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These are our most recent articles. Also see which stocks have been this week’s best and worst performers.
AmeriGas Partners (APU): The Gold Standard of Propane MLPs Is Still a High-Risk Proposition
Master Limited Partnerships, or MLPs have been an increasingly popular stock sector in recent years thanks to their preferential tax treatment that results in a business model that pays out the majority of cash flow in the form of very generous high-yields. However, as with most high-yield stocks on Wall Street, one needs to be extra careful because MLPs, like many industries, have their own risk factors to keep in mind. In addition, investors need to carefully research any individual MLP to make sure that a sky-high yield doesn’t signal that a stock is a value trap (i.e. its business is in distress). This brings me to America’s largest and most popular propane MLP, AmeriGas Partners (APU). [...]
Coca-Cola (KO): A Safe Dividend King Trading at Its 52-Week Low
When it comes to long-term blue chip investing, it’s hard to go wrong with dividend aristocrats. Of course, the only thing better than a company that has grown its dividend 25 or more consecutive years is a dividend king, like Coca-Cola (KO), which has one of the best payout growth track records in America with 54 straight years of dividend growth under its belt. Then again, long-term investing is a forward looking endeavor, and many dividend lovers are understandably worried about where Coke’s future payout growth is going to come from. Fortunately, management has a turnaround plan in place that could allow the dividend growth train to keep rolling along nicely for many more years, and possibly [...]
Enterprise Products Partners (EPD): How Safe is this High-Yield MLP’s Distribution?
Over the last few years, record low interest rates have made Master Limited Partnerships, or MLPs, one of the hottest high-yield equity classes on Wall Street. While it’s true that this sector has its own risk factors that investors need to be aware of, certain midstream MLPs (those that operate gathering, processing, storage, and transportation infrastructure such as pipelines) can make compelling long-term, high-yield dividend growth investments. Let’s take a look at one of the largest midstream MLPs, Enterprise Products Partners (EPD), to see if this high-yield energy stock is one of the few “sleep well at night” or SWAN names in its industry and a potential fit for our Conservative Retirees dividend portfolio. More importantly, find out [...]
Bank of America (BAC): A Dividend Growth Stock That Benefits from Rising Interest Rates
Few investors will ever forget the terror of the financial crisis of 2008-2009, when the global financial system was on the verge of complete collapse and many people were convinced we were headed for another depression. Shareholders of U.S. megabanks such as Bank of America (BAC) were especially brutalized, when one of America’s largest banks came within a stone’s throw of complete insolvency and saw its shares fall over 90% from their all-time high. Understandably, large banks have been incredibly out of favor since then, despite what has been one of the more impressive turnarounds in corporate America. In fact, Bank of America’s efforts allowed it to raise its dividend by 50% earlier this year, and more payout [...]