Founded in 1983 as SBC Communications (the company bought AT&T in 2005 and adopted the more famous moniker), AT&T is a telecom and media conglomerate that operates four business segments: Communications (77% of revenue, 79% of operating income):provides wireless and wireline (phone and internet) services to consumers and businesses, as well as paid video (streaming, [...]
Founded in 1983 as Bell Atlantic, Verizon (VZ) is the largest wireless service provider in the U.S. The company’s 4G LTE network is available to more than 98% of the U.S. population. At the end of 2018, the company counted 118 million devices connected to its extensive wireless network.Wireless operations, which include voice and data [...]
Bell Canada Enterprises was founded in 1880 and changed its name to BCE (BCE) in 1983. The firm is one of Canada's big three telecom companies and provides wireless, wireline, internet, and television services to residential, business, and wholesale customers across the country. BCE organizes its business into three segments: Bell Wireless (37% of sales, 52% [...]
Formed in 1990, Telus (TU) is one of Canada’s major telecom businesses and a leading wireless provider. The firm's operations are grouped into two segments: Wireless (57% of revenue, 66% of EBITDA): Telus's 4G LTE network covers 99% of Canada's population. The company makes money by selling voice and data services and equipment. Wireline (43% of [...]
Kraft Heinz (KHC) shares plunged 9% yesterday after the packaged food maker reported weak first-half earnings results. Organic sales declined 1.5%, adjusted EPS fell 24%, and management pulled 2019 guidance. We previously reviewed the challenges Kraft Heinz's business is facing. Underinvestment in product development and marketing, fading brands, and too much debt are some of the key [...]
MPLX LP's (MPLX) unit price has slumped 30% over the past year, including a 15% decline in recent weeks. With a dividend yield approaching 10%, the stock has some income investors wondering whether or not the firm's payout is safe. Let's take a closer look at MPLX's business and the factors that have weighed on [...]
With origins dating to 1848, Lazard (LAZ) was a pioneer in offering financial services around the world. In recent years the company's popularity with income investors has increased. Not only has Lazard paid uninterrupted dividends since it went public in 2005, but the firm has also doled out special dividends each year since 2012.
BT (BT) has had an Unsafe Dividend Safety Score since early 2018. The British telecom giant has since seen its stock price fall more than 30%, pushing its dividend yield above 8%. In March 2019 we published an in-depth note reviewing why BT's dividend could eventually be cut. The crux of the argument lies in BT's need for [...]
When I reviewed Kroger (KR) in May 2018, I made the following concluding remarks: At the end of the day, it's hard to pull the trigger to invest in a supermarket chain. While Kroger has rewarded shareholders with tremendous returns over the last decade, profitable growth is likely to be more challenging over the next 10 [...]
Pfizer (PFE) has taken steps in recent years to focus its business on higher-margin, faster-growing prescription drugs. For example, in 2013 the company spun off its animal health business, late last year Pfizer reached a deal with GlaxoSmithKline (GSK) to combine their consumer health businesses, and in June 2019 the firm agreed to buy cancer treatment firm Array BioPharma for [...]
Earlier this week V.F. Corp (VFC) declared a quarterly dividend of $0.43 per share. The company's prior quarterly dividend rate was $0.51 per share, resulting in some headlines claiming that this dividend aristocrat had cut its payout. While V.F. Corp's new dividend rate is technically lower, investors didn't actually receive a payout cut. In May, V.F. Corp spun [...]
Boeing's (BA) best-selling plane model, the 737 MAX, has been grounded since mid-March following two deadly crashes. Analysts had estimated this plane series would account for about two-thirds of the company's future deliveries and roughly 40% of Boeing's total profit. Understandably, many investors remain concerned about the risks Boeing faces from this ordeal. Based on what we [...]
Down more than half from their mid-2015 high, shares of WPP (WPP) yield nearly 7% today. The global advertising conglomerate has paid uninterrupted dividends for more than 20 consecutive years, but its business has faced challenges from the rise of digital marketing and shifting client needs. In most cases, a company's financials paint a fairly clear [...]
Down more than half from their mid-2015 high, shares of WPP (WPP) yield nearly 7% today. The global advertising conglomerate has paid uninterrupted dividends for more than 20 consecutive years, but its business has faced challenges from the rise of digital marketing and shifting client needs.
Imperial Brands (IMBBY) boasts an impressive track record of raising its dividend by 10% each year for the past decade, thanks to the predictable cash flow its tobacco business has historically generated. However, shifting consumer habits and regulatory changes have challenged the tobacco market, sending Imperial Brands' dividend yield soaring to 9%. With a Borderline Safe Dividend [...]