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Ares Capital: Shrinking Dividend Coverage But Yield Should Hold Up
Seeking Alpha· 2025-08-06 11:15
Core Insights - The article emphasizes the importance of dividend investing in quality blue-chip stocks, BDCs, and REITs for building a sustainable retirement income [1]. Group 1 - The author is a Navy veteran focused on dividend investing and aims to help lower and middle-class workers build investment portfolios of high-quality, dividend-paying companies [1]. - The investment strategy is centered around a buy-and-hold approach, prioritizing quality over quantity [1]. - The author plans to supplement retirement income through dividends within the next 5-7 years [1].
1 Green Flag for Coca-Cola Stock Right Now
The Motley Fool· 2025-08-06 08:37
Core Viewpoint - Coca-Cola's stock is currently appealing for investment due to its reasonable valuation and strong business model, making it a potential long-term portfolio addition [1][4]. Financial Metrics - The forward-looking price-to-earnings (P/E) ratio is 22.8, slightly below its five-year average of 23.3, while the price-to-sales ratio is 6.2, just below its five-year average of 6.3 [4]. Business Resilience - Coca-Cola's business is somewhat tariff-resistant, with a significant portion of its operations conducted locally around the world [5]. - The company is prepared to switch packaging from aluminum to plastic if necessary, showcasing adaptability [5]. Defensive Nature - In economic downturns, consumers may still opt for affordable treats like soda, indicating Coca-Cola's defensive business characteristics [5]. Brand Strength - Coca-Cola's brand is ranked seventh globally by Interbrand in 2024, with an estimated value of $61.2 billion, providing a competitive advantage [5]. Dividend Performance - Coca-Cola is a dividend-paying stock with a recent yield of 3%, having increased its payout for 63 consecutive years, which can help investors keep pace with inflation [5]. Product Diversification - The company has a diversified portfolio that includes water, sports drinks, coffee, and tea brands such as Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Fuze Tea, and Gold Peak [5].
Caterpillar: It's Time To Reduce Exposure To This Dividend Aristocrat
Seeking Alpha· 2025-08-05 18:52
Group 1 - The article highlights the author's focus on income investing, particularly in dividend-paying stocks, as a significant contributor to total returns in the stock market [1] - The author has extensive experience in various industries, including basic manufacturing and high tech, with roles ranging from management to financial analysis [1] - The author has been investing in stocks for over 50 years and has a background in options trading and real estate investments [1] Group 2 - The author emphasizes the importance of community feedback and interaction on platforms like Seeking Alpha, valuing the insights gained from comments [1] - The choice of a turkey vulture as a profile image symbolizes interest in "vulture" funds that target distressed assets, reflecting the author's investment philosophy [1] - The author has a strong educational background with a BS in engineering and an MBA in finance, which supports their analytical approach to investing [1]
Amazon: 2 Reasons Not To Get Too Excited About The Recent Dip
Seeking Alpha· 2025-08-04 19:22
Core Insights - Amazon.com, Inc. (NASDAQ: AMZN) reported a solid quarterly performance, yet its stock price has declined from over $230 per share to approximately $215 per share [1] Company Analysis - The quarterly report indicates that despite strong operational results, the market reaction has led to a decrease in stock value, highlighting potential investor concerns or market dynamics [1] Industry Context - The report reflects broader trends in the technology and e-commerce sectors, where stock price fluctuations can occur despite positive financial results, suggesting a complex relationship between company performance and market perception [1]
Why American International Group (AIG) is a Great Dividend Stock Right Now
ZACKS· 2025-08-04 16:46
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a me ...
If You'd Invested $1,000 in AbbVie (ABBV) Stock 10 Years Ago, Here's How Much You'd Have Today
The Motley Fool· 2025-08-03 13:00
Core Insights - AbbVie has shown significant growth over the past decade, with an initial investment of $1,000 now worth $3,350, or $4,105 if dividends were reinvested [2] - The company is recognized for its solid dividend payments, with a recent yield of 3.4% and an annual payout increase from $3.59 in 2018 to $6.47 in 2023 [4] - AbbVie has performed comparably to the S&P 500, with an average annual gain of 12.84% versus 12.62%, and a more pronounced advantage when dividends are reinvested [5] Company Overview - AbbVie, spun off from Abbott Laboratories in 2013, is a major global pharmaceutical company with a market value exceeding $330 billion [6] - The company specializes in various therapeutic areas, including immunology, oncology, aesthetics, neuroscience, and eye care [6] - Despite losing patent protection for its blockbuster drug Humira, AbbVie has a promising pipeline, with successful sales of immunosuppressants Skyrizi and Rinvoq [6] Investment Considerations - Current stock levels suggest AbbVie is neither overvalued nor undervalued, with a price-to-sales ratio of 5.9, slightly above its five-year average of 4.7 [7] - Long-term investors may find the current valuation acceptable, with potential for future appreciation [7]
9-13% Yielding Monthly Dividends: One To Buy And One To Sell
Seeking Alpha· 2025-08-03 11:05
Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at notable firms [1] - He is a Professional Engineer and Project Management Professional with degrees in Civil Engineering & Mathematics and a Master's in Engineering focused on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to engage and share insights [2]
Altria: The Highest Yielding Tobacco Stock
Seeking Alpha· 2025-08-02 13:44
Group 1 - Altria is recognized for providing high dividend yields, making it a prominent choice for dividend-seeking investors [1] - The company has a long history of delivering substantial returns to investors through dividends [1] - The focus on stable and increasing dividends is seen as foundational for achieving high risk-adjusted long-term returns [1] Group 2 - The analysis emphasizes the importance of in-depth company evaluation and the formulation of compelling investment arguments [1] - Engaging with the investment community through platforms like Seeking Alpha enhances knowledge and investment strategies [1]
Best Stock to Buy Right Now: Target vs. Costco
The Motley Fool· 2025-08-02 08:10
Core Viewpoint - Costco and Target are two prominent retail companies that have recently underperformed in the stock market, presenting potential investment opportunities at more attractive prices [1] Valuation - Costco has a market capitalization of over $413 billion, while Target's market cap is approximately $47 billion, reflecting investor confidence in Costco's growth [5] - Costco's trailing P/E ratio is 52.8, above its three-year median of 46.5, indicating it may be overvalued, whereas Target's P/E ratio is 14.6, below its three-year median of 17, suggesting a potential discount [6] Shareholder Returns - Costco increased its quarterly dividend from $1.16 to $1.30 per share, marking its 21st consecutive annual raise, resulting in a yield of 0.56% [8] - Target, a Dividend King, raised its dividend from $1.12 to $1.14 per share, yielding 4.4% with a 49% payout ratio, allowing for continued dividend increases [9] - Target has been more aggressive in share repurchases, buying back $251 million worth of stock last quarter, while Costco spent $215 million mainly to offset dilution [10][11] Recent Financial Performance - Costco reported $62 billion in revenue for the last quarter, an 8% year-over-year increase, with net income rising 13% to $1.9 billion [13] - Target's revenue declined 2.8% to $23.8 billion, with comparable store sales down 5.7%, although online sales increased by 4.7% [15] - Costco's membership renewal rates are high at 92.7% in the U.S. and Canada, indicating strong customer loyalty [14] Outlook - Costco's consistent growth and strong digital performance provide a competitive advantage, while Target faces uncertainty with projected adjusted EPS of $7 to $9 for 2025 [16][18] - In a challenging economic environment, Costco's stability and membership model position it as a more favorable investment choice compared to Target [18]
Why Canadian National (CNI) is a Top Dividend Stock for Your Portfolio
ZACKS· 2025-08-01 16:46
Company Overview - Canadian National (CNI) is based in Montreal, Quebec, and operates in the Transportation sector, specifically in railroads [3] - The company's shares have experienced a price change of -7.94% this year [3] Dividend Information - CNI currently pays a dividend of $0.65 per share, resulting in a dividend yield of 2.77%, which is higher than the Transportation - Rail industry's yield of 1.45% and the S&P 500's yield of 1.48% [3] - The annualized dividend of $2.59 has increased by 5.7% from the previous year [4] - Over the last five years, CNI has raised its dividend five times, achieving an average annual increase of 7.31% [4] - The current payout ratio is 50%, indicating that the company pays out half of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, CNI anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $5.75 per share, reflecting a year-over-year growth rate of 11.00% [5] Investment Considerations - CNI is viewed as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - Established firms like CNI are often preferred by income investors for their secure profits, although high-growth businesses typically do not offer dividends [6]