My oh my. What a difference a month makes. In last month’s article, we discussed how dividend growth slowed and there may be an economic slowdown. This month, it is a completely different story. The coronavirus, COVID-19, pandemic has spread and the economic impact has been unlike anything I have ever seen. The impact on individuals, small business and corporations is changing on a daily basis. For many companies, they are rethinking their 2020 strategic visions and changing their dividends & capital strategies on the fly. It will be tough to predict the expected dividend increases in 2020; however, we will highlight the companies that have historically announced dividend increases in April.
The Occidental Petroleum dividend cut is fresh on my mind. Trust me, the wounds are deep and still open. Sadly, this was not the first time that a major, oil company in my portfolio slashed their dividend in an attempt to clean up their balance sheet. Who could forget Kinder Morgan’s infamous cut in 2015?? There was one underlying theme in both of these dividend cuts: Debt. Both companies had amassed large debt balances; debt balances that eventually became too much to handle in a time of crisis. Large debt balances are not exclusive to oil companies, sadly. Thus today, in the midst of the turbulent market and COVID-19 pandemic, I wanted to talk a little more about debt and then identify dividend stocks with low debt balances. Hopefully, this will help us find some great, undervalued Dividend Aristocrats with low debt balances to invest in!
I thought the end of February was insane for the market. During that time, I took advantage of some great deals in the stock market. But if March has proven anything to me, it is the importance of why you cannot try to time the market. Each day presents a new set of twists and turns, as more information and details come to light about the coronavirus and those impacted. The most important thing is we all do our best to stay healthy. Like Lanny this week, who wrote about how his family added $230 in dividend income from purchases in February, I also wanted to take some time and summarize my stock purchases from February.
Not only have the markets been see-sawing, but so has the weather here in Cleveland. From snowing one day to 50 degress the next day, it is wild! Luckily though, spring training has started and baseball season is right around the corner. Hopefully the Indians get off to a hot start. Speaking of hot starts, Lanny kicked off our dividend income summary by showing how he and his wife earned almost $900 in dividend income in February and notch a 17% annual growth rate. Now, it is my turn. Lets jump right in to my February dividend income summary.
We are in the home stretch of winter. Luckily, winter has been tame and we haven’t had to shovel too much snow (knock on wood). The dividend investing community has started off 2020 with a bang! We are excited to jump right in and share each individual dividend income summary with you. For those of you that are new to our website, we aggregate as many dividend income summary articles from around the community. Here is the January 2020 installment of the Dividend Income from YOU the Bloggers series. Let’s get motivated!!
The stock market is on a screeching downhill plunge. What does that mean? Opportunities for us dividend stock investors. Therefore, it is time to pour a hot cup of coffee and begin my dividend stock research. Time to tune in for Lanny’s Dividend Stock Watch List – February Edition.
We are in the thick of winter here. Snow flurries are flying and temperatures are dropping. The perfect time to sit inside with a warm cup of coffee, blog, and learn about dividend investing Lanny just published an article explaining how dividends are taxed and the tax benefits of this passive income stream. Lower tax rates are just another reason why we love dividend investing. Another reason we love this investing strategy is because of the dividend increases. We monitor each dividend increase like a hawk; we celebrate the strong increases and shake our heads after a disappointing increase. That’s why each month, we publish an article exclusively focusing on the expected dividend increases in the coming month. Here are the expected dividend increases in February.