Showing posts with label Dividend. Show all posts
Showing posts with label Dividend. Show all posts

June 14, 2022

3 Discounted Dividend Aristocrats

 

These high-quality, discounted dividend growth stocks have increased their dividend payouts every year for at least 25 years.

 

 


The annual rebalancing and subsequent changes to the S&P 500 Dividend Aristocrats Index have produced a new list of 64 Dividend Aristocrats. These elite companies in the S&P 500 have paid higher dividends every year for at least 25 consecutive years. S&P Dow Jones Indices maintains the index and updates it annually in January.

 

Recently, I ranked the 64 Dividend Aristocrats by quality scores according to DVK Quality Snapshots. Follow the link to download a spreadsheet with fundamental and added value data of all 64 Dividend Aristocrats, courtesy of Portfolio Insight.

 

This article looks at three Dividend Aristocrats trading well below my risk-adjusted Buy Below prices. Two stocks are rated Excellent with quality scores of 23 and 24 (out of 25), respectively, while the other stock is rated Fine with quality scores of 19. The three stocks are discounted by at least 16% relative to my Buy Below prices.

 

I use a survey approach to estimate fair value by collecting fair value estimates and price targets from several online sources, including Portfolio Insight, Morningstar, and Finbox. Additionally, I estimate fair value by dividing each stock’s annualized dividend by its historical 5-year average dividend yield. With as many as 11 available estimates per stock, I ignore the outliers (the lowest and highest values) and use the average of the median and mean of the remaining values as my fair value estimate. Averaging the mean (average) and median (middle value) helps to adjust for skewness in the surveyed estimates.

 

 

Continue reading …


June 8, 2022

V.F. Corporation: Undervalued Dividend Aristocrat



 

The markets are back to this year’s lows, although they have bounced back during last week. Many stocks are still trading at or near their 52-week lows. When the market is down, I like to find support levels and create price alerts at those support levels for all the companies that I am interested in buying. One example is V.F. Corporation (VFC), which is an undervalued Dividend Aristocrat.

 

V.F. Corporation (VFC) is one company that has my interest because it hit a critical support level at $45. The chart below shows that it bounced higher when the stock hit the $45 price point. I am very interested in buying shares at this price. The stock is now above the $45 price point with a share price of about $50 per share. However, VFC is still undervalued at current levels, and the dividend yield is just about 4% and attractive mix. We will discuss more details about the company and the amount of undervaluation.

 

Overview of VF Corp

 

The VF Corporation is an American global apparel and footwear company founded in 1899 and now headquartered in Denver, Colorado. The company was formerly known as Vanity Fair mills until 1969. The company’s 13 brands are organized into three categories: Outdoor, Active, and Work. The primary brands are North Face, Timberland, Smartwool, Icebreaker, Altra, Vans, Supreme, Kipling, Napapijri, Eastpak, JanSport, and Dickies. In addition, the company controls 55% of the U.S. backpack market with the JanSport, Eastpak, Timberland, and North Face brands.

 

VFC’s stock price was down 44.5% since its high in April 2021. The main driver of the stock price decrease is that the company is struggling with product shortages, high shipping costs, a stronger dollar, and COVID-19 virus-related disruptions in China. Still, VFC appears to be doing a reasonable job of alleviating these challenges.

 

 

The current stock price of $50.18 (as of this writing) is right at the lower end of the 52-week range, between $44.18 and $84.96 per share. Thus, VFC looks like a stock that seems to be in the right place to buy up shares where both the 52-week range and support line meet.

 

Continue reading …

 

June 6, 2022

20 Dividend Stocks to Fund 20 Years of Retirement

 

Each of these high-quality dividend stocks boast attractive yields, 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. Stocks and bonds are slumping as interest rates jump from historic lows, making future expected returns and withdrawal rates less comfortable to forecast. Complicating retirement planning even further is the fact Americans are living longer than ever before and face the highest rate of inflation in a generation.

 

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.

 

With the market selling off in 2022, investors can find many stocks yielding 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 where the market heads from here so long as those payouts remain on solid ground.

 

 

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

 

Continue reading …


June 1, 2022

7 Safe Dividend Stocks With High Yields to Buy Now

 

Emphasizing total return is a good way to let the game come to you

 


 

The relative safety of dividend stocks makes them a compelling choice at any time. However, at times when many equities (and entire indexes) are posting negative growth, safe dividend stocks really shine. That’s because these stocks generate regular income that investors can reinvest. This boosts the total return of an investment.

 

Dividend stocks are usually stable companies with reliable earnings that they reinvest for the benefit of shareholders. In bullish times, this dividend can help to bring a stock’s total return on par with higher growth stocks. And in bearish times, this can help to mitigate losses.

 

One frequently referenced component of dividend stocks is the dividend yield. In general, a higher yield is better than a lower one. But there are other factors, such as the sector a company is in, that provide context for its yield. What many investors find more important is a company that has solid fundamentals that support the current dividend and offer an opportunity for the dividend to increase over time.

 

 

With that in mind here are seven safe dividend stocks with a high yield that can boost your total return.

 

Continue reading …

 

May 31, 2022

12 Best Monthly Dividend Stocks and Funds for the Rest of 2022

 

Your bills come monthly. Why not your dividend checks? These are some of 2022's best monthly dividend stocks and funds for easier income planning.

 


For all the changes we've experienced in recent years, some things remain regrettably the same. We all have bills to pay, and those bills generally come monthly. Whether it's your mortgage, your car payment or even your regular phone and utility bills, you're generally expected to pay every month.

 

While we're in our working years, that's not necessarily a problem, as paychecks generally come every two weeks. And even for those in retirement, Social Security and (if you're lucky enough to have one) pension payments also come on a regular monthly schedule. But unfortunately, it doesn't work that way in our investment portfolios.

 

That's where monthly dividend stocks come into play.

 

Dividend-paying stocks generally pay quarterly, and most bonds pay semiannually, or twice per year. This has a way of making portfolio income lumpy, as dividend and interest payments often come in clusters.

 

Well, monthly dividend stocks can help smooth out that income stream and better align your inflows with your outflows.

 

"We'd never recommend buying a stock purely because it has a monthly dividend," says Rachel Klinger, president of McCann Wealth Strategies, an investment adviser based in State College, Pennsylvania. "But monthly dividend stocks can be a nice addition to a portfolio and can add a little regularity to an investor's income stream."

 

 

Today, we're going to look at 12 of the best monthly dividend stocks and funds to buy for the remainder of 2022. You'll see some similarities across the selections. That's because monthly dividend stocks tend to be concentrated in a small handful of sectors such as real estate investment trusts (REITs), closed-end funds (CEFs) and business development companies (BDCs). These sectors tend to be more income-focused than growth-focused and sport yields that are vastly higher than the market average.

 

Continue reading …

 

May 24, 2022

The 20 Best Canadian Dividend Stocks for U.S. Investors

 

These 20 Canadian Dividend Aristocrats trade on either the NYSE or Nasdaq, and have increased their dividends annually for at least seven years.

 

 


The U.S. is home to literally thousands of dividend payers, which would seem to eliminate the need to look elsewhere for income. But there's a convincing case to be made for at least a handful of Canadian dividend stocks.

 

American investors interested in generating a combination of income and capital appreciation often look to the Dividend Aristocrats – a select group of 65 S&P 500 stocks that have improved their annual payouts for at least 25 consecutive years.

 

However, a little international diversification can help provide ballast to most portfolios. And if you like the idea of purchasing payout-raising stocks, you can do that across a number of regions – including our neighbors up north.

 

The Canadian Dividend Aristocrats currently total 94 stocks at present. To qualify for inclusion, these Canadian dividend stocks must be listed on the Toronto Stock Exchange, be a member of the S&P Canada BMI (Broad Market Index), must increase their annual payout for five consecutive years (they can maintain the same dividend for two consecutive years) and have a float-adjusted market cap of at least C$300 million.

 

 

 

While 94 stocks qualify for the index, we've thinned the herd somewhat for U.S. investors. Here, then, are 20 of the top Canadian dividend stocks to buy that are listed on either the New York Stock Exchange or Nasdaq.

 

Continue reading …

 

May 19, 2022

6 Undervalued Stocks With Growing Earnings and Dividends

 

These stocks are very attractive undervalued dividend stocks with low P/E's, good earnings and low payout ratios

 

 



Each entry in this list of undervalued stocks has good dividend growth prospects and appears to be undervalued. That’s an excellent combination for an investor. After all, typically a company will not keep raising its dividends unless the underlying earnings and cash flow are growing as well. That bodes well for these undervalued dividend stocks.

 

On the other hand, high-growth companies typically do not pay out dividends. So, in a way, this is the best of both worlds. These companies have good growth, but aren’t so focused on it that they can’t afford to return capital to their shareholders. And they are still growing their earnings — otherwise, they wouldn’t keep raising their dividends.

 

For example, many companies that are expanding their dividends generate enough free cash flow to also buy back stock and make acquisitions. Both of these can lead to higher earnings per share and also higher dividends per share.

 

 

Some of these stocks are fairly recession-resistant as well.

 

Let’s dive in and look at these undervalued dividend stocks:

 

Continue reading …

 

May 16, 2022

3 Business Development Companies With High Dividend Yields

 



Interest rates on treasuries have been rising in recent months, but they are still too low for many income investors. They also do not offer reliable inflation protection, and payouts from treasuries do not rise over time. Equities are thus still the best choice for many income investors, especially for those looking for somewhat higher yields.

 

One particular group of equities that can be highly interesting for income investors are the business development companies or BDCs. Business development companies are unregistered, closed-end investment companies that primarily invest in small and medium-sized businesses. By legislation, these BDCs have to invest at least 70% of their assets in US companies with a market value of below $250 million that are not publicly traded.

 

BDCs thus serve an important function, as they provide capital for small or mid-sized businesses that oftentimes cannot access capital easily. In turn, this allows BDCs to demand interest rates from the businesses it provides capital to that are higher than what the typical bank receives when it loans out money. The yields on investments are thus generally favorably for BDCs, although one can argue that their loans do, on average, come with higher risks than the typical loans made by banks.

 

BDCs are not taxed on the corporate level as long as they distribute at least 90% of their taxable income to investors. This is comparable to what taxation looks like for REITs, as those also can avoid taxes when making high-enough distributions to their owners.

 

 

The special taxation laws explain why BDCs do oftentimes offer quite high dividend yields. Them returning most of their profits to shareholders via dividends leads to attractive dividend yields for investors, while it allows BDCs to avoid corporate taxes at the same time. In this report, we will take a look at three high-yield BDCs that look attractive at current prices.

 

Continue reading …

May 12, 2022

7 Dividend Stocks to Buy for May With Yields Over 6%

 

Passively grow your portfolio with these ideas

 


 

Hardly a popular topic due to its wide-ranging implications, rising fears of a recession are becoming much more pronounced. Primarily, the benchmark equity indices are struggling for momentum, which is not a great sign amid myriad political and economic pressure points. Further, governmental action to address the concerns of Main Street may exacerbate the crisis. About the only good news is that high-yield dividend stocks to buy may offer investors a reprieve.

 

For one thing, the growth narrative that has guided the arguably unloved bull market may have finally hit its peak. Even the post-coronavirus pandemic storyline, which basically posited that unprecedented fiscal and monetary support would drive up productivity, is becoming strained. As evidence of this dynamic, former heavy hitters like Netflix (NASDAQ:NFLX) have been forced to lay off workers. Under such a backdrop, dividend stocks increasingly make more sense.

 

Mainly, companies that offer passive income are focused (naturally) on profitability and sustainability, all other things being equal. While such a framework is a far departure from the sexy super-growth stories that analysts in less-complicated market cycles have delivered to their clients, right now, dividend stocks theoretically present the most rational investment. With the purchasing power of the dollar in rapid decline, investors are focused on pain mitigation.

 

 

That’s not to say that passive income is a guaranteed bet — far from it. However, with the turmoil in the global economy, investors ought to consider pivoting some portion of their portfolios to high-yield dividend stocks to buy.

 

Continue reading …

 

May 9, 2022

12 of Wall Street's Newest Dividend Stocks

 

Data shows dividend growers and initiators tend to outperform the broader market. Here are 12 new dividend stocks to consider.

 


 

Skyrocketing inflation has spurred demand for investments that can keep pace with rising prices. This includes renewed interest in income-paying investments, including both old and new dividend stocks.

 

"If inflation is here to stay, I believe dividend growth stocks are likely to outperform," says Denise Chisholm, director of quantitative market strategy for Fidelity. Her research, which focuses on stock performance during periods of high inflation, found that stocks with rising dividends outperform the broader market.  

 

And a firm's ability to pay a dividend is a sign of quality. Companies that initiate new dividends join an elite group whose members stand out for their generous cash flows, solid balance sheets and commitment to creating shareholder value.

 

"Initiating a new dividend is often a sign that a company has matured into a stable and more durable business and one that's a lot less likely to disappoint," says John Del Vecchio, forensic accountant and co-manager of the AdvisorShares Ranger Equity Bear ETF (HDGE) says.

 

The data supports these assertions. A study by Ned Davis Research found that dividend stocks have experienced the highest returns relative to other stocks since 1973 while exhibiting significantly lower volatility.

 

Between 1973 and 2021, dividend growers and those that initiated new dividends produced an average annual return of 10.7% and a standard deviation of 16.0%. Over this same period, the S&P 500 generated an average 8.2% annual return and a 17.5% standard deviation. The average annual return for non-dividend stocks was even lower, while the standard deviation was higher.

 

 

Despite a U.S. economy that is hindered by supply-chain challenges, worker shortages and rising prices, some companies are prospering in the current environment and showcasing their strength by initiating dividends.

 

Here, we take a closer look at 12 new dividend stocks. Not every pick is necessarily a recommendation, but this list of recent dividend initiators may certainly be a good starting point for further research. 


Continue reading …

 

May 5, 2022

Dividend Kings In Focus: Illinois Tool Works

 

Each year, we individually review all the Dividend Kings. The next in the series is Illinois Tool Works (ITW).

 


Illinois Tool Works has increased its dividend for 50 consecutive years, which is especially impressive since it operates in a highly cyclical sector. This article will discuss the major factors for Illinois Tool Works’ long dividend history.

 

 

Business Overview

Illinois Tool Works has been in business for more than 100 years. It started out all the way back in 1902 when a financier named Byron Smith placed an ad in the Economist. At the time, Smith was looking to invest in a “high-class business (manufacturing preferred) in or near Chicago.” A group of inventors approached Smith with an idea to improve gear grinding, and Illinois Tool Works was born.

 

Today, Illinois Tool Works has a market capitalization of $68 billion and generates annual revenue of nearly $15 billion. Illinois Tool Works is composed of seven segments: Automotive, Food Equipment, Test & Measurement, Welding, Polymers & Fluids, Construction Products, and Specialty Products.

 

These segments have performed very well against its peers and has allowed Illinois Tool Works to achieve “best of breed” status in its industry.

 

Illinois Tool Works’ portfolio is concentrated in product segments that each hold above-average growth potential in their respective markets. The overarching strategic growth plan for Illinois Tool Works is to continuously reshape its business model, when necessary. The company frequently utilizes bolt-on acquisitions to expand its reach.

 

 

Growth Prospects

While 2020 was a very difficult year for the global economy, due to the coronavirus pandemic which weighed heavily on economic growth, Illinois Tool Works continued to generate steady profits. In 2021, the company continued to grow its earnings and the stock price continued to run higher with a total year return of 23.4% for the entire year of 2021.

 

Continue reading …

 

May 3, 2022

7 A-Rated Dividend Stocks to Buy Forever

Regardless of what the market make these seven high-quality dividend stocks long-term portfolio holdings




Looking for plays that can perform well in any market? Consider dividend stocks. Whether in a bull market and a bear market, high-quality names in this category provide steady returns through their respective payouts.


During bear markets, these types of plays can show greater resiliency. During bull markets, shares in fundamentally-superior companies with a steady dividend perform well. They may not go parabolic like some growth names when the market’s trending higher, but they do typically experience steady appreciation during such market conditions.



However, the key words here are “high-quality” and “fundamentally superior.” Not every stock with a payout makes a great play, yet if you focus on quality first, yield second, you can find many names that stand to provide solid returns over a long timeframe. Through bull markets, bear markets, and everything in-between. That’s the case here with these seven A-rated dividend stocks:


Continue reading …


April 28, 2022

3 Dividend ETFs to Buy if You’re Yearning for Yield

 

Combat multiple variables with these passive income funds

 


 

While wagering on a single high-growth stock often features the greatest reward potential, such a targeted order could easily go awry. That’s why exchange-traded funds (ETFs) offer a viable tool for risk-averse investors, allowing buyers to distribute downside threats across a wide surface area. In the same vein, people should consider adding dividend ETFs to buy for their portfolios.

 

Primarily, dividend ETFs are incredibly relevant under present circumstances. Heading into 2022, American consumers recovering from the impact of the coronavirus pandemic faced another outbreak: soaring inflation. Soon thereafter, Russia made the unsettling decision to invade Ukraine, sparking greater pressure on the new normal economy. Given that prices are likely to continue accelerating – particularly for energy costs – passive income funds help mitigate the devastating surge.

 

Secondly, dividend ETFs allow investors to enjoy greater confidence in the stability of their returns. Let me be clear that any venture connected to the capital markets is subject to some baseline risk. However, betting on any one company or asset for passive income could be incredibly treacherous, especially under present circumstances. Thus, a passive income-generating ETF would make more sense due to diversification.

 

 

 

Finally, these funds are structured in such a way to hopefully deliver a stated goal, such as reliability or higher payouts. Therefore, the below dividend ETFs could be useful tools during these difficult times.

 

Continue reading …

 

April 26, 2022

7 Dividend-Paying Undervalued Stocks With Large Buyback Programs to Buy Now

 

These 7 undervalued stocks returning capital to shareholders

 


 

These seven undervalued stocks are worth buying since they are dedicated to returning capital to shareholders through large buyback programs. This is through both dividend payments that are generous and share repurchases. The repurchases reduce shares outstanding, which has three immediate effects.

 

To begin with, it increases the remaining shareholders’ stake in the company. This allows them to gain a bigger portion of any shareholder capital returns, including spin-offs, dividends and rights offerings.

 

As well, a stock repurchase ultimately allows the company to make a higher dividend per share payment in the future for the same cost as before.

 

 

And, the smaller number of shares outstanding automatically increases earnings per share. Another major effect of share repurchases is that the stock price tends to rise as the company soaks up demand from selling shareholders.

 

Let’s dive in and look at these undervalued stocks.

 

Continue reading …

 

April 21, 2022

7 Long-Term Stocks to Buy for a Robust Retirement

 

These long-term stocks with reliable dividends could make all the difference

 

 


Investors seeking shelter from extreme market volatility and searching for inflation protection may still find resilient dividend-paying stocks to fortify retirement portfolios during tough times, and we have seven long-term stocks to buy for a robust retirement portfolio up for consideration.

 

Rising inflation rates, geopolitical risks and the threat of a global recession are causes for concern for any retirement-focused investment portfolios.

 

Honestly, the realities of inflation’s impact on retirement plans can be somewhat sad. A recent Bloomberg report that about two-thirds of surveyed people starting retirement in 2022 in the U.K. expect to continue working (at least part-time) as living costs surge.

 

Although some cited boredom as a plausible reason to continue working, only 25% of survey respondents felt very confident that they have saved enough to fund their retirement.

 

A deep thought on retirement investing has never been more important.

 

Investing in companies with defensive, tried and tested business models with decent growth prospects, strong management teams, shareholder-friendly capital return policies and dedication to dividend growth could help create a formidable and robust retirement portfolio that can survive bouts of inflation and the usually short-lived recessions.

 

 

Retirement can be a very long time; hence some level of growth will be necessary to maintain the size of that nest egg. Dividend growth will be important for recurring and regular inflation-adjusted cash flows during retirement.

 

Here are seven retirement stocks to consider as long-term holdings in a robust retirement portfolio.

 

Continue reading …


April 13, 2022

Leggett & Platt: High-Yield Dividend King


 



It looks like the S&P 500 Index downturn may have ended. The market declined (-14.6%) from the high of January 4th to the low on February 24th. This drop was an opportunity for investors to buy high-quality companies. Since then, the market has increased by ~12.5%. So overall, the market is down about 6% from its all-time high. However, there are still companies that have not had a 6%+ run-up. For example, Leggett & Platt Inc. (LEG), a Dividend King has been falling these past few weeks while the stock market has increased. However, I see this as an opportunity to continue buying LEG shares.

 

Overview of Leggett & Platt (KEG) – A High-Yield Dividend King

 

Leggett & Platt Inc was founded in 1883. Today, the company designs and produces engineered components and products found in most homes and automobiles. It operates its business through three segments: Bedding Products, Specialized Products, Furniture, Flooring, and Textile Products. The company serves a broad suite of customers around the world. Its products include bedding components, automotive seat support and lumbar systems, specialty bedding foam and private label finished mattresses, home furniture and work furniture components, flooring underlayment, adjustable beds, and various other products.

 

Total revenue was $5,072.6 million in 2021 and the past 12 months. Roughly 50% of net sales are from bedding, 17% of sales are from flooring and textiles, 16% of sales are from automotive, and 8% of sales come from home furniture.

 

 

Continue reading …

 

April 11, 2022

10 Best Stocks for Rising Interest Rates

 

The Federal Reserve has signaled in no uncertain terms that interest rates will head higher in 2022. Here are 10 of the best stocks for this environment.

 


In March, the Federal Reserve raised benchmark interest rates for the first time since 2018. And in the intervening weeks, Fed Chair Jerome Powell has been increasingly clear that even higher rates may be on the way soon. That has investors scrambling to scrape up the best stocks for rising interest rates.

 

Speaking on March 21, Powell said the central bank will move "expeditiously" and "more aggressively" towards higher interest rates. That has left little doubt in the minds of many investors about what's in store for the markets in the coming months.

 

To be clear, rates are still relatively low even after all this. The effective federal funds rate now sits at 0.33% instead of 0.08% prior, but that's not even within earshot of rates from prior decades that were several full percentage points higher.

 

Furthermore, rising rates should never be seen as a death knell for the economy. In fact, the presence of rate increases is because the Federal Reserve sees inflation as a bigger risk to the U.S. economy than the burden of higher borrowing costs. If businesses and consumers weren't churning along, there would be concerns of how these rate hikes would be absorbed, keeping Powell and other policymakers in check.

 

There are certainly changes that are afoot as a result of higher interest rates, but investors should not make the mistake of thinking these moves means you should abandon the stock market entirely. Indeed, several of the best stocks for 2022 had the potential for rising rates on the mind, and today, we'll be looking at a few that are tailor-made for this environment.

 

 

Here are 10 of the best stocks for rising interest rates. The potential options presented here are for those concerned about mitigating the impact of rising interest rates throughout 2022.

 

Continue reading …

 

April 7, 2022

High Dividend: Franklin Resources



 

There are plenty of high dividend yield stocks in the market. But there are very few high yield stocks with a safe and growing dividend. Franklin Resources Inc. (BEN) is one of those few high yield stocks with a safe, high yield dividend that’s growing every year.

 

This article analyzes high-yield stock Franklin Resources in detail. While it doesn’t have a 5.0%+ yield currently, its dividend yield of 4.2% is still high, especially in today’s low-interest-rate environment.

 

Business Overview

 

Franklin Resources, founded in 1947 and headquartered in San Mateo, CA, is a global asset manager with a long and successful history. The company offers investment management and related services to its customers, including sales, distribution, and shareholder servicing. As of Dec. 31, 2021, assets under management (AUM) totaled $1.578 trillion. The company has a current market capitalization of 14.02 billion.

 

On Feb. 1, 2022, the company reported first-quarter results for Fiscal Year (FY) 2022. The company fiscal year ends in September. Total revenue for the quarter was $2,224 million compared to $1,995.1 million in total revenue the company made in Q1 2021, or an 11% increase.

 

The investment management fees segment, which is the company’s primary source of revenue, grew by 14% for the quarter year-over-year. The sales and distribution fees segment was flat, while the shareholder servicing fees segment saw a negative growth of 3% year-over-year.

 

Operating income grew 36% compared to the first quarter of 2021. The reported operating income was $557.7 million compared to $409.1 million a year ago for the same period. This was done even with the increase in total operating expenses of 5%.

 

 

Thus, adjusted net income was $553.6 million, and adjusted diluted earnings per share was $1.08 for the quarter, compared to $644.6 million and $1.26 for the previous quarter, and $373.4 million and $0.73 for the quarter ended Dec. 31, 2020. This represents a significant increase of 47.9% compared to the first quarter period.

 

Continue reading …

 

April 5, 2022

7 Blue-Chip Stocks With Dividends to Add to Your Buy List

 

Fed rate hikes have investors looking to reduce market risk and find consistent shareholder value

 

 


The U.S. Federal Reserve announced last week that it would be hiking interest rates more aggressively in its efforts to curb rampant inflation. That’s leading investors away from high-yielding and risky stocks to safer options.

 

Perhaps the best strategy at this time is to invest in blue-chip stocks with dividends, which offer consistent returns and healthy dividend payouts.

 

Adding blue-chip stocks to your portfolio can significantly reduce your market risk and create consistent shareholder value. Blue-chips protect shareholders from capital erosion in the event of a downturn.

 

Moreover, consistent dividend payouts and share repurchases often compensate for their inability to offer outsized returns.

 

 

Having said that, let’s look at seven of the best blue-chip stocks with dividends to supercharge your portfolio:

 

Continue reading …

 

March 29, 2022

7 Dividend Stocks That Can Withstand Inflation

 

Protect yourself from sharply declining purchasing power

 

 


If you didn’t recognize the impact of inflation before the geopolitical flashpoint in eastern Europe, you’re certainly feeling it now. With gasoline prices soaring to $6 or $7 in some regions, the negative paradigm shift is palpable. Worse yet, inflation is essentially a tax on working Americans due to declining purchasing power. Still, you may be able to protect yourself with dividend stocks to buy.

 

Under this asset class, you have two potential mechanisms of success. First, dividend stocks are typically (though not always) tied to reliable and predictable businesses. Therefore, a chance exists that they could facilitate capital gains. Second, these assets provide passive income, which can significantly help buffet the shock of skyrocketing prices.

 

 

Indeed, as Laura Barclay, a senior portfolio manager at TD Wealth stated to BNN Bloomberg, the yield on investments like guaranteed investment certificates and government bonds can leave you “with a negative return on your money.” Instead, pivoting toward dividend stocks can help investors keep up with the rising cost of living.

 

Still, not every name will do. Below is an eclectic list of dividend stocks to serve various purposes and risk-reward profiles. 


Continue reading…