The Next Aristocrats: 5 Stocks on the Verge of Dividend Royalty

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The Next Aristocrats: 5 Stocks on the Verge of Dividend Royalty

Income investors love Dividend Aristocrats. And why not? These are stocks that have delivered dividend raises year after year for many decades.

But we can do even better than the Aristocrats. And get stinkin’ rich in the process by buying these payout raisers before they have clocked 25 years of divvie growth (the qualification to be an Aristocrat).

This is where the real money is made.

The problem with some Aristocrats is that their best days are behind them. When a company reaches a level of dividend maturity, payout ratios can get bloated, and payout increases can become incremental and tied to a company’s modest profit growth.… Read more

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Weekly Market Summary: Lower Rates Highlight Value of Dividends

A three-day holiday may be just what the U.S. stock market needs. Investors turned more defensive in the last week of trading before Summer kicks off on Monday with the Memorial Day holiday.

Traders bought bonds this week, pushing rates lower, while selling stocks. The trade war between China and the U.S. heated up again and investors were spooked by reports of slower growth in Europe. UK Prime Minister Theresa May also said on Friday that she will step down in June, after failing to execute a Brexit strategy in the past three years.

Elsewhere, crude oil posted its worst one-day performance for 2019 on Thursday, though remains 25% higher year-to-date.… Read more

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Weekly Market Summary: Investors Digest Strong Earnings Reports

U.S. stocks posted modest gains this week, which was shortened by the Good Friday holiday. The first full week of earnings season saw largely positive reports, especially from the banks, given the fact that aggregate profits are expected to decline 3% to 4% in the first quarter.

The earnings decline in the face of robust gains to begin 2019 was enough to send strategists at Jefferies to the sidelines this week. On Monday, the firm lowered its rating on U.S. Equities to Modestly Bearish, in the context of their global asset allocation.

However, overall investor sentiment remains high in this country.… Read more

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10 Can’t-Miss Dividend Hikes Coming This April

If the virtues and importance of dividend growth weren’t etched into your brain already, let’s consider February’s example. (Then we’ll outline ten imminent hikes coming in April.)

About a month ago, shortly before the market reached full correction mode, I outlined the problem low-growth dividend stocks would have against rapidly rising Treasury rates – and why it’s vital that we monitor the dividend growth of current and prospective holdings.

Within a week, yields quickly leapt to nearly 3%, and currently sit close by at about 2.9%. On cue stocks crashed:

The lesson here is twofold.

For one, if interest rates continue to climb, life becomes more difficult for corporations across the board.…
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