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These are our most recent articles. Also see which stocks have been this week’s best and worst performers.
Cincinnati Financial (CINF): Will Catastrophe Events Jeopardize Its Dividend?
Catastrophes such as hurricanes, tornados, and floods are never pleasant, and they can make or break insurance companies. The year 2016 saw its fair share of disasters, including record-breaking snowfall throughout the East Coast in January, severe flooding in Louisiana, wildfires in California, and Hurricane Matthew. Cincinnati Financial (CINF) is an insurer that has seen its fair share of disasters with an operating history stretching all the way back to 1950 (see my full thesis on the company here). However, investors were spooked last week when the company announced its preliminary estimate for fourth quarter catastrophe losses, which are expected to total roughly $135 million (almost half of the total amount of dividends Cincinnati Financial is expected [...]
T. Rowe Price (TROW): A Quality Dividend Aristocrat Trading at a Discount
Asset management is a great business, given that the stock market has historically risen by a 9.1% CAGR since 1871. In other words, the assets from which management fees are derived are generally rising, allowing for exponential growth in earnings and cash flow - the building blocks of any great dividend growth stock. Of course, those same giant pools of money can create conflicts of interest between management and shareholders, in which employees of the company end up trying to enrich themselves with the kinds of giant bonuses that Wall Street has become legendary for. This is why shareholders need to be very selective, only buying shares of time-tested, shareholder-friendly asset managers, such as T. Rowe Price. [...]
Costco Wholesale (COST): A World-Class Retailer and Superb Dividend Growth Stock
Costco Wholesale (COST) has proven itself one of the best dividend growth stocks of the last two decades, nearly doubling the S&P 500’s annualized return. However, now with founder James Sinegal retired from the CEO position (he remains on the board) and the rise of major disruptive rivals such as Amazon (AMZN), the company’s business model faces potential threats from numerous directions. Let’s take a look at what allowed Costco to become the juggernaut it is today, but more importantly see whether or not the granddaddy of wholesale warehouse retail deserves a spot in a diversified dividend portfolio such as our Top 20 Dividend Stocks portfolio. Investors should note that Costco is held in Berkshire Hathaway's portfolio, [...]
The Blackstone Group LP (BX): A 5.7% Dividend Yield, But is the Dividend Safe?
Over the past decade, alternative assets (private equity, real estate, hedge funds, and complex debt instruments) have become increasingly popular, with assets under management nearly quadrupling. The future is bright as well. PricewaterhouseCoopers expects total alternative assets to reach close to $14 trillion by 2020, growing by about 9% annually. Given the complex nature of these investments, and the fact that most are only accessible to high income and high net worth individuals, many dividend investors might be drawn to publicly-traded alternative asset managers such as The Blackstone Group (BX), The Carlyle Group (CG), and Icahn Enterprises (IEP). However, while the financial media may make these legendary asset managers seem like masters of the universe, that doesn’t [...]