At a glance, GameStop (GME) is a tempting dividend stock for retired income investors. GameStop offers a high dividend yield in excess of 6% and has increased its dividend every year since initiating its dividend program in 2012. The company has a healthy payout ratio near 40% and consistently generates positive free cash [...]
Utilities are one of the cornerstones of high-yield portfolios and for good reason. Their generally stable and predictable cash flows, often protected by regulated prices, result in most utilities achieving high Dividend Safety Scores. Safe payouts can be a major asset for low risk investors - especially retirees who depend on dividends for [...]
Tobacco stocks such as Altria (MO) and Philip Morris International (PM) have long been favorites for dividend investors seeking generous, secure, and steadily growing yields. However, with massive consolidation in the tobacco industry, courtesy of the secular decline in world smoking rates, the number of quality tobacco blue chips continues to decline. Vector [...]
With interest rates still at historic lows and the stock market soaring, income investors are hard pressed to find good places to put new capital to work. As a result, high-yield stocks such as Royal Dutch Shell (RDS.A) often attract investors with the promise of mouthwatering yields. But while there are excellent high-yield [...]
GNC (GNC) surprised many income investors when management recently announced that the company’s dividend will be suspended. After all, GNC has been in business for more than 80 years, maintains a payout ratio below 40%, generates solid free cash flow, and even increased its dividend every year since it began paying one in 2012 [...]
YieldCos are a relatively new class of dividend stocks luring in many investors. While many YieldCos offer strong income growth potential, not unlike the famous Dividend Aristocrats, they also come with high yields that average more than 5%. This combination of high yield and high income growth results from YieldCos' exposure to renewable [...]
You won’t read about Vectren in the headlines. But for more than 50 years in a row, Vectren has quietly paid and raised its dividend. It’s a feat that’s been done by just 21 other companies publicly traded in the U.S. Vectren is a utility company, and utility companies are often attractive to [...]
Scorpio Tankers (STNG) shocked many income investors when the company announced a 92% cut to its dividend this morning. After all, the company’s management team sounded confident about maintaining Scorpio Tankers’ dividend just a few months ago in November: “If you run through our model, the company is fully able to pay its [...]
When it comes to steady dividend growers, often the best choice can often be a seemingly dull company - one that flies under the radar, yet grows steadily over decades. Many times, it’s precisely boring companies that end up becoming dividend aristocrats, which are S&P 500 companies that reward long-term income investors with over [...]
Regulated utilities have long been a staple for many retired investors living off dividends. However, while most people think of this industry as one that generally consists of high-yield, slow but steady dividend growth, that isn’t always the case. In fact, Dominion Resources (D) is one of the fastest growing regulated utilities you [...]
Sporting a high 4.8% dividend yield and trading at its 5-year low, Macy's (M) at first glance looks like it could be an attractive investment for investors living off dividends in retirement. But many retailers, especially department stores like Macy's, have suffered mightily over the past decade because of competition on the internet. Can investors [...]
While it may surprise many investors, history has shown us that many of the best long-term investments aren’t hyper-growth companies but much more boring dividend growth machines. For example, in the last 50 years Altria (MO), formerly Philip Morris, has been one of the best performing stocks on a total return basis, rising an [...]
Regulated utilities have long been a core staple in dividend portfolios, courtesy of their high-yields, safe payouts, slow but steady dividend growth, and very low volatility. But while most people focus on the biggest and well-known names in the sector, such as Duke Energy (DUK), Southern Company (SO), and Consolidated Edison (ED), there are [...]
Historically, industrial dividend growth stocks such as engine maker Cummins (CMI) have done a great job of enriching long-term investors, especially if you’ve reinvested the dividends. For example, Cummins has delivered an annualized total return of 15.4% since mid-1995, nearly doubling the S&P 500’s 8.5% annual total return. However, Cummins has fallen on [...]
With interest rates still near record lows income investors are naturally drawn to super high-yield stocks, such as Nordic American Tankers (NAT), which until recently was offering a seemingly mouth-watering payout of 10.8%. But one of the most important factors to successful long-term dividend investing is risk management, and the realization that Wall Street [...]