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Duke Energy: Over 90 Years of Uninterrupted Dividends

Duke Energy’s (DUK) history dates back to the early 1900s, and the company is the largest electric utility in the country today, serving approximately 7.7 million electric customers and 1.6 million gas customers across the Southeast and Midwest regions of the U.S. Regulated electric utilities and infrastructure account for 85% of Duke Energy’s earnings, but the company also has a fast-growing gas infrastructure and utilities business (9%) and a commercial portfolio of renewables (6%). A blend of residential (32%), commercial (30%), industrial (21%), and wholesale (17%) customers make up the company's mix. It's also worth noting that Duke Energy continues investing in cleaner power generation, which has helped reduce its fuel mix of coal and oil from 61% in 2005 [...]

February 14th, 2019|

How Safe is Qualcomm’s Dividend?

Qualcomm (QCOM), an embattled tech giant, has seen its share of drama over the years. Most recently, the company's stock has sold off 30% since early September 2018, causing its dividend yield to soar to a record high near 5%. Let's take a look at Qualcomm's latest slump to review if anything appears to have changed with its dividend safety profile or long-term outlook.

February 13th, 2019|

Dominion Energy: 16 Consecutive Years of Dividend Growth

Dominion Energy (D) and its predecessors have delivered energy since 1898. Today the company is one of America's largest diversified utilities with a customer base of 7.5 million gas and electric customers in 18 states. In recent years Dominion has grown through various acquisitions including its 2016 purchase of Questar (natural gas distributor) for $5.9 billion and its $14.6 billion acquisition of SCANA (regulated gas and electric utility in South Carolina) which closed in January 2019. The firm also completed the roll-up of its midstream MLP, Dominion Midstream Partners, in January 2019. The company's earnings are diversified by both region and business focus:

February 13th, 2019|

Reviewing IFF’s $7 Billion Acquisition of Frutarom

Many companies grow through acquisitions, but Wall Street is often skeptical of big deals given the risks involved. In May 2018, International Flavors & Fragrances (IFF) announced it was buying rival Frutarom in a $7.1 billion cash-and-stock deal. Given that IFF's market cap at the time was just over $12 billion, this qualified as a big acquisition. Investors didn't like it. IFF's share price fell over 10% on the news, causing some dividend growth investors to worry about what this merger might mean for the company's long-term outlook. The acquisition will finally be reflected on IFF's books when it reports earnings later this week, so let's take a look at whether or not this deal seems to makes sense for IFF and [...]

February 12th, 2019|

Johnson & Johnson: A Dependable Dividend King for the Long Term

Founded in 1885, Johnson & Johnson (JNJ) is the world’s largest medical conglomerate. With more than 250 subsidiaries operating in over 60 countries, Johnson & Johnson’s three major business units provide it with a diversified mix of revenue, earnings, and cash flow. Here are the company’s operating segments: Pharmaceuticals (50% of sales, 61% of pretax profits): dozens of patented drugs and vaccines to treat oncology, cardiovascular, immunological, neurological, and infectious diseases, and diabetes. Remicade, a treatment for a number of immune-mediated inflammatory diseases, is Johnson & Johnson’s largest drug and accounted for 6.5% of company-wide revenue in 2018. Medical Devices (33% of sales, 29% of pretax profits): surgical, orthopedic, endomechanical (i.e. hip replacements), and sterilization equipment. Consumer Products (17% of sales, 10% [...]

February 12th, 2019|

Pfizer: One of the Best Dividend Stocks in Pharma

Founded in 1849, Pfizer (PFE) is one of the world's largest drugmakers, with medications sold in over 125 countries. The company's annual sales exceed $50 billion and are grouped into three business segments: Pfizer Biopharmaceuticals (56% of sales): produces patented medicines to treat various therapeutic areas, including internal medicine, vaccines, oncology, inflammation and immunology, and rare diseases. This unit drives Pfizer's overall growth because it produces all of the company's largest sellers, including a number of medications with more than $1 billion in annual sales. Compared to other pharma and biotech companies, Pfizer's portfolio is nicely diversified by treatment area and drug type, reducing its risk profile.

February 8th, 2019|

Top 10 Recession Proof Dividend Aristocrats

Many investors desire to live off safe and growing dividends during retirement, allowing them to worry less about stock market fluctuations and recessions. To this end, many blue-chip dividend stocks have impressive track records of not only maintaining or growing their payouts during market downturns, but also outperforming the broader market. Dividend aristocrats, S&P 500 companies that have increased their payouts for at least 25 consecutive years, are an appealing place to start looking for recession-proof stocks that can deliver safe and growing income during any economic, interest rate, or stock market environment.

February 7th, 2019|

Gilead’s Dividend is Solid, But Growth Challenges Linger

Founded in 1987, Gilead Sciences (GILD) is one of the world's leading biotech companies. The firm operates in more than 35 countries worldwide, researching, manufacturing, and distributing various medications to treat HIV/AIDs, liver diseases, and immune, respiratory, and cardiovascular diseases. Gilead has historically focused on antiviral products for infectious diseases, which made up 84% of sales in 2018

February 6th, 2019|

AbbVie’s Long-term Outlook Remains Volatile

AbbVie (ABBV) was spun off from Abbott Laboratories (ABT) in 2013 as a standalone biopharmaceutical company focused on four primary therapeutic areas: immunology, oncology, virology, and neuroscience. The company's drugs treat conditions such as chronic autoimmune diseases in rheumatology, gastroenterology, and dermatology; oncology, including blood cancers; virology, including hepatitis C (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson’s disease and multiple sclerosis; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis; as well as other serious health conditions. The company's blockbuster arthritis drug Humira accounts for approximately 60% of sales and an even greater share of AbbVie's profits (70%). In order to diversify away from Humira, which accounted for nearly all sales and earnings at [...]

February 6th, 2019|

Cardinal Health’s Dividend Safety

Cardinal Health's (CAH) stock price has slumped nearly 40% over the last two years, driving its dividend yield to a record high of 4.4% in late 2018. Dividend aristocrats such as Cardinal Health are often owned under the assumption that they will generate safe, growing income while recording healthy total returns and low stock price volatility compared to the broader market. However, not all aristocrats live up to the group's impressive long-term track record. Cardinal Health's weak performance has some investors wondering if the market might be signaling that the company's dividend has become unsafe, or at the very least that the firm's long-term growth prospects have dimmed.

February 5th, 2019|