Dividend Cushion Ratio Catches Another Dividend Cut
January 7, 2020
Image Shown: Tupperware Brands Corporation suspended its dividend in November 2019, a pitfall investors could have avoided by utilizing Valuentum’s proprietary Dividend Cushion ratio. We plan to refresh our report on Tupperware after members get a chance to digest this analysis to better understand how to use the Dividend Cushion ratio. By Callum Turcan Our Dividend Cushion ratio can be a very useful tool for income seeking investors that wish to avoid payout cuts and the likely capital depreciation that follows. The Dividend Cushion ratio is based on our forecast of the firm’s future free cash flows over the next five full fiscal years, less its net debt or plus its net cash position, divided by its expected dividend obligations
Valuentum Exclusive Success Rates Trump Even the Best Quant Hedge Funds
January 4, 2020
Image: President of Investment Research Brian Nelson, CFA By Brian Nelson, CFA A new book, “The Man Who Solved the Market,” hit bookshelves last year, and thus far it has been a hit. The text goes into the story of quant hedge fund Renaissance Technologies and its hedge fund, the Medallion Fund, which has put up mammoth returns since inception. Though the book focuses more on the life and times of founder Jim Simons and dedicated only a page or two to the fall of Long-Term Capital Management (LTCM), another quant fund that went belly-up during the late 1990s, it was nonetheless a thoroughly interesting and enjoyable read. But why I am bringing up one of the most successful quant
Dividend Increases/Decreases for the Week Ending January 3
January 3, 2020
Below we provide a list of firms that raised their dividends during the week ending January 3. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Alamo (ALG): now $0.13 per share quarterly dividend, was $0.12. Bank OZK (OZK): now $0.26 per share quarterly dividend, was $0.25. BP Prudhoe Bay Royalty Trust (BPT): now $0.4242399 per share quarterly dividend, was $0.3348166. Caledonia Mining (CMCL): now $0.075 per share quarterly dividend, was $0.0688. High Income Securities Fund (PCF): now $0.082 per share monthly dividend, was $0.048. Life Storage (LSI): now $1.07 per share
FLIR Systems Repositions Itself
January 2, 2020
Image Source: FLIR Systems Inc – November 2019 IR Presentation By Callum Turcan An appealing aspect of the defense industry is that it’s largely counter-cyclical, especially for companies that do a lot of business with the US Department of Defense (‘DoD’). The National Defense Authorization Act (‘NDAA’) that covers fiscal 2020 allows for a base budget level of $658.4 billion and an additional $71.5 billion has been allocated to overseas contingency operations. Noteworthy aspects of the NDAA covering fiscal 2020, which was signed into law by President Trump in December 2019, include the creation of a Space Force, a 3.1% pay increase for troops, and paid family leave for all federal workers. With a budget of $738 billion, up $21
Apple, Microsoft Dominated This Decade
January 2, 2020
Apple, Microsoft Dominated This Decade Note: Due to the New Year holiday, we will be releasing the January 2020 editions of the Dividend Growth Newsletter and High Yield Dividend Newsletter Thursday, January 2. The quarterly Financial Advisor Level publications will be released Wednesday, January 15. — Top contributors to the S&P 500 return this decade Source: Marketwatch. Data by Andrea Riquier, through December 27, 2019*. — This article was released to members December 31. The email can be accessed here. — By Brian Nelson, CFA — Hi everyone — hope you are doing great this New Year’s Eve! — Many of you haven’t had a chance to read about the performance of the Best Ideas Newsletter portfolio this year, or the performance of
Our Reports on Stocks in the Food Retailing Industry
December 31, 2019
Image Source: Mike Mozart Structure of the Food Retailers Industry Firms in the mature food retailers industry generally have slim profit margins and face significant competition from brick-and-mortar locations (discount, department, drug, dollar, warehouse clubs and supermarkets) as well as Internet-based retailers (including Amazon). Though the industry is not terribly cyclical, economic conditions, disposable income, credit availability, fuel prices, and unemployment levels drive ticket size and traffic trends. Offering consumers a compelling value proposition is a must, even as higher-priced organic food offerings proliferate. We’re generally neutral on the group. We’ve reallocated our resources to cover more recession-resistant stocks. See here.
Our Reports on Stocks in the Computers & Peripherals (Memory) Industry
December 31, 2019
Structure of the Computers & Peripherals Industry Firms in the computers and peripherals industry primarily make storage solutions, while others may offer custom-designed computer/mobile interface solutions or other ancillary computer/mobile products. The industry is characterized by rapid technological change, which has not only increased the adoption of technologies for use in a variety of devices but also has put significant pricing/gross-margin pressure on industry constituents. Competition is fierce, threats of over-supply are continuous, and the prospects for generating long-term competitive advantages are negligible. We don’t like the structure of the group. We’ve optimized our technology coverage. For reports, click here.
Our Reports on Stocks in the Machinery & Tools Industry
December 31, 2019
Image Source: Compressor1 Structure of the Machinery & Tools Industry The machinery and tools industry is fragmented and highly competitive. Most constituents offer a wide range of products in a myriad of markets. Firms are heavily exposed to fluctuating raw material prices (steel, resins, chemicals) and the vicissitudes of the global economic cycle, including customer capital/maintenance budgets. Several companies are recognized worldwide for their strong brand names and reputation for quality, innovation and value, and we view such attributes as material competitive advantages. Though pricing competition is not absent, we like the structural characteristics of the group. We’ve optimized our industrials coverage. For industrial reports, please click here.
Dividend Growth Newsletter Portfolio Delivers Again in 2019
December 30, 2019
Dividend Growth Newsletter Portfolio Delivers Again in 2019 — Note: Due to the New Year holiday, we will be releasing the January 2020 editions of the Dividend Growth Newsletter and High Yield Dividend Newsletter Thursday, January 2. — By Brian Nelson, CFA Hi everyone! I haven’t forgotten about you, our dividend growth friends. At Valuentum, we’re huge fans of dividend growth stocks, and we use our valuation expertise to augment a newsletter portfolio of some of the best dividend growers on the market. Unlike other shops and most blogs that focus more on dividend growth track records, we also like to look forward, not only in the application of the forward-looking Dividend Cushion ratio, but also as
Dividend Increases/Decreases for the Week Ending December 27
December 27, 2019
Below we provide a list of firms that raised their dividends during the week ending December 27. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Alico (ALCO): now $0.09 per share quarterly dividend, was $0.06. Axis Capital Holdings (AXS): now $0.41 per share quarterly dividend, was $0.40. ETFMG Alternative Harvest ETF (MJ): now $0.32 per share quarterly dividend, was $0.28. Mesa Royalty Trust (MTR): now $0.063615630 per share monthly dividend, was $0.036724557. Riverview Bancorp (RVSB): now $0.05 per share quarterly dividend, was $0.04. Seagate Technology (STX): now $0.65 per share quarterly
