Exxon Mobil's (XOM) dividend yield sits just above 5%, its highest level in nearly 30 years. The energy giant's dividend continues to look secure thanks to its strong balance sheet, but Exxon's high spending on growth projects, coupled with today's challenging energy market, will likely put more pressure on the firm's cash flow in the [...]

Boeing (BA) shares have slumped nearly 13% over the last week, driven by a report released by Reuters on Friday that surfaced new concerns about the aircraft manufacturer's safety practices and oversight. Specifically, Reuters uncovered internal messages between two Boeing pilots stating that the 737 MAX's flight-control system acted up during a 2016 testing simulation, less than a year [...]

Shares of Johnson & Johnson (JNJ) fell 6.2% last Friday following news that the company recalled some of its baby powder in response to a U.S. Food and Drug Administration (FDA) test indicating the presence of very minor levels of asbestos. As we've previously discussed, the company faces more than 15,000 lawsuits related to claims that its talc-based [...]

Energy Transfer LP (ET) units have drifted about 10% lower over the past month, causing some investors to question the safety of ET's 9.7% dividend yield. Aside from the price of oil slipping lower, which has weighed on the energy sector, the only recent news out on Energy Transfer is its planned $5 billion acquisition of [...]

PPL (PPL) is in discussions to merge with Avangrid (AGR), according to The Financial Times. Neither company has publicly confirmed the rumors, and it's possible no deal is reached. However, a marriage of these two utilities could unlock some benefits for PPL shareholders. We've held shares of PPL in our Conservative Retirees portfolio since July 2015, but I've [...]

General Motors (GM) remains locked in its longest labor dispute since 1970, costing the company more than $1 billion according to JPMorgan Chase and The Wall Street Journal. Nearly half of GM's workforce is represented by the United Auto Workers (UAW) union. The automaker's contract with the UAW expired last month, with the UAW's nationwide strike beginning [...]

On September 26, Imperial Brands (IMBBY) lowered its guidance for the year due to challenging conditions in the U.S. vapor market. One week later, Imperial's CEO Alison Cooper stepped down after leading the company since 2010. Ms. Cooper had spearheaded Imperial's push into the vaping category. As a result of these developments, which seem likely to pressure the firm's [...]

The first Starbucks (SBUX) cafe opened in 1971, and the company has since grown to become the world’s largest coffee purveyor with over 29,000 stores in 78 countries. Starbucks stores sell not just premium coffee but also tea, packaged coffee, juices, bottled water, pastries, and various lunch items. In addition, the company licenses several of [...]

Walt Disney founded his namesake company in 1923. Since then, the business has gone on to become one of the most iconic brands ever created. Today, Walt Disney (DIS) is a leading entertainment company with $65 billion in revenue.  The media conglomerate is highly diversified and vertically integrated with four business segments that complement one [...]

Founded in 1940, McDonald's (MCD) is the world's largest quick-serve restaurant chain, with over 38,000 locations in more than 100 countries. Almost all of its restaurants are franchised, meaning the stores are owned and operated by independent business owners. Under a typical franchise arrangement, McDonald's owns or leases the property while the franchisee pays for [...]

Wells Fargo (WFC) finally appointed a new CEO to lead the bank following a six-month search effort. Charlie Scharf took the job and will start on October 21. The market was pleased, sending shares of Wells Fargo higher by about 4% today. Before taking the job, Scharf was CEO of Bank of New York Mellon (BK), a [...]

Prospect Capital (PSEC) is one of the largest and oldest business development companies, or BDCs.  All BDCs are basically middle market lenders, which means they lend to or take equity stakes in the 200,000 or so subprime businesses that generate about a third of the U.S. economy.Essentially, BDCs serve a market of small companies across [...]

On September 25, Altria (MO) announced that merger discussions with Philip Morris (PM) ended with no deal. The environment for vaping products weakened significantly over the last month due to increased regulatory uncertainty, which likely prevented the two tobacco giants from reaching an agreement. Philip Morris's stock jumped more than 5% on the news as its shareholders were relieved [...]

This morning Philip Morris (PM) announced that merger discussions with Altria had ended without a deal. Investors responded positively to the news, lifting PM's stock price by about 5% in early trading. As we discussed earlier this month, shareholders were concerned that a merger would increase Philip Morris's risk profile by exposing the company to a more dynamic and [...]

Increasing regulatory headwinds in recent weeks have clouded the long-term outlook for part of Altria's (MO) business. These issues appear unlikely to threaten Altria's dividend assuming the company remains independent. However, they have created greater uncertainty about the terms Altria would receive if management decides to push forward with a merger with Philip Morris (PM). Due to [...]