Posts

Showing posts from August, 2018

Johnson & Johnson Is A Forever Stock

Image
One of the worst mistakes an investor can make is falling in love with a stock.   Just because an investment has worked out in the past doesn’t mean that the company will continue to produced earnings and revenue numbers that drive the share price higher.   This type of thinking can blind an investor to the current business performance, which could lead to a sharp decline in share price. Along those same lines, there is no guarantee that a company with a lengthy dividend track record will continue to pay and raise its dividend indefinitely.   If earnings were to decline sharply, the company’s ability to pay an increasing dividend might disappear. That being said, there are a small group of companies that have managed to continuously increase earnings per share while also raising the dividend at impressive levels for lengthy period of times.   These types of investment can be rightly labeled as a “Forever Stocks”. One company that I feel deserves this ranking is

Welltower: Positive Demographic Trends & a 5.3% Yield

Image
Health care is a growth industry in the U.S. and the United Kingdom, and the trend is expected to last for the foreseeable future. This is due to the aging populations in these countries, which will naturally result in strong demand for healthcare services. Investors can capitalize on this huge demographic trend through Real Estate Investment Trusts, or REITs, that own healthcare properties such as senior housing, and other medical facilities. Higher demand for healthcare properties is likely to provide a long-lasting growth tailwind for REITs in this industry. Welltower (WELL) is a healthcare-focused REIT, that has an attractive dividend yield of 5.3%, and has attractive growth potential. Continue reading … In case you interested of stock analysis of other bloggers, click on link below: Analysis Collection

Week's Most Significant Insider Trades: Week of August 20, 2018

Image
Disposals: AbbVie Inc (NYSE:ABBV) EVP Michael Severino sold 50,000 shares of the company’s stock in a transaction on Friday, August 17th. The shares were sold at an average price of $97.52, for a total value of $4,876,000.00. Following the completion of the transaction, the executive vice president now owns 111,481 shares of the company’s stock, valued at $10,871,627.12. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink . Shares of NYSE:ABBV opened at $97.15 on Friday. The stock has a market cap of $147.84 billion, a price-to-earnings ratio of 17.35, a PEG ratio of 0.89 and a beta of 1.56. The company has a quick ratio of 0.71, a current ratio of 0.80 and a debt-to-equity ratio of -9.06. AbbVie Inc has a 12 month low of $71.40 and a 12 month high of $125.86. Read more … Apple Inc. (NASDAQ:AAPL) insider Johny Srouji sold 14,140 shares of the company’s stock in a transaction dated Friday, Augus

Notable Analyst Upgrades and Downgrades for Week of August 20, 2018

Image
Upgrades: Piper Jaffray Companies upgraded shares of Nike (NYSE:NKE) from a neutral rating to an overweight rating in a research note issued to investors on Monday morning, Marketbeat reports. They currently have $93.00 target price on the footwear maker’s stock, up from their prior target price of $72.00. Other equities research analysts have also issued research reports about the stock. Morgan Stanley reissued a buy rating and issued a $88.00 price target on shares of Nike in a report on Friday, August 10th. JPMorgan Chase & Co. boosted their price target on shares of Nike from $76.00 to $81.00 and gave the stock a neutral rating in a report on Wednesday, August 15th. TheStreet raised shares of Nike from a c+ rating to a b+ rating in a report on Thursday, June 28th. Atlantic Securities reissued a buy rating and issued a $85.00 price target on shares of Nike in a report on Friday, June 29th. Finally, Robert W. Baird reissued a buy rating and issued a $90.00 price targe

4 Reasons to Love Starbucks' Dividend

Image
Starbucks may not be the Wall Street darling it once was, but it's shaping up to be a great stock for dividend investors. Starbucks (NASDAQ:SBUX) stock has had a rough run recently, with shares essentially going nowhere over the last three years. But the stock's underperformance along with management's invigorated commitment to returning capital to shareholders through share repurchases and dividends are beginning to make the stock attractive -- especially for dividend investors. With anemic comparable-store sales growth of just 1% in the most recent quarter, Starbucks certainly isn't the growth stock it was in years past. But an aggressive capital return program paired with management's efforts to run a leaner operation make Starbucks a cash cow worth betting on. Put another way, Starbucks has morphed into a solid dividend stock. Here are four reasons for investors to love Starbucks' dividend. Continue reading … In case you

3 Tech Stocks for Dividend Investors to Buy Now

Image
Tech stocks have been unpredictable at times recently, but the sector has rebounded from volatility strongly, and there is no question that tech has been the leader of the market’s strong multiyear run. However, this might mean that income investors—those focused on finding companies with solid dividends—might be feeling left out, as tech stocks aren’t really known for their payouts. Finding a strong dividend-yielding tech stock might feel like searching for a golden goose, but investors should not feel too intimidated. In fact, dividend-focused investors can search for the best tech stocks by using the Zacks Stock Screener, the perfect one-stop screening tool for investors of all kinds. By limiting our search to companies in our “Computer and Technology” sector with Zacks Rank #2 (Buy) or better rankings, we can ensure that we are finding the highest quality stocks to buy right now. Throw in your preferred dividend yield and voila—the best tech stocks for dividend investor

ADP Stock: 44 Years of Dividend Increases and Continuing

Image
Automatic Data Processing Is a Top Dividend Stock In today’s market, few companies are more shareholder-friendly than Automatic Data Processing(NASDAQ:ADP). What do I mean by “shareholder-friendly?” Well, here’s an example: when a company comes across unexpected gains, will management use the money to pay themselves big bonuses, or will they return the excess cash to shareholders? At ADP, management always chooses to do the latter. When the company benefited from the Tax Cuts and Jobs Act, management decided to return a portion of the benefits to investors through a 10% dividend increase. (Source: “ ADP Increases Cash Dividend ,” Automatic Data Processing, April 11, 2018.) What’s particularly impressive is that ADP had already raised its payout less than six months before this one. Of course, the company could pay out all the benefits in a special one-time payment. But as an income investor with a long-term horizon, I actually prefer an increase to the

Week's Most Significant Insider Trades: Week of August 13, 2018

Image
Disposals: Pfizer Inc. (NYSE:PFE) insider Laurie J. Olson sold 10,214 shares of the company’s stock in a transaction dated Monday, August 13th. The shares were sold at an average price of $41.00, for a total transaction of $418,774.00. Following the transaction, the insider now owns 72,672 shares in the company, valued at approximately $2,979,552. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website . Shares of NYSE:PFE opened at $41.42 on Friday. Pfizer Inc. has a twelve month low of $32.32 and a twelve month high of $41.64. The company has a current ratio of 1.16, a quick ratio of 0.91 and a debt-to-equity ratio of 0.41. The company has a market capitalization of $243.65 billion, a PE ratio of 15.63, a price-to-earnings-growth ratio of 1.98 and a beta of 0.96. Read more … Wells Fargo & Co (NYSE:WFC) EVP Hope A. Hardison sold 25,000 shares of the company’s stock in a transaction dated Monday, August 13th. The share

Notable Analyst Upgrades and Downgrades for Week of August 13, 2018

Image
Upgrades: Edward Jones upgraded shares of BCE (NYSE:BCE) (TSE:BCE) from a hold rating to a buy rating in a research report released on Monday, Marketbeat reports. Several other analysts have also issued reports on the company. ValuEngine lowered BCE from a hold rating to a sell rating in a research note on Friday, June 1st. Zacks Investment Research lowered BCE from a hold rating to a sell rating in a research note on Monday, April 16th. Two equities research analysts have rated the stock with a sell rating, three have given a hold rating, four have issued a buy rating and one has issued a strong buy rating to the stock. The stock currently has an average rating of Hold and a consensus price target of $56.00. Read more … BAE Systems (LON:BA) was upgraded by research analysts at Morgan Stanley to an “overweight” rating in a research report issued on Monday. The firm presently has a GBX 750 ($9.57) price target on the stock, up from their previous price target of G

AT&T: Quality & High Yield

Image
Dividend growth investors like high yielding stocks because they offer more income. When it comes to these types of investments, investors want to be sure that the dividend is safe. Stocks with yields above 5% can be a red flag to as there maybe heightened risks of dividend cuts in the future. Generally, these companies have elevated payout ratios, making future increases unlikely unless earnings improve significantly or the company has to take on debt to pay for the dividend. Neither of these cases is ideal and investors should avoid these stocks. If earnings were to experience a significant decline, the dividend could very well be at risk. There are some companies, however, that pay a healthy dividend yield that is well protected, allowing investors to have their cake and eat it too. Some companies offer both a high yield and a low payout ratio that reassures their shareholders that the dividend is not only safe, it can increase in size over time. Let’s examine AT&T’s (T)

10 Income-Increasing REITs to Buy

Image
Not all REITs are good buys now, but these are. Real estate investment trusts (REITs) come in all shapes and sizes these days. But the one thing that they have in common is they all pay out 90% of their taxable income as dividends to shareholders. Traditionally, that has meant, as rents go up, dividends go up. Nowadays, that isn’t always the case since a lot of companies that have chosen REIT status don’t necessarily focus on the lease or rent aspect of the real estate business. We’ll discuss some of the best below. But at the end of day, REITs are about income. And that means they’re long-term holdings, not trades. There’s no point in buying an income stock for the short term. You buy them with the expectation that they will grow and their dividends will grow as well. Below are 10 income-increasing REITs you can buy now to boost your income for years to come. Continue reading … In case you interested of stock analysis of other bloggers,

The Top 7 Aviation and Aerospace Stocks to Buy Now

Image
Aerospace stocks are already up big, but these stocks should have even more room to run Aviation and aerospace stocks have found themselves in some crosswinds. On the one hand, they’ve enjoyed an amazing run in recent years. On the commercial side of the business, order activity has soared. Airlines have gone on a spending spree. Thanks to plunging jet fuel prices, airlines have earned unusually large profits and are taking advantage of the windfall to modernize their fleets. That said, with the oil market on the mend, commercial airlines are likely to see profits start to revert toward normal. On the military side, Trump’s rise has been a positive for the industry. Hardly a week goes by where Trump or Vice President Pence aren’t talking about how much they love the military and the soldiers on Twitter. Additionally, the more militant stance of the U.S. is causing other countries to beef up their forces as well — Trump’s demands on NATO allies to increase spending co

3 Attractive Dividend Stocks Whose Dividends Could Double

Image
These solid companies have non-prohibitive valuations and could feasibly double their payouts within the next five years. Any company that can double its dividend over a five-year stretch is delivering rapid payout growth. To reach that target, the company would need to raise its distribution at an average annual rate of roughly 15% over the stretch. Of course, doubling your dividend payout in every five-year period is a lofty target, and taking extra time to clear that bar shouldn't be taken as a negative, but investors seeking dividend growth can generally feel very satisfied if that standard is met. To get an idea of stocks that stand a good chance of doubling their payouts over the next five years, it helps to look for companies that are paying out a relatively small portion of their earnings and free cash flow (FCF), have catalysts to improve cash flow going forward, and have a history of regular payout growth. Read on to see why Apple (NASDAQ:AAPL), Southwest A

3 High-Yield Stocks to Hold Forever

Image
Locking in a dependable high dividend yield is an income investor's dream. Here are three stocks these Motley Fool contributors think you could count on to pay you for the rest of your life. While superinvestor Warren Buffett is known for having said his "preferred holding period is forever," that's not always a reasonable expectation for individual investors. At some point, you may sell even your best stocks to pay bills in retirement, put a kid through college, or just reward yourself for decades of patient investing success. But dividend stocks can actually make for perfect "hold forever" investments, especially if they pay a higher yield and have given you years and years of dividend growth. If you own enough of the right ones for long enough, you may never have to sell a share, deriving enough income from the payout to more than meet your financial needs. We asked three Motley Fool contributors who know a thing or two about hig

5 Monthly Dividend Stocks Yielding Up to 12.2%

Image
These Stocks Pay You Monthly I love dividend stocks, but they’ve always had one big problem: you only get paid every three months. That creates a headache for those of us who rely on our portfolio income to pay the bills. Sure, we can sync quarterly distributions to pay the bills, but it’s not really convenient. Bonds make it even harder. By convention, most fixed-income investments only pay you semi-annually. Aside from the hassle of just managing our cash flow, no one wants to wait that long just to get paid. Thankfully, we have options. Over the past few years, a growing number of companies have started paying dividends monthly. In the traditional world of Wall Street, the shift presents a big change from the typical quarterly schedule. And it’s not hard to see why some businesses have switched. Companies gain a loyal shareholder base. Investors can better match their dividend income with expenses. You could call it a real win-win for everyone.

Digital Realty Trust: A High Growth REIT

Image
Real Estate Investment Trusts, or REITs, are often favorites of dividend growth investors due to their high yields. By law, REITs must distribute at least 90% of their taxable income in the form of dividends to shareholders. While many are familiar with REITs that specialize in retail space, medical office buildings or assisted living centers, one under-owned area of real estate is that of the information technology space. And one company that investors should know in this space is Digital Realty Trust (DLR). Company Overview DLR purchases and develops properties for technological use. The company’s properties are made up of data centers used for cloud computing, technology manufacturing sites and Internet gateway data centers that are used to transmit data among major metro areas. DLR leases these facilities to companies needing this very advanced technology. DLR has more than 200 properties around the world, with more than 150 of them located in the Unite

9 Impressive Dividend Stocks to Buy and Hold

Image
Whether the markets keep rolling or not, some income stocks are always good to have Now is a good time to look at dividend stocks to buy and hold. While there’s no doubt that the market averages were on a roll going in 2018, that incredible momentum slowed a bit when January changed to February. The tax cuts in late December added a lot of fuel to stocks’ fire, but a market correction was lurking around the corner. If the economy expands and the global economy stays in recovery mode, this could see stock indexes soar once again. Especially when you look to the big blue chips that dominate the averages. The big firms are doing business outside the U.S., and the dollar is weakening as interest rates rise. As Treasury Secretary Steve Mnuchin observed in Davos recently, a weaker dollar is good for exports and the Trump administration is in favor of boosting exports. But for all this good news, a changing market — with the potential for an inverted yield curve in int