Antero Midstream Partners (NYSE: AM) is one of the fastest growing master limited partnerships (MLPs) around. Last year, the company grew its payout 30%, and it has more than doubled the distribution since coming public in 2014. But it still has plenty of growth left in the tank. That's evident by Antero Midstream's recent guidance. The MLP reaffirmed its belief that it can grow the payout another 28% to 30% this year, and by that same clip through 2020. Furthermore, the company now believes it can increase its payout another 20% in both 2021 and 2022. That growth rate suggests that investors who buy today aren't locking in a 4.6% yield but one that's on pace to reach an astounding 12.9% by 2022. That fast-growing payout makes Antero Midstream a top dividend growth stock to consider buying for the long haul. Image source: Getty Images. Drilling down into what's fueling this growth Driving this forecast is the expectation that the company will invest $2.7 billion in … [Read more...] about This Top Dividend Growth Stock Sees No End in Sight
Best dividend paying stocks
Utilities tend to make excellent income stocks. That's because these companies generate relatively consistent earnings by supplying electricity and natural gas to consumers. With little need for that cash flow, they can return the bulk of it to investors. As a result, most utilities pay an above average dividend. While there are dozens of publicly traded utilities in the U.S. to choose from, the four largest by market cap are NextEra Energy (NYSE: NEE), Duke Energy (NYSE: DUK), Southern Company (NYSE: SO), and Dominion Energy (NYSE: D). Given their large-scale operations, these companies have a lower risk profile than smaller utilities, which is why it makes sense to focus our attention on these four main players to find the best dividend stock in the sector. Image source: Getty Images. Good income now and even more later Despite their large size, all four of these companies expect to grow their earnings and lucrative dividends at or above the industry average of 5% annually … [Read more...] about Which Utility Is the Best Dividend Stock?
If you're expecting massive revenue growth for 2018 among big pharma stocks, think again. Despite hot new drugs for several major drugmakers, many of them also will likely be held back by declining sales for older drugs. Wall Street only expects low single-digit percentage revenue growth next year for most big pharma stocks. That doesn't mean, of course, that these companies won't see solid earnings growth, especially with new corporate tax rates in effect. Still, though, several big pharma stocks should enjoy solid revenue and earnings growth in 2018. Here's why Johnson & Johnson (NYSE: JNJ), AbbVie (NYSE: ABBV), and Celgene (NASDAQ: CELG) appear to be the best big pharma stocks to buy for 2018. Image source: Getty Images. Johnson & Johnson Johnson & Johnson is on track to generate revenue topping $75 billion this year. The consensus among Wall Street analysts is that the healthcare giant will make close to $81 billion in 2018. Achieving that level would give … [Read more...] about 3 Best Big Pharma Stocks to Buy for 2018
When digging into dividend-paying stocks, investors often overlook the gold sector. Since gold mining is capital-intensive, mining companies are usually uninterested in returning cash to shareholders as they must continually reinvest in their businesses, ensuring they remain profitable amid volatile gold prices. But this doesn't mean that dividend-seeking investors should completely forsake companies dealing in the yellow stuff. Unlike miners, which are actually pulling the metal out of the ground, royalty and streaming companies such as Royal Gold (NASDAQ: RGLD) and Franco-Nevada (NYSE: FNV) are basically specialized financiers. Providing up-front payments to miners, they receive, in exchange, the right to purchase the mined metal at a preset price or to receive a percentage of mineral production. Although some gold mining companies represent decent opportunities, the better option for investors is a royalty and streaming company. But which one to choose? Image source: Getty … [Read more...] about Which Gold Company Is the Best Dividend Stock?
Perhaps it's the winter freeze, or perhaps it's a breather before the new earnings season. Whatever the reason, last week didn't see a great many dividend raises from companies on the stock market. Yet there were still a brave few that ventured into the cold to declare higher payouts. Three notables that did so were Enterprise Products Partners (NYSE: EPD), Ally Financial (NYSE: ALLY), and Apogee Enterprises (NASDAQ: APOG). Image source: Getty Images. Enterprise Products Partners Big oil-field services master limited partnership (MLP) Enterprise Products Partners is pumping more distribution through its pipes. The MLP announced that it's raising its quarterly payout to almost $0.43 per unit, a 4% increase. It's the partnership's 54th raise in a row. EPD Dividend data by YCharts Enterprise, a major energy infrastructure and services player, is being cautious as it enters the new year. To an extent that's warranted; the energy industry as a whole still hasn't fully … [Read more...] about These 3 Stocks Just Raised Their Dividends
Among the most high-profile story lines circulated in the financial media recently is the rather madcap chase for income yield among global investors both large and small. Dividend-rich shares of telecoms like AT&T and Verizon, and electric utilities like Southern Company and Con Edison, once thought to be dreadfully boring and offering none of the revenue growth so coveted by investors, have recently been elevated to prices and perceived desirability not seen in decades. As yield-hungry investors bid bond yields to low levels not much above zero here in the U.S. and outright negative yields in many other First World countries, dividend-paying stocks are now seen as the most prime cuts in the income asset food chain. Yet there is one industry group that offers some modest dividend yields but with growth potential many utility, telecom and consumer stocks may not deliver. The major U.S.-based media and entertainment companies are usually not thought of as low … [Read more...] about Investors looking for dividends should try show biz stocks
Worried about outliving your money? Think dividends. Dividend funds are the way to go for retirees and others looking for the best returns and an inflation-protected income stream, according to a new study conducted by Bankrate.com. The financial website tested multiple virtual retirement portfolios, each with $1 million to invest. It ran the numbers from the market peak of 2000 to 2013, a period that saw stocks plummet. In every scenario, the nest eggs that included an index called the Dividend Aristocrats - which is made up of companies that have raised dividends every year for the past 25 years - handily beat the competition. "Investors cannot underestimate the power of dividends and their importance to the overall rate of return," Greg McBride, Bankrate.com's chief financial analyst, told the Daily News. "Dividend paying stocks have proven to be less volatile in times of stock market pullbacks," he added. With each portfolio, Bankrate assumed that … [Read more...] about Dividend funds thrash competition in recent study looking at best bets for retirees
Congratulations, long-term investors!If you've been hanging on to your investments over the past eight-plus years since the market bottomed out, you're probably sitting on some handsome returns. Through Wednesday, Oct. 4, 2017, the S&P 500 (SNPINDEX: ^GSPC), Dow Jones Industrial Average (DJINDICES: ^DJI), and Nasdaq Composite (NASDAQINDEX: ^IXIC) were higher by a respective 275%, 246%, and 415% since their March, 9, 2009 lows.Even more impressive, all three indexes are logging fresh all-time record closing highs. That marks more than 40 new all-time highs this year for the Dow, and in excess of 50 new record closing highs for the tech-heavy Nasdaq Composite.As you might imagine, while the march higher in the S&P 500, Dow, and Nasdaq has many investors cheering, it's also created quite the group of skeptics who believe the stock market could be teetering at the edge of a cliff. A number of concerns, such as a possible conflict with North Korea, rising interest … [Read more...] about 5 things to do with the stock market at a new all-time high
Are stocks that pay dividends in trouble now that the Federal Reserve is serious about raising interest rates back to more normal levels? (The Fed hiked rates Wednesday for the third time since December and said another hike is likely this year with three next year.)The answer depends on what kind of stocks you own, according to an analysis by Santa Barbara Asset Management that looked at how dividend-paying stocks have done the past eight times since 1972 the Fed has been in rate-hike mode. The analysis found that stocks in the S&P 500 stock index that not only pay out a cash dividend, but which also increase the payout regularly, do best, posting average 36-month returns of 14% in those past tightening cycles. The next best performer? Dividend payers that didn’t boost payouts, with an average gain of 8%. Companies that pay dividends but cut them fared the worst, posting an average loss of 2%. Non-payers rose 1%.So what explains “dividend growers” better … [Read more...] about What Fed hikes mean for dividend stocks
Dividends don't directly affect the valuation of stock investments, as they aren't included in the calculation of most valuation metrics. However, a company's dividend activity or its dividend yield can certainly affect investor sentiment and move the price of the stock, thereby changing its valuation.First of all, a dividend doesn't have a direct impact on a stock's valuation. Common valuation metrics such as the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and most others are calculated in the same way regardless of whether a stock pays a dividend.Having said that, dividends can affect stock prices and valuations in several ways.For example, if a company raises its dividend higher than the market expects, it could be taken as a positive sign and boost the stock's price. Similarly, a dividend cut can be interpreted as a sign of trouble and could result in a depressed valuation.Dividends can also help to create a "price floor" in stocks that otherwise may not exist. For … [Read more...] about Ask a Fool: How do dividends affect stock valuation?