Dividend Yield – Render Boy http://render-boy.com/ Mon, 21 Jun 2021 18:44:48 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 http://render-boy.com/wp-content/uploads/2021/04/render-boy-icon-150x150.png Dividend Yield – Render Boy http://render-boy.com/ 32 32 25 Reliable Dividend Stocks That Trade For Relatively High Yields http://render-boy.com/25-reliable-dividend-stocks-that-trade-for-relatively-high-yields/ http://render-boy.com/25-reliable-dividend-stocks-that-trade-for-relatively-high-yields/#respond Mon, 21 Jun 2021 18:27:07 +0000 http://render-boy.com/25-reliable-dividend-stocks-that-trade-for-relatively-high-yields/

The income stream offered by dividends provides some comfort in volatile market conditions. On the other hand, yields on treasury bills remained at low levels. During the week ended June 11, 2021, the yield on the 10-year note was less than 1.5%. Dividend paying stocks can offer comparable (and often higher) returns with the potential for dividend growth and capital appreciation.

Dividends contribute to returns in any market situation, while the attractiveness of income from dividend-paying stocks helps limit large losses in a market downturn. A dividend yield strategy can help you find potentially undervalued stocks with reduced downside risk, provided the dividend is secure.

However, not all dividends are created equal. Many companies have reduced or eliminated their dividends since 2020. Therefore, it is important for investors to pay attention to management’s commitment to guarantee the payment of dividends and whether the amount of the dividend has increased, remained the same. same or has been reduced.

High relative dividend yields

A share’s dividend yield is calculated by taking the stated dividend (the expected dividend over the next year) and dividing it by the share price. For most stocks, the dividend shown is the most recent quarterly dividend multiplied by four. If a stock pays an stated dividend of $ 1 per share and trades at a price of $ 40, its dividend yield is 2.5% ($ 1 ÷ $ 40 = 0.025 or 2.5%). If a stock’s price is rising faster than its dividend, the dividend yield will drop, indicating that the price may have been up too high and may be ready for a drop. Conversely, if the dividend yield reaches a high level, the stock may be on the verge of a price increase if the dividend can be sustained.

AAII follows a high-performance screen that searches for companies whose characteristics include:

  • An established history of rising dividends,
  • A high dividend yield compared to its historical norm,
  • Profit growth above industry standard and
  • Liabilities below industry standard.

A history of growing dividends implies that management has always maintained a focus on providing an increasing level of income to shareholders.

The relative dividend yield is a measure of valuation. It is used to signal if a company is trading at a discount from its historical range. Higher yields signal a lower valuation, although other metrics, such as the price-earnings ratio, should also be considered. Higher performance can also signal concerns about the business or financial condition of the business; therefore, a thorough research is necessary.

Above-industry earnings growth suggests that the company’s profitability should be able to support higher dividends in the future. These two characteristics increase the possibility that dividends will be increased in the future, but they do not guarantee it. Lower debt levels provide more cash for dividend payments, as less cash has to be used for debt service. Comparing debt levels with the industry median allows the strategy to adapt to different capital requirements.

Like all basic value-driven techniques, the dividend yield strategy attempts to identify investments that are not in favor. Filtering is the first step in this process, and it involves scanning a group of headlines to find those that deserve further analysis. Absolute or relative levels can be used to find high yielding stocks. A filter requiring an absolute level might seek, for example, a minimum dividend yield of 3% before an investment is considered.

The screens based on relative levels compare the return to a benchmark that can fluctuate, such as the current dividend yield for the S&P 500. In this case, the investor does not require the return to reach a minimum level, but rather than maintain its historical level. relation to the reference figure. Common screens looking at relative returns include comparisons to a certain overall market level, industry level, historical average, or even an interest rate benchmark. This screen is performed using a historical average as a reference.

Apply screen

The first filter excludes companies that trade in the over-the-counter (OTC) market. This filter is used to establish minimum levels of liquidity.

Next, the filter excludes closed-end mutual funds, which have unique financial characteristics that require them to be analyzed separately.

The screen then requires a company to have seven years of price and dividend records. When filtering against a historical average, remember to include a time period that covers both the rising and falling periods of a market and an economic cycle.

Selecting a period is a balance between using a period that is too short and captures only a segment of the market cycle, and one that is too long and includes a period that is no longer representative of the market cycle. current business, industry or market. Periods between five and ten years are the most common for this type of comparison.

The screen then searches for companies that have paid a dividend for each of the past seven years and have never reduced their dividend.

Dividend levels are set by the board of directors based on current business, industry and economic conditions. Because dividend cuts amount to an announcement that the company is in financial difficulty, dividends are set at levels that the company should be able to afford throughout the business cycle.

A lack of dividend growth or a declining rate of dividend growth can also be troubling, especially after a period of regular annual dividend increases. Investors like Benjamin Graham have demanded that stock dividends at least keep pace with inflation. The screen is even more aggressive and demands an annual increase in the dividend payment per share for each of the last six years.

The next filter requires that the company’s current dividend yield be greater than its seven-year average dividend yield. This filter searches for companies whose dividends have grown faster than the stock price increases, or whose current stock price has fallen recently.

The payout ratio

While it may appear that the selection process should be completed with this last filter, before a company can be considered for purchase, the security of the dividend must be considered. A high dividend yield can be a signal that the market expects the dividend to be reduced shortly and has lowered the price accordingly. A high relative dividend yield is only a buy signal if the dividend level should be maintained and increased over time.

There are metrics that help identify the security of the dividend. The payout ratio is perhaps the most common of these and is calculated by dividing the dividend per share by the earnings per share. In general, the lower the number, the safer the dividend. Any ratio above 50% is considered a warning signal. However, for some industries, such as utilities, ratios of around 80% are common. A payout ratio of 100% indicates that a company pays out all of its profits as dividends. A negative payout ratio indicates that a company pays a dividend even though profits are negative. Businesses cannot afford to pay more than they earn in the long run. The screen requires a distribution rate of between 0% and 85% for utilities and between 0% and 50% for companies in other sectors.

Financial solidity

Dividends are paid in cash, so it’s also important to look at a company’s liquidity. Financial strength helps indicate liquidity and provide a measure of security for the payment of dividends.

Both short-term business obligations and long-term liabilities must be considered when testing financial strength. Common measures of a company’s long-term obligations include debt-to-equity ratio (which compares the level of long-term debt to equity), debt as a percentage of capital structure (long-term debt divided by capital, which includes long-term funding sources such as bonds, capitalized leases and equity) and total liabilities to total assets.

The screen uses the ratio of total liabilities to assets because it takes into account both current and long term liabilities. Acceptable debt levels vary by industry, so the screen searched for companies with total liabilities to assets below the norm for their industry. The higher the ratio, the greater the financial leverage and the higher the risk. Financial stocks and passing utilities have much higher values ​​than stocks in the consumer sectors.

Profit growth

It is also important to examine the earnings history. Dividend growth cannot deviate from the level of earnings growth for very long, so the pattern of earnings growth will help confirm the stability and strength of the dividend. Ideally, income should increase steadily. The end screen demands that profit growth over the past three years be above the industry standard.

Conclusion

This High Relative Dividend Yield screen (which has shown an average annual gain since 1998 of 9.0%, compared to 6.5% for the S&P 500 index over the same period) identifies companies with strong dividend benchmarks that are trading at relatively high returns. Selecting a relatively high dividend yield is based on the age-old rule of buying low and selling high. Examining a stock’s dividend yield provides a useful framework for identifying potential candidates.

To be successful with this strategy, you need to develop a set of tools to not only identify which stocks have relatively high dividend yields, but also which of those stocks have the strength to bounce back. As with any screen, the listing of visiting companies is only a starting point for further analysis.

Stocks passing the high relative dividend yield screen (sorted by dividend yield)

___

Stocks that meet the criteria for the approach do not represent a “recommended” or “buy” list. It is important to exercise due diligence.

If you want an edge throughout this market volatility,become a member of AAII.


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A trio of stocks offering good http://render-boy.com/a-trio-of-stocks-offering-good/ http://render-boy.com/a-trio-of-stocks-offering-good/#respond Sun, 20 Jun 2021 17:11:33 +0000 http://render-boy.com/a-trio-of-stocks-offering-good/

While finding value in this market can be tricky, it’s not impossible. We’ll take a look at three companies that are trading at a reasonable valuation relative to their own historical average and that of their respective peer groups. Each name also has a dividend yield that is at least twice that of the S&P 500 Index.

Citigroup

Citigroup Inc. (VS, Financial) is one of the largest financial institutions in the world. The company provides personal and commercial banking services as well as investment banking, asset management and insurance services. Citigroup generated $ 74 billion in revenue in 2020 and is valued at nearly $ 140 billion today.

Citigroup receives a 9 out of 10 on its valuation ranking from GuruFocus. Citigroup’s price-to-earnings ratio exceeds 72% of the 1,368 companies in the banking industry. It’s also close to the company’s low end over the past decade.

The same is true for almost all other evaluation measures. Citigroup beats over 76% of the competition in both forward price-to-earnings ratio and price-to-owner earnings, the latter being at the very bottom of the company’s long-term average. The company also performs well on price-to-book and price-to-sell ratios, although both are average for Citigroup’s historical performance. Free cash flow is average relative to the rest of the industry, but ranks well relative to the company’s previous results.

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Citigroup closed Friday’s trading session at $ 67.61 and has a GF value of $ 74.17, giving the stock a GF price-to-value ratio of 0.91. Stocks are rated as fairly valued by GuruFocus, but could return 9.7% if they reach GF value.

Additionally, Citigroup shares are now paying a 3% dividend yield, which could push total returns into the low double-digit range. The current return looks very good compared to the five-year average return of the stock of 2.3% and the average return of 1.4% of the S&P 500 Index. Investors will probably recall that the company has cut its price. dividend in 2008 and 2009 before eliminating it in 2010 during the Great Recession, so the stock is not without risk. However, the company has increased its dividend for six consecutive years and with a compound annual growth rate of 53% over that period. Growth over the past three years is just under 10%.

H&R Block

H&R Block, Inc. (HRD, Financial) is a leading provider of consumer tax services. The company operates primarily in the United States, but has a small presence in Canada and Australia. H&R Block has 12,000 company owned and franchise locations and also provides tax software. The company generated $ 3.4 billion in fiscal 2021 (which ends April 30) and has a market capitalization of $ 4.3 billion.

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H&R Block has a perfect score of 10 out of 10 on the Review Leaderboard. With a price-earnings ratio of 7.5, H&R Block exceeds 93% of the 57 companies in the personal services industry. It’s also at the very low end of the long-term range. The futures price-to-earnings ratio is a bit higher, at just under 8, but ranks better than 89% of peers.

The action also looks cheap on a number of other valuation methods. Both Enterprise Value to EBIT and Enterprise Value to EBITda are superior to companies in the same industry and attractive compared to H&R Block’s own history. Free cash flow also looks attractive.

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GuruFocus estimates that H&R Block has a GF value of $ 28.29. With stocks closing the last trading session at $ 23.56, the stock is worth 0.83 between the price and the GF. The stock is considered slightly undervalued and could register a 20% return if H&R Block reaches its GF value.

Before suspending it last year, the company had increased its dividend for six consecutive years. The company also recently announced a dividend increase for early July. H&R Block is down 4.6%, above its 10-year average return of 3.8%. Today’s return is considerably higher than what the stock normally offers. To put that in context, this would be the second-highest stock average since at least 2005 if H&R Block averaged the current return for the entire year. Taken together, the total returns could reach the average range of 20%.

General mercury

Mercury General Corp. (MCY, Financial) provides auto, home, tenant and business insurance. The company’s auto insurance makes up most of the revenue. Mercury General is present in 11 US states, the most notable of which is California. The company’s revenue totaled $ 3.6 billion in 2020 and its market capitalization exceeds $ 3 billion.

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Mercury General also receives a 10 out of 10 on the evaluation ranking. The stock is showing an incredibly low valuation in the low range of 5 times earnings. This is a price-earnings ratio of less than 90% of the 428 companies in the insurance industry. It has also been at the very bottom of the stock’s valuation range over the past 10 years. The futures price / earnings ratio also ranks much better than its peers.

Enterprise Value to EBIT and Enterprise Value to EBITda are also much higher than their peers, the latter being much better than what Mercury General normally produces. The PEG ratio is lower than almost every other name in the insurance industry. The price-to-book ratio is Mercury General’s lowest score, but still exceeds 62% of the competition and sits in the middle of the stock’s long-term history.

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Mercury General is currently trading at $ 58.31 and has a GF value of $ 59.13, giving the stock a GF price to value ratio of 0.99. This does not leave much upside potential in the stock relative to its intrinsic value and stocks are valued at their fair value.

However, Mercury General pays a dividend yield of 4.7% and has increased its dividend for 33 consecutive years. Investors looking for a reasonably valued, income-producing name with a proven history of dividend growth might find Mercury General appealing.

Final thoughts

Citigroup, H&R Block, and Mercury General are three examples of stocks that are more than reasonable in value, especially relative to their respective peer groups and their own past performance. All three also offer returns above the S&P 500 Index. Citigroup and H&R Block could also see at least double-digit declines if they trade with their GF stocks. Mercury General appears to be priced appropriately, but enjoys high yield and over three decades of dividend growth. Investors looking for value and return are encouraged to consider any of these three stocks for investment.


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3 ways to invest in renewable energy now http://render-boy.com/3-ways-to-invest-in-renewable-energy-now/ http://render-boy.com/3-ways-to-invest-in-renewable-energy-now/#respond Sat, 19 Jun 2021 15:22:00 +0000 http://render-boy.com/3-ways-to-invest-in-renewable-energy-now/

Renewable energy is a massive megatrend spanning decades. Current estimates suggest that the global economy will need 100,000 billion dollars in investments over the next 30 years to shift from fossil fuel energy sources to cleaner alternatives. Considering the scale and duration of this opportunity, investors won’t want to miss it.

Fortunately, there are plenty of ways they can play with the energy transition trend. Here are three ways to invest in renewable energy.

Image source: Getty Images.

The yield of renewable energies

Companies focused on developing new renewable energy production capacities need a lot of cash to keep investing in new projects. They can bring in new capital by selling the cash-generating renewable energy assets they develop to renewable yield. These companies focus on owning renewable power generation facilities that sell most of their electricity under long-term, fixed-rate power purchase agreements (PPAs) to end users such as as large commercial customers or electric utilities. This gives them the cash to pay dearly dividend yields.

Two examples of renewable yieldcos are Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) and NextEra energy partners (NYSE: NEP). Clearway generally acquires wind turbines and solar energy projects of its private sponsor Clearway Energy Group. Meanwhile, NextEra Energy Partners is doing the same with its parent company, utility giant NextEra Energy (NYSE: NEE).

Given their focus on dividends, they pay above average returns (Clearway payout is 4.8% while NextEra Energy Partners dividend earns 3.4%). In addition, their main goal is to regularly increase these payments. For example, Clearway is aiming for 5-8% annual dividend growth while NextEra Energy Partners is targeting 12-15% annual dividend increase. These factors make them ideal options for investors looking for income.

Renewable energy component manufacturers

Several companies are focused on manufacturing equipment and components for the renewable energy industry, including:

  • Panels, floor mounting systems, inverters and optimizers for solar power generation.
  • Turbines, blades and internal components for wind power.
  • Batteries, uninterruptible power systems (UPS), powertrains and charging stations for battery storage and electric vehicles (EVs).

Manufacturers of renewable energy components are selling more of their products as the industry expands. This allows them to rapidly increase their income and profit as they expand their business in this expanding market.

Many companies focus on manufacturing these components. A notable example is SolarEdge Technologies (NASDAQ: SEDG). Although it specializes in manufacturing an inverter system optimized to maximize the power produced by solar panels, it also provides solutions to a wide range of other energy segments. These include storage, recharging of electric vehicles, batteries, inverter, vehicle powertrains and grid services. Companies like SolarEdge are ideal for those looking for a high investment.

Utilities clean up their act

Utilities are another way to play the renewable energy megatrend. Most are investing heavily to build new renewable energy capacity to replace fossil fuel power plants. On top of that, they are investing in building the grid to support additional renewable energy capacity.

One of the leaders in this space is NextEra Energy. It operates two utilities in Florida, one of the largest renewable energy companies and a leading electric transmission company. It invests billions of dollars in expanding these businesses. NextEra predicts that its investments will help grow its earnings per share at an annual rate of 6% to 8% until at least 2023. At the same time, he plans to increase his dividend by 2% of around 10% per year until next year. This combination of return and growth makes utilities like NextEra Energy lower risk investments.

Several ways to play this megatrend

Investors have many options for investing in renewable energy. They can generate an increasing income stream by investing in a yield company or utility. Or they can opt for a higher risk / reward opportunity by investing in a component manufacturer, which could generate strong revenue and profit growth in the years to come. Given the overall appeal of the sector, investors should look for a way to add renewable energy stocks to their portfolios.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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These 2 dividend ETFs are a retiree’s best friend http://render-boy.com/these-2-dividend-etfs-are-a-retirees-best-friend/ http://render-boy.com/these-2-dividend-etfs-are-a-retirees-best-friend/#respond Sat, 19 Jun 2021 11:15:00 +0000 http://render-boy.com/these-2-dividend-etfs-are-a-retirees-best-friend/

Just as you have an investment strategy until retirement, it is also important to fine-tune that strategy in retirement to meet your changing needs. You can find many great articles on Motley Fool on how to effectively manage your investments in retirement, but part of that strategy should be to supplement your income with stocks or dividend funds.

There are many great dividend-paying stocks out there, but you should also consider dividend-paying exchange-traded funds, or ETFs, which are specially designed to maximize your income. Here are two dividend ETFs that really stand out.

Image source: Getty Images.

1. The Schwab US Dividend Equity ETF

the Schwab U.S. Dividend ETF (NYSEMKT: SCHD) is one of the most consistent dividend producers. The ETF tracks the Dow Jones US Dividend Index, which includes the 100 largest and most stable blue-chip companies that generate dividends. This is important because generally, the larger and more established the company, the more stable it is, having weathered the ups and downs of the market with its dividend intact.

Consider the three biggest holdings of the ETF: IBM, which has one of the best dividends on the market with a yield of 4.4%; Home deposit, which yields a yield of 2%; and Pfizer, with its yield of 3.9%.

The Schwab US Dividend Equity ETF has a return of around 2.9%, which is certainly higher than the average return on the S&P 500, which is about half of that. And because this is a concentrated pool of blue chip companies, the return has been stable over the years – ranging from around 2.6% to 3.3% per annum for the past eight years. about, but generally just in that 2.9% area. This is crucial because the returns are calculated from the returns of the underlying stocks, so they are very different from a larger ETF, or one that is not focused on dividends.

In the first quarter, he paid $ 0.50 per share. Last year he paid around $ 2.02 per share, which was up from the previous year, so even during the pandemic he was able to increase his dividend.

The advantage of this ETF is that it is inexpensive, with an expense ratio of 0.06%, and has had excellent performance over the years. Since its creation in 2011, it has posted an average annual return of 15.8%. In the year up to May 31, it increased by 51.7%. And since the start of the year in 2021, it has returned 20.8%.

2. The SPDR S&P Dividend ETF

the SPDR S&P Dividend ETF (NYSEMKT: SDY) is also designed to generate dividend income as it tracks similarly to the S&P High Yield Dividend Aristocrats Index. Dividend Aristocrats are S&P 500 stocks that have increased their dividends each year for 25 consecutive years or more. So you’re talking about the best and most consistent dividend-paying stocks that have been successful in delivering and increasing their dividends through all market cycles, including the Great Recession and more recently the pandemic.

The index tracked by the SPDR S&P Dividend ETF is a slight variation from the traditional definition of a dividend aristocrat, as it only includes companies that have increased their dividend for at least 20 consecutive years, instead of 25. In addition, it weights stocks. by return, so the higher the return, the greater the weighting of the portfolio. In addition, it also looks at the characteristics of capital growth, so it’s not just about dividend yield.

Like the Schwab Fund, it is highly concentrated with around 115 of the best dividend producers in the market from established blue chip companies. The top three holdings are IBM; National Retail Properties, a property investment fund with a yield of 4.2%; and pharmaceutical company AbbVie, with a yield of 4.5%.

The SPDR S&P Dividend ETF has an average dividend yield of approximately 2.64%. During her share of about $ 126, she paid a dividend per share of $ 0.81 in the first quarter. Last year it paid $ 2.63 per share, but this year it is on track to increase that number. The current average return of 2.64% is lower than the past 10 years, possibly due to the recession and the pandemic. Over the past decade, the return has been in the range of 3% to 4%, peaking at 5.62% in 2016. As the economy improves, expect this. yield increases.

Like the Schwab ETF, it also has an excellent performance history, averaging 12.7% annual return over the past 10 years through May 31. Over the past 12 months it has increased by 42.3% and the year to date gained 19.2%. This ETF, however, has a higher expense ratio than the Schwab fund at 0.35%.

Takeaway for investors

So if you’re looking for dividend income in retirement, you really can’t go wrong with these two ETFs. They only invest in the most stable dividend producers and are designed to generate income in any market cycle, with strong long-term returns as a bonus.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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Boost Your Passive Income With These 4 High Yield Dividend Stocks http://render-boy.com/boost-your-passive-income-with-these-4-high-yield-dividend-stocks/ http://render-boy.com/boost-your-passive-income-with-these-4-high-yield-dividend-stocks/#respond Thu, 17 Jun 2021 21:31:48 +0000 http://render-boy.com/boost-your-passive-income-with-these-4-high-yield-dividend-stocks/

This year, Canadian equity markets have performed exceptionally well, with the benchmark, S & P / TSX Composite Index, an increase of 16%. However, rising inflation and high valuations have made stock markets volatile lately. Thus, investors can buy the following four Canadian stocks to strengthen their portfolios while earning stable passive income.

Enbridge

Enbridge (TSX: ENB) (NYSE: ENB) operates 40 miscellaneous assets, with 98% of its Adjusted EBITDA generated through regulated assets or long-term contracts, generating stable cash flow. This stable cash flow has enabled the company to pay continuous dividends for 66 previous years while increasing its dividend at a 10% CAGR for the last 26 consecutive years. Currently, its dividend stands at a healthy yield of 6.7%.

Enbridge plans to make a capital investment of $ 17 billion over the next three years, which could increase its Adjusted EBITDA by $ 2 billion. Along with these investments, the recovery in demand for oil could increase the rate of use of its assets, thus pushing up its finances. Given its healthy growth outlook, stable cash flow, and strong $ 9 billion cash flow, I think its dividend is secure. Thus, Enbridge would be a great buy for income seeking investors.

Northwestern Health Care

Likewise, Northwest Healthcare Properties REIT (TSX: NWH.UN) could be a great addition to your portfolio, given its highly defensive and diversified assets. It owns and operates healthcare properties in seven countries. Thanks to its long-term contracts and its government-backed clients, the company enjoys a high occupancy and recovery rate. A significant portion of its rent is indexed to inflation, which is encouraging.

Meanwhile, the company also plans to expand its presence in Australia, the United States and Western Europe. Currently, he is working on the acquisition of the Australian Unity Healthcare Property Trust, which owns 62 hospitals and medical facilities. It benefits from a high occupancy rate of 98% and a diversified tenant base with a weighted average lease term of 16 years. Thus, the acquisition could significantly increase NorthWest Healthcare’s cash flow, allowing it to pay its dividend at a healthier yield. Currently, the company pays a monthly dividend, with a forward yield of 6.15%.

AEC

AEC (TSX: BCE) (NYSE: BCE) steps up capital spending to expand 5G and broadband coverage across Canada. The company currently provides 5G service to 23 markets in Quebec, Ontario and Manitoba. Meanwhile, the company plans to expand coverage to 70% of the Canadian population by the end of the year. The expansion could increase its customer base, improving its finances.

The business could also benefit from the growing demand due to increased digitization and distance work and learning. He also recently collaborated with Amazon Web Services to enrich its customer experiences and modernize its applications and services. In addition, its financial situation also appears healthy, with liquidity of $ 6.5 billion. Thus, the company is well equipped to continue to increase its dividend. Currently, the company pays a quarterly dividend of $ 0.875 per share, with a forward dividend yield of 5.72%.

Keyera

An energy infrastructure company, Keyera (TSX: KEY), is my last choice. Thanks to its growing asset base, the company has increased its DCF (discounted cash flow) per share to a 9% CAGR since 2008. These robust cash flows have enabled the company to increase its dividend at a rate of 7% annualized growth during this period. It currently pays a monthly dividend of $ 0.16 per share, with a forward dividend yield of 5.59%.

Meanwhile, the company plans to invest more than $ 400 million this year, expanding its asset base. Along with these investments, the growing demand for oil in a context of economic expansion could influence its finances in the coming quarters. Given its healthy liquidity position of $ 1.5 billion and a payout ratio of 67%, Keyera’s dividend is secure.

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This article represents the opinion of the author, who may disagree with the “official” recommending position of a Motley Fool premium service or advisor. We are straight! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we post sometimes articles that may not conform to recommendations, rankings or other content. .

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of the board of directors of The Motley Fool. The Motley Fool owns shares and recommends Amazon and Enbridge. The Motley Fool recommends KEYERA CORP and NORTHWEST HEALTHCARE PPTYS REIT UNITS and recommends the following options: $ 1,920 long calls in January 2022 on Amazon and $ 1,940 short calls in January 2022 on Amazon. Fool contributor Rajiv Nanjapla has no position in the mentioned stocks.


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QUALCOMM (NASDAQ: QCOM) is a stable dividend stock http://render-boy.com/qualcomm-nasdaq-qcom-is-a-stable-dividend-stock/ http://render-boy.com/qualcomm-nasdaq-qcom-is-a-stable-dividend-stock/#respond Thu, 17 Jun 2021 06:52:13 +0000 http://render-boy.com/qualcomm-nasdaq-qcom-is-a-stable-dividend-stock/

QUALCOMM Incorporated (NASDAQ: QCOM) is dedicated to the development and production of basic electronics for mobile, wireless, network and other consumer devices. The company is also notably involved in the expansion of 5G infrastructure solutions and investors see it as a growth path.

As Qualcomm matures, we’ll take a look at how they maintain profitability and return profits to shareholders.

It is important to note that Qualcomm has a history of reliable dividend payments dating back to 2003 and has been steadily increasing its dividend per share since.

Qualcomm announced that it will increase its dividend on June 24 to US $ 0.68. This makes the dividend yield 2.0%, which is above the industry average.

The company has also returned around 1.6% of its market capitalization to shareholders in the form of share buybacks over the past year.

Check out our latest analysis for QUALCOMM.

QUALCOMM covers its dividend with profits

Reliable dividend payments and stable returns build long-term investor confidence. Qualcomm is a reliable company, now inclined to participate in 5G market share.

The best dividends are those that are well covered by the company’s profits.

Prior to making this announcement, QUALCOMM was easily earning enough to cover the dividend. This means that most of what the business earns is kept and used to help it grow.

If the dividend continues according to recent trends, we estimate that the payout ratio will be 31% by 2024, which is in the range that puts us at ease with the sustainability of the dividend.

NasdaqGS: QCOM Historic dividend May 29, 2021

QUALCOMM has a solid experience

The company has been paying a dividend for a long time, and it’s fairly stable, which gives us confidence in the future dividend potential.

Qualcomm has a sufficiently long and reliable dividend history.

The first annual payment in the past 10 years was US $ 0.76 in 2011, and the most recent year’s payment was US $ 2.72. This implies that the company has increased its distributions at an annual rate of approximately 14% over this period.

We can see that payments have shown very nice upward momentum without weakening, but they can now level off as analysts are not forecasting any major revenue growth rate for the company going forward.

This isn’t necessarily bad, as the stock price and dividend payouts could both stabilize and increase investor confidence when considering adding this stock to their portfolio.

The dividend has room to grow

QUALCOMM has seen its EPS increase over the past five years, to 17% per year.

A low payout rate and decent growth suggest that the company is reinvesting well, and it has the ability to increase the dividend over time.

Conclusion

Overall, we think this could be an attractive dividend-paying stock.

It’s rare to find a company that has increased its dividends rapidly over 10 years and hasn’t suffered a noticeable reduction, but QUALCOMM has, which we really love.

The company easily earns enough to cover its dividend payments, and it’s great to see that those profits translate into cash flow for investors.

Investors generally tend to favor companies with a consistent and stable dividend policy over those that operate irregularly.

Meanwhile, despite the importance of dividend payments, they aren’t the only factors our readers should be aware of when valuing a business. For example, we have selected 1 warning sign for QUALCOMM that investors should be aware of before committing capital to this stock. We have also set up a list of global stocks with a solid dividend.

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Simply Wall St analyst Goran Damchevski and Simply Wall St have no positions in any of the companies mentioned. This article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020

Do you have any feedback on this item? Are you worried about the content? Contact us directly. You can also send an email to Editorial-team@simplywallst.com


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NOK share: with clear free cash flow, dividend outlook is high http://render-boy.com/nok-share-with-clear-free-cash-flow-dividend-outlook-is-high/ http://render-boy.com/nok-share-with-clear-free-cash-flow-dividend-outlook-is-high/#respond Wed, 16 Jun 2021 14:55:18 +0000 http://render-boy.com/nok-share-with-clear-free-cash-flow-dividend-outlook-is-high/

Nokia (NYSE:NOK), the Finnish telecommunications company, changed its dividend policy on March 18 with its Capital Markets Day presentation. After withholding the payment of a dividend last year when the company was profitable, it has now decided to “update” its policy. As a result, NOK stock could have a chance to rise significantly this year – if it starts paying off.

Source: rafapress / Shutterstock.com

Of course, it’s not like the stock is languishing. For example, since the start of the year (year to date), NOK stock has gone from $ 3.91 on December 31 to $ 5.22 on June 16. This represents a gain of 33.5% since the start of the year.

That said, NOK stock has also risen just over 22% over the past year. It’s not necessarily a bad result, but nothing to write home about. However, let’s not be picky. After all, both Intelligence (NASDAQ:INTC) and AT&T (NYSE:T) are still negative about their performance over 12 months.

NOK share: Estimate of the potential dividend

Here’s exactly what Nokia’s new updated dividend policy said:

“Today Nokia also updated its dividend policy. This is the target [sic] recurring, stable and increasing ordinary dividend payments over time, taking into account the results of the previous year as well as the financial situation and business prospects of the company.

This means that the company will no longer pay a variable dividend as a percentage of profits. This is what UK and European companies are doing. Instead, he now wants to follow the American policy of paying a constant dividend. Additionally, Nokia provided an updated forecast for 2021, saying it would “assess the possibility of offering a dividend payout for fiscal 2021 based on the updated dividend policy.”

Analysts now estimate that Nokia will achieve $ 26.18 billion in revenue this year and $ 26.7 billion in 2022. Additionally, in the first quarter, the company’s free cash flow (FCF) was around $ 1. , $ 35 billion, based on the numbers In search of the alpha. This implies an annual FCF of $ 5.4 billion. This represents a very high FCF margin of 20.6% for this year alone. In 2022, its FCF would be around $ 5.5 billion.

Using this number, we can estimate the potential dividend payout. Most companies pay one-third to one-half of their FCF. Let’s say Nokia decides to pay a third party, or $ 1.79 billion. In 2022, the dividend would be $ 1.83 billion.

Today, NOK stock has a market capitalization of $ 29.6 billion. Thus, a third of the FCF dividend payment in 2021 would represent a dividend yield of 6.04% (i.e. $ 1.79 billion / $ 29.6 billion). This implies a dividend of 31.5 cents per share (i.e. 6.04% x the current price of $ 5.22).

What to do with NOK Stock

For comparison, Intel currently has a dividend yield of 2.4% while AT&T has a dividend yield of 7.10%. I use these two stocks simply because they are low performing tech stocks that always pay a dividend. The midpoint between them is 4.75%.

So, if we use a 4.75% dividend yield, the NOK share should be valued at $ 6.63 per share. Here’s why: If we take the potential dividend of 31.5 cents per share and divide it by 4.75%, the result is $ 6.63.

It also implies that the NOK share is worth 27% more using its current price and the estimate of $ 6.63 per share. This is based on a conservative estimate of its dividend payout and typical dividend yield. But keep in mind that if the company decides to pay a higher portion of its FCF, the share will be worth considerably After.

Also, assuming Nokia pays a third of 2022 FCF, the dividend yield will be 6.18% (i.e. $ 1.83 billion / market value of $ 29.6 billion) . This implies a dividend of 32.3 cents. Therefore, using a dividend yield of 4.75%, the target price is $ 6.80.

What does all this mean? In my opinion, by the end of 2022, NOK stock will likely rise to between $ 6.63 and $ 6.80, or to the midpoint of $ 6.71. This implies a potential return on investment (ROI) of almost 29% as of today. In addition, it could be considerably higher if the payout ratio is closer to 50%.

As of the publication date, Mark R. Hake does not hold (directly or indirectly) any position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, submitted to InvestorPlace.com Publication guidelines.

Mark Hake writes about personal finance on mrhake.medium.com and run the Total Value of Return Guide that you can consult here.


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Ready Capital named high dividend share with insider buys and 10.73% yield (RC) http://render-boy.com/ready-capital-named-high-dividend-share-with-insider-buys-and-10-73-yield-rc/ http://render-boy.com/ready-capital-named-high-dividend-share-with-insider-buys-and-10-73-yield-rc/#respond Tue, 15 Jun 2021 20:09:37 +0000 http://render-boy.com/ready-capital-named-high-dividend-share-with-insider-buys-and-10-73-yield-rc/

IIn this series, we look at the most recent Dividend Channel “DividendRank” report and then select only those companies that have been the subject of insider buying in the past six months. Executives and directors of a company tend to have a unique insider perspective on the company, and the only reason an insider would choose to take their hard-earned money and use it to buy stocks is in the open market is that he expects to make money – maybe they find the stock very undervalued, or maybe they see some exciting progress within the company, or maybe both. So when stocks come up that insiders buy and are also top ranked, investors are advised to take note. One of these companies is Ready Capital Corp (ticker: RC), which was purchased by director Gilbert E. Nathan.

On May 24, Nathan invested $ 43,989.60 in 3,000 shares of RC at a cost per share of $ 14.66. In Tuesday’s trading, the shares were changing hands for as little as $ 15.88 per share, or 8.3% above Nathan’s purchase price. Shares of Ready Capital Corp are currently trading at + 2.65% on that day. The chart below shows the one-year performance of RC shares, compared to its 200-day moving average:

Looking at the chart above, RC’s low point in its 52 week range is $ 7.58 per share, with $ 16.21 as a 52 week high, compared with a last trade of 16.03 $. For comparison, here’s a table showing the prices at which insider buys were recorded in the past six months:

Purchased Initiated Title Actions Price / share Value
05/11/2021 Gilbert E. Nathan Director 4000 $ 13.66 $ 54,635.60
05/13/2021 Andrea Petro Director 4 750 $ 14.18 $ 67,355.00
05/24/2021 Gilbert E. Nathan Director 3000 $ 14.66 $ 43,989.60

The DividendRank report noted that among the hedging universe, RC stocks displayed both attractive valuation metrics and strong profitability metrics. For example, the recent RC share price of $ 15.65 represents a price-to-book ratio of 1.0 and an annual dividend yield of 10.73% – in comparison, the average company in the universe of Dividend Channel hedging is earning 3.3% and trading at an accounting rate of 2.7. The report also cited the solid history of Ready Capital Corp’s quarterly dividends and long-term favorable multi-year growth rates in key fundamental data points.

The report said, “Dividend investors who approach investing from a value perspective are generally more interested in finding the strongest, most profitable companies, which are also trading at an attractive valuation. This is what we seek to find by using our exclusive DividendRank formula, which ranks the hedging universe according to our various profitability and valuation criteria, to generate a list of the most “interesting” stocks, intended for investors. as a source of ideas that deserves further research. ”

The annualized dividend paid by Ready Capital Corp is $ 1.68 / share, currently paid in quarterly installments, and its most recent ex-dividend date was 6/29/2021. Below is a chart of the long-term dividend history for RC, which the report highlighted as being of key importance. Indeed, studying a company’s past dividend history can be of great help in judging whether the most recent dividend is likely to continue.

RC + Dividend + History + Graph

The best dividend-ranking stocks with insider buys »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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How secure is the Au Optronics dividend? http://render-boy.com/how-secure-is-the-au-optronics-dividend/ http://render-boy.com/how-secure-is-the-au-optronics-dividend/#respond Tue, 15 Jun 2021 09:29:40 +0000 http://render-boy.com/how-secure-is-the-au-optronics-dividend/

Regular and reliable dividend payments are very comforting, especially in times of economic uncertainty. But finding stocks that can pay them off isn’t easy. High yields might sound tempting, but they can also be a warning sign of a possible fall in dividends – so it’s important to tread carefully.

To help you overcome this uncertainty, you need a checklist that covers the most important aspects of dividend investing strategies. It also helps to remove emotions from the decision-making process.

With a few key rules, you’ll find it much easier to find better-quality dividend-paying stocks methodologically. The Au Optronics dividend is an example of using a checklist to identify promising dividends.

GET MORE DATA BASED INFORMATION IN TPE: 2409 ”

Rules for finding dividend stocks

1. Dividend security

Attractive, high returns obviously turn heads – but it’s important to know that a dividend is affordable. Dividend coverage (similar to payout ratio) is an essential measure of a company’s net income relative to the dividend paid to shareholders. It is calculated as the earnings per share divided by the dividend per share and helps indicate how sustainable a dividend is.

A dividend coverage of less than 1x suggests that the company cannot fund the payment from its current year profits – and could rely on other sources of funds to pay it off.

2. Dividend growth

An important indicator for income investors is a history of dividend growth – and evidence that growth will continue. Consistent dividend growth can be a clue for companies that carefully manage their distribution policies – and reward their shareholders over time. Rather than aggressively distributing profits, dividend growth companies tend to have more modest returns, but are more adept at sustaining their payouts.

  • At Optronics increased its dividend distribution 3 times in the last 10 years – and the dividend per share is should grow by 787.7% in the coming year.

3. High dividend yield (but not excessive)

Dividend yield is an important financial measure of dividends because it tells you the percentage of how much a company pays out in dividends each year relative to its share price. This makes it easier to compare dividend payouts across the market.

High returns are obviously attractive, but beware of excessively high returns. Usually, returns above 10% are an indicator to suggest that there are underlying issues with a stock. Indeed, when the market suspects a company of not being able to maintain its dividend, the share price drops and increases the yield. It is better to be wary of excessive returns.

What does this mean for potential investors?

Yield, growth and safety are the three main pillars that support some of the most popular dividend investing strategies. But it’s important to know that dividend payouts can be reduced or canceled very quickly when the outlook changes.

To better understand the dividend outlook for any stock, it’s important to investigate it yourself. Indeed, we have identified areas of concern with Au Optronics which you can find out here.

Alternatively, if you want to find more dividend stocks that might be worth investigating, you can find some ideas on this Dividend screen.


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ETF investors wait for Fed to release growth in bank payments http://render-boy.com/etf-investors-wait-for-fed-to-release-growth-in-bank-payments/ http://render-boy.com/etf-investors-wait-for-fed-to-release-growth-in-bank-payments/#respond Mon, 14 Jun 2021 19:00:01 +0000 http://render-boy.com/etf-investors-wait-for-fed-to-release-growth-in-bank-payments/

The history of bank stocks is well documented this year. Amid a rally in value stocks and a spike in 10-year Treasury yields, bank stocks and exchange-traded funds, including the Invesco KBW Bank ETF (NASDAQ: KBWB), are back in force.

KBWB, which tracks the KBW Nasdaq Bank index, is 32.45% higher since the start of the year. A big move like this in less than six months may imply that the rise from here is limited, but it may not be.

The results of the Federal Reserve’s annual stress tests on America’s largest banks are due on June 24, and the Fed is expected to approve the increase in bank dividends and the restart of share buyback programs. .

“Analysts are optimistic about the industry’s performance in this year’s stress tests and the prospects for banks to return capital to shareholders,” Carleton English reports for Barron’s. “The total return on capital of banks could reach $ 200 billion over the next four quarters, according to Barclay analyst Jason Goldberg. He expects the total industry return to be around 8.5%, of which 2.6% will be dividends and 5.8% will be redemptions.

A positive turning point for KBWB

As of June 11, KBWB posted a dividend yield of 1.96%. If Barclays’ forecast is correct and bank dividend yields rise through increased payouts, there is potential for this metric to rise for KBWB.

This is a potentially positive reversal from 2020, when the Fed blocked banks from raising dividends while forcing them to put their buyout plans on hold amid the coronavirus pandemic. The central bank also forced financial institutions to set aside huge amounts of money to cover bad loans over expectations that the pandemic would create a deeper recession, leading to a wave of consumer defaults.

Ultimately, that scenario did not materialize, and in hindsight, investors now know that many KBWB holdings could have increased dividends last year had the Fed allowed it. It remains to be seen whether banks will catch up with their dividends this year, but it is clear that there is room to increase payouts.

“Based solely on their relatively low payout ratios in 2019 as well as in a difficult 2020, the following banks could have the most room to increase their dividends this year: Bank of America (ticker: BAC), Citigroup (C ), Fifth Third (FITB), JPMorgan Chase (JPM), M&T Bank (MTB) and Zions Bancorporation (ZIONS) ”, according to Barron’s.

These stocks combine for approximately 30% of KBWB’s weight. Investors have added $ 748 million in new capital to the fund since the start of the year.

KBWB ETF Holdings

For more news, information and strategies, visit the Nasdaq Portfolio Solutions Channel.

The opinions and forecasts expressed herein are solely those of Tom Lydon and may not come to fruition. The information on this site should not be used or interpreted as an offer to sell, a solicitation of an offer to buy or a recommendation for any product.


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