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So far Matt at Simply Safe Dividends has created 219 blog entries.

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|

Chevron Expects Dividend to Remain Safe Through at Least 2021 Even if Oil Remains Weak

None of the oil majors can cover their capital spending and dividends at today's oil price, even after slashing their investment plans. Oil needs to be closer to $50 to $60 per barrel for these companies to breakeven on their obligations, according to data from Bloomberg. Source: Bloomberg, U.S. Energy Information Administration, Simply Safe Dividends The [...]

June 2nd, 2020|Uncategorized|

Franklin’s Dividend Safety Score Downgraded to “Safe” as Performance Remains Weak

Franklin (BEN) reported earnings on April 30, providing a first look into the impacts of March's market turmoil on the active fund manager. Naturally, Franklin's investments declined in concert with markets. Assets under management (AUM) fell 17% to $580 billion, leading to a 7% decline in management fee revenue compared to the previous quarter. More notably, a [...]

June 2nd, 2020|Uncategorized|

Exxon’s Dividend Hinges on Oil Rebound and Management’s Tolerance of Higher Leverage

None of the oil majors can cover their capital spending and dividends at today's oil price, even after slashing their investment plans. Oil needs to be closer to $50 to $60 per barrel for these companies to breakeven on their obligations, according to data from Bloomberg. Source: Bloomberg, U.S. Energy Information Administration, Simply Safe Dividends The [...]

May 29th, 2020|Uncategorized|

AbbVie Begins Path to Strengthening Dividend Profile After Closing Allergan Acquisition

Shares of AbbVie (ABBV) have had a dividend yield above 5% for most of the past year, reflecting uncertainty about the biopharma company's growth profile. AbbVie's rheumatoid arthritis drug Humira, which in 2019 accounted for over 55% of sales and an even greater share of profits, loses exclusivity in the U.S. in 2023. That long-term [...]

May 28th, 2020|Uncategorized|

NHI Will Decide Dividend’s Fate in June as Largest Tenants Work Through COVID-19 Headwinds

On April 13, we discussed the challenges facing National Health Investors (NHI) due to the COVID-19 crisis:  Overall, the pandemic has increased NHI's risk profile. The REIT has some of the highest exposure to senior housing and skilled nursing, two areas of healthcare that could face the most pressure from the coronavirus outbreak.Coupled with NHI's small scale [...]

May 27th, 2020|Uncategorized|

Polaris Amends Credit Agreement, Maintains Dividend, and Expresses Optimism for Recovery

Polaris had good news for dividend investors yesterday when the company announced its regular quarterly payout and shared a brief business update. Earlier this month, we cited concerns about Polaris' leverage ratio (total debt to EBITDA) rising as cash flow declined due to closed dealerships, supply chain disruptions, and high unemployment crimping demand for the firm's products. The immediate [...]

May 27th, 2020|Uncategorized|

Altria Faces Long-term Growth Uncertainties But Says Dividend Remains a Top Priority

Altria (MO) shares have slumped over 20% since December 2018 when management announced plans to pay $12.8 billion for a 35% stake in e-vapor leader Juul. During that period, international cigarette manufacturer Philip Morris has seen its stock price appreciate about 7%, and the S&P 500 has gained 22%. Put simply, Altria's untimely investment in [...]

May 23rd, 2020|Uncategorized|

TJX Officially Suspends Dividend But Commits to Resuming Payouts Once Conditions Stabilize

TJX Companies (TJX) reported earnings on Thursday and officially suspended its dividend through at least the second quarter. The off-price retailer closed all of its stores and online businesses in mid-March, resulting in an unprecedented decline in sales and cash flow. On March 20, we downgraded TJX's Dividend Safety Score to Borderline Safe given risk that stores would stay closed for [...]

May 22nd, 2020|Uncategorized|

Medtronic Increases Dividend 7% Despite Major Decline in Procedures

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 [...]

May 22nd, 2020|Uncategorized|

Falling Occupancy, Rising Expenses Increase Pressure on CoreCivic’s Dividend

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. [...]

May 21st, 2020|Uncategorized|

GEO Says It’s Committed to Dividend For Now But Safety Profile is Fragile

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 [...]

May 21st, 2020|Uncategorized|

V.F. Corp Remains Committed to Dividend Despite Sales Plunge

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 [...]

May 19th, 2020|Uncategorized|

Wells Fargo’s Dividend Looks Increasingly Fragile

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 [...]

May 15th, 2020|Uncategorized|