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These are our most recent articles. Also see which stocks have been this week’s best and worst performers.
Ecolab (ECL): A High Quality Dividend Aristocrat With Great Growth Potential
Ecolab (ECL) is one of the most reliable businesses that money can buy. Although its dividend yield is low (1.4%), the company’s long-term growth outlook is outstanding and supported by ECL’s moat (90% recurring revenue in the form of essential consumables; entrenched customer relationships; twice as large as its next biggest competitor; 25,000 customer-facing employees). We look for these types of business for our Long-term Dividend Growth portfolio and believe that weak energy markets, currency headwinds, and sluggish global growth could be providing a buying opportunity. Business Overview ECL’s sells a wide range of sanitizers, cleaners, lubricants, cleaning systems, dispensers, water treatment products, and on-site services that are used by customers in virtually every industry (e.g. restaurants, hotels, [...]
A Guide to Investing in Closed-End Funds
Closed-end funds can provide dividend investors with significantly more income compared to basic mutual funds, ETFs, and common stocks. However, closed-end funds are not well known by most investors and come with several complexities. A closed-end fund is a type of investment company whose shares are traded on a stock exchange or in the over-the-counter market. Its assets are actively managed by the fund’s portfolio managers and may be invested in equities, bonds, and other securities. However, closed-end funds have several important differences compared to the mutual funds you are likely more familiar with, which are known as open-end funds. What are the Differences between Closed-End Funds and Open-End Funds? There are two types of mutual funds – [...]
General Motors (GM) Raises Dividend by 6%, Increases Earnings Outlook for 2016
Favorable macro trends and company-specific improvement have helped General Motors (GM) remain a strong performing holding in our Top 20 Dividend Stocks portfolio. Earlier this morning, the company announced some good news for shareholders. GM raised its 2016 earnings outlook by 5%, boosted its dividend by 6%, and increased its share repurchase plan by 80%. Shares advanced by 2-3% in early morning trading. From a macro perspective, the auto industry is benefiting from record U.S. volumes, low borrowing costs, and strong consumer spending and employment. Low gas prices are also driving strong demand for GM’s trucks (38% of sales) and crossovers (25%). GM expects slow to modest growth in 2016, not unlike what the company experienced in [...]
Parker-Hannifin (PH): 59 Straight Dividend Increases and Plenty of Runway for Growth
Parker-Hannifin (PH) is a high quality industrial business with entrenched market positions and excellent cash flow generation. The company has increased its dividend for 59 consecutive years, making it a Dividend King, and offers a 2.8% dividend yield today. Its dividend has also compounded at a double-digit annual rate over the last decade and should continue putting up above-average growth, making it a good fit for our Long-term Dividend Growth portfolio. The strong dollar and sluggish industrial activity around the world are challenging the business today, but we don’t believe these issues affect PH’s long-term earnings power. Business Overview PH is a global leader in motion and control technology – anything that enables motions (e.g. hydraulics, mechanical pneumatics [...]