Kimco Realty: Retail Worries Are Overblown, The 5% Dividend Yield Is Safe

The rumored “death of the shopping mall” is not only wreaking havoc among retail stocks, but it is also dragging down REITs that own retail properties. Take, for example, Kimco Realty (KIM). Shares of Kimco have declined 25% so far in 2017. The stock is sitting at lows not seen in the past five years.

The biggest reason for the decline is that investors are concerned about the ripple-effects of the decline of brick-and-mortar retailers eventually spreading to the REITs that own the real estate. However, Kimco’s fundamentals have held up so far this year. The prolonged decline in the share price has pushed up Kimco’s dividend yield to 5.7% Kimco is one of 295 stocks with a 5%+ dividend yield.

This article will discuss why investors should not assume Kimco will suffer alongside the retail industry. If anything, its huge share price decline presents a compelling buying opportunity for income investors.

5 Blue Chips That Everyone Owns... And Shouldn't

When blue chips get too popular – like the five I’m going to show you today – these “safe stocks” can actually be dangerous to continue holding in your portfolio.

The problem with blue-chip stocks? Call it the “Curse of the Dow.” The Curse says a stock that joins the Dow Jones Industrial Average will essentially hit a wall, underperforming in the ensuing months compared to how it performed before ascension. It’s not perfect, but it’s close – since 1999, 15 of 16 stocks that have joined the Dow have averaged 1% gains over the next six months, but averaged 11% gains in the six months before inclusion.

Why? There are a few factors, but one of the most prevailing is that by the point a stock has joined the Dow, it’s typically nearing the end of its growth ramp and reaching the slower-growth “mature” part of the business cycle.

The same reasoning can be applied to many blue-chip stocks. A stock typically starts to be considered a blue chip after a long period of sustained growth, even if that growth begins to slow – and after that, a company never really loses the blue chip designation as long as the business doesn’t crumble.

The following five stocks are the worst kind of blue chips. They’re not crumbling, but it’d be better if they were -- because then the decision to leave them would be far more obvious. Instead, these large-caps tantalize investors with their stability and slightly above-average dividends, keeping investors just long enough to weigh them down with underperformance.

Make no mistake: Keeping your money invested in these blue-chip losers is a sure way to set your retirement plans back.

10 Dividend Aristocrats That Are Ready to Rally

These longtime dividend growers still have a boatload of fundamental quality. Expect them to flip the switch over the rest of 2017.

The year 2016 was marked by geopolitical unrest, volatile commodity prices and strong currency fluctuations, which resulted in many companies underperforming the S&P 500 over the past year. However, a number of Dividend Aristocrats that trailed the market over the past year are still excellent businesses that are only temporarily out of favor.

Dividend Aristocrats are S&P 500 companies that have raised their dividends for at least 25 years.

Today, we’re looking at 10 Dividend Aristocrats that have a favorable long-term outlook despite trailing the S&P 500’s return by at least 10% over the past year. In fact, nine of these 10 stocks have seen their stock prices decline while the S&P 500 has gained more than 15%. But we believe this recent underperformance and declines have made them “buy the dip” opportunities for long-term dividend growth investors.

Some of these companies are in our list of the best high dividend stocks, and all of them still have a lot of fundamental strength to offer. We expect each one of these to flip from underperformance to outperformance over the next year.

3 Cash-Rich Tech Stocks to Buy and Hold Forever

These tech stocks should deliver double-digit total returns every year

Fresh off reaching the 6,000 mark milestone since its inception 46 years ago, the Nasdaq Composite index — home to some of the world’s largest technology companies — is trading near all-time highs. So, good luck finding tech stocks that are trading at discount prices.

The current bull market, now in its eighth year and counting, has invited tons of new investors to the market. Indeed, there are tons of reasons to remain optimistic. Corporate earnings are on the rise and unemployment continues to fall. And not only is the housing market still booming, President Trump’s pro-growth policies have yet to kick in.

Nevertheless, all of these scenarios also mean that the next bear market is inching much closer.

To that end, protecting current gains is paramount. And how you construct your portfolio from this point forward matters. But you don’t have to sacrifice growth for protection, if you know where to look.

Today, we’re going to look at three tech stocks that you can buy now and forget about for the next decade, in large part because of their ability to generate and stash large piles of cash. Big war chests and high cash flow give these companies seemingly infinite options for game-changing acquisitions, as well as the ability to improve their dividends over time.

10 Dividend Growth Stocks For May 2017

David Fish maintains a list of stocks with at least five consecutive years of paying higher dividends. Colloquially called the CCC list, it contains more than 800 dividend growth stocks trading on U.S. exchanges. The CCC list and the accompanying spreadsheet is a wonderful source for dividend growth investors and I've been using it for years.

In my monthly 10 Dividend Growth Stock series, I identify 10 CCC stocks worthy of further research. To create the list, I trim the CCC list using various screens. I rank the trimmed list and assign a 7-star rating to each stock. Stocks rated 5 stars or better are worthy of further analysis.

20 Years In The Coca-Cola DRIP

20 years ago, I started buying Coca-Cola's (NYSE:KO) stock through the dividend reinvestment plan (DRIP) as an aspiring young investor on the notion that if Warren Buffett owned Coca-Cola, so should I.

On top of that, I was a Sprite addict in my youth. As a fan of Peter Lynch's writings, I wanted to own stock in companies I knew well.

Buffett, of course, is the first to advise against buying a stock just because he owns it. He bought Coca-Cola in 1988 after the stock market crash when the valuation was attractive.

Even when the stock was at sky-high levels during the late 1990s, Buffett didn't sell. His favorite holding period is forever.

Buffett holding a stock is not a reason for independent investors to buy a stock.

Two decades wiser, I've learned that just because someone famous and accomplished owns a stock, it doesn't guarantee returns. Coca-Cola has been a positive investment over the past 20 years, but it far underperformed the S&P 500 index.

I've participated in the Coca-Cola DRIP for 20 years now. In this article, I'll share the performance of my personal investment in Coca-Cola from April 1st, 1997, to the latest dividend received on April 3rd, 2017.

Stock Valuation Johnson And Johnson

The next stock valuation is about a stock, which is in every DGI portfolio. It will be about Johnson & Johnson one of my first stocks I ever bought and always looking to add more. But let’s have a look if an investment at the current share price makes sense.

Company Overview

Johnson & Johnson (JNJ) is a holding company that researches, develops, and manufactures a diversified range of products in the healthcare field. The company has three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. JNJ was founded in 1887, and is based in New Brunswick, NJ. It is paying dividend since 1963 and has increased the dividends every year. Recently it announced a further increase of 4 Cent per from 0.80 USD to 0.84 USD per quarter.

Vodafone Group: A High Dividend Opportunity Or Value Trap?

Telecom stocks such as AT&T (NYSE:T) and Verizon (NYSE:VZ) often serve as core holdings for income investors who have a low tolerance for risk, especially retirees living off dividends.

That makes sense because many telecom companies enjoy large, recurring streams of cash flow that support generous and slowly growing dividend payouts over time.

However, not all telecom giants make for good dividend investments. The industry is increasingly battling slow growth and increased competitive pressures, and some firms are better positioned than others.

Let's take a closer look at Vodafone Group (NASDAQ:VOD), one of the world's largest telecom behemoths, to see if its 5.7% dividend yield is safe and appealing for our Conservative Retirees dividend portfolio, or if the company could be a value trap.

A Safe 7.8% Yielding Stock With Fantastic Growth Potential That's Also 46% Undervalued

Omega Healthcare Investors has long been the gold standard of skilled nursing facility REITs.

With 19 consecutive quarters of dividend growth, the REIT remains a favorite of high-yield dividend growth investors.

The latest earnings show the wisdom of management's long-term growth strategy.

That being said, 2017 is likely to be a far slower growth year, as numerous headwinds challenge the company.

However, with shares trading at a 46% discount to fair value and one of the best risk-adjusted total return profiles on Wall Street, Omega Healthcare remains a screaming buy.

Microsoft Earnings: Don’t Believe The Disappointment, Cloud Growth Explodes

Tech giant Microsoft Corporation (MSFT) reported fiscal-third quarter earnings on Thursday, April 27th. Judging by the market’s reaction, Microsoft’s quarter was a disappointment. The stock fell 2% after reporting. But, the stock quickly retraced its losses, as investors focused once again on the bigger picture: Microsoft is in growth mode.

The company’s cloud-based offerings like Office 365 and Azure are growing like weeds. These platforms represent the technology of the future, and will fuel Microsoft’s growth for many years ahead. In the meantime, Microsoft is an excellent dividend stock. It is a Dividend Achiever, a group of 265 companies in the S&P 500 Index that have raised their dividends for 10+ years in a row. 

Investors should not be fooled by the market’s initial reaction: Microsoft’s quarterly report was anything but disappointing. Its hardware sales came up slightly short of expectations, but more importantly, its cloud platform continued its explosive growth.

Buy Pfizer Inc. (PFE) Stock While Its Dividend Is on Sale

PFE beat earnings estimates, but fell short on revenue

Pfizer Inc. (NYSE:PFE) is slipping in pre-market trading after announcing earnings that beat estimates on the bottom line, but missed on the revenue side. If you’re looking for growth, stay away from PFE stock. But if you’re looking to scoop up a dividend at a discount, Pfizer stock is for you.

Adjusted income was $4.19 billion, 69 cents per share, on revenue of $12.78 billion. This compared with net income of $4.17, 67 cents per share, and revenue of $13.01 billion during the same quarter a year ago.

Earnings beat analyst estimates by 2 cents per share, and even beat the “whisper number” of 68 cents. The revenue number, however, was well below the estimate of $13.05 billion, and even below last year’s figure.

As a result, PFE stock lost 35 cents per share, after dropping another 35 cents in trading on May 1. For those who buy stocks for capital appreciation, Pfizer once again proved a name to avoid.

3M Dividend History: The Story Behind an Impressive Growth Streak

The innovative conglomerate has put together an amazing track record of boosting its payouts to shareholders. Can it last?

3M (NYSE:MMM) is a company that most people know about but few fully understand. Going well beyond its most visible products like Post-It Notes and Scotch tape, 3M has its fingers in a huge number of different sectors of the economy, and its innovative spirit has enabled it to get profits from an impressive number of sources.

For dividend investors, 3M has been even more lucrative. With a streak of 59 straight years of dividend increases, 3M numbers among the elite dividend stocks in the entire U.S. stock market. Yet investors want to know if 3M's dividends are sustainable and whether its pace of dividend growth will continue into the future. Let's take a closer look at 3M and its dividend history to get some ideas about what's likely to come down the road.