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

V.F. Corp’s New Dividend, Plus Kontoor, Makes Income Investors Whole For Now

Earlier this week V.F. Corp (VFC) declared a quarterly dividend of $0.43 per share. The company's prior quarterly dividend rate was $0.51 per share, resulting in some headlines claiming that this dividend aristocrat had cut its payout. While V.F. Corp's new dividend rate is technically lower, investors didn't actually receive a payout cut. In May, V.F. Corp spun off its jeans business into an independent, publicly traded company called Kontoor Brands (KTB). VFC investors received shares in Kontoor, which also pays a dividend. As management had previously communicated when the separation was first announced, the combined dividends from V.F. Corp and Kontoor equal the dividend V.F. Corp paid prior to the spinoff. 

July 26th, 2019|

Boeing’s Dividend Profile Remains Stable After MAX Grounding Update

Boeing's (BA) best-selling plane model, the 737 MAX, has been grounded since mid-March following two deadly crashes. Analysts had estimated this plane series would account for about two-thirds of the company's future deliveries and roughly 40% of Boeing's total profit. Understandably, many investors remain concerned about the risks Boeing faces from this ordeal. Based on what we know today, Boeing's dividend continues to look safe. However, further setbacks could result in the company's Dividend Safety Score being downgraded to our Borderline Safe rating. This past week the company provided two updates. First, on July 18, Boeing announced it would take an after-tax $4.9 billion charge "in connection with an estimate of potential concessions and other considerations to customers for disruptions related to the 737 MAX grounding [...]

July 25th, 2019|

Downgrading Nu Skin’s Dividend Safety Score to Borderline Safe on Business Model Risks

Down more than half from their mid-2015 high, shares of WPP (WPP) yield nearly 7% today. The global advertising conglomerate has paid uninterrupted dividends for more than 20 consecutive years, but its business has faced challenges from the rise of digital marketing and shifting client needs.  In most cases, a company's financials paint a fairly clear picture of its dividend safety profile. A high payout ratio, substantial debt, weak profitability, or cyclical earnings can each serve as a warning sign that a firm's payout may not be sustainable in the long term. However, sometimes there is more to the story. A business could face a lawsuit that has potential to result in a material liability (e.g. Johnson & Johnson's talc and [...]

July 22nd, 2019|

WPP’s Dividend Safety Hinges on Success of Turnaround Plan

Down more than half from their mid-2015 high, shares of WPP (WPP) yield nearly 7% today. The global advertising conglomerate has paid uninterrupted dividends for more than 20 consecutive years, but its business has faced challenges from the rise of digital marketing and shifting client needs. 

July 22nd, 2019|
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