April 13, 2017

This 4% Yielder Has an Incredible Record of Dividend Growth

Dividend investing is not all about hunting for monster yields. It is about identifying those companies that have an established track record of making sustainable dividend payments coupled with regular dividend hikes. One Canadian company that stands out having an exceptional history of regularly growing dividend payments is diversified utility Canadian Utilities Limited (TSX:CU).

Many investors regard utilities as boring, stable stocks that, while having solid defensive credentials, lack the glamour of other, more growth-oriented stocks. While this may be true, Canadian Utilities is no lacklustre investment.

April 11, 2017

3 Value Stocks Senior Citizens Could Buy Right Now

Want to get the most out of an investment account in retirement? Take a look at CVS Health, Verizon Communications, and General Motors.

It is challenging for older investors to find reliable, income-paying stocks that trade at cheap valuations. The reason? Stable businesses with the ability to churn out a stream of growing dividend payments rarely go on sale. Every once in a while, though, a few of them fall out of favor, providing an opportunity to buy in at a good price.

So we asked our contributors if they see any stocks on sale today that would fit nicely in a senior citizen's portfolio. They came up with three: CVS Health (NYSE:CVS), Verizon Communications (NYSE:VZ), and General Motors (NYSE:GM). Here's a look at why they are well suited for retirement accounts.

April 10, 2017

UPS Purchased To Meet These Specific Objectives

United Parcel Service Inc. (UPS) currently offers a dividend yield in excess of 3%. Moreover, it is also available at a valuation that is slightly below historical norms. The company has provided a stable and growing dividend since it went public in 1999. However, the company did keep their dividend the same for fiscal years 2001 and 2002, but they did not cut it. Additionally, 2008 included five dividend payments due to a change in their dividend payment schedule. Nevertheless, their dividend growth rate since 1999 has averaged 13% per annum, but the dividend growth rate has slowed somewhat to 8.2% per annum since 2013.

United Parcel Service Inc. carries an A+ credit rating from S&P but does have a debt to capital ratio of 75% – which I consider a concern. However, the company generates significant revenues and produces ample cash flows to service and eventually retire its debt. Moreover, a significant portion of their debt is long-term, which does moderately alleviate my concerns. But more importantly, the debt they have recently taken on was used to fund numerous acquisitions since 2014 and to expand international services significantly. I see the latter as a huge opportunity that should bear fruit over the longer run.