For decades tobacco stocks have been used by conservative dividend investors to generate safe and steadily rising income. Due to the addictive nature of cigarettes, tobacco businesses are generally recession-proof with low stock price volatility, and thus a staple of many retirement portfolios. However, since peaking in early 2018 British American Tobacco's (BTI) share price has plunged over 50%. The stock's severe decline has sent its dividend yield soaring to almost 8%, its highest level in 16 years and nearly double its five-year average yield of 4%. Let's take a look at the drivers behind British American Tobacco's slump and whether the company's dividend could be at risk in the future. Why the Market is Worried About British American Tobacco [...]

Investing in CenturyLink (CTL), the struggling regional telecom company, has not gone well for investors over the last few years. Since peaking in late 2014, CenturyLink's stock is down about 55%, and even accounting for its double-digit yield, investors have seen total returns of about -35%. After years of struggling with a declining legacy landline business (see negative sales growth from 2013 through 2016 below), CenturyLink announced a game-changing acquisition. In 2017 the firm bought Level 3 Communications for $34 billion, with hopes of pivoting the company into fast-growing and thriving businesses like fiber optics and enterprise services.

After nearly a decade of historically low interest rates, many yield-starved income investors have flocked to high dividend stocks. But there are many different classes of high-yield stocks, some much safer and more appropriate for conservative investors than others. Let's take a look at one popular high-yield investment class, royalty trusts, to see what investors need to know before investing in them. Most importantly, learn why their business models and limitations likely make them inappropriate for meeting your income needs, especially in retirement. What are Royalty Trusts?  The first royalty trust was incorporated in 1956, although the popularity of royalty trusts did not really take off until the 1980s. Around two dozen royalty trusts are listed on U.S. exchanges today, [...]

EQT Midstream Partners, LP (EQM) is a master limited partnership formed by EQT Corp (EQT) to own, operate, and expand its gas gathering, storage, processing, and transportation assets in the Marcellus and Utica shale regions of Pennsylvania, West Virginia, and Ohio. The firm's assets provide midstream services to EQT, other energy producers, and utilities to support energy development and production. The combined Marcellus and Utica region is the largest and lowest cost gas formation in the U.S. and is expected to see very strong production growth over the coming decades. Today EQT Midstream is the third largest transporter of natural gas in America and owns: