A Closer Look at Kimberly-Clark Corp.'s Dividend

What income investors can expect from one of the market's longest-running payouts.

Kimberly-Clark (NYSE:KMB) shareholders underperformed the market last year as the consumer products giant missed its growth targets. The owner of hit global brands like Huggies and Kleenex kept up its market-thumping dividend, though, and in fact boosted its payout at a faster rate than in the previous year.

Below, we'll look at the key metrics supporting Kimberly-Clark's dividend to see what income investors can expect from the company in the years ahead.

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Has Gilead Sciences Lost Its Way?

Since John Milligan took over as the CEO of Gilead Sciences (NASDAQ:GILD) roughly one year ago, the biotech's shares have steadily marched lower to the tune of a 24% decline. And one of the biggest reasons why is Milligan's decision to invest heavily in share repurchases and forgo a large acquisition -- or a series of smaller acquisitions -- to bring in some much-needed revenue.

The $13.5 billion spent on share repurchases in the past year, after all, could have netted a handful of modestly sized acquisitions. For example, Japan's Takeda Pharmaceutical bought Ariad Pharmaceuticals and its leukemia drug portfolio for only $5.2 billion, and Jazz Pharmaceuticals grabbed Celator's acute myeloid leukemia drug Vyxeos for a mere $1.5 billion -- casting doubt on Milligan's prior assertion that valuations were simply too high to warrant an acquisition frenzy. 

The big picture issue is that the bottom has dropped out of the biotech's hepatitis C franchise in the past year, and 2017 is on track to produce another 40% dip in the biotech's hepatitis C sales, according to Gilead's own dismal forecast. Yet Gilead has stubbornly refused to buy a revenue-generating peer to address this issue head on -- despite exiting 2016 with $32.4 billion of cash, cash equivalents, and marketable securities and a biotech landscape that arguably sports a surfeit of worthwhile buyout targets.

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CVS Health Is 22% Undervalued

CVS Health (NYSE: CVS) is the largest pharmacy services provider in the U.S. comprised of ~9,700 pharmacies and 1,139 minute clinics. CVS is one of the leading Pharmacy Benefit Managers ("PBMs") providing services such as mail-order, prescription plan management, and claims processing. With 1.6B claims processed in 2016, it is the largest PBM as Walgreens (NASDAQ: WBA) processed 740mm. CVS' size gives it premium negotiating power and scale advantages.

Over the last 12 months, CVS's share price is down 23%. I will argue that this selloff is overblown and positions CVS as a quality company that is attractively valued in widely overvalued market.

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Hanesbrands: Underappreciated And Undervalued By 30%

Hanesbrands (NYSE:HBI) is one of America's iconic apparel brand manufacturers that is not getting a lot of love lately, which is a shame. Share prices have been weak as slower retail traffic in big box stores takes its toll. Several large brick and mortar retailers have announced sluggish sales and store closings as e-commerce continues to take retail customers away. Several are throwing in the towel altogether. As the battle over online shopping continues to heat up, there could be more pain for retailers as consumers continue to migrate to online shopping.

With such an undercurrent, why would I buy into an apparel maker? The answer is simple, its undervalued, offers strong business model differences, and has a proven track record of expansion through acquisition. Add a history of rewarding shareholders, and HBI would seem like a respectable mid-cap value selection.

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Will Ventas Make It To The Final 4?

Last week Ventas, Inc. (VTR) was downgraded from “neutral” to “sell” by Goldman Sachs; however, other analysts have also recently downgraded the $12.6 billion healthcare REIT.

Mizuho cut Ventas from a “buy” rating to a “neutral” rating and set a $63.00 price target on the stock in a report on Monday, November 21st. Evercore ISI cut Ventas from a “hold” rating to an “underperform” rating in a report on Friday, March 3rd. Zacks Investment Research cut Ventas from a “hold” rating to a “sell” rating in a report on Monday, January 9th.

Three analysts have rated the stock with a sell rating and ten have given a hold rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus price target of $62.89

I have not reviewed any of the research reports from the other sell-side analysts, but I thought it would be a good time to take a deeper dive into Ventas to determine whether or not there is any reason to modify my current BUY recommendation.

Also, I’m gearing up for bracketology this week and I’ll be providing head-to-head analysis for Ventas and all other healthcare REITs. Consider this article somewhat of a scouting report, as I examine the pros and cons of Ventas as I determine whether or not the company will make it to the Final Four again this year.

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Should You Buy McDonald's 2.0?

Over the last two years, McDonald's Corporation (NYSE:MCD) has unleashed a stream of turnaround-related activities. The world's largest burger chain has simplified its menu while introducing all-day breakfast, closed underperforming stores, infused social consciousness into its brand, trimmed costs, streamlined its decision-making structure, and revised its reportable divisions.

Next up is an anticipated return to bona-fide growth, at least according to the "long-term global growth plan" McDonald's presented during its annual investor day earlier this month.

The plan consists of three major operational initiatives which themselves rest on three "strategic pillars." Taking a cue from the company's breakfast menu tweak last year, known as All Day Breakfast 2.0, we can think of this plan as a blueprint for a post-turnaround McDonald's 2.0.

In this two-part article series, we'll look at both the stated plan and the financial model behind it, to see if McDonald's is primed for both sales and profit resurgence.

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Duke Energy Pays Steady Dividends For Retirement Portfolios

Duke Energy (DUK) is a popular holding in many retirement portfolios because of the company’s generous and dependable dividend.

Duke Energy has paid uninterrupted dividends for more than 90 years and increased its payout each calendar year since 2005.

With a dividend yield above 4%, a high Dividend Safety Score, and low stock price volatility, Duke Energy is worth a closer looks.

Let’s review Duke Energy’s business and dividend profile to see if the company is a solid candidate for investors living off dividends in retirement.

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The 3 Best Big-Brand Stocks to Buy in 2017

How an investor can profit from global franchises including Tide, Listerine, and "Star Wars" this year.

It's no coincidence that the most successful companies on the planet often control the world's most valuable brands. Intellectual property -- particularly globally recognized and trusted franchises -- delivers higher profits and a defensible market position that translates into a huge competitive advantage for big-brand stocks.

With that in mind, here's why global brand powerhouses Walt Disney (NYSE:DIS), Johnson & Johnson (NYSE:JNJ), and Procter & Gamble (NYSE:PG) deserve a top spot on investors' watch list for 2017.

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3 Reasons Why General Electric Is No Match For Dividend King Emerson Electric

General Electric (GE) and Emerson Electric (EMR) are very similar companies. They operate in the industrial sector, and both are experiencing similar challenges right now, namely the strong U.S. dollar and weak commodity prices.

And, both stocks have attractive 3.2% dividend yields.

But Emerson Electric has one of the most impressive histories of raising dividends in the entire stock market. It has increased its shareholder payout for 60 years in a row.

As a result, it is a member of the Dividend Aristocrats, a group of companies in the S&P 500 that have raised dividends for 25+ years.

Not only that, but Emerson is also on the Dividend Kings list, which includes companies with 50+ years of consecutive dividend increases.

Emerson is one of just 19 Dividend Kings. You can see the entire list of Dividend Kings here.

This article will discuss three major reasons why I prefer Emerson stock over GE.

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AT&T Vs. Verizon? It's Not Even Close

I have received several requests from my followers to compare and contrast AT&T (NYSE: T) versus Verizon (NYSE: VZ) over the past weeks as the wireless wars have heated up. In the past week I have spent an inordinate amount of time reviewing the two companies in order to answer this question.

I own both AT&T and Verizon stock currently at equal weights in my portfolio. I, like many of you, had come to the conclusion that the two companies were essentially a duopoly and the prudent thing to do would be to own both to diversify my portfolio and reduce risk. Nonetheless, after performing further due diligence, I have come to the conclusion that AT&T offers a much better investment opportunity going forward for dividend growth and income investors for several reasons. I went back through and read all the past articles comparing the two. Most were focused on the minutia and not the big picture. Most authors basically compare each fundamental statistic side by side and come to the conclusion there is no clear winner.

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

Upgrades:

Occidental Petroleum Co. (NYSE:OXY) was upgraded by research analysts at Bank of America Corp from a “neutral” rating to a “buy” rating in a research note issued to investors on Wednesday. Continue reading here.

Invesco Ltd. (NYSE:IVZ) was upgraded by Goldman Sachs Group Inc from a “neutral” rating to a “conviction-buy” rating in a research report issued on Wednesday. Continue reading here.

Franklin Resources, Inc. (NYSE:BEN) was upgraded by investment analysts at Bank of America Corp from a “neutral” rating to a “buy” rating in a report issued on Thursday. Continue reading here.

Barclays PLC (NYSE:BCS) was upgraded by analysts at Morgan Stanley from an “equal weight” rating to an “overweight” rating in a research note issued to investors on Friday. Continue reading here.

National Grid plc (NYSE:NGG) was upgraded by equities research analysts at Societe Generale from a “sell” rating to a “hold” rating in a research note issued to investors on Friday. Continue reading here.

Aqua America Inc (NYSE:WTR) was upgraded by investment analysts at Barclays PLC from an “equal weight” rating to an “overweight” rating in a report issued on Friday. The firm presently has a $36.00 target price on the stock, up from their previous target price of $33.00. Barclays PLC’s target price indicates a potential upside of 12.25% from the stock’s current price. Continue reading here.

Downgrades:

Boeing Co (NYSE:BA) was downgraded by analysts at Morgan Stanley from an “overweight” rating to an “equal weight” rating in a research note issued to investors on Monday. They currently have a $190.00 price objective on the aircraft producer’s stock. Morgan Stanley’s price objective indicates a potential upside of 6.32% from the company’s current price. Continue reading here.

American Water Works Company Inc (AWK) was Downgraded by HSBC Securities to ” Hold”. Earlier the firm had a rating of “Buy ” on the company shares. HSBC Securities advised their Clients and Investors in a research report released on Mar 15, 2017. Continue reading here.

Intel Co. (NASDAQ:INTC) was downgraded by equities research analysts at Credit Suisse Group AG from an “outperform” rating to a “neutral” rating in a research note issued to investors on Wednesday. Continue reading here.

Ventas, Inc. (NYSE:VTR) was downgraded by research analysts at Goldman Sachs Group Inc from a “neutral” rating to a “sell” rating in a report released on Wednesday. Continue reading here.

Franklin Resources, Inc. (NYSE:BEN) was downgraded by equities research analysts at Morgan Stanley to an “underweight” rating in a research note issued to investors on Thursday. Continue reading here.

T. Rowe Price Group Inc (NDAQ:TROW) was downgraded by equities researchers at Morgan Stanley from an “equal weight” rating to an “underweight” rating in a report issued on Friday. Continue reading here.

Microsoft Corporations’s Dividend Payments Could Double Within 5 Years

Changes in the cloud continue to benefit MSFT and its shareholders

The technology sector isn’t known for paying out juicy dividends. Companies from the high-growth sector tend to re invest their cash into expanding instead of returning it to investors.

However, 17 years after the dot-com bubble popped in March of 2000, a group of former tech highflyers is quietly evolving into some of the best dividend payers in the S&P 500.

Apple, Inc. (NASDAQ: AAPL) is a great example. Apple began paying a dividend in 2012, and now offers a 1.6% yield after growing its dividend by 27% in the last three years.

With more than $200 billion in cash, I expect Apple to continue growing its dividend for years to come.

While those stats are impressive, another legendary tech stock offers a better dividend yield and growth. This global leader pays out a 2.4% yield, a 50% premium to Apple’s 1.6% yield. It has grown its dividend by 44% in the last three years, a 63% premium to Apple.

And finally, with just over $100 billion in cash on its balance sheet, I am expecting its dividend payment to grow more than 100% in the next five years.

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10 Safe Dividend Stocks to Own During the Next Market Crash

The keys to protection? Fair price, high quality and dividend growth.

With the stock market now entering its ninth year of an epic bull run, and share prices at all-time highs, many investors are worried that dividend stocks, growth stocks — all stocks! — are trading at highly overvalued levels and set for a market crash.

While corrections are inevitable, at the same time history shows us that market timing is the absolute worst thing you can do. In fact, a recent study found that missing just 10 of the best market days in each of the past nine decades would have reduced one’s profits (owning the S&P 500) from 10,055% to just 38%!

In other words, trying to time the market can cripple your returns.

Long-term, buy-and-hold investing in dividend stocks is a great way to build your wealth and income, whether you want to simply live off dividends in retirement or some other life goal.

While the market’s valuation appears high relative to history, interest rates are also at very low levels — even after the Fed’s recent fed funds rate hike — making dividend stocks more attractive. It’s also true that no matter how high the market gets, something is on sale. Reasonably priced stocks with below average volatility also tend to decline less during market down periods, preserving capital.

Essentially, if you buy fairly priced, high-quality, low-volatility dividend growth stocks, such as dividend aristocrats, you can protect yourself from unpredictable market risk.

To help get you started, here are 10 great, safe dividend stocks to consider for your diversified dividend growth portfolio in the event of a market crash. We used our Dividend Safety Scores to identify many of these candidates. In order of yield … Continue reading here à