Thoughts on Walgreens’ Sell-Off and Dividend Safety

Last week Walgreens (WBA) shares fell 13% and reached a five-year low after the pharmacy chain reported a big earnings miss and reduced its guidance. WBA's dividend yield also spiked above 3% to its highest level ever. Let's review why the market has turned so bearish on Walgreens to see if the company's dividend remains safe and whether or not its long-term outlook appears to remain intact.

April 8th, 2019|

JPMorgan Chase: A Quality Bank and Dividend Growth Stock

JPMorgan Chase (JPM) is one of the world's oldest banking institutions, tracing its roots back to 1799. Today it's the largest bank in the nation, with over 5,100 branches, 16,000 ATMs, and $2.6 trillion in assets. JPMorgan operates in over 100 markets, although about 80% of its revenues are generated in the U.S. The bank has four major business segments:  Consumer & Community Banking (47% of 2018 revenue): traditional consumer and small business banking services including checking and savings accounts, small business loans, home mortgages, credit cards, auto loans, home equity loans, and personal loans. Corporate & Investment Banking (32% of revenue): helps companies raise debt and equity capital, advises on corporate strategies (turnarounds, mergers & acquisitions), provides treasury services to the U.S. [...]

April 5th, 2019|

J. M. Smucker: Uninterrupted Dividends for 25+ Years

Founded by Jerome Monroe Smucker in 1897, J. M. Smucker (SJM) has grown into a leading purveyor of various consumer food products and specialty pet foods that can be found in an estimated 92% of U.S. households. The company's main products are coffee, pet food, pet snacks, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to-spread frostings, frozen sandwiches, flour, juices and beverages, and portion control products. Some of Smucker's iconic brands include:

April 5th, 2019|

Wells Fargo Continues Working on Turnaround

Wells Fargo (WFC) was founded in 1852 and is the fourth largest bank in the country as measured by assets. The bank ended 2018 with $1.3 trillion in total deposits, and its 90 different business lines collectively generated over $86 billion in revenue from a diversified mix of banking, insurance, investment, mortgage, and consumer and commercial finance services.Unlike many big banks, Wells Fargo has little exposure to investment banking and trading operations, which tend to be more cyclical and riskier businesses. Instead, the firm focuses on simple lending activities (mortgages, auto loans, commercial financing, etc.) and fee income.

April 4th, 2019|
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