Tag: Dividend Investing

This Healthcare Juggernaut Continues To Deliver

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

I posited that CVS presented a compelling investment opportunity in the healthcare space. This premise was rooted in the fact that CVS has been highly acquisitive, robust growth rate, growing its dividends over time and has an aggressive share buyback program in place. CVS recently reported robust earnings and continued to drive and position itself for long-term success. With its recent acquisitions and partnerships, specifically the acquisition Target’s pharmacies and Omnicare will significantly expand its footprint and ability to dispense prescriptions to the general public and in assisted living and long-term care facilities that serve the senior patient population. As the United States continues to absorb an ageing population alongside growing overall healthcare costs, more specifically prescription drug costs, CVS looks poised to benefit and continue to outperform the broader market. The most recent earnings report underscores this premise and CVS continues to deliver continued growth and positioning for long-term success.

2015 Q3 Earnings

Recently, CVS reported strong earnings for the quarter ending September 30th, 2015. Net revenue increased more than 10% to $36.8 billion while adjusted EPS increased to $1.28 or 11.5% as compared to the prior year quarter. Continue reading "This Healthcare Juggernaut Continues To Deliver" →

This Pipeline LP Pays You Just To Hold It

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


There's nothing like an investment that pays off even if there's no capital appreciation. That's the appeal of renting out your home instead of selling it – you get income along with and investment. The way markets are behaving right now with the Fed rate hike delayed once again, most likely until 2016, and uncertainty driving investor decisions, picking a stock that can pay out in more than one way is a huge benefit.

Limited partnership entities differ from traditional corporations in the sense that they are obligated to pass on a lion's share of the profits to shareholders. That gives them an edge when it comes to dividend yields and makes them defensive even if they're not necessarily in a defensive sector of the economy.

The oil and gas pipeline industry might not seem like a defensive environment given what's happened with commodities and energy prices, but this sub-sector operates a little differently. Pipelines are more on the midstream segment of energy operations giving them a more stable business with steady growth prospects regardless of energy prices. Continue reading "This Pipeline LP Pays You Just To Hold It" →

Navigating Volatile Markets Via Dividend Investing - Part 1

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

Dividend investing doesn't offer the most exciting means in which to invest these days when compared to stocks such as Netflix, Facebook or Amazon or sectors such as the biotechnology sector. Despite this lack of excitement, when considering the attributes this dividend space offers, such as decreased volatility, healthy yields, moderate risk exposure and a hedge against downside risk, it may be an ideal synergy for any long portfolio. This is especially true as the markets have been highly volatile due to weakness in China, an imminent fed rate hike and persistently low oil prices. Historically, companies that have an established track record of not only paying dividends but growing their dividends over the long-term have generally outperformed the their respective index with decreased volatility. I'll be utilizing The Vanguard High Dividend Yield ETF (ticker symbol: VYM) as a proxy for a high-quality cohort of large-cap centric dividend paying stocks. This type of dividend portfolio may prove to be a meaningful piece of an overall growth retirement strategy while providing a reasonable level of income and mitigating risk. The allocation within VYM offers a broad dividend paying portfolio and access to all sectors throughout the large-cap space without sacrificing diversification and in turn can generate sustained long-term growth and income while navigating volatile markets.

High-Level Overview

• The dividend space offers many long attributes: decreased volatility, healthy yields, moderate risk and a hedge against downside market swings.

• Dividend investing often gives rise to share buybacks, rendering an effective way to drive shareholder value via returning capital by repurchasing stock.

• VYM has outperformed the S&P 500 in past two down markets in 2008 and 2011 by 4.9% and 8.4%, respectively.

• VYM has more than doubled its dividend payouts over the past 5 years.

Mitigating risk and volatility with a high-quality cohort of dividend paying stocks

VYM is composed of high yielding dividend-paying large-cap companies and weighted by market capitalization. This domestically focused dividend paying ETF provides access to some of the biggest names across many different sectors that provide a healthy dividend yield, equity appreciation, diversification and decreased volatility. Continue reading "Navigating Volatile Markets Via Dividend Investing - Part 1" →

Top 3 Dividend ETF's Every Dividend Investor Should Consider Owning

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


With an explosion of ETF's over the past few years, finding quality, goal specific, industry or type focused funds can be very challenging. With dividend investing growing in popularity, today we will be looking at 3 ETF's that focus on dividends. Two will be more focused on investors looking for high yields while the third will be more traditional and offer the dividend investor safety, security and a solid yield.

So, let's get right to it.

The first pick is the Arrow Dow Jones Global Yield ETF (GYLD). The GYLD is a high yielding ETF, currently boosting a 7.67% dividend yield, which focuses on finding and investing in the 150 highest yielding investable securities in the world. The ETF holds both stocks and bonds and that ratio currently sits at a 60/40 split. The ETF's top 3 holdings include Whiting USA Trust II (WHZ), CVR Partners, LP (UAN) and Alon USA Partners, LP (ALDW), of which two are oil and gas partnerships. Continue reading "Top 3 Dividend ETF's Every Dividend Investor Should Consider Owning" →