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These are our most recent articles. Also see which stocks have been this week’s best and worst performers.

Realty Income Completes Office Properties Spinoff; Dividend Remains Safe

This week, Realty Income completed the spin-off of substantially all of its office properties into the newly created Orion Office REIT (ONL), as announced earlier this year.Realty Income stockholders received one share of the Orion Office REIT for every ten shares of Realty Income stock held, with cash received in lieu of any fractional shares.The REIT's intent to spin-off its office properties was made known when the merger with VEREIT was announced earlier this year. Shortly thereafter, we provided details of the merger and our belief that it would have no impact on Realty Income's dividend profile here.As previously noted, offices represented only 3% of Realty's rent but nearly 20% of VEREIT's. Spinning off the office properties of each was a [...]

November 17th, 2021|

Compass Minerals Cuts Dividend by 79% to Focus on Growth

Yesterday, Compass Minerals surprised investors by cutting its dividend by nearly 80%. This drastic cut is part of a new direction in the company's capital allocation strategy to focus more on growing the business. This strategy shift is primarily driven by the firm's discovery of a significant and sustainable lithium resource identified at its solar evaporation site in Utah. The funds saved from cutting the dividend are expected to be used on developing this lithium site, with production expected to hit the market around 2025.  Lithium is a critical component in rechargeable batteries, which are increasingly in demand with the expanding electric vehicle market. 

November 16th, 2021|

Johnson & Johnson’s Separation of Consumer Health Business Unlikely to Affect Dividend

Johnson & Johnson announced this morning its intention to separate its consumer health division, which accounts for roughly 16% of sales and includes iconic consumer brands like Band-Aid, Tylenol, and Listerine.The decision to break up the world's largest pharmaceutical conglomerate is rooted in the belief that its business units will have more significant growth opportunities as separate companies where they can more intently focus on their specific customers and markets that have diverged so much through the years.  While this is significant news, Johnson & Johnson will still remain the world's largest healthcare company as it continues on with its pharmaceutical and medical device divisions. 

November 12th, 2021|

IBM Completes Spinoff of IT Services Business; Dividend Expected to Be Maintained

Earlier this week IBM completed the spinoff of its infrastructure services business, which was named Kyndryl and began trading on Thursday under the ticker symbol KD. IBM investors received 1 KD share for every 5 IBM shares held. Kyndryl shares are not worth much compared to IBM, representing less than 5% of the two firms' combined market value. Rather than maintain such a small position in the spinoff, some IBM investors have likely chosen to dump their new Kyndryl shares and reinvest the money in core positions instead. Kyndryl's investment proposition is lacking for conservative income investors, too. The firm does not plan to pay a dividend in the near term, and its revenue declined at a mid-single-digit clip in [...]

November 5th, 2021|
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