Displaying items by tag: dividends

Monday, 20 April 2020 15:41

Here are the Safest Dividends in the Market

(New York)

Dividends and buybacks have been looking very weak. Many buyback programs have been suspended and are likely to be under political pressure, while dividends are looking very at-risk because of likely poor earnings. So where to get some stable dividends? Barron’s ran a piece picking 40 of the safest dividends in the market. Here is a sampling: Nike, McDonald’s, Target, Home Depot, Coca-Cola, Caterpillar, Honeywell International.


FINSUM: This seems like a sound list. The only argument we might have is that Nike might not be able to maintain the hefty price increases consumers have stomached over the last five years.

Published in Eq: Dividends
Tuesday, 14 April 2020 16:45

The Best Dividend Stocks for Right Now

(New York)

Dividend stocks are a scary space right now. Not only are earnings likely to be very volatile, but companies have announced major dividend cuts and the suspension of buyback programs. With that in mind, here are some stocks that offer safe and rewarding dividends. Regulated utilities are a great place to turn because they have government-allowed profit margins and are very recession-resistant. Check out American Electric Power (3.3% yield), Dominion Energy (4.6%), FirstEnergy (3.5%), NextEra Energy (2.3%).


FINSUM: These seem like great bets. They are down a little since the COVID explosion, which has boosted yields, but utilities are generally great recession stocks.

Published in Eq: Dividends
Tuesday, 31 March 2020 10:04

This is How Much Dividends Will Fall

(New York)

Income investors have been frightened by the extent to which the current Coronavirus downturn is going to cause an economic downturn and thus a big cut to dividends. The only good news on this front recently has been that companies are suspending buybacks before dividends. In assessing the damage, Goldman Sachs says overall dividend payouts are going to be slashed by 25% this year. That figure includes a 38% fall for the next nine months added to the 9% rise in dividends in the first quarter.


FINSUM: This is big, but it would be far from catastrophic levels.

Published in Eq: Dividends
Thursday, 26 March 2020 13:29

The Best Safe Dividends Right Now

(New York)

Anyone paying any attention to the economy or markets knows dividends are in trouble. With the economy set to shrink 30% in Q2 and a likely big negative growth number for the year, companies are going to have a very hard time maintaining profitability and dividend levels. With that said, here are some stocks that should have safe dividends. Texas Instruments and CVS both look attractive, yielding 3.6% currently, as does Intel (which yields 2.5%).


FINSUM: The brightest news for investors is that many companies have announced a suspension of buybacks but have plans to maintain their dividend, so there should still be some decent income.

Published in Eq: Dividends
Wednesday, 29 January 2020 10:54

“Fast Dogs” is a Great Investment Strategy

(New York)

Everyone has heard of the “Dogs of the Dow”, or the strategy of buying the laggards of the Dow. It is has been of the few highly successful value-based strategies over the last decade. If you have liked the Dogs of the Dow approach then check out “Fast Dogs”, which could be a good strategy. The idea is to buy the ten stocks with the fastest dividend growth in the Dow. The strategy has performed well in the last three years and just edged out the S&P 500’s performance (it is hard to track it further because dividend growth rate data is historically spotty). What will likely make this strategy successful is that companies with rising dividend growth are naturally signaling improvement and a brighter future, so an increasingly optimistic outlook is de facto. And of course, investors love dividends.


FINSUM: We like this idea. It would probably work better in rising rate markets, but generally speaking it seems like a smart approach in any environment.

Published in Eq: Dividends
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