As long-term dividend investors, we are primarily concerned with finding sources of safe, predictable, and growing income. We do not hold ourselves up nearly high enough to judge what is morally or ethically right or wrong, as practically every company has plenty of issues (both visible and hidden) that could be picked on – the [...]
AT&T (T) and Verizon (VZ) are two classic dividend income plays. However, not all dividend yields are created equal - differences in growth rates, competitive advantages, balance sheet health, and more can significantly alter the riskiness of a dividend and a stock's total return potential. While T and VZ might have looked fairly similar several years ago, they have started to diverge in a pretty significant way...
While WMT’s dividend is completely secure (96 Safety Score) and even offers reasonable growth prospects going forward (60 Growth Score), fundamental concerns about the company’s ability to grow its profits in an environment marked by increasingly upward wage pressure and sluggish sales trends keep the stock OUT of our Top 20 Dividend Stocks list and [...]
JNJ is a core holding in our Conservative Retirees dividend portfolio due to its 3% dividend yield, low business volatility, reasonable valuation, and rock solid fundamentals. The Conservative Retirees dividend portfolio contains 25 stocks with extremely safe dividends and above average dividend yields, providing steady and predictable income while preserving your capital. JNJ was added [...]
KO’s dividend is very safe (94 Safety Score), and it has slightly below average growth potential (47 Growth Score). The stock’s dividend yield is 3.2%, placing it in the 63rd percentile of all current yields (i.e. KO’s yield is higher than 63% of other dividend-paying stocks). For investors seeking moderate but safe income with less concern [...]
PEP is a core holding in our Top 20 Dividend Stocks portfolio because of its extremely safe dividend (94 Safety Score), above average dividend growth prospects (58 Growth Score), and reasonable dividend yield (2.8% yield is in the 56th percentile of all current dividend yields). The stock was added to the portfolio on...
P&G is a core holding in our Conservative Retirees dividend portfolio because of its extremely safe dividend (88 Safety Score) and relatively attractive dividend yield (3.5% yield is in the 67th percentile of all current dividend yields). The stock was added to the Conservative Retiree portfolio, which was built to provide safe and predictable dividend income, [...]
MMM makes it into our Top 20 Dividend Stocks list. The company is exceptionally managed and diversified across numerous profitable markets. The dividend is extremely secure and reliable with 10%+ growth potential going forward. With the stock selling off 10% over the past six months, now looks like a good time to consider MMM for [...]
The following piece is intended to shed greater light on the issues causing IBM’s current struggles, their potential persistence, and the key points underlying the bull and bear cases. Despite being a technology stock, IBM has Buffett’s fingerprints all over it. Buffett started buying IBM in the $170s in 2011 (IBM most recently closed near $158) [...]
Automatic Data Processing (ADP) is a durable business that provides mission-critical software and outsourcing solutions. The company’s high mix of recurring revenue (91% retention rate), participation in large and fragmented markets (10% share in $100+ billion market), strong balance sheet ($1.8 billion net cash), asset-light business model, and commitment to shareholders (40 years of consecutive [...]
Accenture (ACN) is a high quality business that appears suitable for long-term dividend growth investors. The company has very sticky relationships with large global clients, generates significant cash flow with its asset-light business model, invests heavily to remain at the forefront of industry change, maintains a rock solid balance sheet, and appears to be trading [...]