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About Matt at Simply Safe Dividends

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So far Matt at Simply Safe Dividends has created 66 blog entries.

An Update on Dividend Safety During the Coronavirus Crisis

Dear customer or prospective member, Matt (my business partner) and I want to provide you with an update on how Simply Safe Dividends is responding to the impact of the coronavirus and the turmoil it has caused in financial markets.  The past several weeks have been a trying time for the U.S. and the world. Our [...]

March 23rd, 2020|Uncategorized|

Lowe’s Remains Open; Dividend Continues to Look Safe

According to the Wall Street Journal, over 38,000 stores around the U.S. have temporarily closed in response to the coronavirus outbreak.  Deemed to sell essential products, Lowe's has not. In fact, two associates we spoke to (including one in Chicago where a shelter-in-place order had gone into effect) described their stores as "slammed" and "really busy". At [...]

March 22nd, 2020|Uncategorized|

Phillips 66’s Diversified Operations and Balance Sheet Have Potential to Support the Dividend

Phillips 66 (PSX) is a diversified petrochemical company that refines crude oil and natural gas into fuels and petrochemicals, operates gas stations in the U.S. and Europe, and owns stakes in two midstream MLPs that transport fuels. Phillips 66's earnings are very hard to forecast as they depend largely on unpredictable swings in commodity prices [...]

March 21st, 2020|Uncategorized|

Interest Rates, Oil, and Coronavirus Shutdowns Create Some Uncertainty for Main Street

Main Street Capital (MAIN) was the only Safe-rated business development company, or BDC, prior to the coronavirus outbreak. Five other BDCs were rated Borderline Safe, and the remaining 30-plus companies have had Unsafe or Very Unsafe Dividend Safety Scores for several years. Since the beginning of March, the VanEck Vectors BDC Income ETF (BIZD), which tracks the overall performance of publicly traded [...]

March 21st, 2020|Uncategorized|

Chevron’s Balance Sheet Runway Appears Supportive of Dividend For Now

On March 6, we discussed why Chevron appeared to have one of the safest dividends in the energy sector. Days later, the price of oil plunged from around $45 per barrel to below $35 as Saudi Arabia engaged Russia in a price war for market share. At the time, we shared our thoughts that the price of oil could [...]

March 21st, 2020|Uncategorized|

McDonald’s Says Dividend Remains “a paramount priority”

In a market filled with uncertainty, McDonald's CEO Chris Kempczinski provided income investors with a vote of assurance during his interview with CNBCtoday:  "The dividend for us is a paramount priority and so there's no changes planned for that." McDonald's is one of the few restaurant stocks positioned to continue its dividend during the coronavirus pandemic. [...]

March 20th, 2020|Uncategorized|

Store Closures Could Raise V.F. Corp’s Need to Preserve Capital Despite Stable Long-term Outlook

The coronavirus outbreak has prompted a growing number of retailers to temporarily close their stores to help slow the spread of the virus. Earlier this week V.F. Corp (VFC) announced plans to shutter its North American stores through April 6 in addition to previously announced closures throughout Europe and Asia. With revenue set to take a big hit for [...]

March 20th, 2020|Uncategorized|

Sysco Pivots to Serve Retail Grocers, Maintains Dividend For Now

The novel coronavirus outbreak has triggered temporary store closures and social distancing restrictions designed to slow the virus' spread.  The end result has been unprecedented disruption for most of Sysco's food distribution customers, including restaurants (62% of sales), hotels (9%), and schools and governments (9%). Based on the analysis shared below, we are downgrading Sysco's [...]

March 20th, 2020|Uncategorized|

TJX to Evaluate Dividend Policy in Light of Retail’s Rapidly Changing Environment

The coronavirus outbreak has prompted a growing number of retailers to temporarily close their stores to help slow the spread of the virus. On March 19, TJX (TJX) announced actions it was taking in response to "the rapidly changing market uncertainty" caused by the global pandemic. The off-price retailer stated it was closing practically all of its stores for [...]

March 20th, 2020|Uncategorized|

Extreme Drop in Fuel Demand, Oil Prices Clouds Magellan’s Outlook

The coronavirus pandemic and oil-price war have weighed on the short-term outlook for Magellan Midstream Partners' (MMP) business. The firm generates about 55% of its operating profits from transporting and storing refined petroleum products such as gasoline and diesel fuel. This has long been a nice cash cow business because demand trends are stable and [...]

March 20th, 2020|Uncategorized|

Simon’s Situation Fragile as Malls are in the Crosshairs of the Coronavirus

In the crosshairs of America's response to the spread of the novel coronavirus, Simon (SPG) announced yesterday that all of its mall locations would close until at least March 29 (about two weeks). Simon is now in an unprecedented situation with a wide range of outcomes and a high level of uncertainty. It's anyone's guess how long [...]

March 20th, 2020|Uncategorized|

NNN’s Financial Strength and Diversified Tenant Base Provide Some Flexibility in this Environment

National Retail Properties (NNN) is one of America's oldest triple net lease REITs and has grown its dividend each of the last thirty years. Triple net lease contracts shift most operating expenses (insurance, maintenance, utilities, and property taxes) to the tenant.  NNN simply collects rent and typically enjoys highly stable cash flow. However, the coronavirus [...]

March 20th, 2020|Uncategorized|

Economic Conditions are Evolving Rapidly, but GM’s Dividend Looks Safe For Now

A dramatic slowdown in auto sales is becoming more likely as consumers brace for tough times and governments appear increasingly poised to implement drastic measures to slow the spread of the novel coronavirus. Yesterday, GM announced that the automaker would suspend production and idle factories until at least March 30 (about two weeks) in response to the [...]

March 19th, 2020|Uncategorized|

Cullen/Frost’s Dividend Looks Safe For Now Despite Unprecedented Plunge in Interest Rates, Oil

The unprecedented crash in oil prices, fall in interest rates, and continued slowdown in the global economy due to the novel coronavirus outbreak have rattled the confidence of many bank investors.  Depending on their magnitude and duration, these issues have potential to increase pressure on banks to conserve capital, making it a more difficult task [...]

March 18th, 2020|Uncategorized|

Cracker Barrel and the Restaurant Industry Face Extraordinary Lack of Short-Term Visibility

The response by governments worldwide to stop the spread of the novel coronavirus has created unprecedented uncertainty in the restaurant industry. Restrictions are coming into place around the world that require restaurants to close or switch to carryout only. France, Italy, and Spain announced closures over the weekend, and several states (California, Ohio, Illinois, and others) followed suit soon thereafter [...]

March 18th, 2020|Uncategorized|