Don’t Forget! by Brian Nelson, CFA
Don’t forget! As part of your membership to Valuentum, you not only receive the newsletter or newsletters of your choice every month, but you also have access to all of the thousands of 16-page reports and dividend reports on our website. You can find them by using the ‘Symbol’ search box on the header of the home page and selecting the ‘pdf’ icon links on each firm’s landing page. The Dividend100, Ideas100 and DataScreener can be yours, too.
Also, don’t forget to stay up to date with the Valuentum Buying Index ratings and Valuentum Dividend Cushion score ratings of companies in your or your clients’ portfolios. Although these two ratings form the backbone of our stock-selection strategy, we understand the importance of a qualitative overlay and portfolio management in driving outperformance and achieving the goals of our respective portfolios. All of the ideas in the Dividend Growth portfolio (see page 5) have been cleared by our analyst team, and while we don’t trade much, the holdings are working hard to achieve the portfolio’s goals.
Still, even though dividend-growth investors are laser-focused on receiving ever-increasing dividend payments, they should not be blind to the over-heated market environment and capital risk. The Valuentum Buying Index distribution, in aggregate, has been suggesting the equity market is starting to get bubbly, especially with respect to small-capitalization stocks (see page 17) and particularly with biotech firms. Here’s an example of the types of low-quality, highly-speculative companies coming to market during these overly-optimistic times. Below are a few very suspicious disclosures from the S-1 (regulatory filing) of American Gene Engineer Corp, a new issue:
1) The Company has been in the developmental stage since its inception and has conducted virtually no business operations.
2) The Company has no full-time employees and owns no real estate or personal property.
3) The Company was formed as a vehicle to pursue a business combination and has made no efforts to identify a possible business combination.
Incredible, no? That said, we’re still participating in the market as the Valuentum process seeks to capture the upside potential within a technical/momentum strategy (in addition to a value focus), and we think this aspect of the strategy provides it with a leg up versus any specific value, income strategy. Clearly, we’re very happy with performance of the dividend growth ideas in the portfolio, and we trust that you are, too. I hope you enjoy this edition of the Dividend Growth Newsletter.
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INSIDE THIS ISSUE
1 Don’t Forget!
2 Portfolio Holding Microsoft Hits $40+ Per Share (ticker: MSFT)
3 Apple’s iPhone 6: The Catalyst to Send Shares to Intrinsic Value (ticker: AAPL)
4 REITs and Interest Rates (see article for tickers)
5 Our Dividend Growth Portfolio
9 The Quarterly Dividend100 Publication
10 Stocks with High VBI Ratings and Strong Dividend Growth Prospects (see article for tickers)
11 Our Dividend Growth Watch List
12 Yields to Avoid
13 Tiffany and Nike Disappoint in China (tickers: NKE, TIF)
16 Focus on Process over Outcome
17 Small Capitalization Stocks Officially in Bubble
18 General Electric and Johnson & Johnson Shed Assets (tickers: GE, JNJ)
19 About Our Dividend Cushion™
22 Featured Reports: FDO, LEG, O, OHI
26 Our Valuentum Buying Index
29 Valuentum Definitions