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These are our most recent articles. Also see which stocks have been this week’s best and worst performers.
What is a Master Limited Partnership?
They have surged in popularity over the past decade, but what is a master limited partnership (MLP)? The rise of MLPs has been driven by low interest rates and the massive build-out of new energy infrastructure in the United States to help deliver oil and gas from new shale plays. MLPs offer relatively high dividend yields, consistent cash flow, tax advantages, and the potential for capital appreciation, but they can be complicated investments to understand. A list of more than 130 MLPs can be found by clicking here, but read on to learn about investing in master limited partnerships. What is a Master Limited Partnership? MLPs are publicly traded partnerships, a type of tax-exempt company that was created by the [...]
Linear Technology (LLTC): Nearing Dividend Aristocrat Status
LLTC is a high quality dividend growth stock that will likely become a dividend aristocrat by 2019. Despite being a technology company, its business model has proven to be extremely durable and throws off substantial free cash flow. We believe these favorable characteristics will persist and continue to reward shareholders for years to come. LLTC's presence in industrial (40%+ of sales) and automotive (20%+) markets positions it to benefit over the next 10+ years as objects become smarter and more connected, demanding more of LLTC's products. While the stock doesn't appear to be a bargain today, it does appear to be a wonderful company trading at a reasonable price. Therefore, we added it to our Top 20 Dividend Stocks [...]
Are Utility Stocks in a Bubble?
Utility stocks pay some of the safest dividends around and typically sport much higher dividend yields than the market, reflecting their low growth prospects and making them a favorite source of income for retirees living off dividends. Many dividend investors wonder if utility stocks are in a bubble today after benefiting from extremely low interest rates for more than six years. Utilities were clobbered on Friday after strong employment data strengthened the likelihood that the Fed would raise interest rates next month for the first time since mid-2006. The fear is that many investors flooded into higher yielding stocks like utilities because they could not earn enough safe income from the very low yields bonds offer today (see below). Once bond yields [...]
Chevron (CVX) and ExxonMobil (XOM): Are the Dividends Safe?
With the price of oil dropping more than 20% during the third quarter, CVX and XOM were both battered and more investors wondered if their dividends were safe. While each stock has recovered over 20% from its low reached in late August, the risk profiles of these oil giants are different. XOM remains one of our top dividend stocks, but we continue evaluating both businesses and the safety of their dividends. Let’s start with CVX. As seen below, CVX has failed to generate free cash flow this year, losing $1.8 billion YTD (-$7.2 billion, excluding asset sales). Including total dividend payments of $6 billion, the company’s cash drain has been $7.8 billion YTD. Source: Simply Safe Dividends [...]