BTC iShares Select Dividend ETF
Why SABMiller Rejected 3 Anheuser-Busch InBev Bids
The partial shares option structured with ABI’s proposal is not an advantageous option for many of SABMiller shareholders. This is due to the illiquidity of the restricted shares proposed to be issued by ABI under the option.
Outlook for General Dynamics’ individual business segments
In this part of the series, we’ll look at the outlook for General Dynamics’ individual business segments. General Dynamics has four major business segments.
How Did Darden Expand Its 3Q16 Revenue?
Darden Restaurants’ (DRI) revenue includes sales from all seven of its brands. The majority, or 55%, of revenues came from Olive Garden.
Raymond James Downgrades Leggett & Platt to ‘Market Perform’
Leggett & Platt (LEG) has a market capitalization of $7.2 billion. The stock fell by 1.3% to close at $51.87 per share on August 1, 2016.
Must-know: Dividends as a hedge against stock market bubbles
Dividends pay returns even during market recovery. Major market indices like the S&P 500 (SPY), Dow Jones (DIA) and NASDAQ (QQQ) can be seen surging to record highs during a bubble.
Leggett & Platt Will Discuss Its Target and Opportunities on September 14
LEG rose by 0.27% to close at $51.84 per share during the fifth week of August, with weekly, monthly, and YTD price movements were 0.27%, -1.8%, and 25.1%.
Can BHP Maintain Its Dividends in 2016?
BHP Billiton is facing pressure in all the commodity businesses it’s involved in. At spot prices, free cash flow doesn’t cover the company’s dividends.
Will Lower Rig Contracts Affect Helmerich & Payne in Fiscal 4Q16?
Helmerich & Payne (HP) expects nearly 84 of its rigs to remain under contract by fiscal 4Q16. On September 7, HP had 348 US land rigs, ~26% of which were contracted.
Why investors prefer dividends in a low interest rate environment
The Fed’s policy of keeping the nominal interest rates at a zero lower bound leads some investors to seek higher and stabler income elsewhere. The low-interest rate regime may force risk-taking investors towards the higher-cost debt of high yield bonds.
Dividend ETFs Continue to Benefit from the Fed’s Low-Rate Policy
Dividend investing involves looking for companies that generate steady cash flows for shareholders. They’re likely to outperform when the economy is down.
How Is Clorox Improving Product Distribution?
For distribution in the United States, Clorox (CLX) sells or markets its products primarily through mass retail outlets, e-commerce channels, wholesale distributors, and medical supply distributors.
How Could Rio Tinto’s Copper Production Pan Out Going Forward?
Copper volumes are key for companies that produce copper. In this part of the series, we’ll look at Rio Tinto’s (RIO) copper production profile.
Why a standalone Red Lobster is key to the brand’s survival
Post-separation Red Lobster is expected to have more tailored operating initiatives focused on “maintaining stable sales by retaining core guests.”
Must-know: The pros and cons of investing in dividend ETFs
A dividend exchange-traded fund (or ETF) consists of dividend-paying stocks. Usually, ETFs track a dividend index. The stocks in the fund or index are selected based on their dividend yield.
Dorsey Wright Indices: Taking Advantage of Technical Aspects
With the Dorsey Wright indices, we mentioned the Dividend Achievers (VIG) (DVY) and now this is more of a fundamental factor based suite of products.
Weighing Helmerich & Payne’s Valuation against Peers
Helmerich & Payne’s EV, when scaled by TTM adjusted EBITDA, is lower than the peer group average.
Altria Missed Revenue Estimates in Fiscal 4Q15
Altria’s (MO) net revenue of excise taxes increased 2.5% to $4.7 billion in fiscal 4Q15. But it missed revenue estimates after beating them for five consecutive quarters.
Why Is Darden’s Revenue Expected to Expand in Fiscal 3Q16?
The overall revenue of Darden Restaurants is expected to grow to $1.8 billion in fiscal 3Q16. This is compared to $1.7 billion in fiscal 3Q15, which represents growth of 5.9%.
Why dividend ETFs may be the right thing at the right time
Present-day U.S. stock markets seem to have fully recovered from the recessionary abyss. Markets are reaching peaks higher than pre-crisis levels, with major indices such as the S&P 500 (SPY), Dow Jones (DIA) and NASDAQ (QQQ) surging to record highs.
Ford Stock Posted Best Q1 Performance since 2012
In the last few months, Ford (F) stock has traded on a mixed note. In February and March, the stock fell 0.3% and rose 0.1%, respectively.
Why Ford Stock Surged 15% in January
Ford (F) has been one of the worst-performing auto stocks for the last four consecutive years, but 2019 has been positive for it so far.
Could the Cleanup at GOLD Lead to Increased Shareholder Returns?
The new Barrick (GOLD) is mainly focused on assets with superior costs, long mine lives, and high grades.
All You Need to Know about Vale’s New Dividend Policy
On March 29, 2018, Vale (VALE) announced a new dividend policy set to take effect in its 1H18 results.
Vale’s New Dividend Policy Announcement
Vale SA (VALE) has guided for an “aggressive and sustainable” dividend policy going forward. The company is planning to come up with a new dividend policy by the end of March 2018.
Factors that Could Drive Dominion Energy’s Dividend Growth
Dominion Energy’s (D) present dividend yield of 4.4% is due to its dividend growth and price loss.
These Are the Top 5-Year Dividend Growth S&P 500 Stocks
The average dividend yield of the top five dividend growth stocks has fallen short of the broad indexes’ dividend growth.
Helmerich and Payne’s Dividends: Key Drivers
Helmerich and Payne (HP) is involved in drilling oil and gas wells for exploration and production companies. Its operating revenue fell 49% in 2016 before growing 11% in 2017.
What Has Influenced the Outlook for Valero Energy?
Valero Energy’s operating revenue fell 14% in 2016 before rising 23% in 9M17. Refining revenues drove the decline in 2016, offset by ethanol revenues.
Darden’s Stock Rose on Strong 2Q18 Earnings
Darden Restaurants (DRI) posted its fiscal 2Q18 earnings on December 19. The company posted adjusted EPS (earnings per share) of $0.73 on revenues of $1.88 billion.
What Has Affected L Brands’ Dividend Growth?
L Brands has a dividend yield of 5.5% and YTD price loss of 33.6%.
How Lockheed Martin’s Dividend Yield Looks
Lockheed Martin (LMT) is a worldwide security and aerospace company.
Why Eli Lilly’s Basaglar, Jardiance, and Trajenta Could Witness Steady Growth in 2018
In 1H17, Eli Lilly’s (LLY) Basaglar generated revenues of around $132.6 million, compared with $27.2 million in 1H16.
Why Caterpillar’s Dividend Yield Is Sloping Downwards
Caterpillar (CAT) posted sales and revenue growth of -18% in 2016 compared to -15% in 2015.
Why Chipotle Stock Is Seeing Downward Momentum
As of October 3, 2017, Chipotle Mexican Grill (CMG) was trading at $302.99, which represents a fall of 13.1% since the announcement of its 2Q17 earnings on July 25, 2017.
Why Darden’s Fiscal 1Q18 Earnings Failed to Impress Investors
Darden Restaurants (DRI) announced its fiscal 1Q18 earnings on September 26, 2017. It posted adjusted EPS (earnings per share) of $0.99 on revenues of $1.9 billion.
What Led to BlackRock’s Downward Sloping Dividend Yield Curve?
BlackRock posted a 7.0% revenue growth in the first half of 2017, driven by every segment except multi-asset and alternatives, which reported flat growth.
How CenturyLink is Maintaining Its Dividend Yield
The story behind CenturyLink’s 8% yield Another acquisition-driven telecom company is CenturyLink (CTL). The cohesive communications company provides a wide range of services to its residential and business customers. Like Frontier, it has been impacted by the slowing traditional phone business. The company’s operating metrics, excluding those of Prism TV, are trending downwards. This trend has […]
Dividend Yield of Aflac
This year marks Aflac’s (AFL) 35th successive year of dividend growth. But its operating cash flow has shown a declining trend over the years.
AT&T’s Dividend Path
AT&T (T) has managed to record growth in its 2016 revenues, mainly driven by its Entertainment Group and International segments.
How the Dow Jones Industrial Average Has Performed
The Dow Jones Industrial Average Index has a YTD return of 10.5%. It offers a dividend yield of 2.4% at a PE (price-to-earnings) ratio of 20.4x.
Domino’s Stock Fell on This in 2Q17
For 2Q17, Domino’s reported adjusted earnings per share of $1.32 on revenues of $628.6 million, representing a 34.6% rise.
Chipotle’s Valuation Multiple Falls on New Food Safety Issues
The recent food safety reports at Chipotle have prompted analysts to lower their EPS (earnings per share) estimates for the company for the next four quarters from $8.98 to $8.78.
How Chipotle’s Valuation Multiple Compares with Its Peers
On July 13, 2017, Chipotle’s forward PE multiple was 39.1x compared to 50.7x before the announcement of its 1Q17 earnings.
McDonald’s: Investors Are Optimistic before Its 2Q17 Earnings
McDonald’s will announce its 2Q17 earnings before the market opens on July 25. Its stock price has risen 15.5% since its 1Q17 earnings were announced.
Consumer Discretionary: Which Are the Top Dividend Growers?
Consumer Discretionary Select Index sales, earnings, and dividends have grown at a CAGR (compound annual growth rate) of 6%, 7.2%, and 10.7%, respectively between 2012 and 2017.
Darden Stock Hits New 52-Week High on Strong 4Q17 Earnings
In fiscal 4Q17, Darden posted adjusted EPS (earnings per share) of $1.18 on revenues of $1.9 billion.
How Darden’s Valuation Multiple Compares with Peers
On June 21, 2017, Darden was trading at a PE multiple of 20x, as compared to 17.8x before the announcement of its fiscal 3Q17 earnings.
Analyzing the Dividend Yields of the Cyclical and Defensive Sectors
The S&P 500 (SPY) defensive sectors tend to offer an attractive yield to investors during low-interest environments or when the economy is slowing down.
What’s Basic Energy Services’ Stock Price Forecast?
On May 8, 2017, Basic Energy Services’ (BAS) implied volatility was ~57%.
Why Philip Morris’s Valuation Multiple Fell: Weak 1Q17 Earnings
Valuation multiples help investors make investment decisions. They’re driven by investors’ willingness to pay, perceived growth, risks, and uncertainties.
Where Philip Morris’s Valuation Multiple Stands Next to Peers
As of April 11, 2017, Philip Morris was trading at a forward PE multiple of 22.6x, as compared to 20.8x before the announcement of its 4Q16 earnings.
Why November Eagle Ford Natural Gas Production Fell 19% in a Year
The EIA estimates that natural gas production at the Eagle Ford Shale was 19.0% lower than production in November 2015.
Analyzing Indebtedness: PTEN versus HP
We’ll discuss Helmerich & Payne (HP) and Patterson-UTI Energy’s (PTEN) indebtedness. On September 30, Patterson-UTI Energy’s net debt was $576 million.
What Could Provide an Upside to Vale SA’s Free Cash Flow?
Vale SA (VALE) generated free cash flow of $1.6 billion in 3Q16. In August 2016, it sold an additional 25.0% of its gold stream as a by-product of Salobo’s copper concentrate.
PPL’s Dividend: One of the Most Admirable Yields in the Sector
PPL’s dividend yield is among the highest in the sector. Top utilities such as Duke Energy and Southern Company are also currently trading at respective yields of ~4.5%.
Are Dividend Growers a Better Option Than Dividend Payers?
With a gradual increase in interest rates, dividend-growing companies have room to grow and can offer a higher yield with higher income. On the other hand, dividend-paying companies have no room for growth.
Why October Eagle Ford Natural Gas Production Fell 18% in a Year
The EIA estimates that natural gas production at the Eagle Ford Shale was ~5.9 Bcf (billion cubic feet) per day in October 2016.
Demographics Driving Conservative Investment? Bernstein Says No
After stating that the market isn’t in a low return environment, Richard Bernstein moved on to discuss the reasons cited by many for conservative asset allocation.
Bernstein’s Take on ‘Unprecedented’ Event in Equities Bull Run
In Richard Bernstein Advisors’ October newsletter, Richard Bernstein noted that although the bull run in US stocks is in its seventh year, investors remain afraid of equities.
Buyback Achievers Strategy Significantly Outperforms Benchmark
Historically, we have seen Buyback does perform very well across all interest rate environments. Looking at the data back to the mid-80s, it does well.
How Do You Define ‘Smart Beta’?
What is your definition of smart beta? I think there is some variation in this definition depending on who you ask.
The AlphaDEX® Methodology: The Quintessential Smart Beta Product
So let’s move on to the AlphaDEX suite of products. Walk us through the construction of these products.
Do Dividend Growers Look Appealing?
Historically, dividend growers have often performed better than the S&P 500 (IVV) and provided higher income during Market volatility.
Where Should Investors Turn in the Wake of Brexit Results?
As concerns about weak economic growth are further aggravated in the aftermath of Brexit, European (EZU) stocks are likely to see downward trends for the rest of the year.
Coca-Cola Announces Its Plans to Expand in Brazil
Coca-Cola fell by 0.13% to close at $45.63 per share on July 15. Its weekly, monthly, and YTD price movements were 0.55%, 1.4%, and 7.9%, respectively.
Yield-O-Philes Face a Difficult Challenge
Yields remain at unattractive levels. This has caused yield-thirsty investors to flock to high-dividend-yielding stocks, driving their valuations higher.
Yield for Yields! Where Can You Find Yields Today?
Not only are European stocks cheaper than American ones, they also offer more attractive dividend yields.
The Latest Forward Yield and Dividend Growth Numbers among Utilities like PPL
PPL Corporation is currently trading at a forward dividend yield of 4%, with an expected dividend growth rate slightly under 2% for the next two years.
Why April’s Eagle Ford Natural Gas Production Fell 9% in a Year
The EIA estimated that natural gas production at the Eagle Ford Shale was ~6.7 Bcf (billion cubic feet) per day in April 2016.
Have Utilities Lost Their Allure after the Unusual Rally in 2016?
In 2016, utilities have gained more than 12% YTD, outperforming broader equities. The steep rally of utilities has offset investor losses from last year.
Vale’s Stretched Balance Sheet: Why Are Investors Still Worried?
Vale management maintains that “in spite of the increasing prices, we remain fully-committed to the strengthening of our balance sheet through the reduction of our net debt.”
EIX Reported Lower 1Q16 Revenue due to Delayed Rate Case Decision
Edison International (EIX), the smallest of the three Californian utilities by market capitalization, reported its 1Q16 results on May 2, 2016.
Altria Missed Estimates Last Quarter—How Was Its 1Q16?
After missing revenue expectations last quarter, Altria came in ahead of analysts’ estimates in 1Q16. Analysts had projected revenue of $4.4 billion.
Does National Oilwell Varco See Recovery in 2016?
National Oilwell Varco’s management expressed optimism about crude oil production and a demand recovery in 2H16.
Why Investors Should Focus on High Quality Growth Companies
A portfolio with a focus on quality companies is likely to have lower volatility and could offer stable returns compared to a broader index.
Are Vale’s Plans to Protect Its Balance Sheet Too Aggressive?
Vale (VALE) ended 4Q15 with $3.6 billion in cash on its balance sheet as compared to $4.5 billion at the end of 3Q15.
Why Vale’s Cost Saving Efforts Weren’t Enough to Avoid a Downgrade
Vale SA (VALE) released its 2015 results on February 25, 2016. It announced several cost-cutting and cost saving measures to weather the prolonged downturn in commodities (COMT).
A Look at BHP Billiton’s Capital Allocation Priorities
BHP Billiton (BHP) (BBL) has reframed its capital allocation priorities, including sustaining capex, maintaining balance sheet strength, and cutting dividends.
Why Is BHP Billiton Cutting Its Dividends?
BHP Billiton has changed its dividend policy from one based on progressive dividends to a payout ratio based on earnings.
How Does NMM’s Stock Compare with Its Adjusted Net Asset Value?
Navios Maritime Partners’ adjusted NAV (net asset value) shows that it is currently trading at a 46% discount to its NAV.
Could Navios Partners’ Dividend Cut Be a Long-Term Opportunity?
Navios Maritime Partners (NMM) will save $72 million annually from the suspension of dividends (DVY).
Will Altria Group Beat Wall Street’s Revenue Estimates in 4Q15?
Altria Group is set to release its 4Q15 and 2015 earnings on January 28, 2016. MO’s earnings were in-line with Wall Street analysts’ expectations in 3Q15.
NMM Is the Only One Paying Dividends: Should Investors Care?
Navios Maritime Partners (NMM) cut dividends by 52% in its 3Q15 results given the weak outlook for the dry bulk industry. But even after a cut, it’s boasting of a yield of 30%+.
BHP’s Free Cash Flow Could Fall Short of Covering Its Dividends
BHP has a capital expenditure (or capex) guidance of $8.3 billion for fiscal 2016 and $7 billion for fiscal 2017.
BHP May Have to Choose between Capex and Dividends
BHP will most likely have to choose between cutting dividends and cutting capital expenditure, given that it does not borrow to pay dividends.
Anglo American Works to Restore Its Balance Sheet to Health
Anglo American’s balance sheet is in bad shape. The company is realigning its focus on cash flow generation, high-quality assets, and reduction of costs.
A Closer Look at Clorox’s Brands
Clorox has big share brands in mid-sized categories and represents ~23% of the total market share. That’s approximately three times the size of the next branded competitor.
Could Investing in DVY Affect Your Portfolio?
Although DVY’s performance isn’t great this year, it has provided consistent returns to investors since its inception on July 11, 2003, with a total annualized return of 6.9%.
A Sectoral Holding Analysis of DVY
Weak returns from the utilities and financial sectors, which represent 51% of DVY’s portfolio, have resulted in the fund’s poor performance in the market.
Why Has DVY’s Fund Inflow and Volume Decreased in 2015?
DVY saw a huge drop in its fund flow this year compared to FVD, which resulted in a fund outflow (or negative fund inflow) for DVY. It happens when the redemption of shares is higher than purchases.
A Structural Overview of DVY, a High-Dividend-Yielding Fund
The iShares Select Dividend ETF (DVY) is a smart beta fund that aims to generate regular income for its investors. It seeks to replicate the performance results of the Dow Jones U.S. Select Dividend Index.
How Has DVY Performed in the Market So Far in 2015?
DVY has performed poorly compared to the market. DVY and SPY resulted in a downward trend with an increase in volatility in the market.
NextEra Energy’s 3Q15 Guidance and Dividend Expectations
NextEra Energy (NEE) expects to generate earnings per share (or EPS) of $5.40–$5.70 for all of fiscal 2015.
Which Sectors Look Attractive as Interest Rates Remain Low?
With long-term rates stuck, utilities look less vulnerable, especially when you consider that utilities have underperformed other market sectors this year.
How Has DVY’s Portfolio Performed?
The top five holdings of the iShares Select Dividend ETF (DVY) represent 13% of its total portfolio.
An Analysis of DVY’s Components
The top ten holdings of the iShares Select Dividend ETF (DVY) account for 22.26% of DVY’s net assets.
An Analysis of DVY’s Holdings
The iShares Select Dividend ETF (DVY) currently holds 100 stocks in its portfolio.
A Comparative Analysis of DVY
The iShares Select Dividend ETF (DVY) is majorly invested in the utilities, financials, and consumer staples sectors.
A Structural Analysis of DVY
The iShares Select Dividend ETF (DVY) is a smart beta fund that seeks to generate regular income for its investors.
Sysco’s Stock Performance and Record Year in Fiscal 2015
Trian Fund Management’s 7.08% stake announcement in Sysco (SYY) was well received by the markets. SYY stock rose 7.4% to $41.38 on August 14, the day Trian filed its interest in Sysco with the SEC.