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These are our most recent articles. Also see which stocks have been this week’s best and worst performers.
Gilead Sciences (GILD): Cheap Dividend Growth or Value Trap?
Gilead Sciences (GILD), the dominant antiviral and hepatitis drug company, is starting to draw a lot of attention from value oriented investors due to its decline of 23% over the past year. Gilead’s stock now trades at a high-single digit price-to-earnings multiple which typically has many bargain hunters salivating, especially in a market where many quality blue-chip stocks and dividend aristocrats trade at over 20x earnings. Furthermore, Gilead initiated a dividend in the second quarter of 2015 for the first time since the company’s founding in 1987 and now yields 2.4% with strong dividend growth potential. With a low payout ratio, cheap P/E multiple, and a history of phenomenal growth, should dividend investors jump on the opportunity to [...]
Dividend Safety Analysis: Southern Company (SO)
This week, I will be taking a look at the dividend safety of Southern Company (SO). If there are other companies you would like me to analyze for dividend safety, please leave a comment at the bottom of this article. My full thesis on Southern can be seen here, but I will be focusing on the company’s Dividend Safety Score in this article. Before analyzing Southern’s dividend, let’s review how the company makes money. After all, the most effective investors understand that one of the best pieces of investing advice is to only invest in simple, easy-to-understand businesses. Southern Company has been in business for more than a century and is a major producer of electricity in [...]
A Review of Dividend Safety Scores
Dividend safety serves as the foundation for conservative income investing and stress-free retirement living. Companies that are able to continue paying and growing their dividends help us meet our investment goals and build wealth over time. We created Dividend Safety Scores to help investors build safe dividend portfolios and avoid companies that are most at risk of cutting their dividends. The following information is from our new Dividend Safety Scores guide, which can be found under the Resources menu for future reference. What are Dividend Safety Scores? Our Dividend Safety Score measures a company’s ability to continue paying its current dividend and helps investors find the safest sources of income for their portfolios. Dividend Safety Scores analyze the most [...]
Eli Lilly (LLY): Dividend Growth is About to Change
Eli Lilly (LLY) is a blue chip stock that has paid a consistent dividend since the early 1970s. The company’s total dividends paid have increased from 4.55 cents per share in 1972 to a projected $2.04 per share in fiscal year 2016. However, the company’s dividend growth rate has materially slowed, and the dividend payout ratio is now over 80%. Should investors be concerned that Eli Lilly could be poised for years of flat dividends or possibly even a cut to the dividend? Let’s take a look at the business. Business Analysis Eli Lilly is a global pharmaceutical company with an operating history that dates back to the late 1800s. In 2015, they generated sales [...]