7 Dividend Growth Stocks With Remarkably Consistent Earnings Growth

 

These dividend growth stocks have increased their earnings every year for at least ten years.

 

As a dividend growth investor, I highly value consistent earnings growth.

 

Consistent earnings growth gives a company options to grow the business, pay off debts, buy back shares, or pay dividends. Of course, I'm primarily interested in dividends, so I look for consistent dividend growth in addition to consistent earnings growth.

 

I consider dividend growth stocks to be stocks with increasing dividend payouts in each of the past five years. Dividend Radar tracks such stocks every week and publishes a comprehensive spreadsheet, downloadable for free, every Friday.

 

This article presents seven dividend growth stocks with remarkably consistent earnings growth over the past ten years.

 

For this article, I consider earnings growth to be consistent if a graph of the earnings over the past ten years increases monotonically. Here, monotonically increasing means that not a single year’s earnings are lower than the prior year’s earnings.

 

Portfolio Insight provides a powerful screener that allows users to create watch lists based on different fundamental metrics. But it doesn’t offer a screen that directly checks for monotonically increasing earnings.

 

 

Instead, I used the Non-GAAP EPS CAGR screen, requiring growth rates of at least 10% over each of the 1, 3, 5, and 10-year trailing periods. The screen produced no fewer than 82 candidates, but not all of them have monotonically increasing earnings. The reason is a decrease in one or more years can be “smoothed over” by the CAGR calculations.

 

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Notable Analyst Upgrades and Downgrades for Week of May 24, 2021

 

Upgrades:

 

Canadian National Railway (NYSE:CNI) (TSE:CNR) was upgraded by investment analysts at CIBC from a “neutral” rating to an “outperform” rating in a research report issued on Tuesday, The Fly reports.

A number of other brokerages have also weighed in on CNI. Vertical Research upgraded Canadian National Railway from a “hold” rating to a “buy” rating in a research note on Monday. Wells Fargo & Company increased their price objective on Canadian National Railway from $113.00 to $120.00 and gave the stock an “equal weight” rating in a research report on Tuesday, April 27th. BMO Capital Markets dropped their target price on Canadian National Railway from $152.00 to $150.00 and set an “outperform” rating for the company in a report on Monday, March 22nd. Desjardins decreased their price target on shares of Canadian National Railway from $150.00 to $146.00 and set a “hold” rating on the stock in a research note on Thursday, January 28th. Finally, National Bank Financial reiterated a “sector perform” rating on shares of Canadian National Railway in a research note on Wednesday, April 21st. Eleven investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company’s stock. Canadian National Railway has a consensus rating of “Hold” and a consensus target price of $128.94. Read more …

 

ONEOK (NYSE:OKE) was upgraded by stock analysts at Morgan Stanley from an "underweight" rating to an "equal weight" rating in a report issued on Wednesday, The Fly reports. The brokerage currently has a $55.00 price objective on the utilities provider's stock. Morgan Stanley's target price indicates a potential upside of 4.44% from the company's current price.

Other analysts have also recently issued reports about the stock. Royal Bank of Canada raised their price target on shares of ONEOK from $49.00 to $54.00 and gave the stock a "sector perform" rating in a report on Tuesday, May 4th. TheStreet raised ONEOK from a "c+" rating to a "b-" rating in a research note on Wednesday, April 28th. Credit Suisse Group lifted their target price on shares of ONEOK from $49.00 to $53.00 and gave the company a "neutral" rating in a research note on Monday, May 17th. Mizuho increased their price target on shares of ONEOK from $44.00 to $49.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 7th. They noted that the move was a valuation call. Finally, Raymond James lifted their price objective on shares of ONEOK from $47.00 to $54.00 and gave the company an "outperform" rating in a research note on Wednesday, April 21st. Two investment analysts have rated the stock with a sell rating, eleven have issued a hold rating, four have issued a buy rating and one has given a strong buy rating to the stock. The company presently has an average rating of "Hold" and an average price target of $42.76. Read more …

 

Johnson Controls International (NYSE:JCI) was upgraded by analysts at Barclays from an “equal weight” rating to an “overweight” rating in a research note issued on Wednesday, The Fly reports. The brokerage currently has a $75.00 price target on the stock, up from their prior price target of $67.00. Barclays‘s target price would indicate a potential upside of 15.49% from the stock’s current price.

A number of other equities analysts also recently commented on JCI. Morgan Stanley lifted their target price on shares of Johnson Controls International from $73.00 to $80.00 and gave the stock an “overweight” rating in a research note on Monday, May 10th. UBS Group raised shares of Johnson Controls International to a “buy” rating and lifted their target price for the stock from $57.00 to $70.00 in a research note on Thursday, April 22nd. Robert W. Baird lifted their target price on shares of Johnson Controls International from $56.00 to $66.00 and gave the stock a “neutral” rating in a research note on Tuesday, April 13th. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Johnson Controls International from $62.00 to $68.00 and gave the company a “hold” rating in a research report on Monday, May 3rd. Finally, Credit Suisse Group lifted their price target on shares of Johnson Controls International from $64.00 to $66.00 and gave the company an “outperform” rating in a research report on Monday, May 10th. Nine research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. Johnson Controls International presently has a consensus rating of “Buy” and a consensus target price of $55.78. Read more …

7 Top Dividend Stocks Trading at a Discount Worth Snapping Up

 

Consistent payouts are highly coveted, no matter the economic environment

 

Finding reliable dividend stocks can seem difficult, considering several companies cut their dividends last year and continue to do so.

 

Moreover, well-established and impressive businesses with strong histories of dividend growth usually trade at a premium. Dividends smooth out returns in times of volatility and typically make up one-third of a stock’s long-term total returns. So, it’s not surprising that these companies are highly valued.

 

But what if you want to invest in a dividend payer without paying an exorbitant price? If that’s the case, this list should be right up your alley.

 

These companies are steady, reliable dividend payers. In addition, they have financials setting them apart from other stocks — the names that suffer from volatile share prices or less frequent payouts.

 

 

So, without further ado, let’s take a deep dive into some of the best dividend stocks that are ace paymasters.

 

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WP Carey Inc Bumps Dividend for 79 Consecutive Quarters

 

WPC Stock May Be the Best REIT Stock Out There

 

For income investors, it’s all about the dividends. That means finding a company that not only has a strong enough balance sheet to provide stable dividends, but a company that has a long history of raising its dividends. For income-starved investors who’ve seen their portfolios take a beating during the coronavirus pandemic, it might be time to put WP Carey Inc (NYSE:WPC) on the radar.

 

If you’re looking for a real estate investment trust (REIT) to help weather stock market volatility, WP Carey stock could be it.

 

In addition to being one of the largest net lease REITs on the planet, WP Carey has the distinction of having one of the best dividends anywhere. The company has raised its annual dividends for 23 consecutive years and has raised its quarterly dividends for 79 consecutive quarters. It currently pays an annual dividend of $4.19 per share, for a dividend yield of 5.6%.

 

It’s tough to argue with numbers like that.

 

WP Carey has an enterprise value of approximately $19.0 billion and a diverse portfolio of 1,261 net lease properties in 25 countries. The vast majority of the properties are in the U.S. (62.4%) and Europe (35.6%). (Source: “Portfolio,” WP Carey Inc, last accessed May 18, 2021.)

 

 

Those properties cover a total of 146 million square feet (roughly 2,535 NFL football fields). WP Carey has an occupancy rate of 98.3% and leases with rent escalations that total 99%. The annualized base rent (ABR) across the company’s portfolio is $1.2 billion.

 

WP Carey Inc’s top 10 tenants represent 21.5% of its ABR and have a weighted average lease term of 12.1 years. These tenants are:

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Notable Analyst Upgrades and Downgrades for Week of May 17, 2021

 

Upgrades:

 

Cummins (NYSE:CMI) was upgraded by analysts at Bank of America from a “neutral” rating to a “buy” rating in a report issued on Monday, The Fly reports.

CMI has been the subject of several other reports. Jefferies Financial Group raised shares of Cummins from a “hold” rating to a “buy” rating and raised their target price for the company from $250.00 to $325.00 in a research note on Wednesday, March 10th. Robert W. Baird reaffirmed a “hold” rating on shares of Cummins in a report on Thursday, May 6th. Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell increased their price target on Cummins from $265.00 to $315.00 in a research note on Tuesday, March 16th. Vertical Research assumed coverage on Cummins in a report on Wednesday, January 20th. They set a “hold” rating for the company. Finally, Credit Suisse Group upped their price objective on Cummins from $285.00 to $300.00 and gave the stock an “outperform” rating in a report on Wednesday, May 5th. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating and eight have given a buy rating to the stock. Cummins has an average rating of “Hold” and a consensus target price of $256.25. Read more …

 

Visa (NYSE:V) was upgraded by research analysts at Daiwa Capital Markets from a “neutral” rating to an “outperform” rating in a report released on Tuesday, The Fly reports. The firm presently has a $259.00 price target on the credit-card processor’s stock. Daiwa Capital Markets’ price target suggests a potential upside of 14.38% from the company’s previous close.

Other equities research analysts also recently issued reports about the company. Morgan Stanley lifted their price objective on Visa from $258.00 to $279.00 and gave the stock an “overweight” rating in a report on Monday, May 3rd. Jefferies Financial Group lifted their price objective on Visa from $260.00 to $275.00 and gave the stock a “buy” rating in a report on Tuesday, May 4th. Oppenheimer lifted their price objective on Visa from $245.00 to $260.00 in a report on Wednesday, April 28th. Robert W. Baird restated a “buy” rating and set a $256.00 price objective on shares of Visa in a report on Sunday, April 11th. Finally, Sanford C. Bernstein began coverage on Visa in a report on Tuesday, January 26th. They set an “outperform” rating and a $232.00 price objective on the stock. One equities research analyst has rated the stock with a hold rating and twenty-five have assigned a buy rating to the company. The company presently has an average rating of “Buy” and an average price target of $248.29. Read more …

 

Mastercard (NYSE:MA) was upgraded by equities researchers at Daiwa Capital Markets from a "neutral" rating to an "outperform" rating in a research note issued on Tuesday, Briefing.com reports. The firm presently has a $402.00 price target on the credit services provider's stock. Daiwa Capital Markets' target price would suggest a potential upside of 10.65% from the stock's previous close.

Other equities research analysts also recently issued reports about the stock. Macquarie lifted their price objective on shares of Mastercard from $385.00 to $425.00 and gave the stock an "outperform" rating in a research note on Friday, April 30th. Sanford C. Bernstein began coverage on shares of Mastercard in a research note on Wednesday, January 27th. They set an "outperform" rating and a $380.00 price objective for the company. Jefferies Financial Group raised their target price on shares of Mastercard from $440.00 to $450.00 and gave the stock a "buy" rating in a report on Thursday, May 6th. Truist raised their target price on shares of Mastercard from $415.00 to $450.00 in a report on Friday, March 5th. Finally, Raymond James raised their target price on shares of Mastercard from $345.00 to $371.00 and gave the stock an "outperform" rating in a report on Friday, January 29th. Two analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the company's stock. Mastercard currently has a consensus rating of "Buy" and an average target price of $388.65. Read more …

 

 

UBS Group (NYSE:UBS) was upgraded by Deutsche Bank Aktiengesellschaft to a "buy" rating in a report released on Wednesday, AnalystRatings.com reports.

Several other equities research analysts have also weighed in on the company. Kepler Capital Markets reissued a "buy" rating on shares of UBS Group in a report on Friday, February 19th. Berenberg Bank reissued a "buy" rating on shares of UBS Group in a report on Thursday, April 29th. Morgan Stanley reissued an "equal weight" rating on shares of UBS Group in a report on Monday, April 12th. Barclays reissued an "underweight" rating on shares of UBS Group in a report on Wednesday, April 21st. Finally, JPMorgan Chase & Co. reaffirmed an "overweight" rating on shares of UBS Group in a report on Wednesday, April 28th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and eight have issued a buy rating to the company. UBS Group presently has an average rating of "Hold" and a consensus target price of $16.00.

NYSE UBS opened at $15.53 on Wednesday. The business's fifty day moving average is $15.65 and its 200-day moving average is $14.97. UBS Group has a one year low of $9.75 and a one year high of $16.31. The stock has a market capitalization of $56.84 billion, a price-to-earnings ratio of 10.28, a PEG ratio of 1.43 and a beta of 1.26. The company has a debt-to-equity ratio of 3.19, a current ratio of 1.00 and a quick ratio of 1.00. Read more …

7 Dividend-Paying Growth Stocks To Buy for the Best Of Both Worlds

 

It's tough to find excellent growth stocks that also pay high dividends, but this list has you covered

 

Despite the heavy economic toll, last year’s recession was one of the shortest in history. Due to quick action by the Federal Reserve, the stock markets have recovered handily from the novel coronavirus pandemic, and the first quarter was marked by intense price momentum for growth stocks.

 

However, despite a pretty quick economic recovery, dividend stocks suffered massive hits last year. Understandably, with businesses suffering due to prolonged lockdowns, companies had to make tough decisions, including dividend suspensions that could cause some hurt to income investors.

 

Now that the dust has settled, though, it seems that it’s a perfect time to look at the dividend stocks that weathered this storm and came out on top. Although the occasions were rare, there were several companies that not only maintained their payouts but boosted dividends. If that isn’t a hallmark of a great dividend stock, then I don’t know what is.

 

But before we take a deep dive into these individual names, it’s also worth noting that we have compiled this list to include companies that are high growth names as well. This is because unlike bonds that pay a fixed principal and interest, dividend growers need to keep increasing payouts. And they can only do that if they have a high degree of financial soundness that can help maintain the dividend payouts year after year.

 

 

With those factors in mind, here are seven companies that are growing their payouts alongside giving a solid bottom-line performance:

 

Continue reading …

 

20 Dividend Stocks to Fund 20 Years of Retirement

 

Each of these high-quality dividend stocks yields roughly 4%, and you can expect them to grow their payouts even more. That's a powerful 1-2 combo for retirement income.

 

Once upon a time, if you were planning to retire, the traditional wisdom was the "4% rule." You withdraw 4% of your savings in the first year of retirement, followed by "pay raises" in each subsequent year to account for inflation. The idea is that, if you're invested in a mix of dividend stocks, bonds and even a few growth equities, your money should last across a 20-year retirement.

 

But the world looks much different today. Interest rates and bond yields are near historic lows, reducing future expected returns. Complicating retirement planning even further is the fact Americans are living longer than ever before.

 

If you're wondering how to retire without facing the uncomfortable decision of what securities to sell, or questioning whether you are at risk of outliving your savings, wonder no more. You can lean on the cash from dividend stocks to fund a substantial portion of your retirement without touching your principal. Indeed, Simply Safe Dividends has even provided an in-depth guide about living on dividends in retirement.

 

The broader market's yield might be chintzy at the moment, but many companies yield 4% or more currently. And if you rely on solid dividend stocks for that 4% annually, you won't have to worry as much about the market's unpredictable fluctuations. Better still, because you likely won't have to eat away at your nest egg as much, you'll have a better chance of leaving your heirs with a sizable windfall when the time comes.

 

 

Read on as we explore 20 high-quality dividend stocks, yielding on average well above 4%, that should fund at least 20 years of retirement, if not more. Each has paid uninterrupted dividends for more than two decades, has a fundamentally secure payout and has the potential to collectively grow its dividends to protect investors' purchasing power over time.

 

Continue reading …

 

Notable Analyst Upgrades and Downgrades for Week of May 10, 2021

 

Upgrades:

 

NIKE (NYSE:NKE) was upgraded by stock analysts at Jefferies Financial Group from a “hold” rating to a “buy” rating in a report released on Tuesday, The Fly reports. The brokerage currently has a $192.00 target price on the footwear maker’s stock, up from their prior target price of $140.00. Jefferies Financial Group’s price objective indicates a potential upside of 40.76% from the stock’s current price.

Other research analysts have also recently issued reports about the stock. Barclays reissued a “buy” rating and set a $174.00 target price on shares of NIKE in a research report on Friday, March 19th. Cowen boosted their target price on shares of NIKE from $170.00 to $173.00 and gave the stock an “outperform” rating in a research report on Tuesday, March 23rd. Pivotal Research upped their price target on shares of NIKE from $160.00 to $167.00 and gave the company a “buy” rating in a report on Tuesday, March 16th. KeyCorp upped their price target on shares of NIKE from $174.00 to $180.00 and gave the company an “overweight” rating in a report on Monday, January 25th. Finally, Zacks Investment Research cut shares of NIKE from a “buy” rating to a “hold” rating and set a $146.00 price target on the stock. in a report on Monday, March 22nd. One research analyst has rated the stock with a sell rating, three have given a hold rating and thirty-one have assigned a buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus target price of $161.31. Read more …

 

Vodafone Group (NASDAQ:VOD) was upgraded by equities research analysts at The Goldman Sachs Group from a "buy" rating to a "conviction-buy" rating in a research report issued on Tuesday, The Fly reports.

A number of other equities research analysts have also recently weighed in on the stock. Morgan Stanley started coverage on shares of Vodafone Group in a research note on Thursday, March 25th. They set an "overweight" rating on the stock. Deutsche Bank Aktiengesellschaft restated a "buy" rating on shares of Vodafone Group in a research note on Friday. Barclays restated an "overweight" rating on shares of Vodafone Group in a research note on Thursday, February 4th. Zacks Investment Research cut shares of Vodafone Group from a "buy" rating to a "hold" rating in a research report on Tuesday, February 9th. Finally, JPMorgan Chase & Co. reiterated an "overweight" rating on shares of Vodafone Group in a research report on Thursday, February 4th. Two equities research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company's stock. The company currently has a consensus rating of "Buy" and an average target price of $18.00.

Shares of NASDAQ VOD opened at $20.19 on Tuesday. Vodafone Group has a fifty-two week low of $13.14 and a fifty-two week high of $20.36. The firm's 50-day simple moving average is $18.91 and its 200 day simple moving average is $17.53. The company has a quick ratio of 1.10, a current ratio of 1.12 and a debt-to-equity ratio of 1.03. The stock has a market cap of $56.98 billion, a P/E ratio of 32.56, a P/E/G ratio of 1.16 and a beta of 0.97. Read more …

 

Eastman Chemical (NYSE:EMN) was upgraded by stock analysts at The Goldman Sachs Group from a “neutral” rating to a “buy” rating in a research note issued on Tuesday, The Fly reports. The firm currently has a $148.00 target price on the basic materials company’s stock. The Goldman Sachs Group’s target price suggests a potential upside of 18.51% from the company’s previous close.

A number of other equities research analysts have also issued reports on the stock. Wells Fargo & Company increased their target price on shares of Eastman Chemical from $114.00 to $120.00 and gave the stock an “overweight” rating in a report on Tuesday, February 2nd. Zacks Investment Research lowered shares of Eastman Chemical from a “buy” rating to a “hold” rating and set a $105.00 target price on the stock. in a report on Thursday, January 28th. Tudor Pickering lowered shares of Eastman Chemical from a “buy” rating to a “hold” rating and set a $117.00 target price on the stock. in a report on Monday, May 3rd. Deutsche Bank Aktiengesellschaft increased their target price on shares of Eastman Chemical from $115.00 to $126.00 and gave the stock a “buy” rating in a report on Monday, March 22nd. Finally, KeyCorp increased their target price on shares of Eastman Chemical from $126.00 to $135.00 and gave the stock an “overweight” rating in a report on Monday. Six investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. The stock currently has an average rating of “Buy” and a consensus target price of $109.23. Read more …

 

 

Ventas (NYSE:VTR) was upgraded by equities researchers at Robert W. Baird from a "neutral" rating to an "outperform" rating in a note issued to investors on Thursday, The Fly reports.

A number of other equities research analysts have also weighed in on the company. KeyCorp raised Ventas from an "underweight" rating to an "overweight" rating and lifted their price objective for the company from $49.00 to $60.00 in a report on Thursday. Morgan Stanley upped their price objective on Ventas from $52.00 to $58.00 and gave the stock an "equal weight" rating in a report on Monday, March 22nd. Zacks Investment Research upgraded Ventas from a "strong sell" rating to a "hold" rating and set a $58.00 price objective for the company in a research report on Thursday, April 8th. Mizuho boosted their target price on shares of Ventas from $38.00 to $45.00 and gave the stock a "neutral" rating in a research report on Tuesday, February 9th. Finally, Royal Bank of Canada increased their price target on shares of Ventas from $54.00 to $58.00 and gave the company an "outperform" rating in a report on Tuesday, March 2nd. Three investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and five have given a buy rating to the company. The company has an average rating of "Hold" and a consensus price target of $48.47. Read more …

10 Ideal Dividend Stocks for Your Retirement

 

Dividend stocks remain an excellent way to grow your portfolio before and during retirement

  

In October 2020, I created a dividend ladder for an article I was writing about dividend stocks. The idea was to select a stock yielding 1%, 2%, 3%, all the way to 7% or beyond.

 

The thing is, you can’t always find good companies at precisely each of those yield points at a particular point in time, so you’ve got to maintain some flexibility.

 

The original seven dividend stocks have all performed well above my expectations over the past six months. However, I rarely recommend stocks for near-term gains. I almost always look out 3-5 years. That’s where the real money’s made.

 

I’ve been asked to write about 10 ideal dividend stocks for your retirement. I want to repeat my October exercise by creating a dividend ladder. Instead of listing my recommendations in ascending order, this time, I’ll go in descending order from 10% down to 1%.

 

Like I said earlier, I’ll do my best to meet my yield points, keeping in mind that the overall exercise here is for investors to make money in the long run while remaining relatively stress-free about their holdings.

 

 

Some of these stocks are meant to play defense, while others are meant to go on the offensive. Together, they’ll make for a healthy and wealthy retirement.

 

Continue reading …

 

Why Kinder Morgan Is a Good Pick for Value Investors

 

Prospects are improving and the 6% dividend yield is very attractive

 

Kinder Morgan Inc. (KMI, Financial) is a prominent energy infrastructure company in North America and is one of the largest operators of natural gas pipelines in the region.

 

When a polar vortex crippled the power grid in February and halted gas supplies, causing rates to skyrocket to unimaginable heights, gas and electricity sellers and distributors across Texas suffered billions of dollars in damages. Kinder Morgan and companies such as Comstock Resources Inc. (CRK, Financial), however, profited handsomely on the other side of the trade thanks to higher gas prices.

 

In addition to its North American business, the company is laying the groundwork to become a leading liquified natural gas exporter as well, which could pay lucrative returns in the future.

 

Even though there is an overall decrease in oil and natural gas consumption today, the expected recovery of the global economy in the second half of this year will restore some lost demand, paving the way for Kinder Morgan to report strong earnings growth.

 

 

Shares have gained 19% in the last 12 months, but still seem undervalued in my opinion considering the improving prospects for the energy industry. Let's take a look at my reasons for thinking this way.

 

Continue reading …

 

10 Super-Safe Dividend Stocks to Buy Now

 

Want to have your cake and eat it, too? Here are 10 safe dividend stocks that have a strong history of boosting cash payouts to shareholders.

 

Safe dividend stocks are like the equity investment world's version of having your cake and eating it, too: Not only do investors get a nice dividend payout every quarter, but they also participate in the stock's gains. If the stock price slides, the dividend is there to cushion the blow.

 

But how, exactly, does one determine whether a dividend is truly safe?

 

One place we like to look on occasion is the DIVCON system from investment firm Reality Shares, which analyzes stocks that pay a dividend among the largest U.S. companies. These are not your conventional choices; they weren't picked just for their dividend yield. Rather, these are the safest dividend stocks, rated highest for both potential future cash payouts and share price increases.

 

DIVCON (which stands for "dividend condition") uses seven factors to assess a company's dividend health: dividend growth forecast, levered free cash flow, earnings growth, five-year dividend history, buybacks, financial strength and the dividend health score given by a third party.

 

Companies are then given a DIVCON Score between 1 and 100, then assigned a DIVCON Rating between 1 (highest probability of a dividend cut) and 5 (highest probability of a dividend increase). The implication? Firms with high scores are likely safe dividend stocks.

 

 

Why this matters: Companies with the highest dividend growth rates have outperformed the S&P 500 Index since 2000, whether in boom times (the 2009-2020 bull market, for example) or bust (think the 2007-2008 financial crisis), according to Reality Shares.

 

Continue reading …

 

Magna International Inc. Provides More than Just Dividends

 

Why Magna Stock Could Be Special

 

 

When I first told Income Investors readers about Magna International Inc. (NYSE:MGA) in September 2017, I wrote that the company was “well-positioned to deliver rising payouts to shareholders.”

 

Magna did not disappoint. Back then, MGA stock had a quarterly dividend rate of $0.275 per share. Today, it’s at $0.43 per share, marking an increase of 56.4%.

 

But dividends aren’t the only thing Magna stock investors have collected over the years; the company’s share price has also shot up. Assuming automatic dividend reinvestment, the total returns from MGA stock since my 2017 article was published is now over 95%.

 

However you look at it, this is a unique company.

 

Magna comes from the automotive sector, which is known for being cyclical. And that cyclicality is not a good thing when it comes to dividend safety. For instance, in light of the COVID-19 pandemic, Ford Motor Company (NYSE:F) suspended its quarterly dividend in March 2020, and General Motors Company (NYSE:GM) followed suit in April 2020. At the time of this writing, neither company has reinstated its dividend.

 

 

And yet, Magna International Inc., an automotive supplier, not only maintained its dividend payments in 2020, but also announced a 7.5% dividend increase in February 2021. The new dividend rate went into effect starting with the March 2021 payment.

 

Continue reading …

 

AbbVie- A High Dividend Opportunity

 

AbbVie (ABBV) is the seventh-largest pharmaceutical company on the globe in terms of revenue; the company is also a Dividend Aristocrat, having nearly a half-century of dividend growth to its credit.

 

Since splitting from Abbott Labs (ABT) in 2013, AbbVie has grown revenue by nearly 2.5 times, from $18.8 billion post-spin-off to nearly $46 billion this last fiscal year. Much of the growth was fueled by the blockbuster drug, Humira.

 

Therein lies the problem with an investment in the stock. As the number-one selling drug in 2020, Humira sales constituted the lion’s share of the firm’s revenue.

 

Combine that outsized contribution with the fact that Humira goes off-patent in the U.S. in 2023, and there is cause for concern.

 

At the same time, however, there are reasons to believe AbbVie is well-positioned for a future without Humira. The 2015 deal to acquire Pharmacyclics added blockbuster drug Imbruvica to the company’s portfolio.

 

A second acquisition last May brought Allergan under the firm’s banner. With that deal, the company added over 120 additional products that, collectively, generated $16 billion in sales in 2019.

 

Much of the growth in AbbVie’s revenue, an increase from less than $33.3 billion in FY19 to approximately $45.8 billion in FY20, can be attributed to the addition of Allergan product lines.

 

 

Perhaps the most important of those is Botox. In 2019, it recorded nearly $2.7 billion in sales. Like Imbruvica, Botox has a fairly strong growth runway. Allergan also added 60 development programs to AbbVie’s pipeline.

 

Continue reading …