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These are our most recent articles. Also see which stocks have been this week’s best and worst performers.
Why 3M Remains a Long-term Hold
Shares of 3M (MMM) have slumped 20% since April 24th, falling to their lowest level since early 2017. The stock's dividend yield now sits at 3.3%, a level not seen other than in 1995 and during the financial crisis. Investors aren't giving 3M much credit for its long-term track record of creating meaningful shareholder value and growing its dividend for 61 consecutive years. Let's take a closer look at this dividend king to understand why the market is so bearish on the company and if 3M's long-term outlook appears to remain intact.
Why PetMed’s Dividend Looks Risky
PetMed Express (PETS) reported disappointing earnings on May 6, causing the firm's Dividend Safety Score to fall from our lowest "Borderline Safe" rating into the "Unsafe" bucket. A low score does not necessarily mean a dividend cut is imminent. However, these companies have higher risk of reducing their payouts in the future and often depend on favorable business, financial, and economic conditions to maintain their dividends. Let's review the unfavorable change in PetMed's long-term outlook.
Why Annaly Cut Its Dividend
Last week Annaly Capital Management (NLY) announced plans to cut its dividend by 17%, beginning with its second-quarter payout. The timing of this announcement likely came as a surprise to some income investors. After all, Annaly's earnings about matched its dividend payment in recent quarters, the firm's portfolio was growing at a double-digit pace, shares traded at a premium to book value, and its leverage was kept nearly 20% lower than Annaly's agency mortgage REIT (mREIT) peers.
Thoughts on AbbVie’s Underperformance and High Yield
Despite raising its 2019 guidance last week, shares of biotech giant AbbVie (ABBV) remain mired in a bear market and sit almost 40% below their all-time high set back in early 2018. The stock's 5.4% dividend yield is also at an all-time high, causing some investors to worry that AbbVie's dividend might no longer be safe. Let's review AbbVie's latest results to assess whether or not the firm's dividend still looks safe and if the company's seemingly cheap valuation appears justified.