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Eli Inkrot  

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  • CVS: Will Strong Dividend Growth Provide Solid Returns?
    Yesterday, 12:14 PM CVS 2 Comments

    Summary

    • CVS has demonstrated a very robust dividend growth history during the last decade.
    • Moving forward an investor could expect this to continue – with intermediate-term dividend growth in the 15% to 20% range perhaps.
    • This article looks at whether or not this also implies solid total return prospects.
  • U.S. Bancorp's Potential With A 50% Payout Ratio
    Yesterday, 12:59 AM USB 6 Comments

    Summary

    • U.S. Bancorp is presently paying out a third or so of its profits in the form of dividends.
    • In the past the company has paid out a much higher portion of profits.
    • This article looks at the company’s potential if it began paying out 50% of its earnings.
  • What If Your Share Price Stagnates... Forever?
    Wed, Mar. 4 JNJ 37 Comments

    Summary

    • In a previous article, I highlighted the benefit of stagnating share price using Johnson & Johnson.
    • In this instance, the share price more or less “languished” for five years.
    • This article looks at a slightly more permanent thought experiment: the same price “forever.”.
  • What If Wells Fargo Paid Out Half Of Its Earnings?
    Tue, Mar. 3 WFC 19 Comments

    Summary

    • Wells Fargo currently pays out a third or so of its profits in the form of a dividend.
    • However, it’s not unimaginable that the company could work its way to paying out half of its earnings in the future.
    • This article looks at what this scenario might look like for current and prospective investors.
  • What Would A 50% Payout Ratio Mean For JPMorgan?
    Mon, Mar. 2 JPM 6 Comments

    Summary

    • JPMorgan has demonstrated a penchant to increase its dividend payout ratio, which currently stands at about a third of earnings.
    • Although this won’t happen immediately, it’s reasonable to assume that strong payout growth is a future possibility.
    • This article looks at what a 50% payout ratio in the future would mean for JPMorgan shareholders.
  • Travelers' Shareholder Yield Is Compelling
    Fri, Feb. 27 TRV 14 Comments

    Summary

    • Travelers' 2% dividend yield probably isn’t too exciting for most income investors.
    • However, the company’s buyback program has been impressive.
    • Combined, the two methods of shareholder return offer a compelling proposition.
  • Johnson & Johnson: The Benefit Of A Stagnant Share Price
    Thu, Feb. 26 JNJ 40 Comments

    Summary

    • In the 2007 to 2012 period, Johnson & Johnson’s share price effectively stagnated.
    • Many would view this as a negative, moving directly against what they hope will happen with an investment.
    • Yet if you’re a net buyer, there is a huge benefit in seeing a stagnant share price coupled with a solid business.
  • ONEOK Reduces Dividend Guidance, How Bad Is It?
    Wed, Feb. 25 OKE 14 Comments

    Summary

    • I recently highlighted ONEOK as a company with both a high starting dividend yield and fast expected payout growth.
    • Since that time, management has reduced its dividend guidance.
    • This article looks at future income possibilities for ONEOK in reference to the lower anticipated growth.
  • In Search Of High Yield And Growth
    Tue, Feb. 24 OKE, WMB 19 Comments

    Summary

    • Usually investors have a decision between a higher starting yield or a higher anticipated growth.
    • However, occasionally you are able to find security candidates with both attributes.
    • This article looks at two companies with high starting yields and solid projected dividend growth.
  • Coca-Cola Increases Dividend, A Historical Look
    Fri, Feb. 20 KO 14 Comments

    Summary

    • Coca-Cola recently increased its dividend by 8%, representing the 53rd consecutive year of increasing its payout.
    • Due to lower reported earnings per share, the payout ratio now appears quite high.
    • However, when you take a closer look, all might not be as alarming as it originally appears.
  • Wal-Mart Increases Dividend 2%; I Wouldn't Have Increased It At All
    Fri, Feb. 20 WMT 54 Comments

    Summary

    • Wal-Mart recently increased its dividend by 2%.
    • This is quite similar to last year’s increase and well below the company’s historical record.
    • Shareholders probably aren’t very impressed, but this could be exactly what the Waltons desire.
  • Watching Your Dividends Pile Up
    Thu, Feb. 19 BWLD, JNJ, CL 29 Comments

    Summary

    • Often “growth stocks” are recommended for the young or accumulating investor.
    • This is great in theory, but a bit more difficult to accomplish in practice.
    • Watching your dividends pile up instead could very well provide similar or better returns with an added psychological benefit.
  • 8 Blue Chips With The Potential To Return 25% Of Your Money
    Tue, Feb. 17 BP, T, COP 14 Comments

    Summary

    • If you’re primarily focused on income, if can be helpful to put together a starting investment baseline.
    • While there are many types of income securities, it can be useful to begin with the “plain vanilla” common stocks.
    • This article looks at eight “blue-chip” companies with the potential to return 25% of your initial investment, in the form of dividends, over the next five years.
  • How Much More Compelling Is The Southern Company Today?
    Sat, Feb. 14 SO 45 Comments

    Summary

    • Recently I provided an update on the Southern Company, suggesting that 5% intermediate-term return expectations might be a reasonable baseline.
    • Since that time, the share price has declined dramatically.
    • This article looks at “how much more compelling” the company is today.
  • Kroger: A Recent Tale Of Dividend Hors D'oeuvres
    Fri, Feb. 13 KR 2 Comments

    Summary

    • The idea of “dividend hors d’oeuvres” is to collect a solid dividend payment while you wait for a higher valuation.
    • This concept can also be used to think about earnings growth.
    • This article looks at an interesting history of Kroger, displaying both a stagnating share price along with a huge run-up as of late.
  • Coca-Cola Vs. PepsiCo: The Dividend Growth Challenge
    Thu, Feb. 12 KO, PEP 16 Comments

    Summary

    • Recently both Coca-Cola and PepsiCo announced full years earnings.
    • Neither company demonstrated much growth, hindered by currency headwinds.
    • This article looks at each investment opportunity moving forward.
  • Kroger: Great Company, But Hard To Buy Today
    Tue, Feb. 10 KR 6 Comments

    Summary

    • Kroger has demonstrated itself to be a strong and growing company with a storied history.
    • While the stock price "stagnated" for a while, it has recently increased dramatically.
    • This article looks at the prospects of an investment in Kroger today.
  • McDonald's Versus Starbucks: Income Or Growth?
    Fri, Feb. 6 MCD, SBUX 108 Comments

    Summary

    • McDonald’s is currently being characterized as “higher yield/lower growth”.
    • Starbucks fits the “lower yield/higher growth” mold.
    • This article compares the rationality of each investment from the income and total return prospective.
  • Southern Company - Expect A Dividend Increase, But Not Much More
    Thu, Feb. 5 SO 51 Comments

    Summary

    • Recently the Southern Company announced fourth quarter earnings results.
    • The company had higher revenues, income and earnings –- slightly offset by a larger share count.
    • Expect a dividend increase in the next quarter, but perhaps not much more as an intermediate-term investment.
  • What Happened The Last Time Chevron Had A 4% Yield?
    Wed, Feb. 4 CVX 26 Comments

    Summary

    • Prior to the last few months, Chevron had a 4% yield in 2010 and 2002.
    • In both instances, the future returns were quite solid.
    • In the end, it’s important to recognize the context of the dividend yield along with your future expectations.
  • Update: BP - Still Paying Dividends
    Wed, Feb. 4 BP 2 Comments

    Summary

    • Recently BP announced fourth quarter earnings results.
    • The company provided lower capital expenditure guidance and declared an in-line dividend payment.
    • With a 6% “current” yield the “dividend hors d’oeuvres” thesis continues to play out.
  • Exxon Mobil - Full Year Revenue Down, EPS Higher
    Tue, Feb. 3 XOM 3 Comments

    Summary

    • Exxon Mobil recently released fourth quarter and full year earnings results.
    • Year-over-year sales were down and income was flat, as earnings per share actually grew a bit.
    • Exxon continues to demonstrate its shareholder might, as the dividend is increased and the share count is reduced.
  • Update: Chevron - Lower Earnings, Higher Dividends
    Sat, Jan. 31 CVX 17 Comments

    Summary

    • Chevron recently reported fourth quarter earnings results.
    • As anticipated, sales, income and earnings were all lower than the previous year.
    • However, a bright spot remains in a higher dividend and reduced share count as the company faces lower oil prices.
  • Update: Visa - The Growth Story Continues
    Fri, Jan. 30 V 15 Comments

    Summary

    • Visa recently reported its first quarter 2015 earnings results.
    • Sales, income and earnings were all substantially higher as management increased the dividend and reduced share count.
    • Moving forward the company appears to be cruising on the fast track.
  • Update: New York Community Bancorp Continues To Tiptoe Around SIFI Status
    Fri, Jan. 30 NYCB 3 Comments

    Summary

    • New York Community Bancorp recently announced fourth quarter earnings results.
    • Earnings were slightly higher, as the company continues to pay its $1 dividend – representing a 6.5% current yield.
    • With $48.6 billion in assets, New York Community Bancorp is steadily getting closer to the $50 billion “Significantly Important Financial Institution” mark.
  • Update: Sherwin-Williams - Priced For And Delivering Great Performance
    Fri, Jan. 30 SHW 1 Comment

    Summary

    • Recently Sherwin-Williams released full year 2014 earnings results.
    • Sales, income and earnings were all substantially higher as the company increased its dividend and reduced share count.
    • Shares presently trade around 31 times trailing earnings and 25 times forward earnings, reflecting the strong expected performance of the company.
  • Update: Hershey - Quality At A Premium
    Fri, Jan. 30 HSY 1 Comment

    Summary

    • Hershey recently announced fourth quarter earnings results.
    • The company showed improvement in all of the major categories, while continuing to demonstrate its commitment to shareholders.
    • However, with shares trading around 27 times trailing earnings, investors might see investment returns that lag business performance.
  • The Case For Apple's 'Moderate' Dividend Growth
    Thu, Jan. 29 AAPL 49 Comments

    Summary

    • Apple has demonstrated a strong commitment to shareholders via increased dividend payments and share repurchases.
    • However, due to strong earnings growth, the payout ratio remains relatively low.
    • While a faster dividend growth rate is possible, it appears that management is taking a cautious payout approach.
  • Why Total Income Growth Is More Important Than Dividend Growth
    Wed, Jan. 28 JNJ, VZ 22 Comments

    Summary

    • Often people look at the expected dividend growth rate of a company to make an investment decision.
    • However, I would contend that total income growth can be much more relevant, especially if you choose to reinvest your dividend proceeds.
    • This article looks at total income growth rather than simply dividend per share growth.
  • Update: Procter & Gamble Faces Currency Headwinds
    Wed, Jan. 28 PG 3 Comments

    Summary

    • Procter & Gamble recently announced 2nd quarter fiscal year 2015 earnings results.
    • Sales, income and earnings per share were all lower as compared to last year, although the results were actually positive on a currency-neutral basis.
    • Moving forward, it appears P&G will continue to have currency concerns as the company looks to increase its dividend for the 59th consecutive year.
  • Update: DuPont - Fewer Shares And In-Line Earnings
    Wed, Jan. 28 DD 3 Comments

    Summary

    • Recently DuPont announced fourth quarter and full year earnings results.
    • Sales were slightly lower, but operating earnings and dividends were up, with the share count reduced.
    • Moving forward the company expects additional share repurchases along with currency headwinds.
  • How Much 'Extra' Income Are You Getting If You Reinvest Dividends?
    Tue, Jan. 27 T 67 Comments

    Summary

    • In a recent article, another contributor looked at the total return benefit of reinvesting dividends.
    • This article investigates the benefit associated with total income growth.
    • If you’re able to reinvest, the total income component can grow much faster than a company’s dividend.