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5 Keys To Long-Term Dividend Stocks That Double

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We love dividend stocks because they pay us now. But hey, I’m greedy. And when I research income plays, I want more than just those payouts.

I’m looking for price gains, too. Give me a dividend with a stock that could potentially double, and we’re talking.

These types of stocks are rare, but they’re not impossible to find. They tend to share five key “dividend double” characteristics. Let’s discuss them now.

Dividend Key #1: Annual Dividend Growth

The core trait of an excellent long-term dividend holding is dividend growth, for numerous reasons.

For one, dividend growth is a pretty sure sign that the underlying company has the financial fortitude to pay the bills. Once a business starts a dividend program, there’s only three directions for the payout to go:

  • If the company is in trouble, they pull back on (or suspend) the dividend.
  • If they’re unsure about the future, they’ll keep their dividend level.
  • And if they’re confident about their ability to churn out profits, they’ll split more of that wealth with shareholders through increasingly fatter dividends.

Also vital to shareholders: Dividend growth means (obviously) more income. That means, rather than stretching for questionable stocks with fat current yields, you can jump into high-quality stocks with OK current yields, knowing that your yield on cost will plump up over time.

That’s especially important when you remember you need to factor inflation into your retirement plans.

2022’s ridiculous rocket ship of consumer prices aside, inflation averaged 3.8% annually from 1960-2021, meaning your portfolio’s dividend growth needed to average 3.8% annually for your purchasing power to at least break even.

To illustrate the importance of growing payouts, let’s take a look at three dividend portfolio profiles: One with no dividend growth, one with 10% annual dividend growth, and one with 20% annual dividend growth:

It’s pretty obvious which of these three portfolios would outrun inflation the best—and that’s the portfolio I’d want to own.

Dividend Key #2: Dividend Magnet

Another benefit of rising dividends is a financial phenomenon I call the “dividend magnet.”

You see, dividend growth isn’t just about dividends—it’s about growth, too!

Like I said earlier, companies typically don’t spend more on dividends unless they’re confident about their ability to generate more earnings. In fact, many investors look at dividend-increase announcements as a statement of corporate quality—a buy signal, if you will.

That’s why, every quarter, we publish a list of anticipated dividend increases for income investors to put on their radar.

And I put my money where my mouth is. In my Hidden Yields service, I start by “timing” our buys just as dividend hikes are announced. There’s often a lag between when a hike is declared and a rise in the stock, and that’s our time to pounce.

You can see this “set-your-watch-to-it pattern” in shares of drug distributor AmerisourceBergen (ABC), a Hidden Yields holding. That has delivered 59% returns since we bought in June 2020.

The lag between the rise in the dividend and the share-price jump is crystal clear. That’s our window to start participating in the Dividend Magnet.

Dividend Key #3: Buybacks

As discussed, serious income investors need to be greedy.

That doesn’t mean making questionable investments to get the highest yield possible.

No, being greedy means demanding more than dividends—specifically, we want management to splash some cash on stock buybacks, too.

When done right, repurchase programs help to put a floor under your stock. After all, they’re cutting the number of shares outstanding, as well as juicing earnings per share and other per-share metrics. All this tends to lift the share price.

And for those of us with survival-focused lizard brains, buybacks are, in an odd way, a cash-flow safety valve. If a company finds itself in the midst of, oh, let’s say a global recession, if all of your cash flow is being pumped into dividends, you might have to cut your payouts to make ends meet. But if a company’s cash is going into both dividends and buybacks, they can pull back on the latter to preserve the former—keeping our income stream intact.

Dividend Key #4: Value Pricing (Makes the Buybacks Worth It)

Thing is, companies spend cash to reduce that share count. So, like you and I, companies need to be smart about when they buy their own shares.

Let’s go back to AmerisourceBergen.

Valuations across the broader stock market have been coming back to earth in 2022. But ABC is already a deal. It’s the type of low beta, recession-proof stock that we are comfortable holding into a potential recession.

ABC’s board of directors agrees.

The company in June announced a $1 billion share repurchase plan, enough to reduce the current outstanding float by 3%. When your own stock offers a great deal, smart companies buy it back. These buybacks create a “virtuous cycle” that sends the share price higher and higher. Fewer shares mean the important metrics—profits and, of course, dividends—look better and better on a “per share” basis.

Unsurprisingly, this helps to power our Dividend Magnet.

Dividend Key #5: Recession-Resistant (Given 2023 Outlook)

Lastly, we want a dividend stock that can take a punch.

Just about every economist and market strategist I keep tabs on is predicting at least a mild recession in 2023. As I said after Fed Chair Jerome Powell’s most recent FOMC presser, back in early November:

“A recession is the only way we’re going to tame inflation at this point. An inevitable economic slump is coming.”

Yes, investing is all about the long game, so in theory, we could buy high-quality, high-yielding stocks and hold them in perpetuity, no matter how cyclical they are, and come out ahead.

But you and I aren’t investing in theory. We invest with real money, and we all have real emotions that we need to keep in check. Recession-resistant companies give us a better shot at evading deep losses in a downturn, which prevents us from panicking and selling low.

Brett Owens is chief investment strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: Your Early Retirement Portfolio: Huge Dividends—Every Month—Forever.

Disclosure: none

Entrepreneurship

Bitcoin ATM – Learn More About Quick Change Cash to Cryptocurrency

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Cryptocurrencies such as Bitcoins have become a global currency. They are well-known globally and more popular than traditional money, for example American Dollar.

Bitcoin ATM

This article will tell more about Bitcoin ATMS with zero commissions, how to change crypto to cash in a short time or how to find the most beneficial Bitcoin ATMs.

  1. Bitcoin ATM with 0% commission
  2. Bitcoin ATM can change cash on several cryptocurrencies
  3. How to change cash on cryptocurrency?
  4. Where to learn about bitcoin ATMs?
  5. Is it safe to use Bitcoin ATMs?
  6. What are the Bitcoin ATMs locations?
  7. What are the opening hours of Bitcoin ATMs?
  8. Where can you find some information on exchange rates?
  9. Where can you find some more information on Bitcoin ATMs?

Bitcoin ATM with 0% commission

When you want to buy and sell bitcoin you do not have to pay an additional fee in your area like many different bitcoin ATMs charge (even 8%). Every bitcoin ATM provides transactions with 0% commission. What is more, the clients can get various discounts and enjoy higher exchange rates.

Bitcoin ATM can change cash on several cryptocurrencies

Although Bitcoin is the most recognizable cryptocurrency in the world, there are also other cryptocurrencies worth mentioning. What is more, they are also available in the bitcoin ATM. They are the following: Tether (USDT), Litecoin (LTC), Tron (TRX) and Ether (ETH). The whole process – it means converting cash to your favourite cryptocurrency lasts a few minutes.

It is very intuitive and every user can change cash to crypto without any problems.

How to change cash on cryptocurrency?

It is very simple to use the Bitcoin ATM. It is similar to withdrawing money from a standard ATM. The first thing you have to do is to insert cash and then scan qr code. Next, you have to select the transaction details (exchange rate and transaction fee) and finally the cryptocurrency is transferred to your wallet.

It is childishly easy to use the bitcoin ATM. As an outcome, it is also popular in Ukraine where the war with Russia takes place.

Where to learn about bitcoin ATMs?

If you want to get some relevant knowledge on bitcoin ATM and how to buy and sell bitcoin and litecoin you should visit the official social media of bitcoin ATM. There is a tutorial for beginners who have never tried the bitcoin ATM and want to know what bitcoin ATMs are.

The popular social media where you can find the information are You tube and Facebook. Furthermore, it is worth watching it regularly to learn more about special offers or unique discounts for anonymous bitcoin buyers and sellers.

Is it safe to use Bitcoin ATMs?

The clients should feel safe during converting cash to cryptocurrency. That is why, the bitcoin ATMs are located in public places, mainly in the shopping malls where the advance monitoring system is provided. What is more, it is also possible to change cash to cryptocurrencies in independent places. However, in those places the doors are locked and the person who is doing the transaction can feel safe.

Bitcoin ATM
photo credit: Sharon Hahn Darlin / Flickr

What are the Bitcoin ATMs locations?

If you need to change cash to cryptocurrency, you have to see the bitcoin ATM map. There you can find all bitcoin ATMs in your area. What is more, you can get some interesting details about the bitcoin ATM. There is provided the name of the city with a detailed address as well as additional information on the bitcoin ATM. Moreover, you can find there also a picture of the bitcoin ATM and available funds to withdraw at the moment.

What are the opening hours of Bitcoin ATMs?

If you are in Madrid, the capital city of Spain you can check the opening hours of Bitcoin ATMs Madrid online. At the same website where you can check the location of a bitcoin ATM, there is some information about opening hours. The majority of bitcoin ATMs are open 24 hours, 7 days a week and they are available in the shopping malls or independent places. However, some of them are available in limited time.

That is why, it is always worth checking the opening hours before you visit the bitcoin ATM.

Where can you find some information on exchange rates?

The exchange rate is the crucial information when it comes to converting cash to cryptocurrencies. However, it is not a problem when you use the bitcoin ATMs. At the website where the detailed address and opening hours are provided you can also find some information about the current exchange rate.

It is worth selecting the place that offers the best exchange rate before you leave your house.

Where can you find some more information on Bitcoin ATMs?

Before you make a transaction at a bitcoin ATM, you should learn more about the bitcoin ATMs. You can do it at the official website of the device or at one of the YouTube channels where the latest information and detailed tutorial are provided.

You should also visit Facebook and Instagram where the latest news is updated and find out that there are more and more bitcoin ATMs in your location.

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Finance

The Future Of Economic And Workforce Development

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Our economic attention currently is fixed on national policy, with growing risks from a debt limit deadlock and debates over inflation versus recession. But economic prosperity also depends on state, regional, and local policy, and now there’s a free guide to some of the best thinking in the field in the newest edition of the Economic Development Quarterly (EDQ).

EDQ is a leading journal overseen by the W.E. Upjohn Institute for Employment Research. It brings together practitioners and scholars through “supporting evidence-based economic development and workforce development policy, programs, and practice in the United States.” (I’m a member of the editorial board, and also a contributor to this new issue.).

The new issue asked experts associated with the journal “what are the key research and policy questions facing economic development and workforce development today?” In order to reach a broad audience, including policy makers, academics, journalists, and the public, the issue is free for a limited time.

There are 15 articles in the issue, and their range and excellence make it impossible to summarize them. Some focus on companies and firms, including how entrepreneurs can be included in economic development, what policies and programs are most effective in supporting businesses and job creation. Other analyze how public economic development and workforce professionals in the field can be most effective in our complex and tangled systems.

Several articles examine changing workforce dynamics. How can policy engage with macro trends like globalization, high housing costs, and changes in commuting and working from home? Can greater inclusion for the workforce be part of an effective economic development strategy? What would economic development look like if it paid more attention to environmental, racial equity, and family and household issues?

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My contribution draws on my new book, Unequal Cities: Overcoming Anti-Urban Bias to Reduce Inequality in the United States. The book outlines how America depends on cities for innovation, growth, and productivity, but also how our political systems—regional, state, and national—are biased against cities.

That pervasive bias holds down both regional and national productivity and growth. And it perpetuates racially stratified inequality in jobs, economic growth, housing, and education.

Wealthy (and predominantly white) suburbs capture the lion’s share of urban economic growth while not paying their fair share of the costs. That ongoing and structural racial bias is perpetuated over time by our public policies and fragmented metropolitan governments. This in turn makes it very hard for cities to address these problems on their own.

I argue that hyper-mathematized models in urban economics divert energy from more empirical engagement on our economic and workforce problems. We need multi-disciplinary analysis of policy, with special attention to how seemingly neutral policies generate racial and other forms of inequality. And we must recognize how our metropolitan fragmentation and segregation hold back shared economic prosperity.

Although there’s a wide range of policy viewpoints in the EDQ issue, all of the authors use research and analysis to help improve the places where we live. That distinguishes this work from much of mainstream urban economics, which is skeptical of place-based policies. Standard urban economics favors individually-based approaches emphasizing education and skills, and encouraging mobility by companies and people.

Of course, education and skill development are essential components of sound policy, and several of the EDQ articles suggest how to improve it. But in the real economy, experts like those at the Economic Policy Institute show our policy bias towards individualized and company-focused approaches hasn’t led to shared prosperity.

Instead, as watchdog analysts like Good Jobs First point out, we far too often see wasted tax subsidies going to firms that don’t need them, without good jobs and other benefits that were promised in return for the tax breaks. Public education mirrors the unequal fragmentation of regional governments, with suburbs creating better education from their higher property tax bases and wealth while core cities struggle to generate adequate educational funding.

So if you’re interested in economic and workforce development, national and regional and city prosperity, and how equity and growth can be combined in public policy, get your free issue of Economic Development Quarterly. I’m proud to be in such distinguished company, and there’s a lot to learn from them.

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Finance

What To Expect From Altria’s Q4?

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Altria (NYSE: MO) is scheduled to report its Q4 2022 results on Thursday, January 26. We expect MO stock to see little movement, with its revenue and earnings aligning with the street expectations. Although the company should continue to see a decline in cigarette volume, given the declining market and higher inflation, pricing growth will likely help offset the revenue loss from volume. While we expect little movement in MO stock based on its Q4 results, it has more room for growth from a valuation perspective, as discussed below. Our interactive dashboard analysis of Altria Earnings Preview has additional details.

(1) Revenues expected to align with the consensus estimates

  • Trefis estimates Altria’s Q4 2022 revenues to be around $5.2 billion, reflecting a low single-digit y-o-y rise and in line with the $5.2 billion consensus estimate.
  • Altria sells its tobacco products in the U.S. Revenue is generated from selling cigarettes, oral tobacco, and smokeless products.
  • While the company is expected to see continued pricing growth, lower volume/mix will likely weigh on its top-line growth.
  • Looking at Q3 2022, the company reported net revenue of $5.4 billion, marking a 2% decline over the prior-year quarter.
  • The decline in revenue can be attributed to lower cigarette volume (down 9%) and the sale of its wine business in October 2021.
  • Our dashboard on Altria Revenues has details on the company’s segments.

(2) EPS likely to be in line with the consensus estimates

  • Altria’s Q4 2022 adjusted earnings per share (EPS) is expected to be $1.17 per Trefis analysis, aligning with the consensus estimate. This compares with the $1.07 figure the company reported in the prior-year quarter.
  • The company’s net income of $2.3 billion in Q3 2022 reflected a modest rise from the $2.3 billion figure seen in the prior-year quarter due to a 90 bps y-o-y rise in operating margin to 58.9%.
  • For the full-year 2023, we expect the adjusted EPS to be higher at $5.11 compared to the EPS of $4.61 in 2021 and an estimated $4.83 in 2022.

(3) MO stock looks like it has some more room for growth

  • We estimate Altria’s Valuation to be around $52 per share, which is 16% above the current market price of $45.
  • At its current levels, MO stock is trading at a little under 9x forward EPS estimate of $5.11 in 2023, compared to the last three-year average of about 10x, implying that it has some room for growth.
  • If the company reports upbeat Q4 results and provides a 2023 outlook better than the street estimates, the P/E multiple will likely be revised upward, resulting in higher levels for MO stock.

MORE FOR YOU

While MO stock looks like it has some room for growth, it is helpful to see how Altria’s Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.

Furthermore, the Covid-19 crisis has created many pricing discontinuities, which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for Ecolab vs. Philip Morris.

What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.

Invest with Trefis Market-Beating Portfolios

See all Trefis Price Estimates

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