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These are our most recent articles. Also see which stocks have been this week’s best and worst performers.
Comcast (CMCSA): High Marks for Dividend Safety and Growth, But What About the Cord-Cutters?
At first glance, Comcast (CMCSA) looks like an investment every dividend investor should consider. The company has increased the dividend every year since reinitiating it in 2008, recorded nearly 23% annual dividend growth over the last five years, maintained a relatively low payout ratio, and enjoyed stability from its recession-resistant businesses. These are some of the characteristics we look for in our search for safe dividend stocks (see all five of our tips on how to find safer stocks here). Comcast shares many attributes with the investments in our Top 20 Dividend Stock portfolio. However, with cord cutting gaining more and more traction, is Comcast’s future as bright as its past? Business Description Comcast is a global media company [...]
Ferrellgas Partners (FGP): Another Lesson on Dividend Safety
I get a lot of questions about master limited partnerships (MLPs) when it comes to the topic of dividend safety. Many dividend investors are attracted by the high yields and steady cash flows offered by MLPs. A number of these businesses have paid uninterrupted dividends for decades as well. However, like any industry, not all MLPs are created equally. Some are better-capitalized and more effectively managed than others. As readers know, I consider myself to be a conservative dividend investor. I like simple businesses with time-tested operations, consistent free cash flow generation, reasonable balance sheets, and sensible management teams that have shown a commitment to paying dividends. It's true that a handful of MLPs possess [...]
Phillips 66 (PSX): Warren Buffett’s New Favorite Dividend Growth Stock
Warren Buffett is history’s greatest investor, and so when his company, Berkshire Hathaway (BRK.B), takes a major stake in a company the world takes notice. Investors can read analysis of all of Warren Buffett’s dividend-paying stocks here. Over the past few months Berkshire has increased its stake in Phillips 66 (PSX), to 79.5 million shares; worth $6.25 billion, and representing 14.8% of the company. Let’s take a look at why the Oracle of Omaha is so interested in Phillips 66, and more importantly, whether this dividend growth stock could deserve a spot in a conservative investor’s diversified income portfolio. Business Description Source: Phillips 66 Investor Presentation Phillips 66 was spun off from ConocoPhillips in 2012 [...]
HP Inc (HPQ): Safe Dividend Growth or a Value Trap?
Back in 1939, long before Steve Jobs, there were two guys in Palo Alto, Bill Hewlett and David Packard. Armed with less than $600, they started a small electronics testing company. Over the next 70+ years, Hewlett-Packard grew into one of the world’s largest technology firms with over $100 billion in annual sales. Last November, the current HP Inc. was created as one of two successors of Hewlett-Packard (the other half is HP Enterprises). The idea was to take the mature HP Inc. operations and create a cash-generating, dividend-paying machine with leaner operations. For income investors, HP has been a reliable dividend-paying stock for over 25 years and increased its payout for 6 consecutive years. [...]