Category Archives: Dividend Stocks

Single issue risk

We have said it before, but worth repeating especially when investors have been practically forced into risky instruments by ZIRP.

“Seadrill Ltd., the London-based offshore driller controlled by billionaire Norwegian shipping magnate John Fredriksen, filed bankruptcy protection in the Southern District of Texas after working out a deal with most of its senior lenders to inject $1 billion of new money into the company pursuant to a pre-arranged plan of reorganization.”

Dividend Stocks



New S&P 500 Dividend Aristocrats in the news …

General Dynamics (GD)

Linear Technology (LLTC)

Praxair Inc. (PX)

Roper Technologies Inc. (ROP)

MLPs

MLPs in the news by UBS …

We believe many of the midstream names offer attractive upside potential. However, we believe those with stronger coverage, long-term contracts/minimum volume commitments, lower leverage and minimal commodity exposure will outperform. Thematically, we prefer those exposed to basins likely to grow such as the Permian/ Marcellus as well as assets which are demand driven (closer to the customer vs the wellhead). We highlight SHLX, SXL, MMP, EPD, GEL, WES and C-corp CPGX, SE as we believe those are names investors will gravitate towards. Strategically we continue to sit on the sidelines for most of the G&Ps; however, this is likely the first group to recover on a commodity rebound.

MLPs

Although technically no longer an MLP.  In the news …

“Kinder Morgan Inc. (KMI) is holding a board meeting Tuesday to consider slashing its dividend, which would be an unprecedented step for the massive energy company that just one year ago was promising unfettered growth.”