Master Limited Partnerships (MLPs) have become some of the most popular high dividend stocks over the past decade. In an age of record low interest rates, midstream (i.e. energy gathering, storage, and transportation infrastructure) MLPs’ tollbooth-like business models are especially appealing for investors living off dividends in retirement. These partnerships typically generate a high percentage [...]
What Happened? Accenture (ACN) reported second quarter results that caused its stock to drop 3-4% this morning. Accenture's organic sales grew 6%, and adjusted earnings per share were roughly flat compared to the prior-year period. The company's sales and earnings were roughly in line with analysts' estimates heading into the quarter. Management expects [...]
Duke Energy (DUK) is a popular holding in many retirement portfolios because of the company’s generous and dependable dividend. Duke Energy has paid uninterrupted dividends for more than 90 years and increased its payout each calendar year since 2005. With a dividend yield above 4%, a high Dividend Safety Score, and low stock [...]
For the last few decades, the 4% rule has served as the cornerstone of modern retirement theory. However, with 10,000 baby boomers retiring every day and 59% of Americans worrying about being able to afford retirement, in recent years many have begun to question whether or not this rule of thumb is still the [...]
Higher interest rates create a number of risks and opportunities for investors in the utility sector. Utilities have long been a staple for low risk income investors, such as those that live off dividends during retirement. That’s because most utilities have long track records of highly secure and slowly growing dividends, thanks to [...]
Higher interest rates have a number of implications for investors in master limited partnerships (MLPs). Record low interest rates over the last decade have created major challenges for income investors, who through 2007 had enjoyed generous yields on risk-free investments such as savings accounts, money market funds, CDs, and U.S. Treasury bonds. Today, [...]
Many dividend investors wonder how higher interest rates will impact REITs, and for good reason. Over the past few years, interest rates have fallen to their lowest levels in recorded history. This has created a challenging environment for income investors who previously enjoyed healthy, low-risk returns from money market funds, CDs, and Treasury [...]
General Mills (GIS) is a blue chip stock that has paid uninterrupted dividends for 117 years. The company’s dividend has increased each year since 2004 and boasts a 10.4% annual growth rate over the last decade. Despite General Mills’ impressive history, the company’s stock price is down more than 15% since early July [...]
At a glance, GameStop (GME) is a tempting dividend stock for retired income investors. GameStop offers a high dividend yield in excess of 6% and has increased its dividend every year since initiating its dividend program in 2012. The company has a healthy payout ratio near 40% and consistently generates positive free cash [...]
Utilities are one of the cornerstones of high-yield portfolios and for good reason. Their generally stable and predictable cash flows, often protected by regulated prices, result in most utilities achieving high Dividend Safety Scores. Safe payouts can be a major asset for low risk investors - especially retirees who depend on dividends for [...]
Tobacco stocks such as Altria (MO) and Philip Morris International (PM) have long been favorites for dividend investors seeking generous, secure, and steadily growing yields. However, with massive consolidation in the tobacco industry, courtesy of the secular decline in world smoking rates, the number of quality tobacco blue chips continues to decline. Vector [...]
With interest rates still at historic lows and the stock market soaring, income investors are hard pressed to find good places to put new capital to work. As a result, high-yield stocks such as Royal Dutch Shell (RDS.A) often attract investors with the promise of mouthwatering yields. But while there are excellent high-yield [...]
One of the biggest challenges faced by retirees, or people who have just entered retirement, is finding the best method for ensuring that the money they've worked so hard to save doesn’t run out, or isn't lost to market declines. The closer you are to retiring, the less time you have to work and [...]
Master Limited Partnerships (MLPs) such as ONEOK Partners (OKS) have long been a favorite among high-yield income investors. MLPs have appeal thanks to their generally steady cash flows (courtesy of long-term, fixed fee contracts) and business model that involves paying out the majority of distributable cash flow (MLP equivalent of free cash flow) to [...]
What Happened? Target (TGT) reported disappointing fourth quarter earnings results this morning, sending the stock down more than 12%. Target's dividend yield now exceeds 4%, well above its five-year average yield of 2.6% and making it one of the highest-yielding dividend aristocrats. Comparable sales declined 1.5% during the quarter, which was at the low [...]