This 7.4%-Yielding Dividend Stock Is Finally Giving Investors a Raise - Motley Fool

Crestwood Equity Partners (NYSE:CEQP) has come a long way over the past several years. And after lots of hard work, the energy company has finally reached an inflection point this year, where it's beginning to generate gobs of free cash flow. Because of that, it now has the flexibility to start returning more cash to shareholders above its current 7.4%-yielding distribution. While it's starting with a moderate 4.2% raise, that boost is likely the first of many to come.

That future dividend growth, when combined with the increasing strength of the company's financial profile, makes Crestwood an ideal investment for yield-seeking investors.  

Image source: Getty Images.

Turnarounds take time

Crestwood, like a lot of master limited partnerships (MLPs), found itself in a tight spot when the oil market began turning down in late 2014. The company had a bit too much debt, and it was distributing more cash to investors than it could afford to pay while also investing in expansion projects. Because of that, the company had to make some hard decisions, which included reducing its dividend, selling assets, and bringing on financial partners. These actions, however, helped bolster the company's financial profile, giving it the flexibility to invest in more high-return expansion projects as market conditions started improving.

That allowed the company to embark on a three-year, $1 billion expansion program, which it's about to complete. Because of that, its cash flow has been growing at a brisk pace, which should continue throughout 2020. Meanwhile, with capital spending winding down, Crestwood is on track to generate a significant amount of excess cash after funding its remaining projects as well as its current distribution level. As a result, it's in position to begin returning more money to investors, starting with the 4.2% distribution increase for 2020.

A big-time payout backed by top-notch financials

With its cash flow expected to grow sharply this year, Crestwood expects to cover its recently increased payout by about 2.0 times. That's by far the best level in its peer group, where the average is around 1.5. Meanwhile, the growth in both its earnings and excess cash will drive a notable improvement in its leverage ratio. While its debt-to-EBITDA level was a bit elevated at 4.2 times at the end of the third quarter, it's on track to fall within Crestwood's 3.5 to 4.0 target range by year-end. That would give it the second-lowest ratio in its peer group.

Thanks to those top-tier financial metrics, Crestwood's recently raised payout is on an excellent foundation. Furthermore, its strong financial profile gives it the flexibility to do other things that create value for investors. Among its options are to invest in additional high-return growth opportunities as they arise, as well as buy back common or preferred units. Any of those options would boost the growth in its cash flow on a per-unit basis, which would enhance its ability to increase its distribution in the future.

Predictable distribution growth is an aim for Crestwood, which is why it chose to provide its investors with a relatively modest increase this year even though its cash flow is on track to grow by more than 20%. While its pace will slow down in the future, given the reduction in capital spending, Crestwood operates in three of the best shale basins. That should provide it with plenty of investment opportunities in the coming years.

A great option for yield-seekers

Crestwood Equity Partners has finally finished a multiyear transformation program, which has firmed up its financial foundation as well as accelerated its growth engine. Because of that, it's now in the position to provide its investors with more cash, enabling it to boost its forward yield up to an even more attractive 7.7%. With that payout on one of the firmest foundations in the MLP space and more growth ahead, it's an excellent option for investors who want a low-risk way to collect a steadily rising income stream.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiYGh0dHBzOi8vd3d3LmZvb2wuY29tL2ludmVzdGluZy8yMDIwLzAxLzE4L3RoaXMtNzQteWllbGRpbmctZGl2aWRlbmQtc3RvY2staXMtZmluYWxseS1naXZpbmcuYXNweNIBZGh0dHBzOi8vd3d3LmZvb2wuY29tL2FtcC9pbnZlc3RpbmcvMjAyMC8wMS8xOC90aGlzLTc0LXlpZWxkaW5nLWRpdmlkZW5kLXN0b2NrLWlzLWZpbmFsbHktZ2l2aW5nLmFzcHg?oc=5

2020-01-18 17:22:00Z
CBMiYGh0dHBzOi8vd3d3LmZvb2wuY29tL2ludmVzdGluZy8yMDIwLzAxLzE4L3RoaXMtNzQteWllbGRpbmctZGl2aWRlbmQtc3RvY2staXMtZmluYWxseS1naXZpbmcuYXNweNIBZGh0dHBzOi8vd3d3LmZvb2wuY29tL2FtcC9pbnZlc3RpbmcvMjAyMC8wMS8xOC90aGlzLTc0LXlpZWxkaW5nLWRpdmlkZW5kLXN0b2NrLWlzLWZpbmFsbHktZ2l2aW5nLmFzcHg

At antitrust hearing, Boulder company says ‘bully’ Amazon cut prices, demanded repayment - FOX 31 Denver

[unable to retrieve full-text content]

1. At antitrust hearing, Boulder company says ‘bully’ Amazon cut prices, demanded repayment  FOX 31 Denver
2. PopSockets, Sonos, and Tile Ask Congress to Rein in Big Tech  WIRED
3. Anticompetitive complaints against Google, Apple, Amazon, Facebook  Business Insider
4. Sonos, Popsockets, Tile and Basecamp lay out gripes with Big Tech in an antitrust hearing  Axios
5. Watch Sonos, Tile, and PopSocket testify against tech giants today  The Verge
6. View full coverage on Google News

https://news.google.com/__i/rss/rd/articles/CBMicWh0dHBzOi8va2R2ci5jb20vMjAyMC8wMS8xOC9hdC1hbnRpdHJ1c3QtaGVhcmluZy1ib3VsZGVyLWNvbXBhbnktc2F5cy1idWxseS1hbWF6b24tY3V0LXByaWNlcy1kZW1hbmRlZC1yZXBheW1lbnQv0gF1aHR0cHM6Ly9rZHZyLmNvbS8yMDIwLzAxLzE4L2F0LWFudGl0cnVzdC1oZWFyaW5nLWJvdWxkZXItY29tcGFueS1zYXlzLWJ1bGx5LWFtYXpvbi1jdXQtcHJpY2VzLWRlbWFuZGVkLXJlcGF5bWVudC9hbXAv?oc=5

2020-01-18 13:42:00Z
52780557386429

Meals On Wheels Opens Local Diner To Feed Seniors - NPR

Enlarge this image

The Diner, which is a project of Meals on Wheels People in Vancouver, Wash., provides community in addition to meals for seniors enrolled in the program. Tom Cook/Courtesy Meals on Wheels People hide caption

toggle caption

Tom Cook/Courtesy Meals on Wheels People

Usually Meals on Wheels means home delivery or lunch at a senior center. For more than 50 years, the federal government has been funding the program to make sure older Americans get the nutrition they need. Now, a project in Vancouver, Wash., is trying to use those funds for something new: a retro-hip diner, where seniors can get eggs, coffee, and community.

On the surface, The Diner looks like any other diner. Servers making sure the coffee is topped off, local business people having meetings, regulars who know the whole menu. There are the usual diner specialties, with some modern nods — cage-free eggs and local produce — and a retro vibe.

"They play Frank Sinatra in the mornings, and it makes me so happy," says Autumn Zukauskus, who comes for breakfast weekly. "Eggs and Frank Sinatra: perfect breakfast."

But when a younger patron like Zukauskus reaches for her credit card, seniors like Chris Bingenheimer pull out a little green dining card.

"If you can donate, you do. If you don't, you don't," Bingenheimer explains. "And it's no big deal to them."

That's because the entire diner is a project of the local organization Meals on Wheels People. If you look closer, you'll notice a few differences from other restaurants. The chairs are on casters, to scoot out easily if they need to make space for a wheelchair. The coffee cups have large handles, to accommodate arthritic fingers. The building and finishes were designed and selected to minimize noise and maximize comfort.

Avoiding stigma

Suzanne Washington is the CEO of Meals on Wheels People, which serves about 5,000 meals a day. Most of these are home delivery, and about a third are in senior centers. But people don't always want to go to a senior center.

"We heard lots of folks say it was just too much of a stigma to go," Washington says.

Some baby boomers think senior centers are just for their grandparents. Or they're still working, and can't get away for lunch. So, Washington thought, 'Why not try a restaurant?'

"A restaurant that is inter-generational. It's good food," says Washington. "And at the same time, the paying public can help offset the cost of those in our program."

There's a slightly different menu for participating seniors — like an added fruit cup or a glass of milk — to meet nutritional requirements. And some regular menu items aren't part of the program.

"Because we can never make eggs benedict meet regulations," Washington says. "It just doesn't work."

Enlarge this image

The Diner in Vancouver, Wash., serves seniors and non-seniors alike. The menu for those who qualify for Meals on Wheels meets federal nutrition standards. Full menu Meals on Wheels hide caption

toggle caption

Meals on Wheels

But the menu is still delicious, and the diner's been averaging 140 subsidized meals each month. They've signed up an average of 38 new members per month — about three times the number that sign up for Meals on Wheels at their traditional senior centers. And those who come for the meal donate more for it — the average donation is $2.46, which is four times higher than the donation at a senior center. And for an organization that provides 1.2 million senior meals annually, every increase is significant.

New sign-ups also get a visit from a client service coordinator, who does assessments, and checks if seniors need to be connected to additional services — the sort of information that they might have found at a traditional senior center.

The decline in participation at traditional senior centers isn't just a problem in the Pacific Northwest.

"It is a national trend, where many senior centers are witnessing declining participation rates," explains Manoj Pardasani, a provost and professor of social work at Hunter College.

Providing engagement

Pardasani says the decline is due to a number of factors: centers that haven't innovated to reflect the diversity of the population, or people who look down on senior centers as something only for "needy" people. And he says the downturn is concerning, because these centers provide far more than just food. They provide community engagement, and combat isolation, which provides a benefit for mental and emotional health.

"The core belief behind meals is the socialization aspect," says Pardasani. "We're human beings, we've been socialized to be social animals."

And The Diner is a social place. You can see it in the customers joking with the staff, the people who bring in an older neighbors, the seniors who carpool together for a meal.

Young people like Amber Zukauskus come for that camaraderie just as much as for the little pies.

"Everyone here is so nice," says Zukauskus. "And they pay everybody a living wage, and so all your tips just go to donations for Meals on Wheels, which is amazing. That's something I want to give money to."

The Diner has gone through the usual hiccups of starting a new restaurant — dealing with staffing, figuring out the lunch rush, adjusting portion size so that seniors might have some extra to take home and eat later. Meals on Wheels People received some grant money to help with start up costs, and they expect to turn a profit in their third year. But even early on, they seem to be hitting their stride. It's a bustling, thriving business.

Chris Bingenheimer learned about The Diner from a friend, and came in to share a meal. He sometimes goes to a senior center, but was never a fan of the made-in-advance food, or the minimal choices, or of the fact he had to be called up for a meal like at the high school cafeteria. He said he'll definitely be back to The Diner.

"The staff is very friendly," says Bingenheimer. "They don't look down on you because you're with the Meals on Wheels program. They treat you kindly. The service is impeccable."

Bingenheimer is a senior using Meals on Wheels. And at The Diner, he's also just a guy, sitting with a friend, having a good breakfast.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMib2h0dHBzOi8vd3d3Lm5wci5vcmcvMjAyMC8wMS8xOC83OTY3MjEzMDYvbWVhbHMtb24td2hlZWxzLXNlcnZlcy11cC1icmVha2Zhc3QtbHVuY2gtYW5kLWNvbW11bml0eS1hdC1sb2NhbC1kaW5lctIBAA?oc=5

2020-01-18 12:00:00Z
CAIiECQFGDh_C-Oe3smXchCX2LMqFggEKg4IACoGCAow9vBNMK3UCDCvpUk

Dow Jones Today, Stocks Poised To Jump: Techs Lead; Qualcomm, American Express In Buy Range - Investor's Business Daily

[unable to retrieve full-text content]

1. Dow Jones Today, Stocks Poised To Jump: Techs Lead; Qualcomm, American Express In Buy Range  Investor's Business Daily
2. Stocks Continue Record Climb as Earnings Overshadow Impeachment  The New York Times
3. Stocks - Wall Street to Continue Higher; Housing Data Eyed  Investing.com
4. Dow Jones Today, Stocks Poised For New Highs As Chips, Small Caps Rally; Morgan Stanley, Taiwan Semi Top Expectations  Investor's Business Daily
5. Global stocks follow Wall Street higher after US-China deal  Fox Business
6. View full coverage on Google News

https://news.google.com/__i/rss/rd/articles/CBMiiQFodHRwczovL3d3dy5pbnZlc3RvcnMuY29tL21hcmtldC10cmVuZC9zdG9jay1tYXJrZXQtdG9kYXkvZG93LWpvbmVzLXRvZGF5LXN0b2Nrcy1qdW1wLXRlY2hzLWxlYWQtcXVhbGNvbW0tYW1lcmljYW4tZXhwcmVzcy1pbi1idXktcmFuZ2VzL9IBAA?oc=5

2020-01-17 13:18:00Z
52780556365505

The club of $1 trillion companies just keeps growing. Now there are four - CNN

Apple. Microsoft. Saudi Aramco. And now Alphabet.

The club of public companies worth $1 trillion added a new member this week, with Google's parent company topping that valuation on Thursday. It's the first time three American companies have been worth at least $1 trillion at the same time.

The view from Mountain View: Alphabet (GOOGL) shares have already gained more than 8% this year. The rise follows the December announcement that Google CEO Sundar Pichai would also take over as head of Alphabet, succeeding Larry Page. And the company's ad business remains a money-making machine. Ad revenues grew to nearly $34 billion in the third quarter of 2019, up 17% from the same period the previous year.

Amazon out: Apple became the first public company to pass the $1 trillion mark in August 2018 and has pushed higher since. Amazon, the second firm to hit that level, has dropped out of the club, but it still has more members than ever before.

The growing ranks of $1 trillion companies inevitably gets investors chattering about whether market valuations are a bubble waiting to pop. Years of ultra low interest rates and solid US economic growth have driven the longest bull market on Wall Street in history. The Dow, S&P 500 and Nasdaq all hit fresh records on Thursday.

But the consensus among analysts is that stocks still have room to run in 2020. Gene Munster, a veteran Apple (AAPL) analyst at Loup Ventures, sees Apple shares — currently at $315— rising to $350 a pop in 2020 and $400 in 2021.

Tech's dominance: Alphabet, Apple, Microsoft (MSFT), Amazon (AMZN) and Facebook (FB) are now worth a collective $5.2 trillion — or nearly one fifth of the S&P 500.

China's weakest annual growth in 29 years

China's economy grew at its slowest pace in nearly three decades in 2019, my CNN Business colleague Laura He reports.

The announcement Friday wasn't unexpected, and Chinese officials insist that the country's economy will be stable this year. But it might be too early to say the worst has passed, according to analysts.

The numbers: China's GDP grew at a rate of 6.1% in 2019, in line with Beijing's targeted range. The country also reported that GDP grew 6% in the fourth quarter.

Big picture: China grew 6.6% in 2018. The slowdown last year is indicative of all the challenges facing the world's second largest economy, which is battling rising debt, cooling domestic demand and fallout from the trade war with the United States.

The "phase one" trade deal signed earlier this week removes a little bit of pressure, at least in the short term.

"The signing of the phase-one trade deal is a signal that the situation is unlikely to deteriorate," Chaoping Zhu, global market strategist at JPMorgan Asset Management, said in a note to clients.

But the trade war isn't over. US tariffs on many Chinese goods remain in effect, and Washington will use this as leverage as the two sides negotiate the next phase of their agreement. Plus, analysts from Citi, Nomura, and Invesco point out that it will be a challenge for China to fulfill its promise to increase imports of US goods by $200 billion over two years.

NBCUniversal makes its streaming play

The streaming field is becoming increasingly crowded. What better way to stand out than giving away your service for free?

Media and investors got a first look at NBCUniversal's Peacock on Thursday — and the biggest surprise was the price point offered by parent company Comcast (CMCSA), my CNN Business colleague Frank Pallotta reports.

The company will offer a version of the service known as "Peacock Free," a no-cost, ad-supported option for any consumer, regardless of their cable provider. A premium version with additional content, including early access to NBC's late night shows, will be free to Comcast subscribers and cost $4.99 for everyone else. Want to ditch ads altogether? That will be $9.99.

Daniel Ives, an analyst at Wedbush Securities, called the plan to make money through commercials "a smart move" and a "key differentiator" that could help lure viewers from other platforms. Time will tell; the service launches to existing customers on April 15.

State Street (STT) reports earnings before US markets open.

Also today:

• US housing starts and building permits for December arrive at 8:30 a.m. ET.
• The University of Michigan consumer sentiment survey for January posts at 10 a.m. ET.

Coming next week: Corporate executives and political leaders head to Davos, Switzerland for a week of panels, parties and closed-door meetings.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiTGh0dHBzOi8vd3d3LmNubi5jb20vMjAyMC8wMS8xNy9pbnZlc3RpbmcvcHJlbWFya2V0LXN0b2Nrcy10cmFkaW5nL2luZGV4Lmh0bWzSAVBodHRwczovL2FtcC5jbm4uY29tL2Nubi8yMDIwLzAxLzE3L2ludmVzdGluZy9wcmVtYXJrZXQtc3RvY2tzLXRyYWRpbmcvaW5kZXguaHRtbA?oc=5

2020-01-17 11:49:00Z
52780557215690

GLOBAL MARKETS-World shares up as China data fuels bets on growth - Yahoo Finance

* MSCI world index hits record

* China 2019, Q4 GDP growth in line with expectations

* Investors eye global growth after data and easing trade tensions

* European shares up 0.7%

* Casino loses 12% after profit forecast cut

* Wall Street futures up (Adds European prices, updates throughout, adds quote changes byline and dateline)

By Tom Wilson and Andrew Galbraith

LONDON/SHANGHAI, Jan 17 (Reuters) - World shares rose to record highs on Friday, buoyed by Chinese data that suggested the world's second-biggest economy was stabilising.

Riskier assets were in demand worldwide as the Chinese growth data, along with easing trade tensions with the United States, sent the MSCI world equity index up 0.2% and further into record territory.

China's economy grew 6% between October and December last year. Anaemic domestic demand and the trade war with the United States led to growth of 6.1% in 2019, the slowest in 29 years.

But the data reinforced recent signs of an improvement in Chinese business confidence as trade tensions eased after Beijing and Washington signed an initial deal on Wednesday to defuse their tariff war.

Investors were turning their attention to what many see as improved prospects for growth across the world. European shares gained 0.7% in early trade, with Frankfurt, Paris and London indexes up 0.5% to 0.7%. Wall Street futures were also pointing up.

The Chinese data fuelled a rise in the Chinese yuan, which touch a six-month high of 6.8660 to the dollar.

"Investors that were last year buying risky assets rather defensively - not really removing their hedging - right now are deploying cash," said Olivier Marciot, a portfolio manager at Unigestion.

"A number of investors that were sitting on big piles of cash are starting reallocating. People are unloading cash positions into financial assets."

In France, however, protests against planned pension reforms started to hit major retailers. Supermarket Casino slumped 12% after slashing its forecast for 2019 operating profit growth because of the damage from transport strikes in the fourth quarter.

Asian markets also rose after the Chinese data, with MSCI's broadest index of Asia-Pacific shares outside Japan gaining 0.4%.

China's own blue-chip index ended 0.1% higher, down from an earlier rise of as much as 0.7%. The index has rallied more than 8.5% since the beginning of December, fuelled by hopes for improved trade relations with the United States.

Shares in Australia and South Korea both rose, with Japan's Nikkei climbing to a 15-month high.

"This is all good news and positive for the China story," said Daniel Gerard, senior multi-asset strategist at State Street Global Markets in Hong Kong.

MAINTAIN MOMENTUM?

Still, analysts say global equities may find it difficult to maintain momentum from their recent rally as optimism over the trade truce gives way to uncertainty over the next steps in trade talks.

While the Phase 1 deal signed on Wednesday may defuse the 18-month trade row, analysts said it was unlikely to ease broader friction between the two countries.

Most of the tariffs imposed during the dispute remain in place and a number of issues that sparked the conflict are still unresolved.

"The challenge from here is how long we can maintain these improvements," said Steven Daghlian, market analyst at CommSec in Sydney.

The dollar held steady, reaching eight-month highs against the yen before trimming its advance to 0.09% to 110.24. The index that tracks the dollar against a basket of six major rivals was flat at 97.302.

Encouraging data from the United States on Thursday had boosted the dollar. Upbeat earnings from Morgan Stanley, rising U.S. retail sales, a strong labour market and robust manufacturing data had helped to lift Wall Street to record highs.

Google's parent, Alphabet, became the fourth U.S. company to top a market value of more than $1 trillion. Its shares were up nearly 17% over the last three months.

For Reuters Live Markets blog on European and UK stock markets, please click on:

(Reporting by Tom Wilson in London and Andrew Galbraith in Singapore; additional reporting by Noah Sin in Hong Kong; editing by Jacqueline Wong, Shri Navaratnam, Larry King)

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiT2h0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy9nbG9iYWwtbWFya2V0cy13b3JsZC1zaGFyZXMtY2hpbmEtMDkxNzMzMTk4Lmh0bWzSAVdodHRwczovL2ZpbmFuY2UueWFob28uY29tL2FtcGh0bWwvbmV3cy9nbG9iYWwtbWFya2V0cy13b3JsZC1zaGFyZXMtY2hpbmEtMDkxNzMzMTk4Lmh0bWw?oc=5

2020-01-17 09:17:00Z
52780557610331

China's economic growth hits 30-year low - BBC News

China's economy grew last year at the slowest pace in almost three decades.

Official figures show that the world's second largest economy expanded by 6.1% in 2019 from the year before - the worst figure in 29 years.

The country has faced weak domestic demand and the impact of the bitter trade war with the US.

The government has been rolling out measures over the past two years in an attempt to boost growth.

It comes after almost two years of trade tensions with the US - although hopes of a better relationship with America have seen improvements in manufacturing and business confidence data.

This week Washington and Beijing signed a "phase one" trade deal. However, analysts remain unsure whether those recent gains will continue.

In response to the lower growth rate, Beijing is now widely expected to roll out yet more stimulus measures.

The government has used a combination of measures aimed at easing the slowdown, including tax cuts and allowing local governments to sell large amounts of bonds to fund their infrastructure programmes.

The country's banks have also been encouraged to lend more, especially to small firms. New loans in the local currency hit a record high of $2.44 trillion (£1.86tn) last year.

Media playback is unsupported on your device

So far the economy has been slow to pick up, with investment growth falling to record low levels.

Historically, China has seen much stronger economic expansion, with the first decade of the 21st Century seeing double-digit percentage growth.

But - although that 6.1% growth rate is China's weakest expansion in almost three decades - it is much higher than other leading economies.

The US central bank, for example, has forecast that the American economy will grow by around 2.2% this year.

'The trade war may have actually helped the Chinese economy'

Analysis by Stephen McDonell, BBC China correspondent

For many countries, having the slowest GDP growth in three decades might cause panic - but not in China.

Softening domestic demand and US tariffs have eaten into growth - but some analysts argue that the trade war may have actually helped the Chinese economy.

This 6.1% GDP figure for 2019 is not only within the government's target range, but Chinese policy makers have for years been trying to gradually step down expectations.

They're trying to break away from the years of unsustainable breakneck growth which has trashed the natural environment and led to an explosion in unserviceable debt.

The government has instigated some stimulus measures to make sure the steam doesn't come out of the economy too quickly. But on bank loans, the crucial question will be - who gets access to the loans?

Will it be those building the "bridge to nowhere" vanity projects which have popped up in many regional cities?

Or will it be the promising new start-up enterprises which are seen as the future of modern Chinese development?

As part of the phase one deal, China pledged to boost US imports by $200bn above 2017 levels and strengthen intellectual property rules.

In exchange, the US agreed to halve some of the new tariffs it has imposed on Chinese products.

Speaking in Washington, US President Donald Trump said the pact would be "transformative" for the American economy.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiKmh0dHBzOi8vd3d3LmJiYy5jb20vbmV3cy9idXNpbmVzcy01MTE0NDg5MtIBLmh0dHBzOi8vd3d3LmJiYy5jb20vbmV3cy9hbXAvYnVzaW5lc3MtNTExNDQ4OTI?oc=5

2020-01-17 06:15:04Z
52780556963101