Is Ford’s (F) Dividend Safe?

Ford’s (F) dividend yield has not been this high since shortly before the company suspended its payout in 2006. Following the carmaker’s disappointing second-quarter earnings report and rather vague plans for large-scale restructuring in the years ahead, which sent Ford’s stock price to its lowest level since late 2012, some income investors are wondering if the company's current dividend is safe. Before analyzing Ford’s situation, it’s worth reviewing the company’s past. Several decades of history can teach you a lot about a company’s ability to pay a reliable dividend. Ford paid out its first dividend way back in 1956, but the company’s track record leaves a lot to be desired. In fact, since 1980, the company has cut its dividend [...]

July 31st, 2018|

S&P Global (SPGI): An Impressive Dividend Aristocrat With Double-Digit Payout Growth Potential

Founded in 1888 and formerly known as McGraw Hill Financial, S&P Global (SPGI) provide independent ratings, benchmarks, analytics, and data to the capital and commodity markets in 31 countries under several well-known brands including: Standard & Poor’s (S&P), S&P Capital IQ, Platts, and SNL. In 2017, S&P Global rated about $4 trillion in corporate and government debt, and the company operates in three business segments: Ratings: provides credit ratings, research and analytics, information, and benchmarks to investors and debt issuers. S&P Ratings has been providing important information for over 150 years to help investors make better decisions and improve companies’ access to capital markets. Market & Commodity Intelligence: offers multi-asset-class data and research and analytical capabilities. Capital IQ, SNL, and Platts are [...]

July 27th, 2018|

How Safe is Blackstone Mortgage Trust’s (BXMT) High Yield?

With roots tracing back to 1966, Blackstone Mortgage Trust (BXMT) is one of the largest commercial real estate mortgage REITs (mREITs). The firm is externally managed by BXMT Advisors, a subsidiary of Blackstone Group (BX), a world leader in real estate development and investment. BXMT itself has $120 billion in real estate assets under management (AUM), but Blackstone Group is far larger with $450 billion in AUM across its various investment vehicles which are focused on: private equity, real estate, public debt and equity, and bonds. Management is provided by Blackstone Group in exchange for a 1.5% base management fee (on equity) and a 20% cut of earnings growth (above a 7% hurdle rate). Blackstone Mortgage Trust specializes in 100% [...]

July 27th, 2018|

Despite Soaring Oil Prices Exxon Mobil Continues to Underperform

Oil prices have soared 60% over the past year, helping drive strong total returns between 20% and 40% for most integrated oil giants such as Royal Dutch Shell (RDS.B), British Petroleum (BP), and Chevron (CVX). However, a notable exception has been Exxon Mobil (XOM), whose stock has returned just 5% during this period, significantly underperforming its major peers and the market as a whole. Let’s take a look at why the market is so displeased with Exxon right now, and whether or not dividend investors have cause to be concerned.

July 27th, 2018|
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