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Showing posts from June, 2019

Notable Analyst Upgrades and Downgrades for Week of June 24, 2019

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Upgrades: Nike (NYSE:NKE) was upgraded by Bank of America to an “underperform” rating in a research note issued to investors on Monday, The Fly reports. A number of other equities research analysts also recently weighed in on the company. Morgan Stanley set a $103.00 price objective on Nike and gave the company a “buy” rating in a report on Thursday. Canaccord Genuity reaffirmed a “buy” rating and set a $96.00 price objective on shares of Nike in a report on Wednesday, June 19th. UBS Group set a $85.00 price objective on Nike and gave the company a “neutral” rating in a report on Monday, June 17th. Zacks Investment Research raised Nike from a “sell” rating to a “hold” rating and set a $95.00 price objective on the stock in a report on Monday, May 27th. Finally, JPMorgan Chase & Co. reaffirmed a “buy” rating and set a $90.00 price objective on shares of Nike in a report on Friday, April 12th. Two investment analysts have rated the stock with a sell rating, ten have issu

Leggett & Platt: A Dividend Aristocrat to Buy Now

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The Dividend Aristocrats are widely considered to be the best-of-the-best when it comes to dividend growth stocks. Indeed, the Dividend Aristocrats are an exclusive group of 57 stocks in the S&P 500 Index with at least 25 years of annual dividend increases. The Dividend Aristocrats have long-lasting brand power, competitive advantages, and shareholder-friendly management teams that are committed to growing profits and dividends over the long-term. But on occasion, even the Dividend Aristocrats experience downturns. Leggett & Platt (LEG) is a Dividend Aristocrat, having raised its dividend for 48 years in a row. But the stock has declined 12% in the past three months, and has underperformed the broader S&P 500 Index by a wide margin to start 2019. However, Leggett & Platt has a plan to overcome the recent challenges and continue to grow for the long-term. The stock has an attractive valuation, and a high dividend yield above 4%. Therefore, Leggett & Plat

Disney's Appeal as a Long-term Dividend Growth Stock

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Walt Disney founded his namesake company in 1923, and since then the business has gone on to become one of the most iconic brands ever created. Today Walt Disney (DIS) is a leading entertainment company with about $60 billion in revenue. The media conglomerate is highly diversified and vertically integrated, with four major business segments. Here are the company's sales and profits through the first half of fiscal 2019: 1. Media Networks (38% of sales, 47% of profits): TV programming (ABC TV and cable channels like A&E, History, Lifetime and ABC Family, ESPN network), radio (radio Disney, ESPN radio network), eight television stations. In total the company has about 100 Disney-branded television channels, which are broadcast in 34 languages and 162 countries. 2. Parks & Resorts (43% of sales, 49% of profits): owns theme parks and resorts around the globe including Walt Disney World In Florida, Disneyland in California, Disney Land Paris, Shanghai, and Hong Kong.

Southern Company: Uninterrupted Dividends Since 1948

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In business for more than 100 years, Southern Company (SO) is a major regulated utility involved in selling electricity and distributing natural gas, primarily across the Southeastern U.S. The firm's eight vertically integrated electric and gas utilities serve customers across Georgia, Alabama, Florida, and Mississippi. Southern Company’s mix of business and service territories significantly changed after the company's 2016 acquisition of natural gas utility AGL Resources for $12 billion. AGL Resources owns more than 80,000 miles of pipelines and over a dozen storage facilities it uses to transport and distribute natural gas to businesses and households across Illinois, Georgia, Virginia, New Jersey, Florida, Tennessee, and Maryland.   After acquiring AGL Resources, Southern Company's customer count roughly doubled to 9 million, and its business mix shifted from 100% electric to a 50/50 mix of electric and gas. The utility services a diversified blend of residen

How High Can Starbucks Fly? It All Hinges on One Metric

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The stock is soaring, and it could keep going up -- as long as comps do, too. Who says megarestaurant chains can't be high-octane growth companies? Starbucks (NASDAQ:SBUX) has rocketed 46% higher in the last year as the world's third-largest restaurant chain by number of locations has reignited existing store sales growth. Despite the surge in stock price, though, the coffee shop and retailer can keep climbing if it can demonstrate that its recent momentum in comps is more than just fleeting. What's the deal with comps? Comparable-store sales is a combination of the number of transactions (foot traffic) and ticket size per order at existing stores -- in Starbucks' case, stores that have been open for at least 13 months. For a company with over 30,000 locations worldwide, rising comps is one of the primary ways Starbucks can increase profitable sales. Comps were touch-and-go in 2018. Though the metric ended the year up 2%, there were quarterly decl

CVS Stock Has More Going for It Than Just a 3.69% Dividend Yield

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CVS stock very well could be the big bet you're missing CVS Health (NYSE: CVS) faces two distinct headwinds that are putting pressure on CVS stock. First, markets are cautious over the drug store and drug manufacturing market as the government pressure all players to lower drug prices. Doubts over CVS’ acquisition of Aetna are adding more distractions for management in the near-term. With CVS stock testing the $51.72 yearly low on at least five occasions since March, what will it take for the stock to rebound? CVS reported first-quarter earnings of $1.62 and also raised its full-year adjusted EPS guidance to $6.75 to $6.90. This is up from the previous guidance of $6.68 to $6.88 a share. The Q1 beat and improved outlook are due largely to the inclusion of managed care operations. The company also included revenue from SilverScript Medicare Part D, which contributed $17.9 billion of revenue for the quarter. Better synergies with Aetna also c

Target Corporation: Overlooked Retail Stock Just Raised Its Dividend Again

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1 Retail Stock for Income Investors to Consider When almost everyone thinks that the retail industry is done because more consumers are shopping online, one retail company just keeps on raising its payout to investors. I’m talking about Target Corporation (NYSE:TGT), which operates more than 1,800 department stores located across the U.S. On Thursday, June 13, Target declared a quarterly cash dividend of $0.66 per common share. The amount represented a 3.1% increase from the company’s previous quarterly dividend rate of $0.64 per common share. The raised dividend will be paid on September 10, 2019 to shareholders of record as of August 21. (Source: “Target Corporation Announces 3.1 Percent Dividend Increase,” Target Corporation, June 13, 2019.) A three-percent payout increase may not seem like much in an era where people care about capital gains the most. However, the announcement on Thursday marked the continuation of an important tradition at Target Corp

Lowe's Dividend Stock Analysis

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Lowe's Companies, Inc. (LOW), together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. Lowe's is one of the Original Dividend Aristocrats from 1989. Lowe’s is one of 26 dividend kings in the US. The company hiked its quarterly dividend by 15% to 55 cents/share just last week. This marked the 57th consecutive annual dividend increase for the dividend king. Over the past decade, the company has managed to increase distributions at an annualized rate of 18.40%. Continue reading …

10 Smart Dividend Stocks for the Rest of the Year

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If you're looking to scale back on aggressive exposure and beef up safety-minded holdings, start here The market has managed to back itself away from imminent danger, bouncing back from a relatively serious stumble from a couple of weeks ago. It’s too soon to say stocks will be able to remain out of trouble, though. Aside from a lethargic time of year, the wrong headline could still easily up-end it all. Or, perhaps the market will continue to climb. In an uncertain environment like the one we find ourselves in now, sometimes the right strategic move is to simplify. Step into reliable cash cows, accumulate cash from dividends, and wait for a more opportune time to make risky bets. The $64,000 question is, of course, which dividend stocks? They certainly aren’t all built the same. Here’s a run-down of 10 different dividend stocks to buy, from a variety of industries. Investors won’t necessarily need all of them to create a more defensive-minded port

High Dividend Stocks — June 2019

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High dividend stocks appeal to many investors living off dividends in retirement because their high yields provide generous income. Many of the highest paying dividend stocks offer a high yield in excess of 4%, and some even yield 10% or more. However, not all high yield dividend stocks are safe. Let’s review what high dividend stocks are, where stocks with high dividends can be found in the market, and how to identify which high dividends are risky. At the end of the article, we will take a look at 23 of the best high dividend stocks, providing analysis on each company. Almost all of these high yield stocks offer a dividend yield greater than 4%, have increased their dividends for at least five consecutive years, and maintain healthy Dividend Safety Scores. The market’s strength has reduced the number of safe dividend stocks with high yields, but there are still several dozen worth reviewing. By the way, many of the people interested in high dividend s

6 Big Dividend Stocks to Buy as Yields Plunge

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Yields are plunging, and that makes big dividend stocks look that much more attractive A lot happened in financial markets in May. One of the more important things that happened was in the bond market. Fixed income yields plunged in May on concerns that the global economy is slowing and will continue to slow as trade tensions between the U.S. and China remain elevated. Specifically, the 10-Year Treasury Yield has dropped below 2.3% in late May, after peaking right around 3.3% in late 2018, and is now at its lowest level since late 2017. One implication of plunging yields is that stocks with big dividend yields become more attractive. Why? Because the lower yields go, the higher dividend yields are relative to those fixed income yields. Thus, when yields plunge, investors tend to flock into dividend stocks with big yields. Because of this dynamic, plunging yields create a good opportunity to buy into dividend stocks with big yields. Which stocks should be on

Is Johnson & Johnson A Buy In June 2019?

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When it comes to dividend growth stocks, healthcare giant Johnson & Johnson (JNJ) is among the best of the best. It has a legendary reputation among dividend investors, for a good reason. Johnson & Johnson has increased its dividend for 57 years in a row. It is a member of the Dividend Aristocrats, a group of 57 stocks in the S&P 500 Index with at least 25 years of annual dividend increases. They are the ‘best of the best’ dividend growth stocks. The Dividend Aristocrats have a long history of outperforming the market. The requirements to be a Dividend Aristocrat are: Be in the S&P 500 Have 25+ consecutive years of dividend increases Meet certain minimum size & liquidity requirements Not only is J&J a Dividend Aristocrat, it is also part of the even more exclusive list of Dividend Kings. The Dividend Kings total just 24 companies that have increased their dividends for 50+ consecutive years. Johnson & Johnson has all of the necess