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Simply Safe Dividends March 2018 1

This information is for general informational use only and is not personal investment advice. See the disclaimer on the last page for more.

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Intelligent Income Quality dividend ideas for safe income and long-term growth

Monthly Recap

After 15 consecutive months of gains, the S&P 500 (SPY) finally

hit a rough patch, correcting around 10% from its all-time high

reached in January before finishing down 3.6% in February.

The market’s year-to-date return remains positive but less

impressive at 1.8%. The good news is that the S&P 500’s

valuation is beginning to look more reasonable as stock prices fall

and corporate profits continue growing.

According to FactSet, the S&P 500’s forward 12-month P/E ratio

is 16.7, which is close to its five-year average of 16.0 but above its

10-year average of 14.3. Analysts expect robust earnings growth of

18% in 2018, driven in large part by lower corporate taxes.

Rising earnings lead to rising dividends, and S&P 500 companies

have increased their payouts by about 14% on average thus far in

2018. More than a fifth of S&P 500 companies have raised their

dividends this year, and none have reduced their payouts. That’s

the first time we’ve seen this happen since 2011, according to data

cited by The Wall Street Journal.

While collecting a higher dividend is nice, a safe 3%, 4%, or 5%

yield doesn’t feel so great when a portfolio’s value tumbles 10% or

more during a market correction. Many conservative dividend

investors are wondering how to respond to the market’s increasing

volatility, especially as many high-yield stocks have been hit hard.

In This Issue

Portfolio Updates

Performance……..…………...6

Top 20 Stocks………….…...10

Cisco delivers another strong earnings report

Conservative Retirees…….20

Selling OHI, TRI, adding stakes in five new stocks

Long-term Growth………...37

TJX and TXRH boost dividends by 25%, 19%

Idea Generation

Safe Dividends…………......46

Growth Dividends……...….47

High Yield Stocks…….……48

Dividend Increases…........49

Ex-Dividend Dates….….....50

Resources

Our Best Dividend Articles

Dividend Safety Scores

Quote of the Month

“I've found that when the market's

going down and you buy funds

wisely, at some point in the future

you will be happy.” – Peter Lynch

March 2018 Published on 3/4/18

https://www.simplysafedividends.com/welcome-to-simply-safe-dividends/

http://www.simplysafedividends.com/dividend-safety-scores/

Simply Safe Dividends March 2018 - 2 -



Market corrections are uncomfortable. Paper profits shrink, news headlines sour, fear quickly

sets in, and many emotionally-driven questions arise – should I sell some of my shares to lock in

profits? Is a major bear market ahead of us? Is now a good time to put some cash to work?

To help answer these questions, I analyzed the S&P 500’s historical levels from the start of 1950

through March 1, 2018. I recorded each time the stock market lost at least 10% from a historical

all-time high, noting how big the slump was (the “Price Decline” column below) and how long

the downturn lasted until the market had recovered back to its previous all-time high (the “Peak-

to-Trough-to-Recovery Total Days” column on the far right measures).

Since 1950, I observed 25 corrections (10%+ declines) from the S&P 500’s past all-time highs,

including 10 bear markets (20%+ declines). That’s about an average of one correction every two

to three years. I highlighted the most painful bear markets that had the biggest price declines and

the longest peak-to-recovery periods in red. You can see that each correction had its own flavor.

Peak Date S&P 500 (Points)

Trough Date

S&P 500 (Points)

Price Decline

Recovery Date

Peak-to-Trough-to-Recovery Total Days

6/12/1950 19 7/17/1950 17 -14% 9/22/1950 102

1/5/1953 27 9/14/1953 23 -15% 3/11/1954 430

9/23/1955 46 10/11/1955 41 -11% 11/14/1955 52

3/20/1956 49 5/28/1956 44 -10% 7/16/1956 118

8/2/1956 50 10/22/1957 39 -21% 9/24/1958 783

8/3/1959 61 9/28/1960 52 -14% 1/27/1961 543

12/12/1961 73 6/26/1962 52 -28% 9/3/1963 630

5/13/1965 90 6/28/1965 82 -10% 9/27/1965 137

2/9/1966 94 10/7/1966 73 -22% 5/4/1967 449

9/25/1967 98 3/5/1968 88 -10% 4/29/1968 217

11/29/1968 108 5/26/1970 69 -36% 3/6/1972 1,193

1/11/1973 120 10/3/1974 62 -48% 7/17/1980 2,744

11/28/1980 141 8/12/1982 102 -27% 11/3/1982 705

10/10/1983 173 7/24/1984 148 -14% 1/21/1985 469

8/25/1987 337 12/4/1987 224 -34% 7/26/1989 701

10/9/1989 360 1/30/1990 323 -10% 5/29/1990 232

7/16/1990 369 10/11/1990 295 -20% 2/13/1991 212

2/18/1997 816 4/11/1997 738 -10% 5/5/1997 76

10/7/1997 983 10/27/1997 877 -11% 12/5/1997 59

7/17/1998 1,187 8/31/1998 957 -19% 11/23/1998 129

7/16/1999 1,419 10/15/1999 1,247 -12% 11/16/1999 123

3/24/2000 1,527 10/9/2002 777 -49% 5/30/2007 2,623

10/9/2007 1,565 3/9/2009 667 -57% 3/28/2013 1,997

5/21/2015 2,131 2/11/2016 1,829 -14% 7/11/2016 417

1/26/2018 2,873 2/8/2018 2,581 -10% ? ?




For conservative investors who are around retirement age, generating safe income and

preserving principal are primary objectives. No one wants to risk outliving their nest egg.

Through that lens, some of the data in the table above is scary. The average decline during the

S&P 500’s 25 corrections from all-time highs was 21%, but five of those corrections saw a loss

between 30% and 60%. If an investor was forced to sell stocks (to make income ends meet)

during any of those troughs, the impact on his retirement outlook could have been devastating.

However, I think the more interesting piece of information is the column on the far right, which

measures how many days it took for the S&P 500 to get back to its previous all-time after

peaking. In other words, the peak-to-recovery time essentially represents how long an investor

had to wait for their stocks to return to their full value recorded before the market started

correcting from its all-time high; selling during this window would lock in a capital loss.

The average peak-to-trough-to-recovery time across the 25 market corrections was 631 days, or

about 1.7 years. (Not surprisingly, many financial advisors wisely recommend that retirees hold

two to three years of living expenses in cash). However, there were four bear markets that

required investors to wait between three years and 7.5 years to see the market get back to a new

record high. That’s a long time to stay patient and maintain faith in a buy-and-hold strategy.

As I’ve said before, I believe the only money one should invest in stocks is money he or she can

financially and emotionally afford to leave untouched for at least five to 10 years. Short-term

performance is just too unpredictable. If you have truly committed to that long-term holding

period, you can sleep a lot better at night and worry less about where the market will go any

given month, quarter, or year.

With that said, I want to address the common temptation to time the market, such as by selling

out of stocks due to fears of a downturn, or by hoarding cash on the sidelines out of fear that the

market is too expensive to start investing. These are irrational worries when time is on your side.

Suppose an investor, let’s call him Jinxed Jeff, had superb longevity but awfully poor luck. Jeff

invested $1,000 at each all-time high in the market immediately before a correction began,

starting in 1950. In other words, he only made 25 investments (each $1,000, adjusted for

inflation since 1950) from 1950 through 2018 at each market peak, and he never sold.

Jinxed Jeff would have invested a total of $100,947 spread over 25 purchases of the S&P 500

(remember his $1,000 allotment in 1950 was adjusted for inflation in each future investment

year). He lived through a market correction immediately after putting fresh money to work each

time. What do you think Jeff’s portfolio was worth on March 1, 2018?




If you guessed Jeff’s portfolio lost money or largely treaded water, you would be wrong. In fact,

Jeff’s portfolio actually increased tenfold, growing from the $100,947 he invested to $1,089,897.

It is virtually impossible to lose money investing in a diversified portfolio of stocks over the

long term. I know what you’re thinking – no one has the luxury of investing cash for 68 years

like Jeff. What if my window is 10 or even just five years?

The chart below plots the S&P 500’s trailing five-year annualized price return. In other words,

the chart shows how much the S&P 500’s price increased per year over the five years ending on

each date along the horizontal access. After crunching the numbers, the S&P 500’s average

annual price return over these five-year rolling windows was 7.6% since 1950. Importantly, the

S&P 500’s price declined in only 18% of these rolling periods.

To put it another way, if you invested with a blindfold in the S&P 500 at any point in time over

the last 68 years and held your position for five years before selling, you had an 82% chance of

getting all your capital back and then some, with an expected average annual gain north of 7.5%.

The longer you can hold stocks, the better your odds of avoiding losses and preserving and

growing your capital. The chart on the next page shows the S&P 500’s rolling 10-year price

returns on an annualized basis. The average annual 10-year trailing return was around 7%, and a

capital loss was recorded in only 8% of the periods measured. It’s hard not to like those odds.

That’s especially true when you look at “safer” alternatives. For example, a 10-year Treasury

yields 2.86% today. Sure, you are guaranteed to get your capital back if you hold these bonds for

10 years until maturity, but your return will only be 2.86%, likely below the pace of inflation.

-15%

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/1955

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S&P 500 Index Trailing 5-Year Annualized Return




Investing in a diversified basket of stocks for 10 years has historically given you more than a

90% chance of not only getting your capital back, but enjoying 7% or more annual gains to help

ensure you do not outlive your nest egg. From that perspective, investing heavily in long-term

government bonds for safety could actually be a riskier approach for some investors in today’s

low-yield world since they are reducing the long-term growth potential of their retirement funds.

The bottom line is that you need to figure out how much money you can comfortably invest in

stocks for the long term (5-10+ years). If your holding period is fairly long, there is little reason

to worry about inevitable corrections or buying stocks near the market’s short-term top. Staying

the course and maximizing your time in the market are the most important factors.

Understanding your unique financial situation, long-term goals, and risk tolerance is really the

only way to answer questions about how to position your portfolio’s mix of stocks, bonds, and

cash; it depends on the individual. Once you have figured out how much money you are

comfortable leaving invested and untouched for the long term, your nest egg’s positioning

probably shouldn’t change at all in anticipation of any type of future market movement.

As we’ve seen, it is certainly possible for the stock market to drop upwards of 50% and

potentially take several or more years to recover back to a new all-time high. If that were to

occur, would you be able to remain fully invested throughout the multiyear downturn? How

much volatility can you realistically stomach? How much income do you need, and how reliable

are your current income sources?

Now is as good of a time as any to step back, review your financial needs, and reassess your

asset allocation. Don’t let the market’s potential volatility push you into making short-term

decisions that could jeopardize the long-term health of your nest egg and retirement.

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017

S&P 500 Index Trailing 10-Year Annualized Return




Portfolio Performance

Please note that our Conservative Retirees portfolio has a new dividend ETF benchmark.

Vanguard’s High Dividend ETF (VYM) was replaced with the S&P 500 High Dividend Low

Volatility ETF (SPHD). SPHD’s sector mix is much more reflective of a retirement portfolio

(VYM does not invest in REITs, for example), and it offers a higher yield that is more aligned

with our portfolio. This change makes our long-term relative performance somewhat weaker.

The annualized returns of our portfolios since inception remain unusually strong, ranging from

11% to 18%, but this rate certainly won’t continue over the long-term. The market’s average

annual return over most long-term periods has been below 10%, and today’s relatively high

valuations suggest returns over the coming years will be lower compared to recent history.

While I don’t expect our performance to deviate all that much from the market’s over time, I do

expect to generate higher, safer, and faster-growing dividend income with less volatility. Here is

each portfolio’s total return performance in February, year-to-date (YTD), over the trailing 12-

month period (1 Year), and since inception. Returns for the S&P 500 and relevant dividend

ETFs are provided for comparison purposes.

As of 2/28/2018

Annualized

Inception

Date

February

2018 YTD 1 Year

Since

Inception

Top 20 Dividend Stocks Portfolio 6/12/2015 -3.63% 0.58% 13.89% 16.47%

S&P 500 Index (SPY) -3.64% 1.79% 17.11% 12.25%

Schwab U.S. Dividend Equity ETF (SCHD) -5.63% -1.33% 15.85% 13.02%

Conservative Retirees Portfolio 6/17/2015 -4.66% -3.97% 4.57% 11.13%

S&P 500 Index (SPY) -3.64% 1.79% 17.11% 12.20%

S&P 500 High Dividend Low Volatility ETF (SPHD) -6.77% -6.54% -0.49% 11.65%

Long-term Dividend Growth Portfolio 6/9/2015 -4.36% -0.42% 18.42% 17.27%

S&P 500 Index (SPY) -3.64% 1.79% 17.11% 12.52%

Vanguard Dividend Appreciation ETF (VIG) -4.03% 0.78% 16.03% 12.20%

Additional performance information for the portfolios, including their dividend growth track

records, can be found in each portfolio’s section of this newsletter.




The amount of risk taken to achieve a certain return is equally important. Standard deviation is a

common measure of risk used by investors. It measures the historical volatility of a portfolio or

investment. Lower volatility indicates that an investment’s return fluctuates less.

The following table shows the monthly volatility of our portfolios compared to the S&P 500’s

volatility. Our Top 20 and Conservative Retirees portfolios have been less volatile than the

broader market since inception by approximately 7% and 16%, respectively. Assuming this

trend continues, these portfolios will likely do a better job than the broader stock market of

preserving capital during the next market correction.

Our Long-term Dividend Growth portfolio has been somewhat more volatile than the market,

reflecting its focus on smaller companies with higher long-term earnings growth potential.

Monthly Standard Deviation

(Since June 2015 Inception)

Monthly Volatility Top 20 Retirees Growth

Portfolio 2.81% 2.54% 3.41%

S&P 500 3.03% 3.03% 3.01%

% Difference -7.26% -16.17% 13.29%

Dividend Events

PepsiCo (+15%), Cisco (+14%), Altria (+6%), PPL (+4%), Waste Management (+9%), FLIR

(+7%), Texas Roadhouse (+19%), and TJX Companies (+25%) announced new dividend

increases during the last month. Since inception in June 2015, we have recorded 198 total

dividend increases across our three portfolios and avoided dividend cuts.

Dividend Events Since Inception

Top 20 Retirees Growth

Increases 58 73 67

Cuts 0 0 0

Portfolio Actions

Our portfolios have very little trading activity most months. After all, I buy each company with

hopes to hold it forever, so long as its dividend remains safe and its long-term outlook continues

to appear attractive. No trades are planned in our Top 20 Dividend Stocks or Long-term

Dividend Growth portfolios.

However, in our Conservative Retirees portfolio, I plan to exit our stakes in Omega Healthcare

(OHI) and Thomson Reuters (TRI) when the market opens on Monday, March 5. Omega’s

outlook continues weakening as the healthcare landscape evolves. Although OHI’s dividend is




expected to remain safe this year (2019 and beyond is much murkier given industry headwinds),

it will be frozen at its current level. With many higher quality dividend stocks selling off in

recent months, more attractive businesses with lower risk profiles and safer payouts are

available. You can read my latest note on OHI here.

Thomson Reuters’ payout remains safe, but I don’t expect any growth going forward. Earlier

this year the company announced an agreement to sell a 55% stake in its Financial & Risk

segment, which provides financial terminals and accounted for around half of its profits. The

deal is fairly complicated, but Thomson’s ongoing earnings power will drop, its effective

leverage will be higher, and most of the cash received is going to share repurchases and

acquisitions. With the stock only offering a 3.5% yield with no dividend growth and strategic

uncertainty, I would rather move on to other ideas.

Proceeds from our sales of Omega Healthcare and Thomson Reuters, along with existing cash

on hand, will be invested across five new companies, which will each represent around 2% of

our portfolio’s total value: Duke Energy (DUK – 35 shares), WEC Energy Group (WEC – 48

shares), W.P. Carey (WPC – 46 shares), Public Storage (PSA – 14 shares), and United Parcel

Service (UPS – 26 shares). These stocks have all declined meaningfully in recent months and

appear to be high quality businesses trading at reasonable valuations.

The total number of holdings in our Conservative Retirees portfolio will increase from 26 to 29,

providing greater income diversification without stretching us too thin. With long-term capital

preservation being a key goal, spreading our bets out a little more reduces company-specific risk

and should help keep the volatility of our returns and income stream relatively low over time.

Besides improving our dividend safety, I expect these moves to raise our dividend growth

outlook (our portfolio’s five-year annual dividend growth rates moves up from 5.9% to 6.3%)

and increase our projected annual income by close to 4% as we put some cash to work. Our

portfolio will remain diversified with no sector accounting for more than 19% of its value.

Timely Holdings to Consider

A handful of companies from each portfolio appear to offer interesting valuation and

fundamental timeliness. These are stocks we hold that investors can review as potential buying

opportunities:

Top 20 Dividend Stocks Dividend

Safety Score

Forward

P/E

Dividend

Yield

5-Yr Annual Div

Growth Rate

Omnicom (OMC) 92 13.4 3.17% 13%

Kimberly-Clark (KMB) 88 16.6 3.55% 6%

https://www.simplysafedividends.com/thoughts-omega-healthcares-earnings-release-last-month/




Dominion Energy (D) 75 17.9 4.61% 8%

PepsiCo (PEP) 98 19.1 2.95% 8%

Conservative Retirees Dividend

Safety Score

Forward

P/E

Dividend

Yield

5-Yr Annual Div

Growth Rate

Crown Castle (CCI) 61 18.9 4.02% N/A

Kimberly-Clark (KMB) 88 16.6 3.55% 6%

National Retail (NNN) 94 14.1 5.04% 4%

Dominion Energy (D) 75 17.9 4.61% 8%

ExxonMobil (XOM) 71 16.6 4.08% 7%

Duke Energy (DUK) 80 16.0 4.72% 3%

WEC Energy (WEC) 85 18.0 3.72% 12%

W.P. Carey (WPC) 61 11.1 6.72% 10%

Public Storage (PSA) 91 19.7 4.10% 13%

United Parcel Serv. (UPS) 71 14.5 3.45% 8%

LT Dividend Growth Dividend

Safety Score

Forward

P/E

Dividend

Yield

5-Yr Annual Div

Growth Rate

Hormel (HRL) 98 19.9 2.23% 18%

Medtronic (MDT) 98 17.7 2.18% 12%

Lowe’s (LOW) 98 17.7 2.18% 12%

Thank you for your continued support of Simply Safe Dividends.

Sincerely,

Brian Bollinger, CPA

CEO, Simply Safe Dividends




Top 20 Dividend Stocks Portfolio Update

Our worst performers in February

were Verizon (-11%), Wells Fargo (-

11%), and Altria (-11%).

No news was out on Verizon, who last

reported decent earnings in January.

The company is no longer under

review for sale in our portfolios and

remains a long-term hold. You can

read our full thesis here.

Wells Fargo sold off with other banks

and remains challenged by the U.S.

Federal Reserve’s announcement of

an unprecedented action to limit the

company’s growth. Specifically, the

bank cannot exceed the $1.95 trillion

assets it had at the end of 2017 until it

shows improvement in its risk controls

to avoid a repeat of the sales-practice

scandal that emerged in 2016.

Wells Fargo expects the action will

reduce its profits by $300 million to

$400 million this year (compared to

more than $20 billion in net income)

but is confident it will satisfy the

requirements of the consent order it

agreed to with the Fed. The order is

not related to any new matters, but to

prior issues where Wells Fargo is

working to make progress.

The Fed’s actions will not affect the

bank’s financial condition, and WFC’s

dividend should remain safe. The

company expects to get the

restrictions lifted within the next year,

hopefully minimizing the impact of

the penalty, but the uncertainty

continues to weigh on the stock,

which is under review for potential

sale in our portfolio.

Altria reported healthy earnings on

February 1 and raised its dividend 6%.

The company remains a hold.

Portfolio Statistics Dividend Yield: 2.8% Fwd P/E Ratio: 16.5 Beta: 0.83 Dividend Safety: 83 Dividend Growth: 54 1-yr Sales Growth: 2.1% 1-yr EPS Growth: 6.8%

Performance Update 2/28/18 Feb. All

Portfolio -3.6% 51.4% S&P 500 -3.6% 36.9% SCHD -5.6% 39.5%

Dividend Increases: 58 Dividend Decreases: 0

Portfolio Objective Outperform the S&P 500 by at least 1% per year over any five-year rolling time horizon.

Return Drivers Total return is expected to be composed of:

2.5% - 3.5% dividend yield 7% - 9% earnings growth

Investment Philosophy We invest in companies with enduring competitive advantages, shareholder-aligned management, and large markets that provide opportunity for long-term growth. Our holdings offer a blend of current income and income growth and are accumulated when they appear underpriced.

Portfolio Turnover When we initiate a new position, we expect to hold it for at least 3-5 years. We only sell if fundamentals structurally change or the valuation reaches excessive levels.

Performance Update

Our Top 20 Dividend Stocks

portfolio returned -3.6% during the

month of February, in line with the

S&P 500 (SPY) and topping

Schwab’s Dividend ETF (SCHD).

Since inception in June 2015 the

portfolio has returned 51.4% and

outperformed the S&P 500 (36.9%)

and Schwab’s Dividend ETF

(39.5%). During this time, the

portfolio has also recorded lower

volatility than the market.

Our best-performing stocks in

February were Cisco (+8%),

Broadridge Financial (+4%), and

Boeing (+3%).

Cisco reported solid earnings on

February 14. Sales grew 3%, and

its mix of recurring revenue was up

2 points to 33%. Management

expects low-single digit growth to

continue and boosted the dividend

by 14%.

Broadridge reported earnings on

February 8 and raised guidance.

Boeing continued flying higher

after reporting cash flow figures in

January that were well ahead of

analysts’ expectations. Airlines,

Boeing’s customers, are enjoying

strong air traffic growth, fueling

demand for planes. The company’s

production output continues rising,

and Boeing is one of the biggest

winners of corporate tax reform.

http://www.verizon.com/about/news/verizon-closes-2017-strong-wireless-customer-growth-and-retention-well-positioned-new-markets

https://www.simplysafedividends.com/verizon-vz/

http://investor.altria.com/phoenix.zhtml?c=80855&p=irol-newsArticle&ID=2329695

https://s2.q4cdn.com/230918913/files/doc_financials/quarterly/Q2FY18/Cisco-Reports-Second-Quarter-Earnings.pdf

http://otp.investis.com/clients/us/broadridge/usn/usnews-story.aspx?cid=928&newsid=51698




Dividend Events

Our portfolio recorded three new dividend increases during the last month, bringing the total payout

raises since inception in June 2015 to 58. We have not experienced any dividend cuts.

PepsiCo increased its dividend by 15%, beginning with its June 2018 payment and representing its 46th

consecutive annual payout raise.

Cisco hiked its dividend by14% and has increased its payout every year since it initiated a dividend in

2011, recording 31% annual growth over the last five years.

Altria raised its dividend by 6%, recording its 52nd

payout raise in the past 49 years.

Stocks to Consider Buying

The stocks that look the most interesting to me today are: Omnicom (OMC), Kimberly-Clark (KMB),

Dominion Energy (D), and PepsiCo (PEP).

Omnicom (OMC): Omnicom is one of the largest providers of advertising and marketing

communication services. The company holds more than 1,500 advertising agencies that specialize in over

30 marketing disciplines. A full-service agency provides numerous services, including designing ad

campaigns, making the actual ads, determining where the ads should be placed and distributed, media

buying, accounting management, public relations, consulting, and more.

Competitive Advantages

As one of the biggest agency networks in the world, Omnicom gains several advantages over smaller

rivals. It can act as a one-stop shop for clients because it offers a much wider breadth of services and

operates around the world. Clients prefer work with a small number of agencies to save on costs, and

many of the relationships Omnicom has span multiple decades. There are also only a few other large

agency networks and many of them have relationships with clients’ competitors, raising switching costs

for existing clients. Our full investment thesis on Omnicom can be seen by clicking here.

Dividend Review

Dividend Safety Score: 92 Dividend Growth Score: 69 Dividend Yield: 3.17%

Omnicom has paid uninterrupted dividends since its founding in 1986 and boosted its dividend each year

since 2010. Management announced a 9% dividend increase in October 2017, and the dividend has

plenty of room for continued growth given Omnicom’s 45% payout ratio, healthy balance sheet, and

consistent earnings growth.

Recent News

Omnicom reported earnings on February 15. The company’s organic sales grew 1.6%, diluted earnings

per share increased 5.4%, and operating margins expanded from 14.2% to 14.8%. However, investors

have sold off global ad agencies over the past year. Many large brands (i.e. ad agency customers),

especially in the consumer staples sector, are facing growth headwinds as consumer behaviors evolve.

The continued rise of digital technology (i.e. marketers trying to become more efficient with their

spending) and potentially growing threats from Google and Facebook are causing concern as well.

http://www.simplysafedividends.com/omnicom-omc-a-dominant-dividend-payer/

http://investor.omnicomgroup.com/investor-relations/news-events-and-filings/investor-news/news-details/2018/Omnicom-Group-Reports-Fourth-Quarter-and-Full-Year-2017-Results/default.aspx

https://www.wsj.com/articles/procter-gambles-profit-rises-but-sales-fall-short-of-views-1508500938

http://www.adweek.com/agencies/wpps-disappointing-earnings-report-asks-are-google-facebook-and-consultants-eating-our-lunch/




In an increasingly tech-driven world, I believe advertising firms remain important for clients facing

disruption to their business models. Omnicom continues delivering better results than its peers and

appears to be trading at an attractive valuation. I plan to continue holding the stock for the long-term.

Valuation

OMC’s forward P/E ratio was 13.4 and its dividend yield was 3.17% as of 3/4/18. The stock’s dividend

yield remains significantly above its five-year average, reflecting investors’ fears over future growth:

Kimberly-Clark (KMB): Kimberly-Clark has been in business since 1928 and has grown into one of the

largest global manufacturers of various tissue and hygiene products. Some of the company’s key products

are disposable diapers, training pants, baby wipes, incontinence care products, tissues, toilet paper, paper

towels, napkins, and more. Kimberly-Clark’s major brands include Huggies, Pull-Ups, Kleenex,

Cottonelle, Kotex, Scott, and Depend. Products are primarily sold to supermarkets, mass merchandisers

(Wal-Mart is a 10%+ customer), drugstores, and other retail outlets.

By segment, Personal Care (diapers, training pants, wipes, feminine and incontinence care) accounts for

approximately half of the company's sales and operating profits. Consumer Tissue (facial tissue,

bathroom tissue, paper towels) contributes another third of Kimberly-Clark's mix, and K-C Professional

(facial tissue, bathroom tissue, paper towels for away-from-home use, safety products) generates the

remainder. North America accounts for 65% of profits, followed by Asia / Latin America (28%).


Kimberly-Clark gains advantages from its size, strong brands, and product innovation. As one of the

largest players in most of its markets, the company’s manufacturing scale allows it to produce products at

a lower cost than most of its rivals. These extra profits can be invested in advertising, which Kimberly-

Clark spends more than $600 million on each year to defend its shelf space and keep its products popular

with consumers. Breaking the company’s distribution channels would be very difficult for new entrants,

and Kimberly-Clark has the financial resources necessary to invest in R&D or marketing if a new product

trend emerges. Finally, the company’s strong exposure to emerging and developing markets is worth

highlighting. Demand for many of Kimberly-Clark’s products tracks population growth, so the company




is reasonably well positioned to combat potentially stagnant growth in developed markets. Our full

investment thesis on Kimberly-Clark can be seen by clicking here.

Dividend Review


Kimberly-Clark appears to pay one of the safest dividends in the market, supported by the company’s

healthy free cash flow payout ratio near 65%, excellent cash flow generation, recession-resistant business

(sales dipped just 2% in fiscal year 2009), stable profitability, and investment-grade rated debt.

Kimberly-Clark is a dividend aristocrat that has raised its dividend for 46 consecutive years. The

company’s dividend increased 6.5% per year over the last 20 years and by 4.3% annually during the last

three years. Until earnings growth picks up, the company will likely continue raising its dividend by 3-

6% per year.

Recent News

No update from last month. Kimberly-Clark reported results on January 23. Market conditions remain

challenging over the short-term, but management expects organic sales to return to growth this year, with

margins expanding and adjusted earnings per share to record double-digit growth. The company

increased its dividend 3.1% and announced a major new restructuring program expected to generate $1.5

billion in cost savings through 2021. While Kimberly-Clark has experienced its fair share of headwinds, I

continue to believe the company’s emerging markets reach positions it well for the long-term.

Valuation

KMB’s forward P/E ratio was 16.1 and its dividend yield was 3.55% as of 3/4/18. The stock’s yield

remains above its five-year average:

Dominion Energy (D): Dominion was founded in 1909 and is one of the largest producers and

transporters of energy in the country. The diversified utility company has a portfolio of more than 26,000

megawatts of electric generation, 66,000 miles of natural gas transmission, gathering, storage, and

http://www.simplysafedividends.com/kimberly-clark-kmb-dividend-stock-analysis/

http://investor.kimberly-clark.com/releasedetail.cfm?ReleaseID=1054978




distribution pipeline, and 64,000 miles of electric transmission and distribution lines. It operates one of

the biggest natural gas storage systems in the U.S. and serves more than 6 million customers.


Dominion Energy has significantly shifted its portfolio in recent years to reduce its exposure to

commodity prices and focus more on businesses with faster growth, stronger competitive advantages,

better profitability, and lower risk. Today, over 90% of the company’s sales are from regulated

operations, which provide solid cash flow visibility. The company’s electric and gas regulated utility

businesses operate in regions with healthy population growth and constructive regulators who have

historically provided Dominion with favorable rates of returns on its investment. Management is

investing heavily in natural gas, including massive projects such as the Cove Point LNG export terminal

and the Atlantic Coast Pipeline. These projects are expected to generate substantial cash flow (backed by

long-term contracts with customers) as they come online over the next few years, helping Dominion

Energy generate mid to high-single-digit annual earnings growth. Dominion also acts as the general

partner and sponsor of its midstream MLP, Dominion Midstream Partners (DM), which provides low-

cost funding for the company’s expansion plans. Our full investment thesis on Dominion Energy can be

seen by clicking here.

Dividend Review


Dominion Energy’s dividend payment appears to be quite safe with decent growth prospects. The

company has paid consecutive dividends for close to 90 years and increased its payout for 14 straight

years. Management targets a regulated payout ratio at up to 75%, which is conservative for a utility, and

Dominion has several billion dollars of liquidity available (compared to total dividend payments of $1.7

billion last year). Management expects the company to achieve at least 10% annual dividend growth

through 2020 as its large projects begin generating significant cash flow.

Recent News

No update from last month. As fate would have it, a lot has changed since we initiated a position in the

company in late 2017. Most notably, Dominion made a $14.6 billion dollar bid to acquire SCANA

(SCG). The utilities sector has also dropped on rate-related headwinds. Please review the introductory

comments made in our thesis here for more information. While I generally do not like large acquisitions

and prefer to give the acquiring company more time to digest a deal, Dominion’s selloff and high yield

make the stock look interesting to me today.

Valuation

D’s forward P/E ratio was 17.9 and its dividend yield was 4.61% as of 3/4/18. The stock’s dividend yield

remains at a multi-year high:

https://www.simplysafedividends.com/dominion-energy-d/





PepsiCo (PEP): PepsiCo is a global food and beverage company with $63 billion in sales, including $1

billion or more from more than 20 of its largest brands (Frito-Lay, Gatorade, Pepsi-Cola, Quaker,

Tropicana, and more). Close to 60% of sales are in North America, which is split roughly 50/50 between

snacks and beverages. In general, snacks carry higher margins than beverages.


PepsiCo has numerous competitive advantages stemming from its scale, strong brands, massive

distribution, and business longevity. PepsiCo is roughly twice the size of its next-largest supplier in food

and beverage, making it a critical supplier for retailers. The company also spends billions of dollars each

year to defend its shelf space, investing in in-store displays, merchandising, and promotional discounts.

PepsiCo’s huge international distribution network also helps it stay relevant by efficiently introducing

new snack and beverage brands around the world. Our full investment thesis on PepsiCo can be seen by

clicking here.

Dividend Review


PepsiCo has paid dividends since 1965 and raised its dividend for more than 40 consecutive years,

boasting one of the best dividend growth track records in the market. Considering the company’s healthy

payout ratio near 60%, superb cash flow generation, and mid-single digit organic sales growth target, I

expect mid to high-single digit dividend increases to continue.

Recent News

PepsiCo reported earnings on February 13. Excluding foreign currency fluctuations, organic sales grew

2% and earnings per share expanded by 8%. Management also issued guidance for 9% earnings per share

growth in 2018 and announced plans to raise the dividend by 15% beginning with the June 2018

payment. The company continues performing well in an otherwise challenging environment for many

consumer staples businesses.

http://www.simplysafedividends.com/pep-a-durable-high-quality-dividend/

http://www.pepsico.com/docs/album/q4-2017/q4_2017_fullrelease_gxpctkgyn9j2zdmz.pdf




Valuation

PEP’s forward P/E ratio was 19.1 and its dividend yield was 2.95% as of 3/4/2018.

Stocks to Consider Selling

In light of its ongoing challenges discussed last month, Wells Fargo (WFC) remains under review for

potential sale in the coming weeks and months. I think we can find a higher quality company in the

financials sector that is better positioned for rising interest rates and long-term growth without so much

hair.




Top 20 Dividend Stocks – Portfolio Actions .

= stock is under review for potential sale in the coming weeks and months Data as of 3/4/18

How to Use the Table: Stocks in the “Possible Buying Opportunities” list appear to have relatively attractive valuations and/or more timely fundamental momentum. As such, they

could prove to be the best available investment opportunities to put new cash to work in. Stocks in the “Long-term Holds” list are still expected to be solid long-term holdings, but

they do not appear to have as attractive valuations or fundamental momentum at the moment, suggesting there might be a better opportunity in the future to add more.

Investors looking for stocks with very safe current income and low volatility should look for stocks with dividend “Safety Scores” of at least 50 and “Low” or “Very Low” price

volatility. Investors interested in longer-term income growth should look for stocks with dividend “Growth Scores” of at least 70. Note that scores of 50 are average, 75 or higher is

excellent, and 25 or lower is considered weaker.




Top 20 Dividend Stocks – Performance and Dividend Income

Monthly Return Jun 2017 Jul 2017 Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan 2018 Feb 2018

Portfolio 0.90% 1.32% 0.10% 1.86% 2.58% 3.79% 1.76% 4.36% -3.63%

S&P 500 0.64% 2.06% 0.29% 2.01% 2.36% 3.06% 1.21% 5.64% -3.64%

SCHD ETF -0.10% 1.66% -0.02% 2.85% 3.61% 4.21% 1.95% 4.55% -5.63%

Portfolio Value $134,445.96 $136,220.15 $136,353.56 $138,894.90 $142,482.68 $147,878.12 $150,481.76 $157,045.94 $151,350.47

Since Inception

Cumulative Jun 2017 Jul 2017 Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan 2018 Feb 2018

Portfolio 34.45% 36.22% 36.35% 38.89% 42.48% 47.88% 50.48% 57.05% 51.35%

S&P 500 20.64% 23.12% 23.48% 25.96% 28.93% 32.87% 34.48% 42.06% 36.89%

SCHD ETF 22.83% 24.88% 24.85% 28.40% 33.04% 38.64% 41.34% 47.77% 39.46%

Annualized Jun 2017 Jul 2017 Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan 2018 Feb 2018

Portfolio 15.52% 15.56% 14.98% 15.35% 15.97% 17.15% 17.38% 18.64% 16.47%

S&P 500 9.57% 10.22% 9.96% 10.55% 11.22% 12.19% 12.32% 14.22% 12.25%

SCHD ETF 10.54% 10.96% 10.50% 11.48% 12.69% 14.13% 14.53% 15.94% 13.02%

51.4%

36.9% 39.5%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

Cumulative Total Return

Top 20 Portfolio

S&P 500 (SPY)

U.S. Dividend ETF (SCHD)

$1,622

$3,282

$3,700

$401

$1,452

$3,202 $3,551

$0 $-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

2015 2016 2017 YTD 2018

Dividends Receivable Top 20 Portfolio U.S. Dividend ETF (SCHD)

Portfolio’s Trailing 12-month Dividend Growth Rate: 11.8%




Top 20 Dividend Stocks – Payment Schedule

*Average EPS and FCF payout ratios exclude outliers caused by one-time events in order to reflect a more representative figure.

How to Use the Table

The “Payment Schedule” table displays the dividend information you need to know about each holding.

Dividend Yield: the company’s indicated annual dividend divided by its stock price.

EPS Payout Ratio: the percentage of GAAP earnings paid out as a dividend over the last 12 months.

FCF Payout Ratio: the percentage of free cash flow paid out as a dividend over the last 12 months.

Dividend Amount: the dollar per share amount of dividends paid out at each pay period.

Payment Cycle: the months the dividend is paid out. Useful for creating monthly income streams.

Next Ex-Div Date: to receive the next dividend payment, you need to own shares before this date.

Next Pay Date: the date at which the dividend amount is actually distributed to shareholders.

Data as of 3/4/18




Conservative Retirees Portfolio Update

financial health and strongest

Dividend Safety Scores to minimize

risk until we know more.

Our best performers during February

were Cisco (+8%), Intel (+3%), and

Emerson Electric (-1%).

Cisco reported solid earnings on

February 14. No news was out on

Intel, and Emerson delivered strong

earnings on February 6.

Our worst performers in February

were General Mills (-14%), Exxon (-

12%), and Verizon (-12%).

General Mills sold off with other

consumer staples and dropped further

after announcing an $8 billion deal (a

whopping 22x EBITDA multiple) to

acquire Blue Buffalo, a fast-growing

pet food company making natural

foods and treats for dogs and cats. GIS

is under new leadership focused on

restoring the company to sustainable

growth. I don’t like big acquisitions,

especially for companies in the middle

of a turnaround, but I’m willing to

give the company time to execute.

Management expects to maintain the

dividend (but expect little growth).

ExxonMobil was hurt by oil prices

which slumped nearly 5% in the U.S.

after having rallied for five straight

months. Exxon’s cash flow more than

covered its net investments and

dividends in 2017, and I plan to

cotinine holding the stock.

No news was out on Verizon, who last

reported decent earnings in January.

The company is no longer under

review for sale in our portfolios and

remains a long-term hold. You can

read our full thesis here.



Portfolio -4.7% 33.0% S&P 500 -3.6% 36.5% SPHD -6.8% 34.7%


Portfolio Objective Keep pace with the S&P 500 over any five-year rolling time period while providing a safe dividend yield of at least 3.5% and less downside risk in a bear market.



Investment Philosophy We invest in established, high quality companies with shareholder-oriented management teams. Each business has exhibited a strong commitment to its dividend and operates in stable, mature markets.


Performance Update

High-yield bond-like stocks fell

further in February. While the S&P

500 lost 3.6%, MLPs, REITs,

consumer staples, telecoms, and

utilities lost 9.7%, 7.7%, 7.6%,

5.7%, and 3.9%, respectively. Our

portfolio did somewhat better,

falling 4.7% (beating SPHD’s loss

of 6.8%).

Interest rates continued rising

during the month, and the Fed

signaled four short-term rate hikes

are possible this year. As a result,

some capital is rotating out of high

dividend stocks in favor of bonds.

From a fundamental perspective,

higher rates increase the cost of debt

for capital-intensive businesses such

as REITs and telecoms. The new tax

law also limits how much interest a

business can deduct (up to 30% of

EBITDA). The law has also created

some uncertainty for regulated

MLPs and utilities.

Specifically, these regulated firms

must pass on their lower taxes to

their customers, resulting in less

revenue and cash flow coming in.

The Wall Street Journal wrote a

good article about the impact on

pipelines here. The dust is far from

settling on what will ultimately

happen, but it’s possible some of

these firms will need to raise more

capital to maintain credit ratings and

fund projects. Stay diversified and

focus on operators with the greatest

https://s2.q4cdn.com/230918913/files/doc_financials/quarterly/Q2FY18/Cisco-Reports-Second-Quarter-Earnings.pdf

http://www.emerson.com/en-us/news/corporate/emerson-q118-earnings-results

http://investors.generalmills.com/2018-02-23-General-Mills-Accelerates-Portfolio-Reshaping-With-Acquisition-of-Blue-Buffalo-Pet-Products

http://www.verizon.com/about/news/verizon-closes-2017-strong-wireless-customer-growth-and-retention-well-positioned-new-markets

https://www.simplysafedividends.com/verizon-vz/

https://www.wsj.com/articles/why-tax-law-likely-means-lower-revenue-for-pipeline-operators-1518089401




Dividend Events

Our portfolio recorded three new dividend increases during the last month, bringing the total payout

raises since inception in June 2015 to 73. We have not experienced any dividend cuts.

Cisco hiked its dividend by14% and has increased its payout every year since it initiated a dividend in

2011, recording 31% annual growth over the last five years.

PPL raised its dividend by 4%, recording its 16th

increase in 17 years. The utility’s yield has shot up in

recent months as investors worry about PPL’s exposure in the UK (over half of its earnings) given some

of the political turmoil, especially in light of the new trade war talks. For now, the dividend continues to

look safe.

Waste Management continued chugging along and boosted its dividend by 9%. The company has raised

its payout each year since 2004.


Five current holdings look interesting to me today: Crown Castle International (CCI), Kimberly-Clark

(KMB), National Retail Properties (NNN), Dominion Energy (D), and Exxon Mobil (XOM).

In addition, after selling our shares of Omega Healthcare (OHI) and Thomson Reuters (TRI), I plan to

initiate positions in Duke Energy (DUK), WEC Energy (WEC), W.P. Carey (WPC), Public Storage

(PSA), and United Parcel Services (UPS). Each of these new positions will represent about 2% of our

portfolio’s overall value.

Crown Castle International (CCI): Founded in 1994, Crown Castle owns, operates, and leases more

than 40,000 cell towers and over 60,000 route miles of fiber supporting small cells and fiber solutions

across every major U.S. market. This nationwide portfolio of communications infrastructure is leased out

to wireless carriers, which need Crown Castle’s infrastructure to provide wireless services to consumers

and businesses. Tenants deploy communications equipment, coaxial cables, and antennas at the top of

Crown Castle’s towers that transmit signals between the tower and mobile devices. Most towers have the

capacity for at least four tenants. The big four wireless carriers account for 90% of Crown Castle’s site

rental revenue, and the company is completely focused on the U.S. wireless market, where over 70% of

its towers are located in the top 100 largest markets. Over 80% of the company’s revenue is recurring,

and most of its site rental revenue results from long-term leases with initial five to 15-year terms and five

to 10-year renewal periods thereafter.


Despite its customer concentration, Crown Castle’s business model is attractive for a number of reasons,

beginning with its predictability. The company has an average remaining customer contract term of six

years and approximately $18 billion remaining in contracted lease payments (compared to $3.7 billion in

2017 site rental revenue), providing excellent cash flow visibility. Crown Castle’s leases also have built-

in price escalators, which are expected to continue adding around 3% to the company’s annual earnings

growth. In addition to annual rent escalators, tower economics are also attractive because very little cost

is involved to add additional tenants. An investor presentation by Crown Castle last year highlighted that

the company enjoys a 96% incremental margin when it adds an additional tenant to one of its existing

towers, for example. As data growth continues accelerating, it seems reasonable that demand for Crown

Castle’s wireless infrastructure will also rise over time as carriers invest in their networks to handle

increasing traffic. My investment thesis on Crown Castle can be seen by clicking here.

https://www.simplysafedividends.com/crown-castle-cci-dividend-reit/




Dividend Review


Crown Castle only began paying dividends in 2014 but has since increased its payout by a compound

annual growth rate of approximately 9%. Management expects to grow its dividend by 7-8% annually

going forward. Based on management’s 2018 guidance, Crown Castle’s AFFO payout ratio will be

approximately 76% next year. This is a very reasonable level for a REIT, especially one that benefits

from a substantial amount of recurring revenue and that maintains an investment grade credit rating.

Recent News

No update from last month. Crown Castle reported earnings on January 24. Organic adjusted funds from

operations (AFFO) increased 7%, and site rental revenues recorded 6% growth. The company closed its

$7.1 billion acquisition of Lightower in November 2017. This deal essentially combines Crown Castle’s

leading small cell platform with one of the best metro fiber footprints in the industry, which meaningfully

expands the company’s capabilities to deliver small cells nationally at scale for its wireless carrier

customers. Acquiring Lightower better positions Crown Castle for growth in small cells and is expected

to be immediately accretive to AFFO per share. Lightower is expected to increase Crown Castle’s long-

term dividend growth rate target from 6-7% to 7-8%.

Valuation

CCI’s forward P/AFFO ratio was 18.9 and its dividend yield was 4.02% as of 3/4/18.

Kimberly-Clark (KMB): Kimberly-Clark has been in business since 1928 and has grown into one of the

largest global manufacturers of various tissue and hygiene products. Some of the company’s key products

are disposable diapers, training pants, baby wipes, incontinence care products, tissues, toilet paper, paper

towels, napkins, and more. Kimberly-Clark’s major brands include Huggies, Pull-Ups, Kleenex,

Cottonelle, Kotex, Scott, and Depend. Products are primarily sold to supermarkets, mass merchandisers

(Wal-Mart is a 10%+ customer), drugstores, and other retail outlets.

By segment, Personal Care (diapers, training pants, wipes, feminine and incontinence care) accounts for

approximately half of the company's sales and operating profits. Consumer Tissue (facial tissue,

bathroom tissue, paper towels) contributes another third of Kimberly-Clark's mix, and K-C Professional

(facial tissue, bathroom tissue, paper towels for away-from-home use, safety products) generates the

remainder. North America accounts for 65% of profits, followed by Asia / Latin America (28%).


Kimberly-Clark gains advantages from its size, strong brands, and product innovation. As one of the

largest players in most of its markets, the company’s manufacturing scale allows it to produce products at

a lower cost than most of its rivals. These extra profits can be invested in advertising, which Kimberly-

Clark spends more than $600 million on each year to defend its shelf space and keep its products popular

with consumers. Breaking the company’s distribution channels would be very difficult for new entrants,

and Kimberly-Clark has the financial resources necessary to invest in R&D or marketing if a new product

trend emerges. Finally, the company’s strong exposure to emerging and developing markets is worth

highlighting. Demand for many of Kimberly-Clark’s products tracks population growth, so the company

is reasonably well positioned to combat potentially stagnant growth in developed markets. Our full

investment thesis on Kimberly-Clark can be seen by clicking here.

http://investor.crowncastle.com/phoenix.zhtml?c=107530&p=irol-newsArticle&ID=2328277

http://www.simplysafedividends.com/kimberly-clark-kmb-dividend-stock-analysis/




Dividend Review


Kimberly-Clark appears to pay one of the safest dividends in the market, supported by the company’s

healthy free cash flow payout ratio near 65%, excellent cash flow generation, recession-resistant business

(sales dipped just 2% in fiscal year 2009), stable profitability, and investment-grade rated debt.

Kimberly-Clark is a dividend aristocrat that has raised its dividend for 46 consecutive years. The

company’s dividend increased 6.5% per year over the last 20 years and by 4.3% annually during the last

three years. Until earnings growth picks up, the company will likely continue raising its dividend by 3-

6% per year.

Recent News

No update from last month. Kimberly-Clark reported results on January 23. Market conditions remain

challenging over the short-term, but management expects organic sales to return to growth this year, with

margins expanding and adjusted earnings per share to record double-digit growth. The company

increased its dividend 3.1% and announced a major new restructuring program expected to generate $1.5

billion in cost savings through 2021. While Kimberly-Clark has experienced its fair share of headwinds, I

continue to believe the company’s emerging markets reach positions it well for the long-term.

Valuation

KMB’s forward P/E ratio was 16.1 and its dividend yield was 3.55% as of 3/4/18. The stock’s yield

remains above its five-year average:

National Retail Properties (NNN): National Retail was formed in 1984 and is a real estate investment

trust (REIT) with more than 2,700 properties in over 48 states. The company’s retail properties are leased

to more than 400 tenants across 37 industry classifications, such as convenience stores and restaurants,

providing nice diversification. Furthermore, National Retail only originates single-tenant triple-net leases,

which shift property operating expenses such as maintenance, taxes, and utilities to the tenant. In other

http://investor.kimberly-clark.com/releasedetail.cfm?ReleaseID=1054978




words, the rental revenue received by National Retail has substantially fewer expenses and more stable

net cash flow than other REITs with a smaller mix of triple-net leases.


National Retail’s main advantages come from its conservative management team, high quality property

locations, and diversification. By spreading its properties across nearly 40 different industries and

hundreds of tenants, National Retail diversifies away a significant amount of fundamental risk. Its largest

tenant is less than 6% of annual rent, and convenience stores are its largest exposure at about 18% of

annual rent, followed by full-service restaurants (12%). National Retail’s well-placed retail locations

allow it to enjoy an occupancy rate in excess of 99%, and its occupancy rate has never dipped below

96.4% since 2003 (much better than the broader REIT industry). The company intentionally owns single-

tenant properties, which prevent tenants from pooling their bargaining power together to try and reduce

their rent. Consumer-focused retailers also face more switching costs than an office or industrial

customer because they are more location-driven; they don’t want to risk disrupting their established

customer base to save a bit on rent, resulting in stronger renewal rates. Finally, National Retail maintains

one of the lowest leverage ratios relative to other REITs, providing it with flexibility to continue growing

even if rates rise. Our full investment thesis on National Retail Properties can be seen by clicking here.

Dividend Review


National Retail Properties has increased its dividend for 28 consecutive years, recording 3.1% annual

growth over the last five years. Based on 2018 guidance, the REIT’s AFFO payout ratio is expected to be

a reasonable 71% this year. The company will likely continue raising its dividend by 2-4% per year, and

its dividend should remain safe thanks to its BBB+ investment grade credit rating from S&P, quality

property locations, and impressive track record. NNN last raised its dividend by 4.4% in July 2017.

Recent News

National Retail Properties reported earnings on February 13. Adjusted funds from operations (AFFO) per

share grew 2%, and portfolio occupancy remained very strong at 99.1%. The company continued finding

growth opportunities, investing $257 million in property investments at an initial cash yield of 6.9%.

Here is what National Retail’s CEO Jay Whitehurst said about the quarter:

Valuation

NNN’s forward P/AFFO ratio was 14.1 and its dividend yield was 5.04% as of 3/4/18.

https://www.simplysafedividends.com/national-retail-properties-nnn-dividend-reit/

http://investors.nnnreit.com/Cache/1001232137.PDF?O=PDF&T=&Y=&D=&FID=1001232137&iid=103064




Dominion Energy (D): Dominion was founded in 1909 and is one of the largest producers and

transporters of energy in the country. The diversified utility company has a portfolio of more than 26,000

megawatts of electric generation, 66,000 miles of natural gas transmission, gathering, storage, and

distribution pipeline, and 64,000 miles of electric transmission and distribution lines. It operates one of

the biggest natural gas storage systems in the U.S. and serves more than 6 million customers.


Dominion Energy has significantly shifted its portfolio in recent years to reduce its exposure to

commodity prices and focus more on businesses with faster growth, stronger competitive advantages,

better profitability, and lower risk. Today, over 90% of the company’s sales are from regulated

operations, which provide solid cash flow visibility. The company’s electric and gas regulated utility

businesses operate in regions with healthy population growth and constructive regulators who have

historically provided Dominion with favorable rates of returns on its investment. Management is

investing heavily in natural gas, including massive projects such as the Cove Point LNG export terminal

and the Atlantic Coast Pipeline. These projects are expected to generate substantial cash flow (backed by

long-term contracts with customers) as they come online over the next few years, helping Dominion

Energy generate mid to high-single-digit annual earnings growth. Dominion also acts as the general

partner and sponsor of its midstream MLP, Dominion Midstream Partners (DM), which provides low-

cost funding for the company’s expansion plans. Our full investment thesis on Dominion Energy can be


Dividend Review


Dominion Energy’s dividend payment appears to be quite safe with decent growth prospects. The

company has paid consecutive dividends for close to 90 years and increased its payout for 14 straight

years. Management targets a regulated payout ratio at up to 75%, which is conservative for a utility, and

Dominion has several billion dollars of liquidity available (compared to total dividend payments of $1.7

billion last year). Management expects the company to achieve at least 10% annual dividend growth

through 2020 as its large projects begin generating significant cash flow.





Recent News

No update from last month. As fate would have it, a lot has changed since we initiated a position in the

company in late 2017. Most notably, Dominion made a $14.6 billion dollar bid to acquire SCANA

(SCG). The utilities sector has also dropped on rate-related headwinds. Please review the introductory

comments made in our thesis here for more information. While I generally do not like large acquisitions

and prefer to give the acquiring company more time to digest a deal, Dominion’s selloff and high yield

make the stock look interesting to me today.

Valuation

D’s forward P/E ratio was 17.9 and its dividend yield was 4.61% as of 3/4/18. The stock’s dividend yield

remains at a multi-year high:

Exxon Mobil (XOM): Exxon Mobil was founded in 1870 and is one of the world’s oldest oil companies.

It’s also the world’s largest publicly traded integrated oil conglomerate, with nearly 30,000 oil & gas

wells on six continents. The company operates in three distinct business segments: upstream oil & gas

production, downstream refining, and specialty chemicals.


Exxon Mobil’s greatest strengths are its scale, diversification, and conservative management team. If

Exxon were its own nation, its total liquids production would have made it one of the world’s 10 largest

oil producers. Such scale helps Exxon achieve lower costs, which is essential in a commodity market.

The company’s integrated business model also provides some cash flow diversification, helping it ride

out energy cycles with somewhat less volatility than most of its rivals. Exxon’s management team has a

long track record of excellent capital allocation, which has helped the company enjoy higher returns on

capital than all of its major peers. Our investment thesis on Exxon Mobil can be seen by clicking here.

Dividend Review



https://www.simplysafedividends.com/exxonmobil-xom-dividend-aristocrat/




Exxon has paid an uninterrupted quarterly dividend since 1882 and has increased its payout for more than

30 consecutive years. While Exxon’s dividend grew nearly 9% annually over the past decade, payout

growth has slowed in recent years thanks to the crash in oil prices. The company is still able to

implement low-single digit dividend increases for now, and Exxon’s cash flow more than covered its net

investments and dividends in 2017. If energy prices remain depressed, Exxon will arguably be the last

company still standing and paying dividends.

Recent News

Exxon reported earnings on February 2. Adjusted earnings declined 2%, but management noted that its

full year cash flow from operations and asset sales exceeded dividends and net investments.

Valuation

XOM’s forward P/E ratio was 16.6 and its dividend yield was 4.08% as of 3/4/18. While it’s hard to

make a compelling valuation case form any energy stocks if oil prices remain below $50 or $60 a barrel,

Exxon is one of the very few energy stocks I am comfortable owning in a diversified income portfolio,

and its historically high yield makes it a more compelling investment opportunity to consider today.

Duke Energy (DUK): Duke Energy’s history dates back to the early 1900s, and the company is largest

electric utility in the country today, serving approximately 7.5 million electric customers and 1.6 million

gas customers across the Southeast and Midwest regions of the U.S. Regulated electric utilities account

for 89% of Duke Energy’s earnings, but the company also has a fast-growing gas infrastructure and

utilities business (8%) and a commercial portfolio of renewables (3%).


As a regulated utility, Duke Energy enjoys very predictable earnings. The company has earned a stable

and healthy return on equity between 9% and 11% in each of its regions over the last few years, for

example. These returns seem likely to remain stable over the coming years, in part because the rates

charged to Duke Energy’s customers largely remain well below the nationwide average. Going forward,

Duke Energy has more than $35 billion of projects planned through 2021 which are expected to drive 4%

http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-eventDetails&EventId=5266805




to 6% annual earnings growth (and a similar rate of dividend growth). Our full investment thesis on Duke

Energy can be seen by clicking here.

Dividend Review


Duke Energy has paid uninterrupted dividends for more than 90 years. The company expects to deliver

4% to 6% annual dividend growth going forward with a reasonable payout ratio between 70% and 75%.

Recent News

Duke Energy reported earnings on February 20. Most importantly, management reaffirmed the

company’s 4% to 6% expected growth rate through 2021 and extending the growth rate through 2022.

Tax reform will cause 2018 earnings growth to fall below that range, but it should not jeopardize the

firm’s long-term outlook or dividend growth.

Valuation

DUK’s forward P/E ratio was 16.0 and its dividend yield was 4.72% as of 3/4/18.

WEC Energy (WEC): WEC is one of the nation’s largest electric and natural gas utilities. Today WEC

provides service to 2.9 million natural gas customers and 1.6 million electric customers located

throughout Wisconsin, Minnesota, Michigan, and parts of Illinois. The company also owns 60% of

American Transmission Company, an electric transmission company, and has a nonregulated renewable

energy business. However, over 99% of its earnings are from regulated activities, and the company’s

home market of Wisconsin still accounts for around 70% of WEC’s business.


Regulated utilities are usually some of the most dependable businesses in the country. WEC is

particularly impressive from a reliability perspective because it is the only regulated utility to beat

guidance every year for more than a decade. The company’s track record largely reflects management’s

discipline and conservatism with how they run the business. WEC’s utilities all maintain “A” credit

https://www.simplysafedividends.com/duke-energy-duk/

https://news.duke-energy.com/releases/releases-20180220-6674851




ratings, and the company maintains constructive relationships with regulators in regions with favorable

demographics. Our full investment thesis on WEC can be seen by clicking here.

Dividend Review


WEC has raised its dividend for 15 consecutive years and remains in great shape to continue that trend.

The company’s increasing diversification by state jurisdiction and fuel type, solid investment grade credit

rating, conservative target payout ratio of 65-70%, and lack of need to raise equity capital are all

strengths that should serve the business and its shareholders well. WEC’s capital spending plan is

expected to deliver 5% to 7% annual earnings per share growth over the next five years, and the

company’s dividend should rise at similar pace.

Recent News

WEC reported earnings on January 31. Adjusted earnings per share grew 6%. Management introduced

2018 earnings guidance in line with the company’s long-term goal of growing earnings at a rate of 5% to

7% per year.

Valuation

WEC’s forward P/E ratio was 18.0 and its dividend yield was 3.72% as of 3/4/18.

W.P. Carey (WPC): W.P. Carey is a triple net lease REIT that owns 890 properties located in 19

countries around the world. W.P. Carey’s portfolio is broadly diversified across tenants (over 200, none

greater than 6% of rent), industries (29), property types (industrial, office, retail, storage), and

geographies (35% of sales are outside of the U.S., primarily in Western and Northern Europe).


W.P Carey is far more diversified by property type and industry than most of its peers. Management

takes a disciplined approach to growth, which has earned the company an investment grade credit rating

and helped W.P. Carey achieve an occupancy rate of at least 96% each year for more than a decade. With

close to 70% of its rent comes from leases linked to CPI, W.P. Carey also has a built-in hedge against

https://www.simplysafedividends.com/wec-energy-group-wec/

https://www.wecenergygroup.com/invest/q4_2017_earnings.pdf




inflation, a differentiating factor among net lease REITs. Our full investment thesis on W.P. Carey can be


Dividend Review


W.P. Carey has increased its dividend every year since going public in 1998. With a highly stable and

conservative payout ratio below the industry average, a relatively low cost of capital, a diversified

property portfolio, and a strong balance sheet (the company has an investment grade credit rating), W.P.

Carey seems like a safe bet for dependable income and moderate growth in the years ahead.

Recent News

W.P. Carey reported earnings on February 23. Adjusted funds from operations (AFFO) per share grew

7%, and same-store rent grew 1.7% in 2017.

Valuation

WPC’s forward P/AFFO ratio was 11.1 and its dividend yield was 6.72% as of 3/4/18.

Public Storage (PSA): Public Storage was founded in 1972 and is America’s largest self-storage REIT,

owning over 2,500 storage rental properties in 38 states and seven European countries. The company also

owns a 42% stake in PS Business Parks (PSB), which leases out commercial space to small and mid-size

businesses. U.S. self-storage operations account for approximately 86% of company-wide net operating

income, followed by commercial properties (6%), ancillary businesses (6% – reinsurance policies, locks

and cardboard boxes), and European self-storage (3%).


Public Storage operates in a very competitive industry that has low barriers to entry and is hard to

differentiate in. The company’s main advantages are its sheer size (leverage costs to achieve better

profitability), focus on major metropolitan areas (better demographics), and well-recognized brand. As

long as people continue experiencing major life events such as an unexpected move or divorce, there will

be demand for self-storage warehouses. In fact, the self-storage industry’s free cash flow per share fell by

https://www.simplysafedividends.com/w-p-carey-wpc/

http://ir.wpcarey.com/CorporateProfile.aspx?iid=4054624




less than 5% during the financial crisis, according to a 2013 report by Bank of America Merrill Lynch.

Our full investment thesis on Public Storage can be seen by clicking here.

Dividend Review


Public Storage has paid uninterrupted dividends since 1981 while increase its payout each year since

2010. The business generates excellent cash flow, enjoys an “A” credit rating, and maintains a reasonable

AFFO payout ratio near 80%. Even if industry supply remains a headwind the next few years, the

company’s payout should remain on solid ground.

Recent News

Public Storage reported earnings on February 20. Same-store revenue grew 2.1%, and core funds from

operations per share increased 3.8%. The company’s growth rate has significantly decelerated in recent

years as new supply has entered many of its markets. This uncertainty has weighed on the stock, causing

its yield to reach a multiyear high. The public storage industry is still expected to continue growing over

the long term, thanks largely to America’s aging demographics. Between 2012 and 2060, America’s

population of those over age 65 is expected to grow by nearly 50 million, according to U.S. Census

Bureau projections. However, no one can predict the industry’s balance in the meantime.

Valuation

PSA’s forward P/AFFO ratio was 19.7 and its dividend yield was 4.10% as of 3/4/18.

United Parcel Services (UPS): Founded in 1907, UPS is the world’s largest package delivery company.

Thanks to a global fleet of 112,000 vehicles and 581 aircraft, UPS delivers 20 million packages and

documents each day to around 10 million customers located in more than 220 countries. While the

domestic business continues to generate the majority of profits, the company continues to expand

overseas and diversify into supply chain and freight.

https://www.simplysafedividends.com/public-storage-psa/

https://investors.publicstorage.com/news-and-events/press-releases/press-release-details/2018/Public-Storage-Reports-Results-for-the-Fourth-Quarter-and-Year-Ended-December-31-2017/default.aspx





Few companies can afford to invest in all of the hard assets required to efficiently run a global delivery

service business. UPS benefits from running denser delivery routes due to the sheer volume of packages

it handles, which reduces its per package costs. Furthermore, new or smaller rivals lack the brand

recognition enjoyed by UPS, which is important because customers expect their packages to be reliably

delivered in a time-sensitive manner. These are all reasons why the industry is heavily concentrated with

a small handful of operators dominating the space. Our full investment thesis on UPS can be seen by

clicking here.

Dividend Review


UPS has a long history of rewarding shareowners with generous cash dividends. The company has paid a

cash dividend every year since 1969 and has more than quadrupled its dividend since it went public at the

end of 1999. With a payout ratio near 50%, consistent cash flow generation, and a strong investment

grade credit rating, the company’s dividend remains on solid ground. Management boosted the payout by

9.6% in February 2018.

Recent News

UPS reported earnings on February 1. Sales grew 11%, and management expects 5% to 6% revenue

growth in 2018 with some margin pressure due to new facility startup costs (to support higher package

volumes) and some accounting changes. Investors remain nervous about Amazon’s interest in providing

its own delivery service. The company’s outlook for higher capital expenditures to support growth has

also weighed on the stock. I expect continued e-commerce growth around the world to continue

supporting UPS’s long-term earnings outlook and ability to achieve profitable growth. Delivery remains

a very large global market with high barriers to entry and room for multiple players.

Valuation

UPS’s forward P/E ratio was 14.5 and its dividend yield was 3.45% as of 3/4/18.

https://www.simplysafedividends.com/united-parcel-service-ups-dividend-stock/

http://www.investors.ups.com/phoenix.zhtml?c=62900&p=irol-newsArticleEarnings&ID=2329705

https://www.barrons.com/articles/ups-earnings-investors-we-have-an-amazon-problem-1517509763




Stocks to Consider Selling

I plan to sell out of our positions in Omega Healthcare (OHI) and Thomson Reuters (TRI) when the

market opens on Monday, March 5. Omega’s outlook continues weakening as the healthcare landscape

evolves. Although OHI’s dividend is expected to remain safe this year, it is expected to be frozen at its

current level. With many higher quality dividend stocks selling off in recent months, more attractive

businesses with lower risk profiles and safer payouts are available. You can read my note on OHI here.

Thomson Reuters’ payout remains safe as well, but I don’t expect any growth going forward. Earlier this

year the company announced an agreement to sell a 55% stake in its Financial & Risk segment, which

provides financial terminals and accounted for around half of its profits. The deal is fairly complicated,

but Thomson’s ongoing earnings power will drop, its effective leverage will be higher, and most of the

cash received is going to share repurchases and acquisitions. With the stock only offering a 3.5% yield

with no dividend growth and strategic uncertainty, I would rather move on to other ideas.

In light of its ongoing challenges discussed last month, Wells Fargo (WFC) remains under review for

potential sale in the coming weeks and months. I think we can find a higher quality company in the

financials sector that is better positioned for rising interest rates and long-term growth without so much

hair.

https://www.simplysafedividends.com/thoughts-omega-healthcares-earnings-release-last-month/




Conservative Retirees Portfolio – Portfolio Actions

.

Data as of 3/4/18





volatility. Investors interested in longer-term income growth should look for stocks with dividend “Growth Scores” of at least 70. Note that scores of 50 are average, 75 or higher is excellent, and 25 or lower is considered weaker.

= stock is under review for potential sale in the coming weeks and months = stock is to be sold on March 5




Conservative Retirees Portfolio – Performance and Dividend Income


Portfolio -0.34% 1.73% 0.92% 0.97% 1.99% 2.61% 0.95% 0.73% -4.66%

S&P 500 0.64% 2.06% 0.29% 2.01% 2.36% 3.06% 1.21% 5.64% -3.64%

SPHD ETF 0.34% 0.66% -0.42% 2.44% 0.73% 3.69% -0.13% 0.25% -6.77%

Portfolio Value $126,467.07 $128,651.02 $129,840.55 $131,103.28 $133,717.14 $137,203.13 $138,508.89 $139,517.23 $133,012.85

Since Inception


Portfolio 26.47% 28.65% 29.84% 31.10% 33.72% 37.20% 38.51% 39.52% 33.01%

S&P 500 20.31% 22.78% 23.14% 25.62% 28.58% 32.51% 34.11% 41.67% 36.52%

SPHD ETF 34.55% 35.44% 34.87% 38.16% 39.17% 44.31% 44.12% 44.49% 34.71%


Portfolio 12.21% 12.60% 12.55% 12.57% 13.01% 13.74% 13.70% 13.51% 11.13%

S&P 500 9.49% 10.15% 9.88% 10.48% 11.16% 12.14% 12.26% 14.18% 12.20%

SPHD ETF 15.67% 15.36% 14.51% 15.18% 14.93% 16.10% 15.50% 15.04% 11.65%

33.0%

36.5%

34.7%

-20%

-10%

0%

10%

20%

30%

40%

50%


Conservative Retirees Portfolio

S&P 500 (SPY)

High Dividend ETF (SPHD)

$1,936

$3,960 $4,283

$822

$1,856

$4,711 $4,307

$937

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

2015 2016 2017 YTD 2018

Dividends Receivable Conservative Retirees Portfolio High Dividend ETF (SPHD)





Conservative Retirees Portfolio – Payment Schedule











Data as of 3/4/18




Long-term Dividend Growth Portfolio Update

TJX Companies reported strong

earnings results on February 28.

Same-store sales grew 4% (over last

year’s 3% increase), an impressive

figure given the dynamic brick-and-

mortar retail environment.

Overall revenue grew 16%, and

adjusted earnings per share rose 16%

as well. Management’s confidence in

the business resulted in a 25%

increase to TJX’s dividend, marking

its 22nd

consecutive year of growth.

Our worst performing stocks were

Lowe’s (-15%), Parker-Hannifin (-

11%), and Chubb (-9%).

Lowe’s reported earnings at the end of

February that disappointed investors.

Same-store sales grew 4% in the

quarter, and adjusted earnings rose

10% for the year.

While those are good results on a

standalone basis, Lowe’s numbers

weren’t quite as strong as Home

Depot’s, and expectations were high

coming into the report (Lowe’s had

been one of our best performers).

I continue to like Lowe’s for the long

term and remain happy to hold the

business.

No new news was out on Parker-

Hannifin, but parts of its business are

sensitive to oil prices, which fell close

to 4% in February. PH next reports

earnings on March 7.

Chubb didn’t have any new events

either. The company last reported

earnings on January 30. Core

operating income grew 17%, and the

firm’s P&C combined ratio remained

conservative at 90.7%.



Portfolio -4.4% 54.4% S&P 500 -3.6% 37.9% VIG ETF -4.0% 36.7%


Portfolio Objective Outperform the S&P 500 by at least 1% per year over any five-year rolling time horizon and generate annual dividend growth of at least 12% per year.



Investment Philosophy We invest in companies with enduring competitive advantages, big markets, and relatively low payout ratios. We believe these stocks are best positioned for long-term earnings and dividend growth.


Performance Update

Our Long-term Dividend Growth

portfolio lost 4.4% in February,

slightly trailing the S&P 500 (-

3.6%) and performing in line with

Vanguard’s Dividend Appreciation

ETF (VIG, -4.0%).

Since inception in June 2015, our

portfolio has returned 54.4%,

outperforming the S&P 500’s

37.9% return and VIG’s 36.7%

gain.

The portfolio’s 17.3% annualized

return since inception won’t

continue, but our outlook for

dividend growth remains strong. In

fact, our dividend income has grown

16.6% over the trailing 12-month

period.

Our strongest stocks during the

month of February were Exponent

(+5%), Broadridge Financial (+4%),

and TJX Companies (+3%).

Exponent released earnings results

on February 1. Total revenues grew

15%, and adjusted earnings per

share rose 23%. The company

recently raised its dividend by 24%,

and management expects mid-single

digit revenue growth in 2018.

Broadridge reported earnings on

February 8. Revenue rose 13%,

adjusted earnings per share doubled,

and management raised guidance

for fiscal 2018. Broadridge is also

benefiting from U.S. tax reform.

http://investor.tjx.com/phoenix.zhtml?c=118215&p=irol-newsArticle&ID=2335290

http://phx.corporate-ir.net/phoenix.zhtml?c=95223&p=irol-newsArticle&ID=2335209

http://s1.q4cdn.com/677769242/files/doc_financials/2017/Q4/4th-Quarter-2017-Earnings-Press-Release.pdf

https://www.exponent.com/investors/~/link.aspx?_id=4BAE5E34B26D4B538B5CDAEB8A2D60FC&_z=z

http://otp.investis.com/clients/us/broadridge/usn/usnews-story.aspx?cid=928&newsid=51698




Dividend Events

Three holdings announced new dividend increases during the last month. Our portfolio has enjoyed a

total of 67 payout raises since inception in June 2015. We have not experienced any dividend cuts.

TJX Companies, Texas Roadhouse, and FLIR raised their payouts by 25%, 19%, and 7%, respectively.


Three stocks look like timely opportunities for long-term investors to consider: Hormel (HRL),

Medtronic (MDT), and Lowe’s. Most of our other holdings continue trading at relatively high valuation

multiples.

Hormel (HRL): Hormel has been in operation for 125 years and is a multinational manufacturer and

marketer of consumer-branded food and meat products. Some of the company’s well-known brands

include Skippy peanut butter, SPAM meat, Dinty Moore stew, Muscle Milk protein drinks, Wholly

Guacamole dips, Jennie-O turkey, and numerous Hormel-branded products.

Around half of HRL’s products are perishable (fresh meats, frozen items, refrigerated meals, sausages,

hams, guacamole, and bacon), 19% are poultry (Jennie-O turkey), 18% are shelf-stable (canned luncheon

meats, microwaveable meals, stews, chilies, hash, tortillas, and peanut butter), and 10% are

miscellaneous (nutritional food products and supplements, sugar, dessert mixes, and drink mixes).


As one of the largest consumer-branded food and meat manufacturers, Hormel’s key to success is

favorably altering customers’ perceptions of its products to gain loyalty and market share. The company

routinely spends around $150 million on advertising each year, an amount nearly five times greater than

Hormel’s spending on R&D.

With many of its brands dating back over 50 years (e.g. SPAM and Dinty Moore were introduced in the

1930s) and supported by billions of advertising dollars over the years, consumers know and trust

Hormel’s products. As a result, more than 35 of Hormel’s brands have #1 or #2 market share positions in

their category. As long as consumers need to eat, Hormel’s well-known brands will be there for them.

Beyond brand recognition, retailer relationships, and shelf space market share, Hormel also benefits from

economies of scale. As one of the larger players in the market, Hormel is able to achieve lower

production costs than smaller rivals and squeezes more value out of each advertising dollar it spends by

extending well-known brands into adjacent product categories. Extensive regulations by the U.S.

Department of Agriculture also disadvantage smaller competitors.

You can review my full thesis on Hormel by clicking here. The stock’s P/E multiple has significantly

contracted from my initial review, making the investment opportunity more attractive today.

Dividend Review


Hormel has one of the safest dividend payments in the market. The company raised its dividend by 10%

in 2017, marking its 52nd

consecutive year of dividend increases. Hormel’s dividend has compounded by

15.3% annually over the last decade.

http://www.simplysafedividends.com/hormel-hrl-the-newest-dividend-king/




Long-term dividend growth shows no signs of slowing down. Hormel’s payout ratio sits near 40%, its

balance sheet is very healthy, demand for its products is recession-resistant, and free cash flow generation

has been excellent.

Recent News

Hormel reported earnings on February 22. Organic sales grew 1%, earnings per share rose 27%, and cash

flow from operations grew 56%. Management raised fiscal 2018 earnings guidance moderately and

expects a $100 million to $140 million full year cash flow benefit from the new tax law. The company

previously announced its largest acquisition ever on October 31, an $850 million deal to buy Columbus, a

premium deli meat and salami company. The acquisition enhances Hormel’s scale in the deli and should

improve growth opportunities.

Hormel had been struggling along with most other packaged food companies, but for different reasons.

Specifically, the company faced record-high input costs for its two primary raw materials, pork bellies

and beef trim. Hormel’s Jennie-O Turkey Store also saw its profit fall thanks mostly to lower turkey

commodity prices, which are near a seven-year low.

I continue to believe these are temporary headwinds that will eventually reverse course as supply and

demand conditions normalize and management’s strategic acquisitions and new product lines gain

traction.

Valuation

HRL’s forward P/E ratio was 17.9 and its dividend yield was 2.30% as of 3/4/18.

Medtronic (MDT): Medtronic was founded in 1949 and has grown into one of the world’s largest

medical equipment device companies, helping treat over 40 medical conditions and 70 million patients

each year. The company’s diverse portfolio of products is organized into four main business units

(cardiac & vascular, minimally invasive therapy, restorative therapies, diabetes). Products include

http://investor.hormelfoods.com/file/Index?KeyFile=392292887




everything from pacemakers to blood vessel sealing technology to insulin management pumps. The

business is very global with close to half of total sales coming from outside of the U.S., including a

meaningful portion (about 15%) from emerging markets.


Medtronic’s success over the decades has largely stemmed from its unrelenting focus on continually

innovating new medical products to meet needs of a fast-growing and aging global population. The

company invests heavily in R&D each year, resulting in over 4,600 patents and a constantly growing

development pipeline, which covers everything from surgical robotics systems to vessel sealing

instruments. Given the price-sensitive nature of the healthcare industry, developing successful new

technologies and medical devices is essential to maintaining market share and healthy profitability. A lot

of Medtronic’s medical devices also significantly impact patients’ quality of life and must be of

extremely high quality. The company’s specialized products can offer superior performance in many

instances, allowing it to maintain strong market share and profitability. In addition, thanks to a

disciplined and well executed acquisition strategy, such as its $50 billion acquisition of Covidien,

Medtronic has been able to extend its sales reach into new promising treatment areas, as well as faster-

growing emerging markets. Our full investment thesis on Medtronic is available here.

Dividend Review


Medtronic is a dividend aristocrat that has paid higher dividends for 40 consecutive years. With a

conservative free cash flow payout ratio near 50%, consistent cash flow generation (recession resistant

business, too), and a very strong investment grade credit rating, Medtronic’s dividend is extremely

secure. The company’s payout has compounded by around 15% annually over the past two decades and

has reasonable potential to continue rising at a double-digit clip going forward.

Recent News

Medtronic reported earnings on February 20. Organic sales grew 7%, and non-GAAP earnings increased

12%. Emerging market sales (15% of company revenue) continue to be a key driver of overall growth

and were up 12%. Management reiterated full-year revenue and EPS guidance. The company seems to be

doing a good job working through a few short-term issues (sensor supply constraint, IT system

disruption, hurricane damage in Puerto Rico), but none of these factors affect Medtronic’s long-term

outlook.

Valuation

MDT’s forward P/E ratio was 15.6 and its dividend yield was 2.35% as of 3/4/18.

https://www.simplysafedividends.com/medtronic-mdt-dividend-aristocrat/

http://investorrelations.medtronic.com/phoenix.zhtml?c=76126&p=irol-eventDetails&EventId=5261399




Lowe’s (LOW): Founded in 1946 in North Wilkesboro, North Carolina, Lowe’s is America’s second

largest home improvement retailer, behind Home Depot (HD). It operates more than 2,100 stores in the

U.S., Canada, and Mexico. The company’s stores are famous for being a one-stop shop for both do-it-

yourself (DIY) customers, as well as professional contractors, generally offering more than 35,000

products, including both well-known national and exclusive brands.


The key to Lowe’s steady growth has been its strong focus on strong customer service, which combined

with its extensive base of conveniently located stores, economies of scale, brand recognition, and massive

distribution channels creates a wide moat in an otherwise highly commoditized retail sector. Smaller

competitors are unable to match the broad assortment of inventory and in-store product presentations that

Lowe’s can afford. They also have much less bargaining power with suppliers, making their products less

price-competitive. Consumers have few reasons not to head to Lowe’s or Home Depot for their home

improvement needs. Lowe’s has also been improving its competitive positioning by investing more in

technology, product presentation, and its online omni-channel sales platform. Through the use of

technology and helpful in-store displays and service, customers have even fewer reasons to try out

competitors’ stores, and the home improvement niche has proven to be fairly Amazon-proof. Our full

investment thesis on Lowe’s is available here.

Dividend Review


Lowe’s has increased its dividend for 54 consecutive years, recording 17.6% compound annual payout

growth over the last three decades. With a healthy payout ratio near 40%, a solid investment grade credit

rating, and very consistent cash flow generation, Lowe’s dividend is very secure. Given the company’s

plans for margin expansion, its low payout ratio, and moderating store expansion spending in the future,

Lowe’s dividend could continue growing at a double-digit rate for many years to come.

https://www.simplysafedividends.com/lowes-low/




Recent News

Lowe’s reported earnings at the end of February that disappointed investors. Same-store sales grew 4% in

the quarter, and adjusted earnings rose 10% for the year. While those are good results on a standalone

basis, Lowe’s numbers weren’t quite as strong as Home Depot’s, and expectations were high coming into

the report (Lowe’s had been one of our best performers). I continue to like Lowe’s for the long term and

remain happy to hold the business.

Valuation

LOW’s forward P/E ratio was 15.5 and its dividend yield was 1.92% as of 3/4/18.

Stocks to Consider Selling None.

http://phx.corporate-ir.net/phoenix.zhtml?c=95223&p=irol-newsArticle&ID=2335209




Long-term Dividend Growth Portfolio – Portfolio Actions

.

Data as of 3/4/18





volatility. Investors interested in longer-term income growth should look for stocks with dividend “Growth Scores” of at least 70. Note that scores of 50 are average, 75 or higher is excellent, and 25 or lower is considered weaker.




Long-term Dividend Growth Portfolio – Performance and Dividend Income


Portfolio 2.31% 0.18% -0.29% 4.71% 3.76% 4.44% -0.21% 4.12% -4.36%

S&P 500 0.64% 2.06% 0.29% 2.01% 2.36% 3.06% 1.21% 5.64% -3.64%

VIG ETF 0.28% 0.73% -0.36% 2.38% 2.10% 4.48% 1.44% 5.02% -4.03%

Portfolio Value $137,054.39 $137,305.77 $136,912.22 $143,362.83 $148,756.32 $155,367.92 $155,045.76 $161,439.02 $154,393.32

Since Inception


Portfolio 37.05% 37.31% 36.91% 43.36% 48.76% 55.37% 55.05% 61.44% 54.39%

S&P 500 21.54% 24.04% 24.40% 26.91% 29.90% 33.87% 35.49% 43.12% 37.92%

VIG ETF 22.00% 22.90% 22.45% 25.36% 27.99% 33.73% 35.66% 42.47% 36.72%


Portfolio 16.53% 15.93% 15.13% 16.88% 18.02% 19.45% 18.69% 19.82% 17.27%

S&P 500 9.93% 10.56% 10.29% 10.87% 11.53% 12.48% 12.60% 14.49% 12.52%

VIG ETF 10.18% 10.13% 9.54% 10.32% 10.88% 12.48% 12.70% 14.34% 12.20%

54.4%

37.9%

36.7%

-10%

0%

10%

20%

30%

40%

50%

60%

70%


LT Dividend Growth Portfolio

S&P 500 (SPY)

Dividend Growth ETF (VIG)

$850

$1,949

$2,249

$278

$1,149

$2,286 $2,433

$0 $-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2015 2016 2017 YTD 2018

Dividends Receivable LT Dividend Growth Portfolio Dividend Growth ETF (VIG)





Long-term Dividend Growth Portfolio – Payment Schedule











Data as of 3/4/18




Idea Generation – Safe Dividend Stocks The dividend stocks on this list are characterized by low price volatility, dividend yields in excess of 3%, and very strong Dividend Safety Scores. These companies are good bets to continue delivering predictable income with less price volatility. We calculate how safe a dividend payment is by analyzing balance sheets, profitability trends, payout ratios, industry cyclicality, earnings growth, and more. Click on the blue-colored ticker symbols to pull up each company in our Stock Analyzer.

Ticker Name P/E

Ratio Dividend

Yield Safety Score

Growth Score

Price Volatility

EPS Payout

5yr Div CAGR

AEP American Electric Power Company 17.1 3.8% 80 9 Very Low 63% 5%

D Dominion Energy 21.4 4.6% 75 37 Very Low 87% 8%

DLR Digital Realty Trust, Inc. 17.0 3.8% 82 52 Very Low 63% 5%

DUK Duke Energy Corporation 25.0 4.7% 80 37 Very Low 71% 3%

ED Consolidated Edison Inc 18.6 3.8% 94 7 Very Low 69% 3%

FRT Federal Realty Investment Trust 16.6 3.4% 74 53 Very Low 56% 7%

GIS General Mills, Inc. 18.3 3.8% 85 45 Low 70% 10%

K Kellogg Company 30.1 3.2% 91 8 Very Low 93% 4%

KMB Kimberly-Clark Corporation 18.5 3.6% 88 54 Low 63% 6%

KO Coca-Cola Company (The) 42.0 3.6% 87 47 Low 140% 8%

MAA Mid-America Apartment Communities 12.9 4.3% 92 58 Very Low 52% 6%

MO Altria Group 7.8 4.2% 85 46 Low 80% 8%

NNN National Retail Properties 14.9 5.0% 94 18 Very Low 73% 4%

O Realty Income Corporation 16.2 5.3% 65 27 Very Low 82% 7%

PG Procter & Gamble Company (The) 14.0 3.5% 99 45 Low 48% 5%

PNW Pinnacle West Capital Corporation 16.6 3.6% 92 22 Very Low 57% 5%

PSA Public Storage 20.7 4.1% 91 59 Very Low 85% 13%

SPG Simon Property Group, Inc. 16.1 5.0% 74 44 Low 74% 12%

T AT&T Inc. 17.5 5.5% 78 11 Very Low 94% 2%

TGT Target Corporation 15.8 3.3% 70 45 Low 51% 16%

VTR Ventas, Inc. 8.7 6.3% 70 34 Very Low 54% 5%

VZ Verizon Communications Inc. 12.4 4.9% 73 16 Low 60% 3%

WEC Wisconsin Energy Corporation 19.5 #N/A 85 37 Very Low 68% 12%

http://www.simplysafedividends.com/stock-analyzer/?symbol=AEP

http://www.simplysafedividends.com/stock-analyzer/?symbol=D

http://www.simplysafedividends.com/stock-analyzer/?symbol=DLR

http://www.simplysafedividends.com/stock-analyzer/?symbol=DUK

http://www.simplysafedividends.com/stock-analyzer/?symbol=ED

http://www.simplysafedividends.com/stock-analyzer/?symbol=FRT

http://www.simplysafedividends.com/stock-analyzer/?symbol=GIS

http://www.simplysafedividends.com/stock-analyzer/?symbol=K

http://www.simplysafedividends.com/stock-analyzer/?symbol=KMB

http://www.simplysafedividends.com/stock-analyzer/?symbol=KO

http://www.simplysafedividends.com/stock-analyzer/?symbol=MAA

http://www.simplysafedividends.com/stock-analyzer/?symbol=MO

http://www.simplysafedividends.com/stock-analyzer/?symbol=NNN

http://www.simplysafedividends.com/stock-analyzer/?symbol=O

http://www.simplysafedividends.com/stock-analyzer/?symbol=PG

http://www.simplysafedividends.com/stock-analyzer/?symbol=PNW

http://www.simplysafedividends.com/stock-analyzer/?symbol=PSA

http://www.simplysafedividends.com/stock-analyzer/?symbol=SPG

http://www.simplysafedividends.com/stock-analyzer/?symbol=T

http://www.simplysafedividends.com/stock-analyzer/?symbol=TGT

http://www.simplysafedividends.com/stock-analyzer/?symbol=VTR

http://www.simplysafedividends.com/stock-analyzer/?symbol=VZ

http://www.simplysafedividends.com/stock-analyzer/?symbol=WEC




Idea Generation – High Growth Dividend Stocks The dividend stocks on this list are characterized by moderate price volatility, dividend yields in excess of 1.5%, and very strong Dividend Growth Scores. These companies are extremely well positioned to grow their dividends quickly in coming years. We calculate how fast a dividend payment can grow by analyzing payout ratios, sales and earnings growth, and more. Click on the blue-colored ticker symbols to pull up each company in our Stock Analyzer.

Ticker Name P/E

Ratio Dividend

Yield Safety Score

Growth Score

Price Volatility

EPS Payout

3yr Div CAGR

AMT American Tower Corporation (REIT) 20.8 2.1% 76 88 Low 39% 21%

BR Broadridge Financial Solutions, Inc. 36.0 1.4% 83 90 Average 48% 16%

CMCSA Comcast Corporation 17.5 2.1% 91 89 Average 29% 12%

CMI Cummins Inc. 16.2 2.7% 98 92 High 42% 14%

CNI Canadian National Railway Company 19.4 1.9% 94 96 High 32% 18%

CVS CVS Health Corporation 14.0 3.0% 81 0 Average 41% 22%

GD General Dynamics Corporation 21.2 1.5% 98 74 Low 31% 11%

HD Home Depot, Inc. (The) 24.8 2.3% 93 92 High 47% 22%

HON Honeywell International Inc. 22.4 2.0% 99 86 Average 40% 14%

HRL Hormel Foods Corporation 20.7 2.3% 98 71 Low 43% 19%

IFF International Flavors & Fragrances, Inc. 26.4 2.0% 81 88 High 50% 16%

ITW Illinois Tool Works Inc. 24.3 2.0% 94 86 High 42% 17%

LMT Lockheed Martin Corporation 27.5 2.3% 85 67 Low 59% 11%

LOW Lowe's Companies, Inc. 20.4 1.9% 93 94 High 36% 24%

LYB LyondellBasell Industries NV 11.5 3.4% 70 94 High 37% 10%

MDT Medtronic, Inc. 21.5 2.3% 98 73 Average 49% 15%

ROK Rockwell Automation, Inc. 28.1 1.9% 85 89 High 49% 9%

SBUX Starbucks Corporation 28.9 2.1% 72 73 Low 66% 24%

SNA Snap-On Incorporated 15.8 2.1% 99 99 High 29% 17%

TEL TE Connectivity Ltd. 21.6 1.6% 84 86 High 33% 13%

TJX TJX Companies, Inc. (The) 22.6 1.5% 90 90 Low 32% 22%

TWX Time Warner Inc. 17.8 1.7% 85 80 Average 38% 8%

TXN Texas Instruments Incorporated 25.3 2.3% 97 90 High 50% 20%

http://www.simplysafedividends.com/stock-analyzer/?symbol=AMT

http://www.simplysafedividends.com/stock-analyzer/?symbol=BR

http://www.simplysafedividends.com/stock-analyzer/?symbol=CMCSA

http://www.simplysafedividends.com/stock-analyzer/?symbol=CMI

http://www.simplysafedividends.com/stock-analyzer/?symbol=CNI

http://www.simplysafedividends.com/stock-analyzer/?symbol=CVS

http://www.simplysafedividends.com/stock-analyzer/?symbol=GD

http://www.simplysafedividends.com/stock-analyzer/?symbol=HD

http://www.simplysafedividends.com/stock-analyzer/?symbol=HON

http://www.simplysafedividends.com/stock-analyzer/?symbol=HRL

http://www.simplysafedividends.com/stock-analyzer/?symbol=IFF

http://www.simplysafedividends.com/stock-analyzer/?symbol=ITW

http://www.simplysafedividends.com/stock-analyzer/?symbol=LMT

http://www.simplysafedividends.com/stock-analyzer/?symbol=LOW

http://www.simplysafedividends.com/stock-analyzer/?symbol=LYB

http://www.simplysafedividends.com/stock-analyzer/?symbol=MDT

http://www.simplysafedividends.com/stock-analyzer/?symbol=ROK

http://www.simplysafedividends.com/stock-analyzer/?symbol=SBUX

http://www.simplysafedividends.com/stock-analyzer/?symbol=SNA

http://www.simplysafedividends.com/stock-analyzer/?symbol=TEL

http://www.simplysafedividends.com/stock-analyzer/?symbol=TJX

http://www.simplysafedividends.com/stock-analyzer/?symbol=TWX

http://www.simplysafedividends.com/stock-analyzer/?symbol=TXN




Idea Generation – High Yield Stocks The dividend stocks on this list are characterized by moderate-to-low price volatility, dividend yields in excess of 4%, and close to average Dividend Safety Scores. High yield stocks often carry higher business risk or personal tax liabilities (e.g. MLP’s). We do our best to filter out the riskiest ideas by using our proprietary scoring system, but you should always closely analyze these types of stocks. Click on the blue-colored ticker symbols to pull up each company in our Stock Analyzer. I also suggest bookmarking this article: High Dividend Stocks

Ticker Name P/E

Ratio Dividend

Yield Safety Score

Growth Score

Price Volatility

EPS Payout

5yr Div CAGR

BIP Brookfield Infrastructure Partners LP 13.1 4.6% 65 64 Average 60% 12%

DUK Duke Energy Corporation 25.0 4.7% 80 37 Very Low 71% 3%

ENB Enbridge Inc 21.2 6.6% 55 54 Low 125% 16%

EPD Enterprise Products Partners L.P. 20.1 6.8% 64 38 Average 133% 6%

EQM EQT Midstream Partners, LP 12.0 6.5% 67 57 Average 58% 41%

PM Philip Morris International Inc 23.6 4.0% 70 20 Average 92% 5%

PSA Public Storage 20.7 4.1% 91 59 Very Low 85% 13%

HCP HCP, Inc. 9.6 6.8% 55 4 Very Low 77% -6%

IRM Iron Mountain Incorporated 11.7 7.4% 52 22 Average 81% 16%

MMP Magellan Midstream Partners L.P. 17.1 5.8% 61 67 Low 78% 14%

NNN National Retail Properties 14.9 5.0% 94 18 Very Low 73% 4%

O Realty Income Corporation 16.2 5.3% 65 27 Very Low 82% 7%

SEP Spectra Energy Partners, LP 11.7 7.6% 53 49 Low 64% 8%

SKT Tanger Factory Outlet Centers, Inc. 11.5 6.0% 70 27 Very Low 69% 10%

SO Southern Company (The) 81.9 5.2% 67 18 Very Low 422% 3%

SPG Simon Property Group, Inc. 16.1 5.0% 74 44 Low 74% 12%

T AT&T Inc. 17.5 5.5% 78 11 Very Low 94% 2%

TCP TC PipeLines, LP 15.9 8.1% 48 31 Average 88% 5%

VTR Ventas, Inc. 8.7 6.3% 70 34 Very Low 54% 5%

VZ Verizon Communications Inc. 12.4 4.9% 73 16 Low 60% 3%

WPC W.P. Carey Inc. 13.0 6.7% 61 14 Average 86% 10%

XOM Exxon Mobil Corporation 24.6 4.1% 71 26 Average 100% 7%

http://www.simplysafedividends.com/high-dividend-stocks/

http://www.simplysafedividends.com/stock-analyzer/?symbol=BIP

http://www.simplysafedividends.com/stock-analyzer/?symbol=DUK

http://www.simplysafedividends.com/stock-analyzer/?symbol=ENB

http://www.simplysafedividends.com/stock-analyzer/?symbol=EPD

http://www.simplysafedividends.com/stock-analyzer/?symbol=EQM

http://www.simplysafedividends.com/stock-analyzer/?symbol=PM


http://www.simplysafedividends.com/stock-analyzer/?symbol=HCP

http://www.simplysafedividends.com/stock-analyzer/?symbol=IRM

http://www.simplysafedividends.com/stock-analyzer/?symbol=MMP

http://www.simplysafedividends.com/stock-analyzer/?symbol=NNN

http://www.simplysafedividends.com/stock-analyzer/?symbol=O

http://www.simplysafedividends.com/stock-analyzer/?symbol=SEP

http://www.simplysafedividends.com/stock-analyzer/?symbol=SKT

http://www.simplysafedividends.com/stock-analyzer/?symbol=SO

http://www.simplysafedividends.com/stock-analyzer/?symbol=SPG

http://www.simplysafedividends.com/stock-analyzer/?symbol=T

http://www.simplysafedividends.com/stock-analyzer/?symbol=TCP


http://www.simplysafedividends.com/stock-analyzer/?symbol=VZ

http://www.simplysafedividends.com/stock-analyzer/?symbol=WPC

http://www.simplysafedividends.com/stock-analyzer/?symbol=XOM




Idea Generation – Dividend Increases Dividend increases are a signal of management’s confidence in the company’s future. Historically speaking, consistent dividend growers have been among the best long-term performers in the market. The following table contains some of the notable dividend increases that were announced over the last month. Click on the blue-colored ticker symbols to pull up each company in our Stock Analyzer.

Ticker Name Dividend Increase

P/E Ratio

Dividend Yield

Safety Score

Growth Score

Price Volatility

EPS Payout

5yr Div CAGR

ABBV AbbVie Inc. 35% 28.0 3.3% 67 86 Very High 62% N/A

TROW T. Rowe Price Group, Inc. 23% 18.1 2.5% 98 75 High 37% 11%

HD Home Depot, Inc. (The) 16% 24.8 2.3% 93 92 High 47% 22%

GLW Corning Incorporated 16% 12.3 2.5% 84 79 High 32% 14%

DHR Danaher Corporation 14% 28.5 0.7% 75 98 Average 19% 41%

CLX Clorox Company (The) 14% 24.1 2.9% 86 59 Very Low 60% 6%

TD Toronto Dominion Bank (The) 12% 14.5 3.4% 92 65 Average 45% 10%

ETN Eaton Corporation, PLC 10% 12.5 3.0% 89 65 Very High 38% 10%

EOG EOG Resources, Inc. 10% 5072.5 0.7% 82 52 Average 3350% 15%

UPS United Parcel Service, Inc. 10% 25.8 3.5% 71 54 Average 56% 8%

UNP Union Pacific Corporation 10% 22.7 2.3% 92 80 Average 43% 15%

WM Waste Management, Inc. 9% 27.6 2.2% 90 66 Low 62% 4%

GPC Genuine Parts Company 7% 20.3 3.2% 81 64 High 60% 6%

MO Altria Group 6% 7.8 4.2% 85 46 Low 80% 8%

XEL Xcel Energy Inc. 6% 18.4 3.5% 77 24 Very Low 61% 6%

CME CME Group Inc. 6% 37.7 1.7% 90 55 Low 54% 8%

KO Coca-Cola Company (The) 5% 42.0 3.6% 87 47 Low 140% 8%

ADM Archer-Daniels-Midland Company 5% 19.9 3.2% 91 29 High 60% 13%

BNS Bank of Nova Scotia (The) 4% 12.6 4.2% 88 15 High 47% 7%

MPW Medical Properties Trust, Inc. 4% 11.3 8.0% 38 30 Average 86% 4%

ORI Old Republic International 3% 14.7 3.9% 75 38 Very High 49% 1%

SEP Spectra Energy Partners, LP 2% 11.7 7.6% 53 49 Low 64% 8%

WGL WGL Holdings Inc 1% 23.5 2.5% 83 35 Low 43% 5%

SHW Sherwin-Williams Company (The) 1% 34.3 0.9% 70 98 High 30% 17%

http://www.simplysafedividends.com/stock-analyzer/?symbol=ABBV

http://www.simplysafedividends.com/stock-analyzer/?symbol=TROW

http://www.simplysafedividends.com/stock-analyzer/?symbol=HD

http://www.simplysafedividends.com/stock-analyzer/?symbol=GLW

http://www.simplysafedividends.com/stock-analyzer/?symbol=DHR

http://www.simplysafedividends.com/stock-analyzer/?symbol=CLX

http://www.simplysafedividends.com/stock-analyzer/?symbol=TD

http://www.simplysafedividends.com/stock-analyzer/?symbol=ETN

http://www.simplysafedividends.com/stock-analyzer/?symbol=EOG

http://www.simplysafedividends.com/stock-analyzer/?symbol=UPS

http://www.simplysafedividends.com/stock-analyzer/?symbol=UNP

http://www.simplysafedividends.com/stock-analyzer/?symbol=WM

http://www.simplysafedividends.com/stock-analyzer/?symbol=GPC


http://www.simplysafedividends.com/stock-analyzer/?symbol=XEL

http://www.simplysafedividends.com/stock-analyzer/?symbol=CME


http://www.simplysafedividends.com/stock-analyzer/?symbol=ADM

http://www.simplysafedividends.com/stock-analyzer/?symbol=BNS

http://www.simplysafedividends.com/stock-analyzer/?symbol=MPW

http://www.simplysafedividends.com/stock-analyzer/?symbol=ORI

http://www.simplysafedividends.com/stock-analyzer/?symbol=SEP

http://www.simplysafedividends.com/stock-analyzer/?symbol=WGL

http://www.simplysafedividends.com/stock-analyzer/?symbol=SHW




Idea Generation – Ex-Dividend Dates To receive the next dividend payment from a stock, you must own shares before the company’s ex-dividend date. The following table contains large cap dividend stocks with dividend yields in excess of 2% and upcoming ex-dividend dates. Click on the blue-colored ticker symbols to pull up each company in our Stock Analyzer.

Ticker P/E

Ratio Dividend

Yield Safety Score

Growth Score

Price Volatility

EPS Payout Ratio

5yr Div CAGR Next Ex-Div Date

PEG 46.3 3.8% 66 8 Very Low 57% -2% 03/07/2018

GPC 20.3 3.2% 81 64 High 60% 6% 03/08/2018

KMB 18.5 3.6% 88 54 Low 63% 6% 03/08/2018

MGA 9.4 2.5% 82 81 Very High 19% 14% 03/08/2018

OMC 15.1 3.2% 92 69 High 44% 13% 03/08/2018

VFC 31.2 2.5% 78 73 Low 71% 18% 03/08/2018

RCI 24.1 3.4% 70 33 Average 78% 4% 03/09/2018

AEE 21.5 3.4% 71 10 Very Low 70% 2% 03/13/2018

PSA 20.7 4.1% 91 59 Very Low 85% 13% 03/13/2018

EXR 20.2 3.7% 68 43 Very Low 74% 30% 03/14/2018

GRMN 22.0 3.4% 61 44 Low 76% 3% 03/14/2018

KO 42.0 3.6% 87 47 Low 140% 8% 03/14/2018

MO 7.8 4.5% 85 46 Low 80% 8% 03/14/2018

MRK 51.8 3.5% 98 14 Low 49% 2% 03/14/2018

QSR 39.7 3.1% 64 85 N/A 51% 81% 03/14/2018

TROW 18.1 2.5% 98 75 High 37% 11% 03/14/2018

XEL 18.4 3.5% 77 24 Very Low 61% 6% 03/14/2018

CCI 24.0 4.0% 61 38 Very Low 79% N/A 03/15/2018

GILD 9.0 2.9% 90 65 High 23% N/A 03/15/2018

DTE 18.4 3.5% 83 37 Very Low 60% 7% 03/16/2018

HBAN 19.0 2.8% 66 83 High 39% 17% 03/16/2018

CINF 24.7 2.8% 75 41 Average 66% 4% 03/20/2018

AVB 14.6 3.8% 96 37 Very Low 53% 8% 03/28/2018

ESS 14.8 3.3% 93 58 Low 46% 10% 03/28/2018

APD 11.7 2.8% 89 76 High 27% 8% 03/29/2018

CAH 20.1 2.7% 95 45 Average 53% 15% 03/29/2018

VTR 8.7 6.3% 70 34 Very Low 54% 5% 03/29/2018

http://www.simplysafedividends.com/stock-analyzer/?symbol=PEG

http://www.simplysafedividends.com/stock-analyzer/?symbol=GPC

http://www.simplysafedividends.com/stock-analyzer/?symbol=KMB

http://www.simplysafedividends.com/stock-analyzer/?symbol=MGA

http://www.simplysafedividends.com/stock-analyzer/?symbol=OMC

http://www.simplysafedividends.com/stock-analyzer/?symbol=VFC

http://www.simplysafedividends.com/stock-analyzer/?symbol=RCI

http://www.simplysafedividends.com/stock-analyzer/?symbol=AEE


http://www.simplysafedividends.com/stock-analyzer/?symbol=EXR

http://www.simplysafedividends.com/stock-analyzer/?symbol=GRMN



http://www.simplysafedividends.com/stock-analyzer/?symbol=MRK

http://www.simplysafedividends.com/stock-analyzer/?symbol=QSR

http://www.simplysafedividends.com/stock-analyzer/?symbol=TROW

http://www.simplysafedividends.com/stock-analyzer/?symbol=XEL

http://www.simplysafedividends.com/stock-analyzer/?symbol=CCI

http://www.simplysafedividends.com/stock-analyzer/?symbol=GILD

http://www.simplysafedividends.com/stock-analyzer/?symbol=DTE

http://www.simplysafedividends.com/stock-analyzer/?symbol=HBAN

http://www.simplysafedividends.com/stock-analyzer/?symbol=CINF

http://www.simplysafedividends.com/stock-analyzer/?symbol=AVB

http://www.simplysafedividends.com/stock-analyzer/?symbol=ESS

http://www.simplysafedividends.com/stock-analyzer/?symbol=APD

http://www.simplysafedividends.com/stock-analyzer/?symbol=CAH





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This copyrighted material is for the sole use of the individual who purchased it. Redistribution is strictly

prohibited.

As of the time this newsletter was published, Brian Bollinger was long each of the stocks held in the Top

20 Dividend Stocks, Conservative Retirees, and Long-term Dividend Growth portfolios.

Monthly Recap - Simply Safe Dividends - Safe Dividend Stocks & … · dividends this year, and none...

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Transcript of Monthly Recap - Simply Safe Dividends - Safe Dividend Stocks & … · dividends this year, and none...