June 29, 2016

These 5 Dividend Stocks Want to Pay You More Money

These five big stocks could be about to increase their dividend payments in the coming months



The Brexit selloff is serving as an unpleasant reminder to investors in 2016: Dividends still matter a lot right now.

Year-to-date, dividend payouts have meant the difference between being breakeven in the S&P 500 or sitting in the red. For the Dow Jones Industrial Average , dividend payouts actually pull the big index into positive territory since the calendar flipped to January. But 2016's performance numbers are only a tiny part of the story. That's because the impact of dividends only really start to show themselves in the longer term.

In fact, just over the last 10 years, dividends have accounted for almost half of the S&P 500's performance, handing investors the difference between 57.5% gains and 95.9% gains when reinvested dividends are factored in. But to find the biggest benefit from dividends, it's not enough to simply buy names with big payouts today -- you've got to think about which names are going to be paying more tomorrow too.

So instead of chasing yield, we'll try to step in front of the next round of stock payout hikes.



Continue to read at TheStreet to find out those five stocks…

June 28, 2016

5 Super-Cheap MLPs to Buy Today

The selloff in MLPs has made for plenty of bargains



Once a market darling, master limited partnerships (MLPs) have simply fallen on hard times. Various market forces have conspired against the pass-through entities and have taken them down pretty hard over the last year or so.

On one hand, the collapse in crude oil and natural gas has hurt their bottom lines. More and more MLPs have moved beyond just transporting energy and have begun processing things like natural gas liquids (NGLs). That puts them right in the crosshairs of commodity prices.

At the same time, the wave of E&P bankruptcies has left many MLPs fighting for payment for their services.

And let’s not forget the Federal Reserve. As high-yielding assets, MLPS have been hit as the Fed has begun to ratchet-up interest rates.

All in all, that’s sent MLPs down a staggering 20% over the last year, as measured by the exchange-traded fund Alerian MLP ETF (AMLP).

But that dip has also made many top-notch, quality MLPs pretty big bargains when looking at price-to-distributable-cash-flows (P/DFC) metrics. For investors looking for high income potential, MLPs are simply the cheapest stocks out there.

Here are five super-cheap MLPs to buy today.



Continue to read at InvestorPlace

Walgreens Boots Alliance: 40 Consecutive Years Of Dividend Growth And Counting


Different investors and consumers have come to know pharmacy and wellness company Walgreens Boots Alliance (WBA) through a variety of ways.

That’s because the company has transformed itself over time.

If you are based in the U.K. you might think about the Boots side, which traces its roots all the way back to 1849. By 1933, Boots already had its 1,000th store.

If you are in the U.S., then the Walgreens name – tracing its roots back to 1901 – probably catches your attention. This company invented the malted milkshake, went public in 1927 and hit $1 billion in sales by 1975. Chances are pretty good that there is a Walgreens on a corner near you.

And the Alliance side comes from Italy, tracing its roots back to pharmaceutical wholesalers founded in 1977 and 1982 before combining in 1997 as Alliance UniChem.

Ultimately Alliance merged with Boots in 2006. And finally Walgreens merged with Alliance Boots in 2012 to become today’s company. It’s been a long journey.

That journey has created a strong business generating significant dividend growth. Walgreens Boots Alliance currently ranks as a Top 30 dividend growth stock using The 8 Rules of Dividend Investing.

This article takes a deeper look at the investment opportunity of Walgreens Boots Alliance.


Continue to read at TalkMarkets

Warren Buffett Sold His Position In AT&T. Should You?


Warren Buffett sold AT&T (T) out of Berkshire Hathaway’s portfolio of high-yield dividend stocks during the first quarter of 2016.

Warren Buffett acquired his stake in AT&T during the third quarter of 2015 as a result of AT&T’s acquisition of DirecTV.

Buffett had owned DirecTV prior to the acquisition (his first purchase was in 2011), so his shares converted into AT&T stock once the deal closed because the acquisition was a stock and cash transaction.

Despite AT&T’s high dividend yield near 5% and seemingly cheap price-to-earnings multiple (14.2), Warren Buffett apparently thought there were more attractive options to put his money to work.

Like Warren Buffett, we prefer Verizon (VZ), which is held in Berkshire Hathaway’s portfolio as well as our Conservative Retirees dividend portfolio.

Let’s take a closer look at the safety and growth potential of AT&T’s dividend as well as the company’s overall appeal as a potential investment opportunity for dividend investors.



Continue to read at TalkMarkets

3 High-Yield Dividend Stocks That Could Raise Their Dividends

If you're looking for growing high-yield dividends, these three stocks are a good place to start.



Stock searches often begin with high-yield dividend stocks. Dividends are often a sign of strength, and the extra income is great for retirees, or those looking to pad their portfolios. While some high-yield dividend stocks can be yield traps, attracting investors despite a shaky business model, others are worth your money. These dividend payers have modest valuations, solid business models, growth opportunities, and shareholder-friendly distribution policies.

With the price-to-earnings ratio of the S&P 500 now above 24, high-yield dividend stocks are harder to find than they once were, but there are still some good bets out there for high-yielding, growing dividends.

Let's take a look at a few of them…




Goldman Sachs Upgraded Diageo plc (DGE)


Diageo plc (LON:DGE) was upgraded by analysts at Goldman Sachs to a “neutral” rating in a report issued on Tuesday. The firm currently has a GBX 1,925 ($25.39) price objective on the stock. Goldman Sachs’ price target suggests a potential upside of 0.57% from the company’s previous close.

Other research analysts have also recently issued research reports about the company. Morgan Stanley set a GBX 2,200 ($29.02) price objective on Diageo plc and gave the stock a “buy” rating in a research note on Tuesday, March 29th. Nomura reissued a “buy” rating and issued a GBX 2,200 ($29.02) price objective on shares of Diageo plc in a research note on Thursday, March 3rd. Shore Capital reissued a “buy” rating on shares of Diageo plc in a research note on Tuesday, April 12th. Berenberg Bank restated a “buy” rating and set a GBX 2,350 ($31.00) target price on shares of Diageo plc in a report on Wednesday, June 22nd. Finally, BNP Paribas set a GBX 2,150 ($28.36) target price on Diageo plc and gave the stock a “buy” rating in a report on Monday. Two analysts have rated the stock with a sell rating, nine have issued a hold rating and sixteen have given a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average price target of GBX 2,031 ($26.79).




JPMorgan Downgraded Dow Chemical Co (DOW)


Dow Chemical Co (NYSE:DOW) was downgraded by research analysts at JPMorgan Chase & Co. from an “overweight” rating to a “neutral” rating in a note issued to investors on Tuesday, The Fly reports.

Several large investors have recently bought and sold shares of DOW. Stokes & Hubbell Capital Management LLC raised its stake in Dow Chemical by 0.3% in the first quarter. Stokes & Hubbell Capital Management LLC now owns 5,949 shares of the company’s stock valued at $303,000 after buying an additional 20 shares during the last quarter. Exchange Capital Management Inc. raised its stake in Dow Chemical by 1.1% in the first quarter. Exchange Capital Management Inc. now owns 4,983 shares of the company’s stock valued at $253,000 after buying an additional 54 shares during the last quarter. Investors Asset Management of Georgia Inc. GA ADV raised its stake in Dow Chemical by 0.3% in the fourth quarter. Investors Asset Management of Georgia Inc. GA ADV now owns 25,367 shares of the company’s stock valued at $1,306,000 after buying an additional 75 shares during the last quarter. Phocas Financial Corp. raised its stake in Dow Chemical by 1.2% in the first quarter. Phocas Financial Corp. now owns 6,640 shares of the company’s stock valued at $338,000 after buying an additional 77 shares during the last quarter. Finally, Benjamin F. Edwards & Company Inc. raised its stake in Dow Chemical by 1.9% in the first quarter. Benjamin F. Edwards & Company Inc. now owns 5,179 shares of the company’s stock valued at $263,000 after buying an additional 97 shares during the last quarter.




Goldman Sachs Downgraded Novo Nordisk A/S (NVO)


Novo Nordisk A/S (NYSE:NVO) was downgraded by Goldman Sachs from a “conviction-buy” rating to a “buy” rating in a report issued on Tuesday, The Fly reports.

Novo Nordisk A/S (NYSE:NVO) opened at 50.91 on Tuesday. Novo Nordisk A/S has a 52-week low of $46.17 and a 52-week high of $60.34. The company has a market capitalization of $129.53 billion and a PE ratio of 25.05. The firm’s 50-day moving average is $54.34 and its 200-day moving average is $54.56.

Novo Nordisk A/S (NYSE:NVO) last issued its quarterly earnings results on Friday, April 29th. The company reported $0.57 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.53 by $0.04. On average, equities research analysts forecast that Novo Nordisk A/S will post $2.29 EPS for the current year.




June 27, 2016

Goldman Sachs Upgraded Rio Tinto plc (RIO)


Rio Tinto plc (NYSE:RIO) was upgraded by equities researchers at Goldman Sachs from a “sell” rating to a “neutral” rating in a report issued on Monday, The Fly reports.

Shares of Rio Tinto plc (NYSE:RIO) opened at 28.76 on Monday. Rio Tinto plc has a 1-year low of $21.89 and a 1-year high of $42.61. The company has a 50 day moving average price of $28.93 and a 200-day moving average price of $28.30. The stock’s market capitalization is $51.72 billion.
Other large investors recently added to or reduced their stakes in the company. World Asset Management Inc raised its stake in Rio Tinto plc by 2.3% in the fourth quarter. World Asset Management Inc now owns 74,528 shares of the mining company’s stock valued at $2,170,000 after buying an additional 1,691 shares in the last quarter. Segantii Capital Management Ltd bought a new stake in Rio Tinto plc during the fourth quarter valued at $1,468,000. Sei Investments Co. raised its stake in Rio Tinto plc by 3.1% in the fourth quarter. Sei Investments Co. now owns 418,767 shares of the mining company’s stock valued at $12,195,000 after buying an additional 12,769 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC raised its stake in Rio Tinto plc by 7.5% in the fourth quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 1,267,701 shares of the mining company’s stock valued at $36,916,000 after buying an additional 88,627 shares in the last quarter. Finally, Kornitzer Capital Management Inc. KS raised its stake in Rio Tinto plc by 7.2% in the fourth quarter. Kornitzer Capital Management Inc. KS now owns 225,550 shares of the mining company’s stock valued at $6,568,000 after buying an additional 15,210 shares in the last quarter.




JPMorgan Downgrades Royal Bank of Scotland Group PLC (RBS)


Royal Bank of Scotland Group PLC (NYSE:RBS) was downgraded by stock analysts at JPMorgan Chase & Co. from a “neutral” rating to an “underweight” rating in a research report issued to clients and investors on Monday, The Fly reports.

RBS has been the topic of a number of other reports. Deutsche Bank reiterated a “hold” rating on shares of Royal Bank of Scotland Group PLC in a research report on Monday, March 14th. Goldman Sachs upgraded Royal Bank of Scotland Group PLC from a “neutral” rating to a “conviction-buy” rating in a research report on Tuesday, March 15th. Sanford C. Bernstein cut Royal Bank of Scotland Group PLC from an “outperform” rating to a “market perform” rating and dropped their price target for the stock from $13.84 to $6.56 in a research report on Thursday, March 10th. Wunderlich cut Royal Bank of Scotland Group PLC from a “buy” rating to a “hold” rating and set a $67.50 price target on the stock. in a research report on Thursday, April 21st. Finally, Zacks Investment Research cut Royal Bank of Scotland Group PLC from a “hold” rating to a “strong sell” rating in a research report on Thursday, April 14th. Four analysts have rated the stock with a sell rating, seven have assigned a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus target price of $37.03.




Citigroup Downgraded Invesco Ltd. (IVZ)


Invesco Ltd. (NYSE:IVZ) was downgraded by equities researchers at Citigroup Inc. from a “buy” rating to a “neutral” rating in a research report issued on Monday, The Fly reports.

In other news, Director Colin Meadows sold 40,433 shares of the business’s stock in a transaction that occurred on Friday, June 10th. The stock was sold at an average price of $28.43, for a total value of $1,149,510.19. Following the completion of the sale, the director now directly owns 195,074 shares in the company, valued at $5,545,953.82. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.
Other equities research analysts have also issued research reports about the company. Deutsche Bank restated a “buy” rating on shares of Invesco in a research note on Sunday, March 20th. Morgan Stanley restated a “buy” rating on shares of Invesco in a research note on Saturday, April 30th. Jefferies Group restated a “buy” rating on shares of Invesco in a research note on Friday, June 10th. Wells Fargo reaffirmed a “buy” rating on shares of Invesco in a report on Tuesday, April 12th. Finally, Zacks Investment Research raised Invesco from a “sell” rating to a “hold” rating in a report on Monday, March 21st. Four equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $38.08.




June 26, 2016

3 Dividend Aristocrats to Buy at Bargain-Bin Prices

Each of these high quality dividend stocks is down more than 10% over the last year



The Dividend Aristocrats Index contains high quality dividend growth stocks in the S&P 500 that have managed to boost their dividend payouts for at least 25 consecutive years.

Rising dividends are often the sign of a profitable and healthy firm. Only about 10% of S&P 500 member companies are dividend aristocrats and possess the attractive qualities needed to lift dividends for such a long period.

Not surprisingly, the Dividend Aristocrats Index has outperformed the S&P 500 by approximately 3% per year over the last decade.

The following are three stocks in the Dividend Aristocrats Index that are down at least 10% over the last year and potentially offer some value today.

Continue to read to find out those three stocks…



Source: InvestorPlace

3 Elite Canadian Banks For Dividends: Toronto-Dominion


It is difficult to find safe investments with 3%+ dividend yields and solid growth prospects.

Many equities today are priced on the rich side of valuations resulting in lowered dividend yields.Low interest rates have made bonds a poor value for income seeking investors.

The benefits of investing in high quality stocks with above average yields and good growth prospects – trading at fair or better prices – are well-known to long-term investors.

What if you could quickly identify an entire group of these stocks? This article takes a look at one such group the market is overlooking:

The Canadian banking sector.

This article gives an overview of the favorable investment prospects of the Canadian banking system.It also analyzes 1 of the 3 highly ranked Canadian Banks in more detail:Toronto Dominion Bank (TD).


Source: TalkMarkets

There's Value in This High-Dividend ETF

This low-cost exchange-traded fund offers an attractive yield while diversifying risk.



Vanguard High Dividend Yield ETF (VYM) is a compelling option for exposure to stocks with generous dividend payments. It offers both an attractive dividend yield without taking excessive risk and a sizable cost advantage relative to its peers (0.09% expense ratio). The strategy starts with all U.S. dividend payers (excluding REITs and smaller stocks), targets those representing the higher-yielding half, and weights them by market capitalization, which keeps implementation costs low. This creates a portfolio of more than 400 names that leans toward mature giants such as  Microsoft (MSFT),  Johnson & Johnson (JNJ), and  AT&T (T). Most of these firms are growing more slowly than the broad market, giving the fund a value orientation.



Continue to read more at Morningstar

3 High-Yield Dividend Stocks You Don't Need to Babysit

Seeking high-yield stocks that aren't panic-inducing investments can be difficult, but TransCanada, StoneMor Partners, and Magellan Midstream Partners are better than most.



Investing in dividend companies can be a lower-stress version of investing. No matter what the share price does, you know that you are going to get a certain percentage return. Ideally, the higher the yield, the better. As the yield gets higher, though, so too does the risk that the company's payout is at risk of getting cut, and that risk can make us lose sleep at night.

So we asked three of our contributors to highlight one stock that has a high yield -- and not one where you need to perpetually worry about a payout cut.

Continue reading to find out what they had to say …




Two Dividend Stocks For Good And Bad Times


With financial markets on the edge following Brexit, investors have found themselves between a rock and a hard place: a turbulent equity market in which stocks drop by double digits in a few hours, and bank accounts that pay next to nothing in returns.

But there are two dividend stocks worth considering for these turbulent times – Southern Company and Clorox.

The two companies are in totally different businesses.



Continue to read at Forbes