Despite paying higher dividends each year since 2000, North American pipeline giant TransCanada (TRP) has seen its share price slump nearly 20% in 2018. As a result, TRP's dividend yield sits at 5.3%, near its highest level since the financial crisis. The midstream industry has been under pressure since the price of oil began tumbling in 2014. Many firms in this space are structured as master limited partnerships (MLPs) and have faced the most strain due to unfavorable regulatory developments, rising interest rates, and souring investor sentiment. However, TransCanada is a corporation, not an MLP, so many of those headwinds are less relevant to its performance. With the stock's yield sitting high compared to its history, let's take a closer [...]

Asset manager Invesco (IVZ) has seen its shares plunge over 50% in 2018, resulting in its dividend yield soaring to a record high of 6.9%. Although the company has increased its dividend each year for more than a decade, the stock's recent performance is causing many income income investors to feel anxious. Let's take a look at why the market is so worried about Invesco and whether those fears mean the dividend could be at risk of a cut.

Whenever a high-yield stock falls significantly, it's natural that income investors want to know if it's just random noise (and potentially a buying opportunity) or a sign that something is wrong with a company's business model that could threaten the safety of the dividend. Magellan Midstream Partners (MMP) is one of the popular master limited partnerships, or MLPs, in the market. However, even this blue-chip stock has fallen 15% since mid-August, pushing its yield to an eight-year high of 6.6%. Let's take a look at why the market is so bearish on Magellan to assess whether the partnership remains on solid ground, or if its distribution and long-term outlook could be in trouble.

Tobacco stocks have historically been a dependable source of generous and growing income, plus solid long-term total returns. However, not all cigarette stocks are created equal. In 2018, Vector Group (VGR) has seen its stock price plunge nearly 50%, worse than its major tobacco rivals (shares of Altria and Philip Morris have lost 23% and 19%, respectively). Vector's Dividend Safety Score has remained in our "Very Unsafe" category for more than a year. With VGR's dividend yield nearing 14%, its highest level in more than two decades, let's evaluate if a dividend cut could be on the horizon to end the firm's 20-year dividend growth streak.

AT&T (T) has been in the spotlight much of this year. Not only does its satellite TV business continue bleeding subscribers, but the company's debt load ballooned following the firm's acquisition of Time Warner. With roughly $170 billion in net debt and $13 billion in annual dividend payments that consume more than half of AT&T's free cash flow, some income investors are nervous that a dividend cut is inevitable to help shore up the balance sheet. Based on the information we know today, that outcome seems unlikely. On November 29, AT&T's management hosted an investor conference and made statements in support of our belief, helping fuel a 2.2% rise in T's stock price the following day.

United Technologies (UTX) is one of America's oldest and largest industrial conglomerates. That business model has served income investors well, with the company recently becoming a dividend aristocrat by announcing its 25th consecutive annual dividend increase and also boasting a track record of paying uninterrupted dividends since 1936. However, on November 26, 2018, the firm announced plans to break up into three separate companies, which sent shares plunging as much as 6% on the news. Let's take a look at why United Technologies is splitting up its business units and what it means for long-term dividend growth investors who hold the stock.

Have you ever wondered if you should reinvest dividends or take them in cash and decide where to invest the money yourself? After all, a downside of reinvesting dividends in a bull market is reinvesting automatically at higher stock prices. Perhaps it makes more sense to take cash dividends and invest them only in undervalued stocks. On the other hand, reinvesting dividends allows investors to purchase fractional shares, and sometimes companies with dividend reinvestment programs offer a discount on their shares. While reinvesting dividends through a dividend reinvestment plan, or DRIP, can be great, it's not always appropriate for everyone. Let's take a look at when you should (and shouldn't) reinvest your dividends. When It's a Good Idea to Reinvest Dividends [...]

One appeal of long-term dividend growth investing is the ability to increase your share count by reinvesting dividends. As companies continue growing their dividends and the number of shares you own rises, you can achieve exponential income growth over time. Dividend reinvestment plans, or DRIPs, are the easiest way for hands-off investors to execute this simple strategy because they allow your dividends to be paid in partial shares each quarter (or month). However, like with all investment tools, taxes are an important consideration. Let's take a look at what you need to know about DRIP taxes, including ways to minimize how much you'll have to pay to the IRS each year.

For decades tobacco stocks have been used by conservative dividend investors to generate safe and steadily rising income. Due to the addictive nature of cigarettes, tobacco businesses are generally recession-proof with low stock price volatility, and thus a staple of many retirement portfolios. However, since peaking in early 2018 British American Tobacco's (BTI) share price has plunged over 50%. The stock's severe decline has sent its dividend yield soaring to almost 8%, its highest level in 16 years and nearly double its five-year average yield of 4%. Let's take a look at the drivers behind British American Tobacco's slump and whether the company's dividend could be at risk in the future. Why the Market is Worried About British American Tobacco [...]

Investing in CenturyLink (CTL), the struggling regional telecom company, has not gone well for investors over the last few years. Since peaking in late 2014, CenturyLink's stock is down about 55%, and even accounting for its double-digit yield, investors have seen total returns of about -35%. After years of struggling with a declining legacy landline business (see negative sales growth from 2013 through 2016 below), CenturyLink announced a game-changing acquisition. In 2017 the firm bought Level 3 Communications for $34 billion, with hopes of pivoting the company into fast-growing and thriving businesses like fiber optics and enterprise services.