Royalty Trusts: Why Most Dividend Investors Should Avoid Them

After nearly a decade of historically low interest rates, many yield-starved income investors have flocked to high dividend stocks. But there are many different classes of high-yield stocks, some much safer and more appropriate for conservative investors than others. Let's take a look at one popular high-yield investment class, royalty trusts, to see what investors need to know before investing in them. Most importantly, learn why their business models and limitations likely make them inappropriate for meeting your income needs, especially in retirement. What are Royalty Trusts?  The first royalty trust was incorporated in 1956, although the popularity of royalty trusts did not really take off until the 1980s. Around two dozen royalty trusts are listed on U.S. exchanges today, [...]

November 14th, 2018|

Is EQT Midstream Partners’ Distribution Safe?

EQT Midstream Partners, LP (EQM) is a master limited partnership formed by EQT Corp (EQT) to own, operate, and expand its gas gathering, storage, processing, and transportation assets in the Marcellus and Utica shale regions of Pennsylvania, West Virginia, and Ohio. The firm's assets provide midstream services to EQT, other energy producers, and utilities to support energy development and production. The combined Marcellus and Utica region is the largest and lowest cost gas formation in the U.S. and is expected to see very strong production growth over the coming decades. Today EQT Midstream is the third largest transporter of natural gas in America and owns:

November 13th, 2018|

A Review of Kraft Heinz’s Dividend Safety and Struggling Turnaround

Whenever a dividend stock's price plunges to multi-year lows, investors naturally want to know if the market is signaling that something is deeply wrong, such as if the business model has weakened enough to potentially put the dividend at risk. That's been the case with food giant Kraft Heinz (KHC), which has fallen over 40% from its early 2017 peak while the S&P 500 has climbed more than 15% during that time. Let's take a closer look at Kraft Heinz's struggles to evaluate the safety of its dividend and whether it is appealung as a long-term investment. Why Kraft Heinz is Struggling The key reason why the market dislikes Kraft Heinz right now is that, like many food companies, the [...]

November 13th, 2018|

Hershey Has Paid Uninterrupted Dividends Since 1930

Founded in 1894 in Hershey, Pennsylvania, Hershey (HSY) manufactures and sells chocolate and non-chocolate confectionery products including: gum and mints; baking ingredients such as toppings, beverages, and syrups; and snack items, including spreads, meat snacks, bars, mixes, popcorn, protein bars, and cookies. These products are marketed under over 80 leading brands including: Hershey’s, Reese’s, Kisses, Jolly Rancher, Almond Joy, Brookside, barkTHINS, Cadbury, Good & Plenty, Heath, Kit Kat, Payday, Rolo, Twizzlers, Whoppers, York, Scharffen Berger, Dagoba, Ice Breakers, Breathsavers, SkinnyPop, Krave, and Bubble Yum.

November 12th, 2018|
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