 100 countries, and generates over $6 billion in annual sales. The [...]

May 2nd, 2019|Uncategorized|