Medtronic (MDT) reported earnings on Thursday. The medical device company faced a very challenging operating environment but announced plans to increase its dividend by 7%, marking its 43rd consecutive year of payout raises. As expected, the coronavirus crisis caused significant disruption for Medtronic's customers (hospitals, surgical centers, other care facilities). Procedure volumes plunged as health care systems [...]

CoreCivic (CXW) is one of the largest private prison operators in America. The REIT generates 85% of its net operating income (NOI) from managing 50 correctional and detention facilities. CoreCivic also leases properties to government agencies (10% of NOI) and operates residential reentry facilities (5%). Though somewhat controversial, managing prisons has historically been a predictable business. [...]

GEO Group (GEO) and CoreCivic (CXW) operate over 80% of America's privately managed prison facilities. GEO derives about 64% of its revenue from managing correctional and detention facilities for federal and state government agencies. Another 25% of the business is from operating community reentry centers and youth treatment facilities, with the remaining 11% from providing [...]

In March, we discussed the pandemic-related challenges facing V.F. Corp (VFC) and the uncertainty they created for the global apparel company's dividend.  V.F. Corp reported earnings on May 15 and reassured its shareholders that the dividend remains a priority, even though free cash flow is no longer expected to cover the payout this year.   We do, however, remain [...]

In March, we discussed the various financial and political challenges facing Wells Fargo (WFC) and the U.S. banking industry due to the COVID-19 pandemic. We concluded that the outlook for dividends had become much blurrier, supporting the Borderline Safe Dividend Safety Scores placed on many banks. Please see our note here for complete background information.  Investing in banks is [...]

Leggett & Platt (LEG) delivered a positive surprise for income investors today: the dividend is being maintained. As we discussed on May 6, the company's payout looked to possibly be in peril due to the coronavirus pandemic. Mattress store closures and idled automotive manufacturing plants drove a 60% decline in Leggett & Platt's revenue in the first week [...]

Cisco's (CSCO) CEO Chuck Robbins recently described the current environment as "the greatest financial crisis in our lifetime," so it's no surprise that many companies are tightening up their budgets. On Wednesday, market research firm Gartner updated its global IT spending forecast for 2020 and now projects a drop of 8% versus prior expectations calling [...]

Whirlpool (WHR) reported earnings on April 30 and provided investors with a first glimpse into the impacts of the pandemic on sales in the home appliance maker's two most important regions, the U.S. (54% of 2019 revenue) and Europe (21%). Both regions saw sharp drop-offs in retail sales in March as people began to stay home and [...]

On April 8, we discussed the coronavirus-related challenges facing Urstadt Biddle (UBA). Our primary concerns were the firm's small size (only 81 properties), concentrated operations in ground zero of the pandemic (New York), relatively high payout ratio entering the crisis (80% to 90%), and signs that numerous tenants (e.g. Staples) may skip their rent. More news has [...]

Simon Property Group (SPG) reported earnings on May 11. Management disclosed few specifics, dodging questions about how much rent was collected in April and the status of its pending acquisition of Taubman. However, CEO David Simon did provide general expectations for the dividend. Based on what management knows today, it sounds like Simon expects by the end [...]

Ventas (VTR) reported earnings on May 8 and opted not to comment on the dividend other than stating on the earnings call that a decision by the Board would be made in June: As you know, we declared and paid our last quarterly dividend in April. Because we normally pay our next dividend in July, our Board [...]

Tanger (SKT) reported earnings today and suspended its quarterly dividend. The owner of outlet malls will pay the previously-scheduled dividend on May 15, but payouts will cease after that until further notice. By suspending the dividend, Tanger will save $35 million in cash per quarter to help preserve the firm's balance sheet and maintain financial flexibility. It's [...]

Enterprise Products Partners (EPD) reported earnings on April 29. Management reaffirmed their commitment to the distribution, which has been increased for 21 consecutive years:  Finally, I'd like to iterate our financial objectives as to defend and maintain our distribution, our strong balance sheet, and our debt rating; maintain ample liquidity; and continue to high-grade and invest in [...]

Federal Realty (FRT), owner of grocery-anchored shopping centers, reported earnings on Wednesday and revealed that only 53% of April rent was collected. The REIT's properties have long been a stable source of rental income due to their location in large, affluent markets like Silicon Valley and New York. Investments over the past twenty years in nearby office [...]

On Monday, Realty Income (O) released earnings and reported that 83% of rent was collected in April. Given the circumstances, April rent collection was better than expected and beat that of all other retail REITs we've studied. Source: Company Press Releases The top four industries in Realty Income's portfolio have fared well during coronavirus-related shutdowns so far. [...]