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| Source: Seeking Alpha |
Dividend Income orientated Blog. Ideas and Thoughts about Stocks, Dividends and Growth Opportunities.
7 Good Dividend Stock Opportunities In The Retail Sector
There’s really nothing better than finding solid dividend stocks on the cheap.
The stability offered by a stable income stream, coupled with attractive upside stemming from a low stock price, can provide investors with an extremely rare mix of safety and growth. But the problem is that these opportunities are few and far between. Why?
Well, it’s simple: investors love companies that pay consistently rising dividends so much that they’re hardly ever trading at cheap valuations.
Furthermore, it’s nearly impossible to just accidentally come across inexpensive dividend stocks. Unless you’re closely paying attention to the market on a day-to-day basis, you’ll simply never know when a solid dividend stock falls in price enough to enter “buy” territory.
Luckily for readers, monitoring the market for attractive dividend opportunities is all we do here at Income Investors. And you better believe we took notice when the retail sector plunged on Friday, taking down several interesting dividend stocks in the process.
These are the results I'm talking about...
The stability offered by a stable income stream, coupled with attractive upside stemming from a low stock price, can provide investors with an extremely rare mix of safety and growth. But the problem is that these opportunities are few and far between. Why?
Well, it’s simple: investors love companies that pay consistently rising dividends so much that they’re hardly ever trading at cheap valuations.
Furthermore, it’s nearly impossible to just accidentally come across inexpensive dividend stocks. Unless you’re closely paying attention to the market on a day-to-day basis, you’ll simply never know when a solid dividend stock falls in price enough to enter “buy” territory.
Luckily for readers, monitoring the market for attractive dividend opportunities is all we do here at Income Investors. And you better believe we took notice when the retail sector plunged on Friday, taking down several interesting dividend stocks in the process.
These are the results I'm talking about...
My Favorite Master Limited Partnerships - High Yields and Low Taxes
MLPs are publicly traded limited partnerships that derive at least 90% of their cash flows from real estate, commodities or natural resources. In the US there are about 120 MLPs with a combined value around $875 billion.
There are three classes of MLPs: upstream (resource extractors like oil and gas partnerships), midstream (those that transport and process resources, like pipeline operators), and downstream (refiners and distributors).
Rather than paying dividends to shareholders, they pay distributions to unit holders. Another difference is that most midstream MLPs have a general partner, who runs the partnership.
Limited partners (investors) don't have a say in how the MLP is run. In addition, general partners typically hold incentive distribution rights (IDRs), which means that a higher proportion of the MLPs marginal cash flow goes to them as the distribution grows (up to 50% of marginal cash flow).
There are three main drawbacks to MLPs. The first is that those partnerships with a general partner will experience slower distribution growth over time, as IDRs increase. Second, MLPs issue K-1 forms which are used instead of 1099's and can add a bit of complexity during tax preparation.
Finally is the fact that they shouldn't be used in tax deferred accounts such as IRAs. This is because they can generate what's known as UBTI (unrelated business taxable income) that can result in you owing taxes even though the investment is in a tax deferred account.
Attached I've compiled a couple of MLP's I like for a deeper research. Each of them pays a high dividend and has a higer market capitalization, over 300 million.
These are the names I like from the MLP space...
There are three classes of MLPs: upstream (resource extractors like oil and gas partnerships), midstream (those that transport and process resources, like pipeline operators), and downstream (refiners and distributors).
Rather than paying dividends to shareholders, they pay distributions to unit holders. Another difference is that most midstream MLPs have a general partner, who runs the partnership.
Limited partners (investors) don't have a say in how the MLP is run. In addition, general partners typically hold incentive distribution rights (IDRs), which means that a higher proportion of the MLPs marginal cash flow goes to them as the distribution grows (up to 50% of marginal cash flow).
There are three main drawbacks to MLPs. The first is that those partnerships with a general partner will experience slower distribution growth over time, as IDRs increase. Second, MLPs issue K-1 forms which are used instead of 1099's and can add a bit of complexity during tax preparation.
Finally is the fact that they shouldn't be used in tax deferred accounts such as IRAs. This is because they can generate what's known as UBTI (unrelated business taxable income) that can result in you owing taxes even though the investment is in a tax deferred account.
Attached I've compiled a couple of MLP's I like for a deeper research. Each of them pays a high dividend and has a higer market capitalization, over 300 million.
These are the names I like from the MLP space...
15 Long-Term Dividend Growth Stocks
History has taught us that dividend growth stocks are the absolute best way to grow both your income and wealth over time.
One such group of dividend stocks is known as the S&P 500 Dividend Aristocrats — S&P 500 companies that have increased their payouts for at least 25 consecutive years. Aristocrats have collectively outperformed the S&P 500 over time with less volatility.
Of course, to be able to pay secure and growing dividends, a company needs to have a strong competitive advantage that gives it good pricing power and allows it to generate strong free cash flow.
Today, we’re going to look at 10 great dividend growth stocks worth investigating. These are companies with strong businesses that consistently generate rivers of FCF that allow them to reward long-term dividend lovers.
These are the results...
One such group of dividend stocks is known as the S&P 500 Dividend Aristocrats — S&P 500 companies that have increased their payouts for at least 25 consecutive years. Aristocrats have collectively outperformed the S&P 500 over time with less volatility.
Of course, to be able to pay secure and growing dividends, a company needs to have a strong competitive advantage that gives it good pricing power and allows it to generate strong free cash flow.
Today, we’re going to look at 10 great dividend growth stocks worth investigating. These are companies with strong businesses that consistently generate rivers of FCF that allow them to reward long-term dividend lovers.
These are the results...
Dogs of the Dow 2017
Dividend stocks offer current income and growth potential, and the dividend stocks that you'll find among the 30 stocks of the Dow Jones Industrials are some of the best-known, highest-quality dividend payers you'll find.
Rather than simply buying the entire Dow, however, many dividend investors choose instead to follow a strategy called the Dogs of the Dow.
These stocks offer better yields than the Dow as a whole, and often, they've been able to outperform the Dow over the course of the year. Let's take a first look at 2017's Dogs of the Dow to see what you should watch out for over the coming year.
The "Dogs of the Dow" are the highest-yielding components at the start of any given year. In the past sixteen years, the Dogs of the Dow have returned an average of 7.9%.
This is above that of the overall Dow, which has returned a more meager 6.3% average return. The Dow stocks gained an exceptional 18.7% last year, with Caterpillar (NYSE:CAT), Goldman Sachs (NYSE:GS), and JPMorgan (NYSE:JPM) leading the charge.
Here are the Dogs of the Dow for 2017 with yield...
Rather than simply buying the entire Dow, however, many dividend investors choose instead to follow a strategy called the Dogs of the Dow.
These stocks offer better yields than the Dow as a whole, and often, they've been able to outperform the Dow over the course of the year. Let's take a first look at 2017's Dogs of the Dow to see what you should watch out for over the coming year.
The "Dogs of the Dow" are the highest-yielding components at the start of any given year. In the past sixteen years, the Dogs of the Dow have returned an average of 7.9%.
This is above that of the overall Dow, which has returned a more meager 6.3% average return. The Dow stocks gained an exceptional 18.7% last year, with Caterpillar (NYSE:CAT), Goldman Sachs (NYSE:GS), and JPMorgan (NYSE:JPM) leading the charge.
Here are the Dogs of the Dow for 2017 with yield...
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