Wells Fargo (WFC): Warren Buffett’s Biggest Holding Pays a High Quality Dividend
Wells Fargo (WFC) is Warren Buffett’s largest holding, and he first bought into the company in 1989. Buffett owns businesses with lengthy operating histories, durable competitive advantages, and excellent management teams, and Wells Fargo is no exception. Warren Buffett even added to his stake in the company during the fourth quarter of 2015, making the stock an even more timely idea. While we don’t own many financial companies in our Top 20 Dividend Stocks portfolio, Wells Fargo is one we are fond of. Despite the negative stigma attached to banks following the financial crisis, these companies are generally in great financial shape and appear relatively undervalued compared to the market. With a dividend yield greater than 3% and [...]
Duke Energy (DUK): A Reliable High-Yield Dividend Stock
Duke Energy (DUK) is a favorite high-yield dividend stock for income investors, and it’s no wonder why. The company has paid uninterrupted quarterly dividends for 90 years and is set to increase its dividend for the ninth consecutive year in 2016. Regulated utility companies such as Duke can provide safe retirement income with less risk than other types of businesses because of their predictable earnings, government-supported competitive advantages, and relatively low stock price volatility. For these reasons and more, we own several utility stocks in our Conservative Retirees and Top 20 Dividend Stocks portfolios. However, just because a stock appears to have little fundamental risk does not mean it is a safe investment. The price paid for a [...]
Southern Company: Uninterrupted Dividends Since 1949 and a 4.4% Yield
Yield-starved investors should familiarize themselves with Southern Company (SO), a highly dependable business that has paid dividends every quarter for more than 65 consecutive years. With a high yield of 4.4%, low stock price volatility, and a track record for outperforming the S&P 500 Index over the last 30 years, Southern Company is the type of business that we like to review for our Conservative Retirees and Top 20 Dividend Stocks portfolios. Business Overview The Southern Company is a major producer of electricity in the U.S. that has been in business for more than 100 years. The holding company’s four retail regulated utilities serve approximately 4.5 million customers across Georgia, Alabama, Florida, and Mississippi. Approximately 90% of Southern [...]
Walgreens Boots Alliance (WBA): A Healthcare Dividend Aristocrat Growing Through Acquisitions
Walgreens Boots Alliance (WBA) has steadily grown its dividend for 40 straight years and has an operating history that dates back more than 100 years. Few businesses have demonstrated such durability, and the ones that have are always worth a look for our Top 20 Dividend Stocks portfolio. After all, it takes meaningful competitive advantages for a company to survive for such a long period of time. Walgreens scores extremely well for Dividend Safety (97) and Dividend Growth (88), but there is a lot more to this drugstore’s business drivers than many dividend growth investors perhaps realize. Business Overview Walgreens is a global leader in the retail pharmacy market with more than 13,100 stores in 11 countries. [...]
C.R. Bard (BCR): Over 40 Consecutive Years of Dividend Growth & Recession-Resistant Products
C.R. Bard (BCR) is a member of the dividend aristocrats list that has nearly doubled the market’s performance over the last decade. The company’s dependable business model has resulted in steady earnings growth and dividend increases. We love buying these types of companies for our Top 20 Dividend Stocks portfolio, but let’s take a closer look to see if Bard makes the cut. Business Overview Bard was founded in 1907 and sells more than 15,000 medical, surgical, and diagnostic devices to hospitals and other healthcare institutions. Its products include catheters, stents, ports, grafts and more and primarily focus in the disease areas of vascular (28% of sales), urology (25%), oncology (27%), and surgical specialties (17%). Most of Bard’s [...]
HCP is a Dividend Aristocrat with a 7% Yield. Is the Dividend Safe?
HCP Inc. (HCP) is the only real estate investment trust (REIT) in the S&P 500 Dividend Aristocrats Index. With a dividend yield in excess of 7%, it’s no surprise that this stock has been a popular holding for investors living off dividends in retirement. Generally speaking, dividend aristocrats are some of the most reliable dividend-paying stocks in the market. After all, it takes meaningful competitive advantages and a committed management team for a business to pay higher dividends for at least 25 consecutive years. We own several aristocrats in our Top 20 Dividend Stocks portfolio, but HCP possesses several characteristics that require a closer look. With the stock down about 20% over the last year, now is a [...]
The Best Stock Sectors For Dividend Income
Have you ever wondered which sectors you should look in to find the best dividend stocks? With thousands of dividend-paying stocks to choose from, knowing where to begin the hunt for safe dividend income can feel overwhelming. Not all stock sectors are equally attractive when it comes to dividend income. Some are characterized by short product cycles, rapid industry change, cyclical business trends, and capital-intensive operations. These sectors have less predictable cash flows and lack many of the traits we desire when searching for safe dividend stocks. However, some sectors are much more likely to have companies that possess the traits we favor as long-term dividend investors. We like buying blue chip dividend stocks that have safe payout ratios, generate consistent [...]
McGraw Hill Financial (MHFI): Famous S&P Brand Supports This Dividend Aristocrat
McGraw Hill Financial (MHFI) owns one of the most important brands in the financial services market and has grown into a powerhouse provider of mission-critical information. The company’s many strengths have enabled helped it grow its dividend for more than 25 consecutive years, making it a member of the dividend aristocrats list and a high quality dividend stock we would consider for our Top 20 Dividend Stocks portfolio. Business Overview McGraw Hill Financial was incorporated in 1925 and has grown to be a major financial data and analytics company that serves many different customers in capital markets and commodity markets such as investment banks, asset managers, insurance companies, stock exchanges, energy traders, automotive executives, and more. Some of [...]
AbbVie (ABBV): A Cheap Dividend Aristocrat Yielding Over 4%
AbbVie (ABBV) is one of the more controversial dividend aristocrats for several reasons. As a relatively new spin-off (2013), the company has a much shorter dividend growth track record than traditional aristocrats. The bigger challenge, however, is AbbVie’s profit drivers. Most dividend aristocrats possess the characters we desire when searching for safe dividend stocks. They have entrenched market positions, compete in slow-changing industries, and generate cash flow from many different products and industries. In AbbVie’s case, over half of its business is concentrated in one product. While this can work for some companies that have powerful brands (e.g. Clorox or Coca-Cola), it’s a risk in AbbVie’s market of branded pharmaceutical drugs and makes the stock less desirable for [...]
General Dynamics (GD): Nearing Dividend Aristocrat Status With Double-Digit Dividend Growth
General Dynamics (GD) is a unique dividend growth stock because it has significant exposure to defense markets but is also a major manufacturer of business jets, resulting in a rather diversified stream of cash flow. The company has increased its dividend or 24 straight years and appears likely to join the dividend aristocrats list this spring. With long-term contracts, sticky customer relationships, and high barriers to entry enjoyed in many of its markets, it’s no wonder why General Dynamics has delivered double-digit dividend growth for over a decade. Warren Buffett also used to own General Dynamics and even had a 14% stake in the company back in the early 1990s (see all of Warren Buffett’s current dividend stocks by clicking [...]