United Technologies Makes An Attractive Dividend Stock

United Technologies has four attractive business units.

HVAC and Otis Elevator business benefit from oligopolies and increasing residential construction and urbanization.

Pratt & Whitney and aerospace divisions have high barriers to entry and bright long-term growth prospects.

Last year, we added United Technologies (NYSE:UTX) to our dividend portfolio. We think the company has an attractive collection of businesses that should allow it to continue to pay a substantial and growing dividend (current yield as of this writing is 2.35%) far into the future.

The company has four business segments - Otis; UTC Climate, Controls & Security; Pratt & Whitney; and UTC Aerospace Systems. Each accounts for about a quarter of the company's profits except Pratt & Whitney which is a bit smaller and the UTC Climate business which is a bit larger.

What we want to focus on is the competitive position of United in each of its business segments and their long-term growth prospects.

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General Mills: A Safe Dividend Stock Down 15% Since July

General Mills (GIS) is a blue chip stock that has paid uninterrupted dividends for 117 years. The company’s dividend has increased each year since 2004 and boasts a 10.4% annual growth rate over the last decade.

Despite General Mills’ impressive history, the company’s stock price is down more than 15% since early July 2016 while the S&P 500 Index has gained over 13%.

With investors’ expectations reduced and the stock’s 3.2% dividend yield sitting above its five-year average yield, now is a good time to review why General Mills remains a core holding in our Conservative Retirees dividend portfolio.

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Colgate-Palmolive Company (CL) Dividend Stock Analysis For 2017

Colgate-Palmolive Company (NYSE:CL), together with its subsidiaries, manufactures and markets consumer products worldwide. The company operates in two segments: Oral, Personal and Home Care; and Pet Nutrition. This dividend king has paid dividends since 1895 and has increased them for 54 years in a row.

The company’s latest dividend increase was announced in March 2017 when the Board of Directors approved a 2.60% increase in the quarterly annual dividend to 40 cents/share. This was the slowest rate of dividend increases since 1980 (1). It indicates that the company’s management is cautious about Colgate-Palmolive’s near term business outlook.

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Brookfield Infrastructure Partners: A High-Yield, Fast-Growing Utility

Utilities are one of the cornerstones of high-yield portfolios and for good reason. Their generally stable and predictable cash flows, often protected by regulated prices result in most utilities achieving high Dividend Safety Scores. Safe payouts can be a major asset for low risk investors – especially retirees who depend on dividends for funding their living expenses. However, not all utilities require one to sacrifice growth for a safe, high yield.

One global utility in particular, Brookfield Infrastructure Partners (BIP), appears to have a long runway for income growth. Let’s take a closer look at Brookfield Infrastructure Partners for consideration in our Conservative Retirees dividend portfolio.

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Johnson & Johnson (JNJ): The Best Stock For Long Term Investors

As an investor, most of us want the triple bagger. We want a sizable return on our money and we take calculated risks to get there. But there is something to be learned from the tortoise and the hare fable. As great as a quick return is, sometimes, we need to invest in a slow and steady performer. In this case, that stock is Johnson & Johnson (NYSE:JNJ).

It’s not a sexy pick and it isn’t going to double your money by the end of the year. But if you want solid growth over the long term, then this stock should be in your portfolio.

This article will discuss why you should invest Johnson & Johnson (NYSE:JNJ) for the long term.

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Notable Analyst Upgrades and Downgrades for Week of March 6, 2017

Upgrades:

HP Inc (HPQ) was Upgraded by Wells Fargo to ” Outperform”. Earlier the firm had a rating of “Market Perform ” on the company shares. Wells Fargo advised their Clients and Investors in a research report released on Mar 6, 2017. Continue reading here.

Novartis AG (NYSE:NVS) was upgraded by equities researchers at Societe Generale from a “hold” rating to a “buy” rating in a research report issued on Tuesday. Continue reading here.

Vodafone Group Plc (NASDAQ:VOD) was upgraded by research analysts at Goldman Sachs Group Inc from a “buy” rating to a “conviction-buy” rating in a report issued on Wednesday. Continue reading here.

Crown Castle International Corporation (NYSE:CCI) was upgraded by Wells Fargo & Co from a “market perform” rating to an “outperform” rating in a research note issued on Wednesday. Continue reading here.

Downgrades:

Citigroup Inc lowered shares of Magellan Midstream Partners, L.P. (NYSE:MMP) from a buy rating to a neutral rating in a report released on Monday morning. Continue reading here.

Royal Bank of Scotland Group plc (LON:RBS) was downgraded by research analysts at Goldman Sachs Group Inc to a “neutral” rating in a research report issued to clients and investors on Wednesday. They currently have a GBX 275 ($3.36) price objective on the financial services provider’s stock, up from their prior price objective of GBX 270 ($3.30). Goldman Sachs Group Inc’s price objective points to a potential upside of 15.11% from the company’s previous close. Continue reading here.

Kimberly Clark Corp (NYSE:KMB) was downgraded by investment analysts at Societe Generale from a “buy” rating to a “hold” rating in a note issued to investors on Friday. Continue reading here.

7 Cheap Dividend Stocks to Buy Now

These cheap dividend stocks yield no less than 4% and are discounted against free cash flow value

Finding cheap dividend stocks that are actually buy-worthy is tough. On the one hand, you’re looking for significant dividend yield. On the other hand, you’d also like to invest in a business that’s still growing. And on the third hand, you don’t want to overpay.

On top of all that, macroeconomic risks are a constant concern, primarily with interest rates possibly going up.

Fortunately, even if the Federal Reserve does raise rates three times this year as projected, it’ll only be by 25 basis points each at most. For most dividend stocks, that shouldn’t trigger a drop in prices — especially in dividend stocks that have a high enough yield that they’re not competing with Treasuries for attention.

Today, I’m looking at seven cheap dividend stocks to buy now. I’m defining a cheap dividend stock as one that trades at a discount to free cash flow value, and I’m only looking at companies with sound businesses that yield 4% or more.

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After Blowout 2016 It's Time To Double Down On Realty Income

Realty Income has long been a staple for high-yield dividend growth investors and for good reason.

"The Monthly Dividend Company" has increased its payout for 77 straight quarters, including a very generous 6% hike in its latest announcement.

The company's growth engine continues to fire on all cylinders, and with shares pulling back from all-time highs, smaller dilution in the coming years promises continued strong payout growth.

Despite the threat of higher interest rates, Realty Income is better situated than most when it comes to generating strong shareholder returns in all kinds of economic/interest rate environments.

Best of all, with strong growth catalysts ahead of it, and a sharp correction in the last few months, shares are now finally worth buying again.

High-quality blue chip REITs such as Realty Income (NYSE:O) have had a spectacular run in this era of historically low interest rates. Thanks to yield-starved income investors piling into safe bond alternatives, its shares have not just crushed the overall market, but even most of REITs.

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Soda Wars: Coca-Cola Vs. PepsiCo

Both Coca-Cola (NYSE:KO) and PepsiCo (NYSE:PEP) are legendary dividend stocks. They are each members of the Dividend Aristocrats, a group of 51 companies in the S&P 500 with 25+ years of consecutive dividend increases.

You can see the full Dividend Aristocrats List here.

PepsiCo has raised its dividend for years, while Coca-Cola's streak is slightly longer. It has increased its dividend for years in a row.

In fact, Coca-Cola has reached an even more exclusive club.

With 55 years of dividend increases under its belt, it is a Dividend King - a select group of 19 stocks with 50+ years of consecutive dividend increases.

You can see the entire list of Dividend Kings here.

Coca-Cola and PepsiCo might seem like identical companies since they dominate the global soda industry.

But they are more different than it seems. This article will discuss which of the two soda giants is the better dividend stock to buy today.

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The Next Stock Warren Buffett May Sell

We don't know which stock Buffett will offload next, but we do have some reasons why these three could be on his list.

Superinvestor Warren Buffett's Berkshire Hathaway Inc. (NYSE:BRK-A)(NYSE:BRK-B) is well-known for its impressive portfolio of stocks, largely hand-picked by Buffett himself over the past several decades. And while Buffett has said that his favorite holding period is forever, he's done his fair share of selling over the years. Sometimes he sells to raise cash for other investments, and sometimes he sells because he's lost faith in an investment for one reason or another.

We asked three of our top contributors to nominate stocks that they think Buffett may unload next. While we don't have any special access to the Oracle of Omaha's future plans, and it's likely that we will miss the mark with these suggestions, this exercise serves an important purpose: It forces us to look at three great companies and identify something about them that could make them sell-worthy.

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Target: A Better Bargain Than Ever?

Target (TGT) investors have seen the company’s stock go through a prolonged downturn over recent months. Unfortunately, this trend appears to be continuing.

On February 28, Target reported earnings that seriously disappointed. The stock fell from $67 to $57.50, and currently sits around ~$59.

It is important to remember that Target’s stock price is not necessarily indicative of the company’s actually per-share value.

Sometimes, stock prices become irrationally disconnected from the value of the underlying business. This is a good thing for the opportunistic investors.

It’s important to remember that Target is a high quality business with a strong history of rewarding shareholders. Target has raised its annual dividend payments for 46 consecutive years, which makes them a member of the elite Dividend Aristocrats (companies with 25+ years of rising dividends).

This article will discuss why Target’s decline presents a buying opportunity, rather than a reason for investors to fear.

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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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