The Nike Inc (NKE) Stock Dividend Is a Slam Dunk

NKE stock's solid earnings growth and impressive double-digit dividend growth demand your attention

I have been a big backer of Starbucks Corporation (NASDAQ:SBUX) for a number of years. The company’s strong leadership, impressive growth and iconic brand were all attractive. The dividend was another motive. Management’s focus has led to years of double-digit growth. That’s why I’m kicking myself for missing one very similar stock: Nike Inc (NYSE:NKE).

SBUX stock and NKE stock have essentially mirrored each other over the past five years. I have worn the dunce cap more than once trying to pick growth stocks, value stocks and special-situation plays.

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Utility Dividend Growth Match-Up: Southern Company Vs. Consolidated Edison

It is no secret that utility stocks are great for income. They arguably enjoy the most defensive, recession-resistant business model one can find.

This makes them ideal for investors interested in high dividend yields, and safe dividend payouts.

Southern Company (SO) and Consolidated Edison (ED) are two of the largest utilities in the U.S.

Southern has raised its dividend for 15 years in a row. It is a Dividend Achiever, a group of 272 stocks with 10+ years of consecutive dividend increases.

ConEd has reached an even more exclusive level. It a Dividend Aristocrat, since it has raised its dividend for 43 years in a row.

This article will compare and contrast these two utility stocks, and try to determine which one is the better pick for income investors.

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Why Starbucks Corporation (SBUX) Stock Is Right for Income Hunters

Double-digit increases to the dividend on SBUX stock are worthy of your attention

Who doesn’t like a juicy dividend yield between 3% and 4%? I know I sure do. And while a number of companies — like The Coca-Cola Co (NYSE:KO) and Procter & Gamble (NYSE:PG) — sport such a yield, the valuations surely don’t appear to be a bargain. I’m not here to argue the merits of these stocks though. Instead, I’m more excited by a trio like Visa Inc (NYSE:V), MasterCard Inc (NYSE:MA) and Starbucks Corporation (NASDAQ:SBUX).

Despite mediocre earnings growth, Coca-Cola and PG trade with respective forward price-to-earnings ratios of 21 and 22. Similarly, V, MA and SBUX stock trade with forward P/E ratios of 23, 22 and 23, respectively. However, they are often times lauded as being highly overvalued despite their strong brands and growth.

Specifically with Starbucks, a number of investors now claim its growth run is over. Why? Because its recent same-store sales grew less than 5% in the U.S. While 23 times expected earnings is not cheap, I don’t agree that Starbucks stock is overvalued given its growth, brand and dividend.

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Pfizer Inc. (PFE) Invest For Attractive Valuation And The 4% Dividend Yield

Pfizer Inc. (NYSE:PFE) is one of the world’s largest pharmaceutical firms with sales exceeding $50 billion. The company is currently attractively valued at a blended P/E ratio of 13.3, offering a current dividend yield of 4%. Pfizer is awarded an S&P credit rating of AA and possesses a modest debt to capital ratio of 28%.

Prior to 2004, the company could have been described as a fast-growing dividend paying stock. However, since 2004, operating earnings growth has slowed considerably. Therefore, Pfizer was once a powerful total return producer that has morphed into a high-yielding blue-chip dividend paying stock offering only moderate growth potential and an above-average current yield.

Consequently, I believe that Pfizer Inc. (NYSE:PFE) is best suited for the prudent income-oriented investor seeking above-average current yield and safety. Therefore, Pfizer might be especially interesting to the retired investor looking for an above-average level of income in order to fund their retirement needs. However, I also intend to demonstrate that capital appreciation potential might also be surprisingly good going forward.

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This Week's Most Significant Insider Trades: February 20-24, 2017

Disposals

GlaxoSmithKline plc (LON:GSK) insider Patrick Vallance sold 32,996 shares of the company’s stock in a transaction on Thursday, February 16th. The stock was sold at an average price of GBX 1,624 ($20.23), for a total value of £535,855.04 ($667,648.94). Continue reading here.

Aflac Incorporated (NYSE:AFL) insider Charles D. Lake II sold 8,693 shares of Aflac stock in a transaction dated Friday, February 17th. The stock was sold at an average price of $70.85, for a total value of $615,899.05. Following the completion of the sale, the insider now directly owns 28,756 shares in the company, valued at $2,037,362.60. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Continue reading here.

Aflac Incorporated (NYSE:AFL) Director Robert B. Johnson sold 1,975 shares of the company’s stock in a transaction on Tuesday, February 21st. The shares were sold at an average price of $71.45, for a total value of $141,113.75. Following the completion of the transaction, the director now directly owns 15,306 shares in the company, valued at $1,093,613.70. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Continue reading here.

Dr Pepper Snapple Group, Inc (NYSE:DPS) insider Angela A. Stephens sold 2,100 shares of the firm’s stock in a transaction on Friday, February 17th. The shares were sold at an average price of $94.05, for a total transaction of $197,505.00. Following the completion of the transaction, the insider now directly owns 8,505 shares in the company, valued at $799,895.25. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Continue reading here.

Dr Pepper Snapple Group, Inc (NYSE:DPS) insider James J. Johnston, Jr. sold 33,314 shares of the firm’s stock in a transaction on Tuesday, February 21st. The stock was sold at an average price of $94.63, for a total value of $3,152,503.82. Following the completion of the sale, the insider now directly owns 7,861 shares of the company’s stock, valued at $743,886.43. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Continue reading here.

Amazon.com, Inc. (NASDAQ:AMZN) insider David Zapolsky sold 503 shares of the business’s stock in a transaction dated Tuesday, February 21st. The stock was sold at an average price of $850.00, for a total value of $427,550.00. Following the transaction, the insider now owns 2,523 shares of the company’s stock, valued at $2,144,550. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Continue reading here.

Amazon.com, Inc. (NASDAQ:AMZN) Director Tom A. Alberg sold 590 shares of the stock in a transaction that occurred on Tuesday, February 21st. The stock was sold at an average price of $850.00, for a total transaction of $501,500.00. Following the completion of the sale, the director now directly owns 22,525 shares of the company’s stock, valued at $19,146,250. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Continue reading here.

General Dynamics Corporation (NYSE:GD) insider S. Daniel Johnson sold 5,219 shares of General Dynamics Corporation stock in a transaction dated Tuesday, February 21st. The stock was sold at an average price of $189.31, for a total value of $988,008.89. Following the sale, the insider now owns 65,243 shares of the company’s stock, valued at approximately $12,351,152.33. The transaction was disclosed in a document filed with the SEC, which is available at this link. Continue reading here.

The Travelers Companies, Inc. (NYSE:TRV) SVP Douglas K. Russell sold 2,187 shares of The Travelers Companies stock in a transaction that occurred on Tuesday, February 21st. The shares were sold at an average price of $121.80, for a total transaction of $266,376.60. Following the sale, the senior vice president now owns 17,540 shares of the company’s stock, valued at $2,136,372. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Continue reading here.

Apple Inc. (NASDAQ:AAPL) insider Johny Srouji sold 13,207 shares of Apple stock in a transaction that occurred on Wednesday, February 22nd. The shares were sold at an average price of $136.37, for a total value of $1,801,038.59. Following the transaction, the insider now directly owns 98,012 shares in the company, valued at approximately $13,365,896.44. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Continue reading here.

International Paper Company (NYSE:IP) insider Jeanmichel Ribieras sold 14,500 shares of the firm’s stock in a transaction on Wednesday, February 22nd. The shares were sold at an average price of $52.05, for a total value of $754,725.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Continue reading here.

International Paper Company (NYSE:IP) insider William P. Hoel sold 22,502 shares of the stock in a transaction that occurred on Thursday, February 23rd. The shares were sold at an average price of $52.63, for a total value of $1,184,280.26. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Continue reading here.

Microsoft Corporation (NASDAQ:MSFT) insider G Mason Morfit sold 4,616,000 shares of Microsoft Corporation stock in a transaction that occurred on Thursday, February 23rd. The stock was sold at an average price of $64.40, for a total value of $297,270,400.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Continue reading here.

Norfolk Souther Corporation (NYSE:NSC) EVP Marta R. Stewart sold 2,331 shares of the firm’s stock in a transaction on Tuesday, February 21st. The stock was sold at an average price of $124.43, for a total value of $290,046.33. Following the completion of the sale, the executive vice president now directly owns 16,156 shares of the company’s stock, valued at $2,010,291.08. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Continue reading here.

Nucor Corporation (NYSE:NUE) insider Raymond S. Napolitan, Jr. sold 12,400 shares of the business’s stock in a transaction that occurred on Wednesday, February 22nd. The stock was sold at an average price of $63.74, for a total value of $790,376.00. Following the transaction, the insider now directly owns 73,885 shares in the company, valued at $4,709,429.90. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Continue reading here.

Cisco Systems, Inc. (NASDAQ:CSCO) EVP Chris Dedicoat sold 34,597 shares of Cisco Systems stock in a transaction that occurred on Friday, February 24th. The stock was sold at an average price of $34.12, for a total transaction of $1,180,449.64. Following the completion of the sale, the executive vice president now directly owns 229,344 shares of the company’s stock, valued at $7,825,217.28. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Continue reading here.

Cisco Systems, Inc. (NASDAQ:CSCO) insider John T. Chambers sold 295,538 shares of the stock in a transaction on Thursday, February 23rd. The shares were sold at an average price of $34.06, for a total value of $10,066,024.28. Following the sale, the insider now directly owns 1,220,581 shares in the company, valued at $41,572,988.86. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Continue reading here.

Cisco Systems, Inc. (NASDAQ:CSCO) Director Roderick C. Mcgeary sold 10,000 shares of the company’s stock in a transaction on Thursday, February 23rd. The shares were sold at an average price of $34.07, for a total value of $340,700.00. Following the completion of the transaction, the director now directly owns 122,721 shares in the company, valued at approximately $4,181,104.47. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Continue reading here.

Stanley Black & Decker, Inc. (NYSE:SWK) insider James J. Cannon sold 7,473 shares of Stanley Black & Decker stock in a transaction dated Friday, February 24th. The shares were sold at an average price of $106.70, for a total value of $797,369.10. Following the transaction, the insider now directly owns 31,875 shares of the company’s stock, valued at approximately $3,401,062.50. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Continue reading here.

Wal-Mart Stores, Inc. (NYSE:WMT) major shareholder Jim C. Walton sold 4,375,337 shares of the firm’s stock in a transaction on Thursday, February 23rd. The shares were sold at an average price of $71.79, for a total value of $314,105,443.23. Following the transaction, the insider now owns 10,507,127 shares in the company, valued at $754,306,647.33. The sale was disclosed in a document filed with the SEC, which is available at this link. Major shareholders that own 10% or more of a company’s stock are required to disclose their sales and purchases with the SEC. Continue reading here.

Waste Management, Inc. (NYSE:WM) VP Jeff M. Harris sold 28,490 shares of the business’s stock in a transaction on Wednesday, February 22nd. The stock was sold at an average price of $72.76, for a total transaction of $2,072,932.40. Following the transaction, the vice president now directly owns 19,418 shares of the company’s stock, valued at approximately $1,412,853.68. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Continue reading here.

Acquisitions:

American Express Company (NYSE:AXP) Director John Joseph Brennan purchased 4,000 shares of the company’s stock in a transaction on Wednesday, February 22nd. The shares were purchased at an average cost of $79.74 per share, with a total value of $318,960.00. Following the transaction, the director now directly owns 4,000 shares in the company, valued at $318,960. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Continue reading here.

Caterpillar, Inc. (NYSE:CAT) insider Lange Bob De purchased 1,000 shares of the company’s stock in a transaction that occurred on Tuesday, February 21st. The shares were purchased at an average cost of $99.32 per share, for a total transaction of $99,320.00. Following the completion of the transaction, the insider now owns 10,230 shares in the company, valued at approximately $1,016,043.60. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Continue reading here.

Notable Analyst Upgrades and Downgrades for Week of February 20, 2017

Upgrades:

Royal Bank of Scotland Group plc (LON:RBS) was upgraded by stock analysts at Barclays PLC to an “equal weight” rating in a note issued to investors on Monday. The firm presently has a GBX 250 ($3.12) target price on the financial services provider’s stock, up from their previous target price of GBX 200 ($2.50). Barclays PLC’s price objective indicates a potential upside of 3.14% from the stock’s previous close. Continue reading here.

Royal Bank Scotland PLC (The) (NYSE:RBS) was upgraded by equities research analysts at Barclays PLC from an “underweight” rating to an “equal weight” rating in a research note issued to investors on Tuesday. Continue reading here.

Goldman Sachs Group, Inc. (The) upgraded shares of Rolls-Royce Holding PLC (LON:RR) to a buy rating in a report issued on Monday. The brokerage currently has GBX 1,030 ($12.83) target price on the stock, up from their prior target price of GBX 743 ($9.26). Continue reading here.

TotalFinaElf, S.A. (NYSE:TOT) was upgraded by equities researchers at Goldman Sachs Group, Inc. (The) from a “buy” rating to a “conviction-buy” rating in a research note issued to investors on Tuesday. Continue reading here.

Parker-Hannifin Corporation (NYSE:PH) was upgraded by equities research analysts at J P Morgan Chase & Co from a “neutral” rating to an “overweight” rating in a research report issued to clients and investors on Wednesday. The firm presently has a $173.00 price target on the stock. J P Morgan Chase & Co’s price objective suggests a potential upside of 12.56% from the company’s previous close. Continue reading here.

Morgan Stanley upgraded VF Corp. (NYSE: VFC) from Underweight to Equalweight with a price target of $50.00 (from $48.00). Continue reading here.

Wal-Mart Stores, Inc. (NYSE:WMT) was upgraded by research analysts at Bank of America Corp from a “neutral” rating to a “buy” rating in a research note issued on Wednesday. The firm currently has a $88.00 target price on the retailer’s stock, up from their prior target price of $76.00. Bank of America Corp’s price target points to a potential upside of 22.72% from the stock’s previous close. Continue reading here.

Home Depot, Inc. (The) (NYSE:HD) was upgraded by Morgan Stanley from an “equal weight” rating to an “overweight” rating in a report released on Thursday. Continue reading here.

Unilever NV (NYSE:UN) was upgraded by equities research analysts at Societe Generale from a “hold” rating to a “buy” rating in a report issued on Thursday. Continue reading here.

Deutsche Bank upgraded Franklin Resources (NYSE: BEN) from Sell to Hold with a price target of $41.00 (from $37.00). Continue reading here.

Downgrades:

Goldman Sachs Group, Inc. (The) downgraded shares of Royal Dutch Shell PLC (NYSE:RDS.A) from a conviction-buy rating to a buy rating in a research note published on Tuesday morning. Continue reading here.

United Parcel Service, Inc. (NYSE:UPS) was downgraded by equities research analysts at Bank of America Corp from a “buy” rating to a “neutral” rating in a note issued to investors on Wednesday. They presently have a $114.00 price objective on the stock. Bank of America Corp’s target price would suggest a potential upside of 7.93% from the company’s previous close. Continue reading here.

Reynolds American Inc (NYSE:RAI) was downgraded by equities research analysts at Wells Fargo & Company from an “outperform” rating to a “market perform” rating in a report issued on Thursday. Continue reading here.

These Are the 5 Perfect Dividend Stocks for Today's Market

The nearly decade-long era of ultra-low interest rates has been kind for dividend-paying stocks. Not only have they often offered payouts that are more robust than the yield on 10-Year Treasuries, but they have also racked up spectacular share price gains.

The SPDR S&P Dividend ETF for example, has rallied an impressive 215% since the market bottomed out in March, 2009.

But income-oriented investors now face a changing backdrop. Rising bond yields are now surpassing the payout levels of many dividend producers. To stay ahead of the curve, you need to focus on firms that have a long history of rising dividends in any economic climate. That means "dividend aristocrats."

Here are five that currently offer dividend yields ahead of the 10-Year Treasury rate.

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Why This Billionaire Just Shelled Out $1.1 Billion on 4 Drug Stocks

Allergan, Mylan, Pfizer, and Teva attract a lot of attention and cash from David Tepper's hedge fund, Appaloosa Management.

"A billion here, a billion there, and pretty soon you're talking about real money."

It's debatable who first uttered that phrase. What isn't debatable, though, is that David Tepper and Appaloosa Management are accustomed to throwing around plenty of real money. The multibillion-dollar hedge fund run by Tepper spent over $1.1 billion in the fourth quarter of 2016 on just four drug stocks: Allergan (NYSE:AGN), Mylan (NASDAQ:MYL), Pfizer (NYSE:PFE), and Teva (NYSE:TEVA).

Why so much money on these stocks? And should ordinary investors follow the billionaire's lead? Let's look at what makes these particular pharmaceutical stocks so attractive.

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Best Dividend Stocks For 2017

With interest rates near-zero and bonds yields paltry, dividend stocks enjoyed a strong run in 2016. This has changed in 2017. Dividend stocks have fallen out of favor.

Investors expect interest rates to rise as President Trump's plan to spur economic growth stokes inflation. A substantial number of investors, however, need income. Although interest rates may rise, they are unlikely to shoot up dramatically anytime soon.

Studies repeatedly show dividend-paying stocks that consistently increase dividends outperform non-dividend paying stocks. As such, this is a good time to scout for high-quality dividend stocks worth investing.

Here are some ideas:

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3 Utility Stocks That Will Pay You To Invest In Them

Ever since the Great Recession, the Federal Reserve has kept interest rates artificially low. So low that investors who typically invest in bonds for the interest income they provide have had to look elsewhere. Unfortunately, there weren’t many places to look. As a result, most investors turned to blue chip companies that were a relatively safe investment and paid a nice dividend. Enter utility stocks.

But not all utility stocks are equal. If you are looking for a safe place to park your money while earning a nice dividend, you have some research to do. Luckily that is where this post enters. There are 3 utility stocks out there that are a good place to put your money and they will pay you to own them through healthy dividend payments.

Understand that since these are stocks, you can lose money when the market drops. But they are solid companies and should not be as volatile as the market as a whole. And since they have had a pullback recently, now could be the time to get in. So what are these 3 utility stocks?

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Why The Coca-Cola Co (KO) Dividend Star is Waning

Patience may pay off for KO holders, but beware...

The Coca-Cola Co (KO) manufactures, distributes, and markets nonalcoholic beverages worldwide. This dividend king has paid uninterrupted dividends on its common stock since 1893 and increased payments to common shareholders every for 55 years in a row. Warren Buffett’s Berkshire Hathaway Inc.‘s (BRK.A,BRK.B) is the largest shareholder of the world’s largest beverage company.

The company’s last dividend increase was in February 2017 when the Board of Directors approved an 5.70% increase to 37 cents per share. Coca-Cola’s largest competitors include PepsiCo, Inc. (PEP), Dr Pepper Snapple Group Inc. (DPS) and Monster Beverage Corporation (MNST).

Over the past decade this dividend growth stock has delivered an annualized total return of 8.90% to its shareholders.

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Notable Analyst Upgrades and Downgrades for Week of February 13, 2017

Upgrades:

Morgan Stanley upgraded Nucor (NYSE: NUE) from Equalweight to Overweight with a price target of $78.00. Continue reading here.

Morgan Stanley upgraded shares of Under Armour, Inc. (NYSE:UAA) from an underweight rating to an equal weight rating in a research note published on Tuesday morning. Continue reading here.

J P Morgan Chase & Co upgraded shares of Petroleo Brasileiro S.A.- Petrobras (NYSE:PBR) from a neutral rating to an overweight rating in a research note issued to investors on Monday morning. Continue reading here.

Devon Energy Corporation (NYSE:DVN) was upgraded by equities research analysts at Societe Generale from a hold rating to a buy rating in a report released on Wednesday. The firm currently has a $55.00 price target on the energy company’s stock. Societe Generale’s price objective suggests a potential upside of 24.69% from the stock’s previous close. Continue reading here.

Bank of America Corporation upgraded shares of Parker-Hannifin Corporation (NYSE:PH) from a neutral rating to a buy rating in a research note published on Wednesday morning. Bank of America Corporation currently has $180.00 price target on the stock, up from their prior price target of $157.00. Continue reading here.

Fortis Inc. (NYSE:FTS) was upgraded by investment analysts at CIBC from a neutral rating to an outperform rating in a research report issued to clients and investors on Thursday. Continue reading here.

Hershey Company (The) (NYSE:HSY) was upgraded by investment analysts at Argus from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Thursday. Continue reading here.

Downgrades:

Agrium Inc. (NYSE:AGU) (TSE:AGU) was downgraded by stock analysts at Scotiabank from an outperform rating to a sector perform rating in a research note issued on Monday. Continue reading here.

Reynolds American Inc (NYSE:RAI) was downgraded by stock analysts at Royal Bank Of Canada from an outperform rating to a sector perform rating in a note issued to investors on Monday. They currently have a $60.00 price target on the stock, up from their prior price target of $54.00. Royal Bank Of Canada’s price objective would indicate a potential downside of 0.94% from the company’s current price. Continue reading here.

Jefferies & Co has downgraded Reynolds American Inc. (NYSE:RAI) from Buy to Hold in a report released on Friday February 17, 2017. Continue reading here.

Argus lowered shares of Johnson Controls International PLC (NYSE:JCI) from a buy rating to a hold rating in a report issued on Tuesday morning. Continue reading here.

Wells Fargo & Company (NYSE:WFC) was downgraded by research analysts at Credit Suisse Group from an “outperform” rating to a “neutral” rating in a research note issued to investors on Friday. They presently have a $56.00 target price on the financial services provider’s stock. Credit Suisse Group’s target price suggests a potential downside of 3.65% from the stock’s previous close. Continue reading here.

Illinois Tool Works Inc. (NYSE:ITW) was downgraded by investment analysts at Goldman Sachs Group, Inc. (The) from a neutral rating to a sell rating in a report issued on Friday. They currently have a $121.00 price target on the stock. Goldman Sachs Group, Inc. (The)’s target price would indicate a potential downside of 7.11% from the stock’s current price. Continue reading here.

7 Stocks Warren Buffett Is Buying or Selling

Love 'em or hate 'em, the 'Oracle of Omaha' has had his hands in 'em

U.S. equities are drifting higher again on Wednesday, notching fresh new highs as the “Trumpflation” rally looks all but unstoppable. Yet breadth remains mixed, with pockets of strength in financials and Big Tech stocks, but areas of weakness including energy and utilities.

For the first time in years, it’s a stock picker’s market as cross asset correlations diminish and stocks stop rising and falling in unison — based, as it was, largely on what the Federal Reserve was doing — and instead shifting based on the individual dynamics of each industry and sector group. In the lingo of the trade: We’re seeing a return of investing based on idiosyncratic catalysts instead of “macro” investing.

For those looking for new trading ideas, the latest batch of 13F filings reveals what moves hedge funds are making (with a 45-day delay since the end of the last quarter).

Superficially, let’s take a look at what Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A, NYSE:BRK.B) has been up to:

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