Realty Income (O): A Premium Monthly Dividend Stock
The best monthly dividend stocks provide predictable, growing income. With 550 consecutive monthly dividends paid and 74 consecutive quarterly increases, Realty Income (O) is one of the most dependable dividend-paying stocks in the market. If the valuation is reasonable, these are the types of companies I like to own in our Conservative Retirees dividend portfolio. Let’s take a closer look at Realty Income to see if it can make the cut. Business Overview Realty Income was founded in 1969 and is a real estate investment trust (REIT) with more than 4,600 properties located across 49 states. Almost all of the company’s properties are single-tenant and are leased to 243 different commercial tenants doing business in nearly [...]
Best Dividend ETFs: The Top 10 Funds for Dividend Income
The best dividend ETFs for long-term investors charge low fees, maintain nice diversification, keep turnover low, and track benchmarks that apply some filters for business quality and dividend safety. I reviewed the pros and cons of investing in dividend ETFs earlier, but I never identified specific funds that I consider to be the best dividend ETFs. By the end of this article, you will have learned about some of the best dividend ETFs available today for you to consider for your own portfolio. While investing has no short cuts, I believe these dividend ETFs are some of the best ones out there for passive income investors. The table below lists each top dividend ETF’s market cap, [...]
Dividend ETFs: Is Investing in Dividend Funds Worth It?
An exchange traded fund, or ETF, is a publicly-traded fund that tracks an index such as the S&P 500. There are nearly 2,000 ETFs in the U.S., but fewer than 150 funds are specifically classified as dividend ETFs. Dividend ETFs can provide a number of benefits for investors seeking safe retirement income or long-term growth. In fact, many investors own a combination of dividend ETFs and individual stocks in their portfolios. However, there is a never-ending debate over the merits of actively picking stocks versus allocating a portfolio completely into low-cost, passively-managed ETFs. The reality is that an investor’s mix of dividend ETFs and individual stocks almost completely depends on the investor’s personal preferences. There are numerous [...]
2017 Dividend Achievers List
The Nasdaq Dividend Achievers Index is a group of companies that have consistently rewarded shareholders with increasing dividend payouts. Companies qualify for the Dividend Achievers List if they have raised their dividends each year for at least 10 consecutive years and meet certain trading liquidity requirements. Why is the Dividend Achievers List popular? Generally speaking, companies that consistently raise their dividends are financially healthy, growing businesses. Over time, these types of companies have done well in the market while providing shareholders with safe, growing income. Dividend Achievers Performance Invesco offers an exchange traded fund (ETF) that tracks the Nasdaq Dividend Achievers Index. The fund is called the PowerShares Dividend Achievers ETF and trades under the ticker [...]
Eaton (ETN): Manufacturing Safe Dividends Since 1923
Eaton shares several characteristics with some of the companies we hold in our Top 20 Dividend Stocks portfolio. The company scores well for Dividend Safety and Dividend Growth, has paid dividends every year since 1923, generates excellent free cash flow, and has a relatively high dividend yield near 3.7%. Eaton’s stock also trades at a forward price-to-earnings multiple of 14.2, which is a discount of approximately 15% compared to the broader market. Let’s take a closer look at Eaton and see if it makes the cut as one of our favorite blue chip dividend stocks. Business Overview Eaton is a large industrial conglomerate with over $20 billion in annual sales and an operating history dating back [...]
How to Measure and Manage Your Dividend Portfolio
Peter Drucker, one of the most notable management consultants and business visionaries of all-time, once wrote: “What gets measured gets managed.” Mr. Drucker is getting at several points. Perhaps most obviously, we are more likely to pay closer attention to something if we simply begin observing and examining it. By developing measurements of an activity, we can begin to better understand the activity itself and figure out ways to tangibly improve it. Now, should we begin measuring every last activity in our lives? Of course not. Measuring and trying to better manage many of the activities we carry out each day would become counterproductive. The 80/20 rule seems to apply here where measuring 20% of our [...]
Top 10 Financial Ratios for Successful Dividend Investing
Dividend investing is part art, part science. Financial ratios make up most of the science behind investing. What exactly are financial ratios? For the purposes of this article, we define financial ratios as any number or calculation used by dividend investors to better understand an investment opportunity. Financial ratios are found throughout a company’s financial statements, annual reports, investor presentations, and more. Some examples of common financial metrics include return on equity, payout ratios, and price-to-earnings multiples. While there are literally hundreds (if not thousands) of different financial ratios, understanding a handful of the most important indicators can help investors make better informed decisions and sidestep avoidable mistakes. In case you are wondering if it’s worth [...]
Deere (DE): Warren Buffett is Buying More of this High Quality Dividend Stock
Deere (DE) is one of Warren Buffett’s top dividend stocks and has increased its dividend 12 times since 2004. Falling crop prices have caused demand to drop sharply for Deere’s tractors and combines, but the best time to buy high quality dividend stocks is usually during periods of distress. Warren Buffett seems to think so and added to his stake in Deere during the fourth quarter of 2015. Let’s take a closer look at Deere’s business as we consider it for our Top 20 Dividend Stocks portfolio. Business Overview Deere was founded in 1837 and has since grown to become one of the largest manufacturers of agricultural and construction equipment in the world. Many of Deere’s products [...]
National Oilwell Varco (NOV): A Lesson on Dividend Safety
National Oilwell Varco (NOV) surprised many dividend investors with its decision to slash its dividend by 90% on April 11. Income investors could have avoided the cut by paying closer attention to the company’s main risk factors. The dividend cut announcement came shortly after the company’s CEO gave an investor presentation on March 22. In the slide deck, the company was noted to have a “strong balance sheet” and “resilient free cash flow generation,” perhaps giving dividend investors a false sense of security. While business trends weren't great (sales fell by 52% last quarter), the company still had over $5 billion in cash and undrawn credit capacity compared to $3.9 billion of debt and just $710 million [...]
Omega Healthcare (OHI): A High-Yield Healthcare REIT
Omega Healthcare Investors (OHI) is a real estate investment trust (REIT) with a high dividend yield over 6%. The company operates in the healthcare sector, which is generally one of the best stock sectors for dividend income because of its essential products and services. However, a high dividend yield can be a signal that a company’s dividend payment will not be sustainable. We will only invest in safe dividend stocks for our Conservative Retirees dividend portfolio, so let’s see if Omega can make the cut. Business Overview Omega is a healthcare REIT that provides financing and capital primarily to skilled nursing facilities (SNFs), which account for about 90% of the company’s facilities. The remaining 10% of [...]