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So far Matt at Simply Safe Dividends has created 187 blog entries.

Gilead’s Dividend Expected to Remain Safe Following $21 Billion Acquisition of Immunomedics

On September 13, Gilead announced plans to acquire oncology company Immunomedics for $21 billion. Once the deal closes, we estimate Gilead's leverage ratio will increase from about 0.4x to around 2.0x, marking its highest level in at least a decade. In light of Gilead's higher financial leverage, we are downgrading the firm's Dividend Safety Score from Very Safe to Safe. [...]

September 29th, 2020|Uncategorized|

Exxon Makes Final Push to Protect Dividend; We Plan to Continue Holding Our Shares for Now

Exxon Mobil has finally drawn a line in the sand with its balance sheet. During its earnings call in late July, the company said it does not plan to take on additional debt during this oil market downturn.  Instead of borrowing more money to fund the dividend until oil prices improve, Exxon hopes to keep [...]

September 25th, 2020|Uncategorized|

Magellan Gains Confidence in Distribution Coverage as Fuel Demand Tracks Expectations

Speaking at an investor conference on September 9, Magellan CEO Mike Mears reiterated his confidence in the firm's guidance and distribution safety. Mr. Mears said demand for gasoline, diesel, and jet fuel tracked Magellan's projections in July and August, keeping the partnership on track to meet its full-year financial targets. "Right now, based on what [...]

September 21st, 2020|Uncategorized|

Annaly’s Dividend Coverage Has Improved but Longer-term Risks Remain

Annaly, the largest mortgage REIT, has lowered its dividend twice in the last two years, including a 12% cut announced in June. As we discussed in May 2019, Annaly's dividend has looked risky under our Dividend Safety Score system for years. While we continue to believe that mortgage REIT dividends are unreliable over a full economic cycle, Annaly's [...]

September 19th, 2020|Uncategorized|

Kraft Heinz Takes Action to Reduce Leverage, Improving Dividend Safety Profile

Kraft Heinz hosted its annual investor day on September 15 and announced several actions that improve the firm's dividend safety outlook. Therefore, we are upgrading Kraft Heinz's Dividend Safety Score from Unsafe to Borderline Safe. The packaged food maker previously cut its dividend in February 2019, but its smaller payout continued looking speculative due to the firm's debt-saddled [...]

September 15th, 2020|Uncategorized|

Wells Fargo Expects to Cut Q3 Dividend Following Fed’s Stress Test

The Federal Reserve released the results of its 2020 stress test last Thursday, providing the first look at how regulators are assessing the ability of America's largest banks to withstand the coronavirus. The good news is that all 33 of the banks subject to the Fed's test were projected to remain above minimum regulatory capital requirements under [...]

June 29th, 2020|Uncategorized|

Government Aid Supports Omega’s Tenants and Dividend For Now But Longer-term Uncertainty Remains

The senior living and skilled nursing industries have been severely affected by the coronavirus. Not only are their residents more vulnerable if they contract COVID-19, but these facilities are designed for communal living, making it more difficult to control transmission of the virus. As a result of the financial challenges caused by the pandemic, several [...]

June 25th, 2020|Uncategorized|

MPW’s Rent Collection Remains Solid Through June

In April, we discussed how the COVID-19 pandemic caused a drop in demand for non-emergency procedures, increasing financial pressure on MPW's hospital tenants. With many hospitals struggling to earn a profit, it was unclear if MPW's tenants would be able and willing to pay their full rent and keep all of their facilities open. So far, rent [...]

June 23rd, 2020|Uncategorized|

NNN Strikes a More Optimistic Tone About the Dividend as Outlook for Rent Collection Improves

After cautioning in early May that "by no means is the dividend untouchable," National Retail Properties (NNN) appears to feel more confident that its payout will remain secure as lockdown measures continue easing. In April, NNN's 52% rent collection rate was among the weakest of any retail REIT. But at an investor conference on June 8, management [...]

June 19th, 2020|Uncategorized|

STORE Maintains Dividend as Retail Rent Collection Improved in June

On June 15, STORE Capital (STOR) provided a business update and opted to maintain its dividend for the second quarter. Management was encouraged by an increase in rent collection, giving the team more confidence that cash flow coverage will improve in subsequent months to preserve STORE's financial strength. STORE said it had received 76% of [...]

June 18th, 2020|Uncategorized|

McDonald’s Dividend Remains a Priority as Sales Trends Improve

McDonald's (MCD) provided a business update yesterday which showed continued improvement in sales trends from late March through May. In the U.S. (36% of total revenue), comparable sales were down only 5.1% in May, a meaningful improvement compared to a 19.2% decline in April.  Overall, comparable sales worldwide fell about 21% in May, improving from a 39% [...]

June 17th, 2020|Uncategorized|

NHI Maintains Dividend For Now Despite Continued Decline in Senior Housing Occupancy

On June 16, National Health Investors (NHI) provided a brief business update and maintained its regular dividend for the second quarter. As we discussed in our May note, NHI's dividend faces some uncertainty due to the pandemic's impact on the senior housing industry (nearly 70% of NHI's revenues). Senior housing operators, which have low margins to begin with, [...]

June 17th, 2020|Uncategorized|

ONEOK Retains “Borderline Safe” Dividend Safety Score Following Stock Sale Announcement

On June 11, ONEOK (OKE) announced it would sell 26 million shares of common stock, increasing its shares outstanding by about 6.3%. The offering was priced at $32 per share, well below the stock's $42 closing price the previous day. As a result, ONEOK's stock slumped about 16% on Thursday and 4% on Friday, finishing the week [...]

June 15th, 2020|Uncategorized|

Con Edison’s Dividend Continues to Look Safe Despite Pandemic Impact

Since bottoming on March 23, shares of Con Edison (ED) have returned less than 20% while the utilities sector (XLU) has rallied 40%. As a result, Con Ed's dividend yield still hovers near 4%, above its longer-term average. Like its peers, Con Ed faces a number of challenges stemming from the pandemic including reduced power [...]

June 9th, 2020|Uncategorized|

NetApp’s Dividend Safety Score Downgraded to “Safe” Due to Growth Challenges

NetApp (NTAP) sells hardware and software to enterprises implementing data storage solutions at on-premise data centers and within cloud environments. Modern companies produce huge amounts of data that can be rapidly analyzed, securely accessed, and easily monitored with NetApp's storage solutions. Competition is stiff. Not only does NetApp contend with hardware providers like Dell, IBM, [...]

June 2nd, 2020|Uncategorized|