Displaying items by tag: dividends
The so called Dividend Aristocrats are a select group of companies that have continually raised their dividends for 25 consecutive years. This year, three new companies joined the prestigious club—Praxair, Roper Technologies, and A.O. Smith. They join a list which includes 8 companies which have raised dividends for an eye-watering 54 straight years. Those names include 3M, Coca-Cola, Johnson & Johnson, and Dover. The S&P 500 Dividend Aristocrats ETF is up 5.7% this year despite investors generally losing their appetite for dividends.
FINSUM: This group does not get talked about much these days, but what a rock solid pool of solid income stocks for capital preservation and moderate growth.
While value investing is one of the most famous forms of the discipline, it has been outshined over the last several years by growth and momentum strategies. Subsequently, there has been much less coverage of it. Well, Barron’s has just put out a piece picking what it says are five good value stocks that look inexpensive in this very rich market. The names discussed in the piece include Magellan Midstream Partners, SunTrust Banks, Kansas City Southern, Thor Industries, and Owens Corning.
FINSUM: This piece offers quite a mix of sectors and companies. Definitely some names to check out here.
Stock investors may be in for some big upside surprises while bond investors’ hearts may sink. The new tax regime may have a major unintended consequence for bond markets. With the new lower corporate tax rate, many multinationals are likely to repatriate hundreds of billions of Dollars. For the last several years, much of that money has been parked in Treasuries and other bonds. But with the ability and likelihood of reshoring, companies are likely to pull huge amounts of capital out of bonds and put it into stock buybacks and dividends. This could be a big plus for equities, but bond markets could sink as massive amounts of capital are withdrawn.
FINSUM: This is the first convincing argument we have heard for why any fundamental force, outside of the Fed, could bring about a bond bear market.
A lot of investors are looking for income, and over the last several years it has been hard to come by. While yields are rising, they are still very low by historical standards. With that in mind, Barron’s has run a piece selecting the best income stocks from a sector not considered as much as it should be—biotech. Many biotech companies have strong overseas cash flow, and solid yields. For instance, Pfizer, which rose just over 13% last year, sports a 3.7% yield. Abbvie and Amgen are also good looking stocks, both offering dividends just below 3%. Eli Lilly, Johnson & Johnson, and Bristol-Myers Squibb are also names to look at.
FINSUM: These are definitely some good names to look at, especially as there has not been much focus on biotech for income over the last year.