Costco Wholesale (COST): A World-Class Retailer and Superb Dividend Growth Stock
Costco Wholesale (COST) has proven itself one of the best dividend growth stocks of the last two decades, nearly doubling the S&P 500’s annualized return. However, now with founder James Sinegal retired from the CEO position (he remains on the board) and the rise of major disruptive rivals such as Amazon (AMZN), the company’s business model faces potential threats from numerous directions. Let’s take a look at what allowed Costco to become the juggernaut it is today, but more importantly see whether or not the granddaddy of wholesale warehouse retail deserves a spot in a diversified dividend portfolio such as our Top 20 Dividend Stocks portfolio. Investors should note that Costco is held in Berkshire Hathaway's portfolio, [...]
The Blackstone Group LP (BX): A 5.7% Dividend Yield, But is the Dividend Safe?
Over the past decade, alternative assets (private equity, real estate, hedge funds, and complex debt instruments) have become increasingly popular, with assets under management nearly quadrupling. The future is bright as well. PricewaterhouseCoopers expects total alternative assets to reach close to $14 trillion by 2020, growing by about 9% annually. Given the complex nature of these investments, and the fact that most are only accessible to high income and high net worth individuals, many dividend investors might be drawn to publicly-traded alternative asset managers such as The Blackstone Group (BX), The Carlyle Group (CG), and Icahn Enterprises (IEP). However, while the financial media may make these legendary asset managers seem like masters of the universe, that doesn’t [...]
3M (MMM): A Buy and Hold Forever Dividend King
When it comes to dividend growth stocks, there are few better core holdings for one’s portfolio than the legendary dividend kings, companies that have raised their dividend for 50+ straight years. Investors can view all of the dividend kings here. These are companies that have not just proven to have an ability to steadily grow throughout any kind of economic, interest rate, and political environment, but also have a very dividend-friendly corporate culture that endures periodic management changes. 3M (MMM), with 58 consecutive years of rising dividends, is one such dividend king, and we happen to hold the company in our Top 20 Dividend Stocks portfolio as well. Let’s take a deep look at what makes up [...]
Dividend Safety Scores: A Review of 2016
One of the most important components of Simply Safe Dividends is our Dividend Safety Score, a metric that rates the safety of a company’s dividend payment by scrubbing through its most important financial metrics. Dividend Safety Scores are available on our site for thousands of dividend-paying stocks and can help you avoid riskier investments and build a more resilient income stream. You can read more about how our scores are calculated and view their real-time track record by clicking here. Dividend Safety Scores range from 0 to 100, and I usually suggest that conservative investors focus on stocks that score at least 60. Scores can be interpreted as follows: As you know, I believe in complete [...]
Altria (MO): A Dividend Growth Legend With An Unbeatable Track Record
Many investors believe that the key to exceptional wealth creation is finding the next great growth stock. In reality, some of the best investments are the most boring, dividend growth focused companies. There are numerous reasons to be a dividend growth investor (see them all here). Altria (MO), for example, has been the single best performing stock of the last half century. As seen below, Altria’s annualized return has more than doubled the S&P 500’s return since 1968. Company Absolute Increase 1968-2016 Total Return (CAGR) Altria 6,648 Fold 20.6% S&P 500 87 Fold 10.0% What’s even more surprising is that Altria has managed to maintain this level of outperformance during more recent times, when its [...]
United Parcel Service (UPS): A Quality Dividend Growth Stock Held by Bill Gates
History has taught us that often boring but steadily growing businesses can make the best long-term investments, especially if those companies have a strong commitment to rewarding investors with strong, consistent dividend growth. United Parcel Service (UPS) is just such a company, slowly but steadily growing into a globe-spanning behemoth that has proven itself excellent at generating growing income and wealth for shareholders over time. In fact, the company is one of the largest dividend stocks in Bill Gates' concentrated stock portfolio (see analysis of all of Bill Gates' dividend stocks here). Let’s take a closer look at just what makes UPS so special and, more importantly, if this delivery master is likely to continue to do [...]
TJX Companies (TJX): A Legendary Retailer with Bright Dividend Growth Prospects
Brick and mortar retail is something that has struggled for years thanks to the rise of online based competition, especially from the likes of Amazon (AMZN). However, that doesn’t mean that all retailers are created equal. In fact, TJX Companies (TJX) in particular has spent decades not just successfully fending off the competition, but enriching long-term shareholders to an incredible degree. TJX Companies has been one of the hottest stocks of the last two decades, tripling the S&P’s compound annual total returns. Source: DividendChannel.com However, while impressive past performance may grab one’s attention, what is most impressive about TJX is that the company’s growth runway appears to remain long and its dividend growth [...]
Public Storage (PSA): Down 17% But Still A Superb Dividend Growth Stock
Real Estate Investment Trusts, or REITs, are one of the most popular types of dividend stocks for yield-hungry investors, especially those living off dividends in retirement. When it comes to REITs, few have done better for investors than Public Storage (PSA) over the years. The company has continuously paid quarterly dividends since 1981 while generating excellent total returns for shareholders. REIT Total Return Since 2005 CAGR Total Return Public Storage 569.2% 17.16% Vanguard U.S. REIT ETF 192.5% 9.36% S&P 500 166.6% 8.51% Source: Ycharts While you might think that the company's strong long-term outperformance means that Public Storage is overvalued and should thus be avoided, a look at the company’s fundamentals reveals a best-in-class industry leader [...]
Best Monthly Dividend Stocks for High Income
Monthly dividend paying stocks have become increasingly popular over the years, and investors are constantly on the lookout for the best monthly dividend stocks good reason. A monthly dividend can be a great way to help pay for living expenses in retirement, or simply act as a way to compound one’s wealth faster through more frequent dividend reinvestment. But while the number of monthly dividend stocks has grown well into the hundreds in recent years, investors need to be extremely selective about where they invest their hard earned money. That’s because the world of monthly dividend paying stocks is a minefield packed with terrible value traps just waiting to destroy your wealth. In fact, most monthly dividend [...]
W.P. Carey (WPC): A High-Yield REIT With 18 Consecutive Years of Dividend Increases
With the stock market hitting record highs day after day, many value focused investors are understandably nervous about investing new money at this time. Fortunately, there are still a few industries where high-yield dividend investors can turn to for generous, secure, and growing dividends. One of these is Real Estate Investment Trusts, or REITs; the easiest way for dividend investors to gain exposure to real estate. Many REITs have sold off in recent months as rising interest rates have made them relatively less attractive investments. W.P. Carey (WPC) converted to REIT status in 2012 and has seen its stock price decline 18% since early August. However, the company proven itself a master at growing long-term investor income [...]