Activist investor Dan Loeb is urging The Walt Disney Company’s CEO Bob Chapek to halt its $3 billion annual dividend payment and redirect the funds towards content production and acquisition for its streaming service, Disney+, according to a letter Wednesday obtained by FOX Business.

DAN LOEB’S LETTER TO DISNEY CEO BOB CHAPEK

Ticker Security Last Change Change %
DIS WALT DISNEY COMPANY 122.91 +1.98 +1.64%

“By reallocating a dividend of a few dollars per share, Disney could more than double its Disney+ original content budget,” Loeb wrote. “These incremental dollars would, based on our analysis, generate returns that are multiples of the stock’s current dividend yield by driving high life-time-value  subscribers to your [direct-to-consumer] platform.”

Besides bringing in additional subscribers, Loeb said “increased velocity of dedicated content production will deliver several knock-on benefits spread across your existing base

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September 2020 continued the positive trend established in the two preceding months of July and August for dividend-paying firms in the U.S. stock market.

Here is the dividend metadata for the month of September 2020:

  • A total of 3,598 U.S. firms declared dividends in September 2020, an increase of 370 over the 3,228 recorded in August 2020, but a decrease of 422 with respect to the number of dividend declarations recorded in September 2019.
  • Eighteen U.S. firms announced they would pay a special (or extra) dividend to their shareholders in September 2020, a decrease of one from the number recorded in August 2020 and six lower than what was recorded a year ago in September 2019.
  • Sixty one U.S. firms announced they would boost cash dividend payments to shareholders in September 2020, a decrease of 20 from the 81 recorded in August 2020, and a decrease of six from the
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Co-produced with Treading Softly

As income investors, we diligently work to uncover the best dividend opportunities that meet our criteria as value-focused income investors. In short, we use our proprietary Income Method to approach the market in a way that does not require constant trading, gamification, or gambling.

As the market whipsaws, we’ve seen an uptick in the desire to become a stay-at-home day trader among investors we’ve spoken to. They point to the success of others and say “look at that trade!”

Jealousy and envy are often the weights that lead to an investor’s demise. You need to keep a long-term view to remain solidly an investor and not a trading gambler.

We help our members do this by providing regular market updates, macro-economic insights, and educational reports to help flesh them out as well-rounded investors.

The State of the Economy

The US unemployment figures that came out on

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Under the Small Business Administration rules, a PPP loan could be used only to meet payroll and pay mortgage interest, leases or utility bills. PPP loan recipients weren’t prohibited from paying investors with other funds, as long as the PPP funds were kept separate.

Still, some advocacy groups believe companies that had enough cash on hand to pay millions in dividends and stock purchases were unlikely to qualify for the PPP program, which was designed to assist troubled companies in keeping employees on the payroll during weeks when they were unable to do business because of pandemic-related lockdowns.

“The Trump administration wrote the PPP rules and sent billions of dollars to the well-resourced and well-connected rather than actual small businesses struggling during this public health and economic crisis,” said Kyle Herrig, president of an advocacy group called Accountable.US. “The fact that there was little transparency or accountability under this program

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Each of these stocks pays a dividend of greater than 3% — which is significantly more than U.S. Treasury bonds or notes are paying right now. Obviously, an investor in an equity is taking on more risk than purchasing government-guaranteed rates but some may find these interesting.

Aegon
AEGN
is a Netherlands-based insurance and asset management firm that trades on the New York Stock Exchange.

The stock is available for purchase at less than half its book value and the price/earnings ratio is a measly 4.3. This, at a time when the Schiller p/e for the S&P 500 sits at just above 30. Shareholder equity exceeds long-term debt.

Earnings were very good last year and they look good on a 5-year time frame, although the most recent quarter-to-quarter results are in

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Business continues to improve at the local outlet mall. Tanger Factory Outlet Centers (NYSE:SKT) offered an encouraging financial update after Monday’s market close. The operator of 38 upscale outlet shopping centers came through with another month of positive cash flow in August, and it was enough to pay off its unsecured lines of credit. 

Its properties are starting to retain tenants and, more importantly, attract customers. With funds from operations now positive — and likely to continue rising — it’s just a matter of time before the REIT resumes its once hefty quarterly distributions. 

A clothing rack featuring items at 80% off in a sale.

Image source: Getty Images.

Shop until the yield pops

Tanger Factory Outlet Centers was doing fine — but not great — before the pandemic. Brick-and-mortar malls are struggling, and many retail concepts are going under. Tanger Factory Outlet Centers is tethered to its tenants, and some of its retail partners have filed for bankruptcy. The shift

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Billionaire Bernard Arnault’s deal to bring U.S. jewellery giant Tiffany & Co. into the LVMH family for $16 billion has been damaged by LVMH anger over the $70 million per quarter in dividends Tiffany has paid its shareholders during the pandemic, rather than by French political invention, according to a source privy to negotiations.

The deal, announced in November, was put on ice by LVMH last week following a letter from the French European and Foreign Affairs Minister that arrived “in reaction to the threat of taxes on French products by the U.S.” Bernard Arnault, Europe’s richest man and according to Flavio Cereda, equity analyst at Jefferies the “most influential person in France today” was “directed” to “defer” the acquisition of Tiffany until after January 6th of next year. 

However, a source told Forbes that

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As important as hustle is, grit and resilience are equally as important. – Troy Carter

Despite Reinsurance Group of America’s (RGA) reporting a 22% net income decline on its Q2 2020 earnings report, RGA managed to snag an A+ (Superior) Financial Strength Rating and an “aa-” Long-Term Issuer Credit Ratings from AM Best. The insurance industry as a whole is embattled by the current low-interest environment, a spike in mortality leading to higher than expected claim payments, regulatory and operational challenges, and slumped consumer finances. But there might be gains to be had in RGA.

RGA is one of the top global providers of traditional and non-traditional life and health reinsurance products with $3.5 trillion of life reinsurance in force and $76.7 billion of assets as of December 31, 2019. It has operations in the U.S., Latin America, Canada, Europe, Middle East, Africa, and the Asia Pacific. Its core products

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The Benefit of a Long Investment Horizon

The greatest advantage young investors have is time. Even one additional year of saving and investing makes an enormous difference for a young investor in the future. Here is an example of what happens if an investor saves and invests $1,000 per year growing at 10% for 40 years. The investor would end up with an account worth $490,966.

(Source: José Trias Spreadsheet. Data source: Google Finance.)

But look at what happens if the investor saves $1,000 for one extra year. The ending balance jumps up to $541,163. Thanks to the power of compounding, $1,000 invested today can make a $50,000 difference to your account balance over the long term.

(Source: José Trias Spreadsheet. Data Source: Google Finance.)

That’s why it is profitable for young investors to start investing sooner rather than later.

The Risk of A Long Investment Horizon: Obsolete Products

While

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Many high-achieving professionals and entrepreneurs accumulate over $1 million in lifetime  earnings before they reach 40. Unfortunately, those earnings do not automatically translate into a higher net worth within the African American community.

According to “The Road to Zero Wealth report published by Prosperity Now and the Institute for Policy Studies, the median wealth of Black Americans will fall to zero by 2053 if current trends continue. One way to reverse that net worth trend is to move from everyday consumer to strategic investing in the stock market. 

There are multiple ways to invest in the stock market, but if you’re looking to earn an extra stream of income, you should harness the power of dividends. In my book, Dividends Are a Queen’s Best Friend, I describe dividends as the “money that a company gives you as a reward for investing in them.” It’s typically much better

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