Dividend Income

Special Report: It’s a new world for dividend income investors: 3 trends (all now posted) and 10 picks (all first now posted PFE, BEPC, NKE, EQNR, V, HON, T, VZ, RTX, ABBV)

Special Report: It’s a new world for dividend income investors: 3 trends (all now posted) and 10 picks (all first now posted PFE, BEPC, NKE, EQNR, V, HON, T, VZ, RTX, ABBV)

Let’s say you’re a dividend income investor. You need cash income in retirement. Or you want your portfolio to generate cash now so you can invest in new opportunities. Or you just want the extra safety and lower risk that owning a stock with a substantial dividend can bring. Whatever your reasons–and I can think of a lot more–this is a particularly challenging financial market for dividend income investors.But I do think there are strategies dividend income investors can successfully pursue even in this challenging market. In the rest of this Special Report I’m going to explain the three ways I think you should be thinking about dividend income investing in this market. And then I’m going to give you 10 dividend stocks that I think are especially well-suited to producing income (and price appreciation, which is always nice even if you’re an income investor) in this market environment. First pick just posted–Pfizer

Please Watch My New YouTube Video: Quick Pick Cheniere Energy

Please Watch My New YouTube Video: Quick Pick Cheniere Energy

Today’s Quick Pick is Cheniere Energy (LNG). Cheniere is a liquified gas supplier  and the stock was down about 7.5-8% this year. Much of that drop was a reaction to the Biden administration’s decision to delay permits for new LNG export facilities in order to put pressure on the industry to decrease their methane emissions. However, this is essentially a non-issue for Cheniere since the company’s most recent expansion had already been permitted. The company is on track to go from a capital-intensive/debt heavy stage to putting billions into new sites and export facilities to a generator of free cash flow from those completed facilities.  The current dividend is only 1.05% but the total yield, (dividends plus stock buybacks) is about 6.05%. Management has said they believe there will be enough free cash flow to raise the dividend rate by 10% a year from now until the mid to late 20s. In my opinion, demand for LNG is shifting as markets like Japan and China are transitioning to nuclear or solar and wind, but there is still growing demand from places like India, which is looking to transition away from coal. Cheniere is predicting 3% annual revenue growth and I think that’s reasonable and enough to keep the cash flow and dividends moving. I will be Cheniere to my Dividend Portfolio on those future yield prospects.

Please Watch My New YouTube Video: Quick Pick CVS

Please Watch My New YouTube Video: Quick Pick CVS

Today’s Quick Pick is CVS Health (CVS). CVS owns a unique combination of healthcare delivery channels. Drugstores, yes–9,000 of them. But the company also owns health insurance company, Aetna, and Caremark, the largest pharmacy benefit manager. And recently it moved into the primary care marketplace through its acquisition of Oak Street. The company reported earnings on Wednesday, February 7, and the stock was up about 3.25% after that. While the earnings were good, (they beat by $0.13) the guidance is what is important here. The company projected higher costs for 2024 and cut guidance for GAAP earnings ($7.06) and adjusted earnings ($8.30). The reason the stock went up despite these cuts is that everyone was expecting DEEPER cuts to guidance. CVS has been signaling for weeks that rising costs in 2024 could be painful for the healthcare sector as a whole, and the relatively minor cuts in guidance led to a rally in the stock. Morningstar calculates a fair value for CVS Health of $103 a share. The stock closed at $76.32 on February 9. The stock also pays a 2.36% dividend. The stock is a member of my Dividend Portfolio. That position is up 31.25% since October 28, 2020.

Please Watch My New YouTube Video: Pick of the Week HAS

Please Watch My New YouTube Video: Pick of the Week HAS

Today’s Quick Pick is Hasbro (HAS). This stock isn’t terribly exciting or groundbreaking. There’s no big new tech connected to this pick. Hasbro makes toys and traditional toys are considered a declining industry. The stock is indeed ,60% off of its 2019 high. This is not a growth stock, but it is a reliable, high yield, dividend stock. Cash flow from toy sales is consistent enough to keep the 5.5-6% coming Sales may be flat this year but licensing with brands like My Little Pony and Transformers keep the company’s toys top of mind with kids and in the media. Hasbro is one of three major toy brands that make up 40% of the traditional U.S. toy market and 30% of the global market. The industry may not be exciting, but the high dividend yield makes this worth a look. I’ll be adding this to my Jubak Picks Dividend Portfolio next  week.

Step #8 in my Special Report: Sell DE, CAT and BHP tomorrow

Step #8 in my Special Report: Sell DE, CAT and BHP tomorrow

Today I posted Step #8 in my Special Report: 8 Steps to Protect Your Portfolio from the Global Debt Bomb. I recommended selling Deere (DE), Caterpillar (CAT), and BHP Group (BHP) out of portfolios ahead of rising yields i the bond market. (In the case of Deere, I said I would keep my position in my long-term portfolio but sell the position in my 12-18 month portfolio.) Here’s what I posted in my Special Report

Saturday Night Quarterback (Part 2) says, For the week ahead expect…

Saturday Night Quarterback (Part 2) says, For the week ahead expect…

Investors see a ton of third-quarter earnings reports this coming week with news from Microsoft, Amazon, Meta Platforms, and Alphabet quite capable of moving the entire market. We’ll also get more consumer company (Coca-Cola and Kimberly-Clark for example) reports to show whether last week’s higher revenue but lower volume pattern continues. And Wall Street is expecting negative new from oil companies ExxonMobil (XOM) and Chevron (CVX) when they both report on Friday.