UnitedHealth Group’s Dividend Growth Potential is Impressive
December 17, 2020
Image Shown: UnitedHealth Group Inc has a tremendous dividend growth runway, one that is supported by its high-quality cash flow profile, pristine balance sheet, and improving near-term outlook. Shares of UNH have staged an impressive recovery over the past several months since crashing in March 2020 due to headwinds arising from the ongoing COVID-19 pandemic. We added UnitedHealth Group to our Dividend Growth Newsletter portfolio on November 27, 2020. By Callum Turcan On November 27, we added UnitedHealth Group Inc (UNH) to the Dividend Growth Newsletter portfolio (link here). The company has an “EXCELLENT” Dividend Growth rating as the firm is well-positioned to push through meaningful dividend increases in the coming years. Additionally, UnitedHealth Group earns an “EXCELLENT” Dividend Safety
Congress Seeks to Strike a Deal
December 17, 2020
Image Shown: The S&P 500 (SPY) is trading near all-time highs as of December 16, but political risk could cause some choppiness in the near term. The potential for yet another government shutdown is upon us, but according to key leaders on both sides of the aisle, a deal appears to be within reach. Certain provisions may be left out in order to reach an accord sooner rather than later, however. In any case, we remain bullish long term, as the world continues to work to put the COVID-19 pandemic behind it. By Callum Turcan and Brian Nelson, CFA Funding for most US federal government agencies may run out by the end of this week if both sides of the
Public Storage Receives Interest from Activist Investor
December 16, 2020
Image Shown: A look at Public Storage’s geographical footprint at the end of 2019, keeping in mind some of these properties are owned by its strategic partners. Image Source: Public Storage – 2019 Annual Report By Callum Turcan We are big fans of the self-storage industry and include Public Storage (PSA) in our High Yield Dividend Newsletter portfolio. One of the greatest things about Public Storage is the ability for this self-storage real estate investment trust (‘REIT’) to generate sizable positive free cash flows, a rarity in the REIT world. We have covered this dynamic in detail in the past (link here). Shares of PSA yield ~3.6% as of this writing and we see room for significant payout growth over
The December Edition of the Best Ideas Newsletter
December 16, 2020
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Honeywell Is a Tremendously Resilient Enterprise and a Rock-Solid Dividend Payer
December 15, 2020
Image Shown: Honeywell International Inc expects its financial performance will post a significant rebound in 2021. Please note this guidance assumed a safe and viable COVID-19 vaccine would get distributed by early-2021, though distribution activities started before then in December 2020, which supports Honeywell’s near-term outlook. Image Source: Honeywell International Inc – Third Quarter of 2020 IR Earnings Presentation By Callum Turcan We added one of our favorite industrial stocks Honeywell International Inc (HON) to the Dividend Growth Newsletter portfolio on November 27 (link here) as the firm’s operational and financial performance has proven to be incredibly resilient in the face of the ongoing coronavirus (‘COVID-19’) pandemic. As global health authorities begin to put an end to the pandemic, aided
Oracle Posts Solid Earnings and Provides Favorable Near-Term Guidance
December 15, 2020
Image Source: Oracle Corporation – September 2019 IR Presentation By Callum Turcan On December 10, Oracle Corp (ORCL) reported second-quarter earnings for fiscal 2021 (period ended November 30, 2020) that beat both consensus top- and bottom-line estimates. In the fiscal second quarter, Oracle’s GAAP revenues advanced 2% year-over-year on the back of its ‘Cloud services and license support’ segment posting 4% sales growth. The company’s GAAP operating income rose 13% year-over-year last fiscal quarter, as operating expenses shifted lower 3% thanks to the efforts of Oracle’s management team to make cost containment efforts a priority. The firm’s diluted GAAP EPS came in at $0.80 during the second quarter of fiscal 2021, up 16% year-over-year thanks in part to its weighted-average outstanding
Starbucks’ Long-Term Outlook Is Improving
December 14, 2020
Image Shown: Starbucks Corporation sees the total addressable market for coffee products growing by a decent clip over the coming years, which is forecasted to reach ~$450 billion in 2023. Image Source: Starbucks Corporation – 2020 Biennial Investor Day Presentation By Callum Turcan On December 9, Starbucks Corporation (SBUX) hosted its biennial Investor Day meeting, held virtually this year due to the ongoing coronavirus (‘COVID-19’) pandemic and updated its financial guidance for the next several fiscal years. For reference, Starbucks’ GAAP revenues and GAAP operating income fell 11% and 62% year-over-year, respectively, in fiscal 2020 (period ended September 27, 2020) as the company contended with headwinds created by the COVID-19 pandemic. Looking ahead, Starbucks expects to realize a “significant rebound”
Best Ideas Newsletter Portfolio Holding Disney Surges to All-Time Highs
December 12, 2020
Image Shown: The reach of the Disney+ video streaming service continues to grow as The Walt Disney Company keeps expanding the service into new markets. Image Source: The Walt Disney Company – December 2020 Investor Day Presentation By Callum Turcan We continue to be big fans of The Walt Disney Company (DIS) and include shares of DIS in the Best Ideas Newsletter portfolio. Back when Disney’s stock price plummeted this past March, we stuck with our capital appreciation thesis and did not panic. Since then, shares of DIS have staged an impressive comeback and are currently trading near all-time highs. Shares of Disney are up ~22% year-to-date as of this writing, significantly outperforming the S&P 500 (SPY) which is up
AT&T’s Outlook Is Getting Brighter
December 11, 2020
Image Shown: An overview of AT&T Inc’s capital allocation priorities over the coming years and a snapshot of its financial position at the end of September 2020. Image Source: AT&T Inc – Third Quarter of 2020 IR Earnings Presentation By Callum Turcan The rollout of 5G wireless packages in the US combined with expected growth at its video streaming business has significantly improved AT&T Inc’s (T) outlook during the past few months. We include shares of AT&T in the High Yield Dividend Newsletter portfolio (click here to learn more about the High Yield Dividend Newsletter), and as of this writing, shares of T yield ~6.6%. Headwinds caused by the ongoing coronavirus (‘COVID-19’) pandemic weighed negatively on AT&T’s financial and operational
FTC Attacks Facebook, Win-Win Scenario for Investors
December 10, 2020
Image Shown: Facebook Inc has a large digital advertising business with global reach, but it does not have a monopoly on digital advertising or social media by any means. Image Source: Facebook Inc – Third Quarter of 2020 IR Earnings Presentation Summary Facebook is being sued by the FTC for allegedly engaging in monopolistic activities via its acquisition program. It’s important to note that the government is not seizing Facebook’s assets and that Facebook investors own the future free cash flow stream of the entire entity under any and every scenario–whether Facebook is retained in current form or whether it is broken into different parts through a potential IPO/spin-off of its Instagram and WhatsApp properties. Under a status quo scenario,
