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These are our most recent articles. Also see which stocks have been this week’s best and worst performers.
AbbVie (ABBV): A Cheap Dividend Aristocrat Yielding Over 4%
AbbVie (ABBV) is one of the more controversial dividend aristocrats for several reasons. As a relatively new spin-off (2013), the company has a much shorter dividend growth track record than traditional aristocrats. The bigger challenge, however, is AbbVie’s profit drivers. Most dividend aristocrats possess the characters we desire when searching for safe dividend stocks. They have entrenched market positions, compete in slow-changing industries, and generate cash flow from many different products and industries. In AbbVie’s case, over half of its business is concentrated in one product. While this can work for some companies that have powerful brands (e.g. Clorox or Coca-Cola), it’s a risk in AbbVie’s market of branded pharmaceutical drugs and makes the stock less desirable for [...]
General Dynamics (GD): Nearing Dividend Aristocrat Status With Double-Digit Dividend Growth
General Dynamics (GD) is a unique dividend growth stock because it has significant exposure to defense markets but is also a major manufacturer of business jets, resulting in a rather diversified stream of cash flow. The company has increased its dividend or 24 straight years and appears likely to join the dividend aristocrats list this spring. With long-term contracts, sticky customer relationships, and high barriers to entry enjoyed in many of its markets, it’s no wonder why General Dynamics has delivered double-digit dividend growth for over a decade. Warren Buffett also used to own General Dynamics and even had a 14% stake in the company back in the early 1990s (see all of Warren Buffett’s current dividend stocks by clicking [...]
Cardinal Health (CAH): A High-Growth Dividend Aristocrat in the Healthcare Sector
Cardinal Health (CAH) scores extremely well for Dividend Safety (95) and Dividend Growth (91). The company has increased its dividend by 15% per year over the last five years and is a dividend aristocrat that shows no signs of slowing down. With a reasonable earnings multiple of 15.4x, now could be a good time to consider buying Cardinal Health for our Top 20 Dividend Stocks portfolio. Business Overview Cardinal Health was founded in the 1970s and has grown to become one of the largest healthcare companies in the world with over $100 billion in annual sales. It primarily makes money by distributing a wide variety of pharmaceutical and medical supplies. The company does business with more than 5,000 [...]
BHP Billiton (BHP) Cuts Dividend: It Didn’t Have To Be A Surprise
There's no such thing as a free lunch, and that certainly applies to dividend investors who chase high yield stocks. More often than not, you get what you pay for. BHP Billiton (BHP) is the latest high yield stock to cut its dividend (ConocoPhillips slashed its dividend earlier this month, too). This was BHP's first dividend cut in 15 years and reduces the company's dividend yield from 9.8% to an estimated 1.3%. Prior to the announced dividend cut, BHP's Dividend Safety Score was 5, indicating that the company's dividend payment was riskier than 95% of all other stocks in the market and very likely to be cut - even despite BHP's 15-year dividend growth streak and management's commentary over the [...]