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 short to medium term. As a result, we are downgrading Exxon's Dividend Safety Score from Very Safe to Safe. I plan to continue holding our shares of Exxon in our Conservative Retirees portfolio and believe the company's dividend remains attractive for income investors.

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 before the plane was certified for commercial service.

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 products such as baby powder caused cancer due to the asbestos they contained. Johnson & Johnson has adamantly denied these allegations. If the FDA's single-bottle test checks out to be valid (could be a counterfeit product since it was purchased from an online retailer, possible cross-contamination risk in the sample, no asbestos was found by the FDA last month, etc.), then this recall deals a [...]

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 midstream company SemGroup, announced on September 16.

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 had the stock under review for potential sale for most of this year due to PPL's outsized exposure to the United Kingdom (U.K.). The U.K. accounted for just over half of PPL's 2018 earnings. Besides Brexit-related political instability and currency volatility, my main concern is the profitability of PPL's core electricity distribution operations.

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 16 as they seek better terms. GM's stock has slumped 12% since the strike began, and its dividend yield now hovers near 4.5%. Many of GM's factories have idled, the company's finished car inventory is drawing down, and each passing day becomes more costly with lost vehicle production.

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 deleveraging efforts and need to invest in next-generation products (NGP), we are downgrading Imperial's Dividend Safety Score from Borderline Safe to Unsafe. An Unsafe score does not mean a dividend cut is imminent. After all, Imperial's payout is still technically covered by the company's cash flow.

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 its products, which are available in supermarkets and stores, and sells through other up-and-coming brands such as Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, and Ethos. In its most recent fiscal year, the vast majority of Starbucks' sales (80%) came from the company’s namesake, company-owned stores. Licensed stores and consumer packaged goods generated 11% and 9% of revenue, respectively.

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 another: Media Networks (38% of sales, 47% of profits): TV programming (ABC TV and cable channels like A&E, History, Lifetime and ABC Family, ESPN network), radio, and television stations. In total, the company has about 100 Disney-branded television channels that are broadcast in 34 languages and 164 countries.

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 equipment, signs, seating, and décor.McDonald's ownership of real estate, combined with the co-investment by franchisees, enables the company to achieve restaurant performance levels that are among the highest in the industry. Franchisees are responsible for reinvesting capital in their businesses over time, but McDonald's frequently co-invests with them to help improve their restaurants and operating systems to maintain the company's brand value.