Up until the financial crisis, when many U.S. banks were nearly destroyed by disastrous amounts of leverage and risky bets on mortgage backed securities and complex derivatives, banks were a favorite sector among dividend investors thanks to their generous yields and solid histories of payout growth. The memory of the great financial crash is [...]
CSI Compressco LP (CCLP) surprised many income investors last week when it announced a 50% cut to its distribution, sending its stock price tumbling by nearly 20%. The company has been in business for more than 45 years and paid steady dividends until 2016, adding to the surprise and disappointment. However, CSI Compressco was [...]
Many of the most popular high yield stocks are real estate investment trusts (REITs), master limited partnership (MLPs), and business development companies (BDCs). All of these industries are designed to pay very high dividends. When it comes to regular corporations, however, a very high dividend yield can be a warning sign that something [...]
A number of readers have emailed me in recent weeks wondering about Verizon’s (VZ) dividend safety. Their anxiety developed after reading several articles online that suggested Verizon’s dividend was no longer sustainable because the company’s free cash flow did not cover it last year. However, Verizon scores a 93 using our Dividend Safety [...]
In this age of record low interest rates, yield-hungry investors have a vast array of high-yield industries to choose from, including Real Estate Investment Trusts (REITs), Master Limited Partnerships (MLPs), YieldCos, and Business Development Corporations (BDCs). While these sectors have business models that make for naturally high-yields, they come with their own inherent risks [...]
Microsoft (MSFT) is a company legendary for making many investors very wealthy over the decades. In fact, Bill Gates' dividend stock portfolio would not exist if it weren't for Microsoft's incredible growth story. Over the past 14 years the company has become a favorite among many dividend investors, thanks to its dividend achiever status and [...]
When it comes to high-yield stocks, few companies offer higher income than mortgage REITs such as Annaly Capital Management (NLY). However, it’s vitally important for dividend investors to realize that this industry is one of the hardest to consistently profit from, for numerous reasons. Let’s take a closer look at Annaly Capital, one [...]
As the market continues to climb to new record highs, many investors are searching for safe dividend stocks paying high dividends (see 28 such companies here). The healthcare sector, pharmaceuticals in particular, is generally considered a defensive sector thanks to the recession-resistant nature of its product sales. However, while this is true as [...]
Many founder-led companies can make for solid long-term investments, specifically when it comes to dividend stocks. That’s because the founder and CEO owns a large stake in the business and often has a natural incentive to pay a generous and growing dividend, an appealing proposition for income investors seeking to live off dividends. [...]
In recent years energy transportation and storage stocks and Master Limited Partnerships (MLPs) have become some of the most popular high dividend stocks for income investors to find attractive yields in this record-low interest rate environment. Kinder Morgan (KMI) is one of the oldest names in this space, having helped to popularize the sector with [...]
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 [...]
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 [...]