US Dividends Aristocrats thread

[Mr. Wood]

Contracts For June 26, 2020

mostly military biggest paymaster.

 

[Mr. Wood]

Wells Fargo Issues Statement Regarding the Federal Reserve’s Stress Test Feedback
June 29, 2020

Based on these instructions, the company expects its common stock dividend in third quarter 2020 will be reduced from the current level of $0.51 per share. The company expects that the level of the third quarter dividend will be announced when it releases second quarter financial results on July 14, 2020.

careful sg banks may follow US and cut divys.

 

[Mr. Wood]

JPMorgan Chase Regulatory Capital Update
June 29, 2020

While JPMorgan Chase’s Board of Directors currently intends to maintain the quarterly common stock dividend of $0.90 per share for the third quarter of 2020, the Firm’s quarterly common stock dividends will be subject to approval by the Board of Directors at the customary times that those dividends are declared, which for the third quarter is during the month of September.

 

[Mr. Wood]

Constellation Brands First Quarter Fiscal Year 2021 Results
JULY 1, 2020

Fully redeems outstanding 2.25% Senior Notes due November 2020

Declares quarterly cash dividend of $0.75 per share Class A and $0.68 per share Class B common stock

Acquires Empathy Wines, a digitally-native wine brand, which strengthens the company’s position in the direct-to-consumer and eCommerce markets within the wine and spirits category

strong company emerge stronger in crisis

 

[Mr. Wood]

FedEx Corp. Reports Fourth Quarter and Full-Year Earnings
June 30, 2020

Virtually all revenue and expense line items were affected by the COVID-19 pandemic during the quarter. While commercial volumes were down significantly due to business closures across the globe, there were surges in residential deliveries at FedEx Ground and in transpacific and charter flights at FedEx Express, which required incremental costs to serve.

give u business but hav to increase costs.
at first I thot dey will be a beneficiary to ecomm and covid. but now hav to reaccess.

 

[Mr. Wood]

General Mills Reports Results for Fiscal 2020 and Outlines Fiscal 2021 Priorities
JULY 01, 2020

Full Year Highlights

Net sales of $17.6 billion increased 5 percent from the prior year; organic net sales were up 4 percent.
Operating profit increased 17 percent to $3.0 billion; constant-currency adjusted operating profit was up 7 percent.
Diluted EPS of $3.56 were up 23 percent; adjusted diluted EPS of $3.61 increased 12 percent in constant currency.
Cash from operations totaled $3.7 billion, up 31 percent; free cash flow of $3.2 billion increased 42 percent. The company beat its fiscal 2020 deleverage target.

The company has risen to meet the needs of its communities around the world during the pandemic, with a particular focus on food security. During the fourth quarter, General Mills contributed $10 million in monetary and food donations to organizations addressing hunger and food access.

General Mills is focused on delivering superior execution during the COVID-19 situation while continuing to invest in its brands and capabilities to ensure it emerges from the pandemic a stronger company in a position to generate consistent, profitable growth and top-tier returns for its shareholders.

 

[Mr. Wood]

Anheuser-Busch InBev: A Deep-Dive Into Its 17 Billion-Dollar Brands
July 1st, 2020

Based on expected earnings-per-share of US$3.47 for 2020, AB-InBev stock trades for a price-to-earnings ratio of 14.2. We believe the current valuation is too low for an industry-leading company with durable competitive advantages. Our fair value estimate is a P/E ratio of 18. An expanding P/E multiple to the fair value estimate would boost annual returns by 4.9% per year over the next five years.

Due to the company’s future growth potential and low stock valuation, we find Anheuser-Busch InBev to be the top beer stock today.

Anheuser-Busch InBev has gone on many twists and turns in the course of its many decades of existence. The company has experienced difficulties as of late, due to an elevated level of debt, and the global economic downturn due to the coronavirus pandemic. Shares have performed poorly in the past several years as a result.

While the stock has not rewarded shareholders recently, the future looks bright for AB-InBev. The company retains a world-class beer portfolio, with several top-selling brands and 17 billion-dollar brands. A return to growth is likely over the long-term. In the meantime, the valuation of AB-InBev stock is highly attractive, and the stock continues to pay a dividend to shareholders.

 

[Mr. Wood]

Major Technology Company CEOs to Testify Before Congress
July 01 2020

The bipartisan House investigation is looking at whether U.S. antitrust laws need to be updated to curb what some lawmakers perceive as excessive power wielded by tech giants over markets such as online advertising, online retail and smartphone apps.

The testimony would be a first for Amazon Chief Executive Officer Jeff Bezos, who had previously agreed to testify.

The others -- Apple CEO Tim Cook, Facebook CEO Mark Zuckerberg and Google CEO Sundar Pichai -- have all appeared before Congress in the past.

The House panel has been gathering information about large tech companies for about a year, and last September it demanded emails from the CEOs and other top executives of the firms, as well as other documents.

 

[Mr. Wood]

Tesla Q2 2020 Vehicle Production & Deliveries
July 02, 2020

Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct. Final numbers could vary by up to 0.5% or more.

0.5% significant meh?

but I hope he succeed in cleaner and more efficient energy and transportation for the world.

 

[Mr. Wood]

Kimberly-Clark: Dividend Aristocrat With 5 Billion-Dollar Brands
July 2nd, 2020

Huggies, Cottonelle, Kleenex, Scott, Kotex

Based on our expected earnings-per-share of $7.45 for 2020, Kimberly-Clark stock trades for a price-to-earnings ratio of 19. This is slightly above the 10-year average valuation of the stock. Excluding outlier years, Kimberly-Clark has traded at an average price-to-earnings ratio of 18 over the last decade. We consider 18 to be fair value for Kimberly-Clark stock.

The U.S. economy officially entered a recession in February, ending the longest economic expansion in its history. Economic data has improved recently, suggesting a moderate recovery, but much remains unknown as to where the economy goes from here. In a time of elevated uncertainty, risk-averse income investors would do well to focus on quality stocks such as the Dividend Aristocrats.

Kimberly-Clark is a Dividend Aristocrat with a time-tested business model, due in large part to its strong brand portfolio. The company has multiple leading brands which have provided it with steady growth for decades. Thanks to its 5 billion-dollar brands, investors can expect consistent growth in profits and dividends for many years to come. With a 3% dividend yield and a high likelihood of annual dividend increases, Kimberly-Clark is an attractive stock for dividend growth investors.

 

[Mr. Wood]

July newsletter out
https://drive.google.com/file/d/1nK-qqAwy8cLZCWtSb1VSC4USKez6et3n/view?usp=sharing

 

[Mr. Wood]

Dominion Energy and Duke Energy cancel the Atlantic Coast Pipeline
July 5, 2020

Despite last month’s overwhelming 7-2 victory at the United States Supreme Court, which vindicated the project and decisions made by permitting agencies, recent developments have created an unacceptable layer of uncertainty and anticipated delays for ACP.

This new information and litigation risk, among other continuing execution risks, make the project too uncertain to justify investing more shareholder capital. For example, a productive tree-felling season this winter is a key milestone to maintaining the project’s cost and schedule. Unfortunately, the inability to predict with confidence the outcome of the project’s permits and the potential for additional incremental delays associated with continued legal challenges, means that committing millions of dollars of additional investment for tree-felling and subsequent ramp up for full construction is no longer a prudent use of shareholder capital.

love dis kind of management. taking care of the risk and shareholders interests first.
but could dey hav study intensively first be4 even first announcing the intention?

 

[Mr. Wood]

Dominion Energy Agrees to Sell Gas Transmission, Storage Assets to Berkshire Hathaway Energy-- Strategic Repositioning Toward 'Pure-Play' State-Regulated, Sustainability-Focused Utility Operations

July 5, 2020

We offer an industry-leading clean-energy profile which includes a comprehensive net zero target by 2050 for both carbon and methane emissions as well as one of the nation's largest zero-carbon electric generation and storage investment programs. Over the next 15 years we plan to invest up to $55 billion in emissions reduction technologies including zero-carbon generation and energy storage, gas distribution line replacement, and renewable natural gas. In addition, between 2018 and 2025 we expect to retire more than four gigawatts of coal- and oil-fired electric generation.

"This narrowing of focus will also allow us to increase our long-term earnings growth rate guidance by around 30 percent. Our rebased dividend policy better reflects our revised operating and financial strengths, aligns with our best-in-class industry peers and allows us to grow our dividend much more rapidly than before

Warren Buffett, chairman of Berkshire Hathaway, said: "I admire Tom Farrell for his exceptional leadership across the energy industry as well as within Dominion Energy. We are very proud to be adding such a great portfolio of natural gas assets to our already strong energy business."

two different pple with different perspectives

 

[Mr. Wood]

Emergent signs $480M manufacturing deal with Johnson & Johnson for Covid-19 vaccine
Jul 6, 2020

“Over the next five years, we are committing our leading CDMO services to advance this important vaccine candidate,” Syed Husain, senior vice president and CDMO business unit head at Emergent, said in a statement. “We have the expertise and capabilities to meet the long-term needs of our customers and provide ongoing commercial manufacturing to benefit patients.”

J&J would need to succeed in clinical trials and earn regulatory approval to take a Covid-19 vaccine to market. But those steps aren’t necessary for Emergent to perform large-scale production, which can happen at-risk, or before a Food and Drug Administration approval, Syed said in an email to the WBJ. But for J&J to distribute products to patients, the company would need either that commercial approval or emergency use authorization from the FDA.

alwys impressed with giants like JNJ who are not content with where dey are and keep on doing research and breakthrough.
our GIC must learn frm these giants if dey want to survive to SG100.

 

[Mr. Wood]

Microsoft eyeing Warner Bros.' gaming unit – The Information
6 Jul, 2020

An acquisition would reportedly include game studios in the U.S., Canada and the U.K. The company developed game franchises based on fictional superhero Batman and Harry Potter. The potential deal would help boost the game-making capabilities of Microsoft's Xbox division.

 

[Mr. Wood]

Walmart’s Amazon Prime competitor will launch in July
Jul 7, 2020

Walmart plans to launch a new subscription service later this month called Walmart+ that will cost $98 a year. It will include perks like same-day delivery of groceries and general merchandise, discounts on fuel at Walmart gas stations, and early access to product deals,

Walmart also has plans to add video entertainment components to the program, though the details of this remain unclear. This week, Walmart is unveiling an online family entertainment program called CAMP by Walmart, in partnership with the retail startup CAMP and the online video technology firm Eko.

 

[Mr. Wood]

Paychex, Inc. Reports Fourth Quarter and Fiscal 2020 Results
July 7, 2020

Our performance during the COVID-19 pandemic has shown that we are truly a trusted business partner for our clients. We were well prepared to service our clients in this unprecedented environment due to our investments in technology and our online, SaaS service offerings. In less than 6 days, we transitioned over 15,000 employees to work from home in an effort to keep our employees safe and provide service continuity to help our clients navigate these uncertain times.

 

[Mr. Wood]

Walgreens Boots Alliance Reports Fiscal 2020 Third Quarter Results
July 9, 2020

The adverse impact of COVID-19 on sales in the quarter was approximately $700 million to $750 million, with the majority of the impact related to the Retail Pharmacy International division. This reflected a dramatic reduction in footfall in Boots UK stores - down 85 percent in April - as consumers were advised to leave home only for food and medicine. While most Boots stores remained open throughout the UK lockdown to provide communities with pharmacy and essential healthcare, our largest premium beauty and fragrance counters were effectively closed. More than 100 stores, mainly in high street, station and airport locations, were temporarily closed as were nearly all of the 600 Boots Opticians stores.

Accelerating Investments in Key Strategic Priorities

During the quarter the company prepared for future growth through aggressively accelerating investments in its four key strategic priorities. The impact of COVID-19 confirmed the company’s existing strategy to take bold steps in creating neighborhood health destinations, driving cost transformation, digitalization and restructuring its retail offering. Below is a summary of the most significant actions in the third quarter and since the end of the quarter:

 

[Mr. Wood]

Royal Caribbean Group acquires remaining interest in Silversea
June 10, 2020

“Silversea has been a great fit for our company from the very first day,” said Richard D. Fain, Chairman and CEO of Royal Caribbean Group. “The cultures of the two organizations have proven to be harmonious, and guests have responded favorably to the combination.”

Manfredi Lefebvre d’Ovidio, who took over the company from his late father, will serve as chairman of Silversea. Roberto Martinoli will remain the brand’s president and CEO.

“Manfredi and Roberto have brought a fresh point of view to our company, as well as deep knowledge of their brand’s unique audience,” Fain said. “Their skills – and Manfredi’s inimitable style – will continue to play an important role in growing Silversea into the future.”

 

[Mr. Wood]

Monthly Dividend Stock In Focus: U.S. Global Investors
July 9th, 2020

Dividend Analysis
U.S. Global Investors has paid its dividend on a monthly basis for more than 11 consecutive years, which is a decent track record. At the current payout of $0.03 per share annually, the stock yields 1.3%. On a yield basis, U.S. Global Investors is far from attractive.

The problem is that with an extremely murky outlook for earnings growth, we believe dividend growth will also be very difficult to come by. On the plus side, the current payout costs the company only about $450,000 per year. And with a clean balance sheet, we believe it can continue to pay the dividend for some time, if it were to choose to fund it with cash on hand rather than earnings.

The company’s cash and equivalents balance has declined over time as well, but it had nearly $15 million in total at the end of March. With HIVE’s rebound, that number should be somewhat higher for the end of the fiscal year. U.S. Global Investors has enough cash and short-term bonds on the balance sheet that it could theoretically pay the dividend for years without earnings. Thus, we believe the payout is safe at this point.