March 18, 2017

Microsoft Corporations’s Dividend Payments Could Double Within 5 Years

Changes in the cloud continue to benefit MSFT and its shareholders

The technology sector isn’t known for paying out juicy dividends. Companies from the high-growth sector tend to re invest their cash into expanding instead of returning it to investors.

However, 17 years after the dot-com bubble popped in March of 2000, a group of former tech highflyers is quietly evolving into some of the best dividend payers in the S&P 500.

Apple, Inc. (NASDAQ: AAPL) is a great example. Apple began paying a dividend in 2012, and now offers a 1.6% yield after growing its dividend by 27% in the last three years.

With more than $200 billion in cash, I expect Apple to continue growing its dividend for years to come.

While those stats are impressive, another legendary tech stock offers a better dividend yield and growth. This global leader pays out a 2.4% yield, a 50% premium to Apple’s 1.6% yield. It has grown its dividend by 44% in the last three years, a 63% premium to Apple.

And finally, with just over $100 billion in cash on its balance sheet, I am expecting its dividend payment to grow more than 100% in the next five years.

March 17, 2017

10 Safe Dividend Stocks to Own During the Next Market Crash

The keys to protection? Fair price, high quality and dividend growth.

With the stock market now entering its ninth year of an epic bull run, and share prices at all-time highs, many investors are worried that dividend stocks, growth stocks — all stocks! — are trading at highly overvalued levels and set for a market crash.

While corrections are inevitable, at the same time history shows us that market timing is the absolute worst thing you can do. In fact, a recent study found that missing just 10 of the best market days in each of the past nine decades would have reduced one’s profits (owning the S&P 500) from 10,055% to just 38%!

In other words, trying to time the market can cripple your returns.

Long-term, buy-and-hold investing in dividend stocks is a great way to build your wealth and income, whether you want to simply live off dividends in retirement or some other life goal.

While the market’s valuation appears high relative to history, interest rates are also at very low levels — even after the Fed’s recent fed funds rate hike — making dividend stocks more attractive. It’s also true that no matter how high the market gets, something is on sale. Reasonably priced stocks with below average volatility also tend to decline less during market down periods, preserving capital.

Essentially, if you buy fairly priced, high-quality, low-volatility dividend growth stocks, such as dividend aristocrats, you can protect yourself from unpredictable market risk.

To help get you started, here are 10 great, safe dividend stocks to consider for your diversified dividend growth portfolio in the event of a market crash. We used our Dividend Safety Scores to identify many of these candidates. In order of yield … Continue reading here à

March 16, 2017

United Technologies Makes An Attractive Dividend Stock

United Technologies has four attractive business units.

HVAC and Otis Elevator business benefit from oligopolies and increasing residential construction and urbanization.

Pratt & Whitney and aerospace divisions have high barriers to entry and bright long-term growth prospects.

Last year, we added United Technologies (NYSE:UTX) to our dividend portfolio. We think the company has an attractive collection of businesses that should allow it to continue to pay a substantial and growing dividend (current yield as of this writing is 2.35%) far into the future.

The company has four business segments - Otis; UTC Climate, Controls & Security; Pratt & Whitney; and UTC Aerospace Systems. Each accounts for about a quarter of the company's profits except Pratt & Whitney which is a bit smaller and the UTC Climate business which is a bit larger.

What we want to focus on is the competitive position of United in each of its business segments and their long-term growth prospects.

March 15, 2017

General Mills: A Safe Dividend Stock Down 15% Since July

General Mills (GIS) is a blue chip stock that has paid uninterrupted dividends for 117 years. The company’s dividend has increased each year since 2004 and boasts a 10.4% annual growth rate over the last decade.

Despite General Mills’ impressive history, the company’s stock price is down more than 15% since early July 2016 while the S&P 500 Index has gained over 13%.

With investors’ expectations reduced and the stock’s 3.2% dividend yield sitting above its five-year average yield, now is a good time to review why General Mills remains a core holding in our Conservative Retirees dividend portfolio.

March 14, 2017

Colgate-Palmolive Company (CL) Dividend Stock Analysis For 2017

Colgate-Palmolive Company (NYSE:CL), together with its subsidiaries, manufactures and markets consumer products worldwide. The company operates in two segments: Oral, Personal and Home Care; and Pet Nutrition. This dividend king has paid dividends since 1895 and has increased them for 54 years in a row.

The company’s latest dividend increase was announced in March 2017 when the Board of Directors approved a 2.60% increase in the quarterly annual dividend to 40 cents/share. This was the slowest rate of dividend increases since 1980 (1). It indicates that the company’s management is cautious about Colgate-Palmolive’s near term business outlook.

March 13, 2017

Brookfield Infrastructure Partners: A High-Yield, Fast-Growing Utility

Utilities are one of the cornerstones of high-yield portfolios and for good reason. Their generally stable and predictable cash flows, often protected by regulated prices result in most utilities achieving high Dividend Safety Scores. Safe payouts can be a major asset for low risk investors – especially retirees who depend on dividends for funding their living expenses. However, not all utilities require one to sacrifice growth for a safe, high yield.

One global utility in particular, Brookfield Infrastructure Partners (BIP), appears to have a long runway for income growth. Let’s take a closer look at Brookfield Infrastructure Partners for consideration in our Conservative Retirees dividend portfolio.

March 12, 2017

Johnson & Johnson (JNJ): The Best Stock For Long Term Investors

As an investor, most of us want the triple bagger. We want a sizable return on our money and we take calculated risks to get there. But there is something to be learned from the tortoise and the hare fable. As great as a quick return is, sometimes, we need to invest in a slow and steady performer. In this case, that stock is Johnson & Johnson (NYSE:JNJ).

It’s not a sexy pick and it isn’t going to double your money by the end of the year. But if you want solid growth over the long term, then this stock should be in your portfolio.

This article will discuss why you should invest Johnson & Johnson (NYSE:JNJ) for the long term.