Digital Realty Remains Acquisitive, Well-Positioned
July 23, 2018
Image shown: The performance of Digital Realty Trust’s stock since the beginning of 2016. The data center REIT continues to be on the acquisition hunt, and momentum in its business couldn’t be stronger, in our opinion. Its debt levels are elevated, but not unlike that of other REITs that are dependent on the external capital markets. We continue to like the strength of Digital Realty’s end market and think the REIT is fundamentally well-positioned to capture increased demand. By Brian Nelson, CFA On the heels of Digital Realty Trust’s (DLR) increased guidance for core funds from operations (FFO) for 2018 to the range of $6.50-$6.60 from $6.45-$6.60 when it reported first-quarter results in April, the REIT in mid-June issued $650
Strong Finish to Fiscal 2018 for Cash-Rich Microsoft
July 22, 2018
Simulated Dividend Growth Newsletter portfolio idea Microsoft turned in a solid fiscal 2018 fourth quarter report. The company continues to throw off tremendous amounts of cash even as it continues to invest materially in future growth opportunities. By Kris Rosemann Software giant and simulated Dividend Growth Newsletter portfolio idea Microsoft (MSFT) continues to throw off significant amounts of free cash flow. Fiscal 2018 fourth quarter results were released July 19 and revealed 3% growth in free cash flow generation for the full year period, even after a 43% increase in capital spending. Its Dividend Cushion ratio sits at an impressive 3.5, and cash dividends paid in fiscal 2018 of $12.7 billion were well-covered by the $32.3 billion in free cash
Dividend Increases/Decreases for the Week Ending July 20
July 20, 2018
Below we provide a list of firms that raised their dividends during the week ending July 20. 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 1st Source (SRCE): now $0.25 per share quarterly dividend, was $0.24. Ally Financial (ALLY): now $0.15 per share quarterly dividend, was $0.13. Antero Midstream GP (AMGP): now $0.125 per share quarterly dividend, was $0.108. Antero Midstream Partners (AM): now $0.415 per share quarterly dividend, was $0.39. AptarGroup (ATR): now $0.34 per share quarterly dividend, was $0.32. Aqua America (WTR): now $0.219 per share quarterly dividend, was
Johnson & Johnson Powers Ahead, Litigation Overhang Remains
July 19, 2018
Image Source: J&J quarterly presentation. Amid headline pressure from consumer lawsuits, Johnson & Johnson continues to execute well, as evidenced by its solid second quarter report. By Kris Rosemann Newsletter portfolio holding Johnson & Johnson (JNJ) turned in a solid second-quarter 2018 report that revealed total reported sales growth of 10.6% on a year-over-year basis thanks in part to a nearly 12% international sales increase. Double-digit growth in the company’s ‘Pharmaceutical’ business and improving top-line momentum in ‘Medical Devices’ were cited as key drivers of the top-line expansion. A number of drugs reported impressive sales growth rates in the second quarter, but most impressive may have been its Oncology division delivering 42% reported year-over-year growth. Adjusted diluted earnings per share
What Are the Downside Risks of Gilead Sciences?
July 13, 2018
We think the risk-reward at Gilead remains positively skewed in investors’ favor, but let’s examine the downside case for Gilead Sciences so there are no surprises. It’s always a good approach to evaluate where an investor may go wrong with an investment idea, and assessing upside and downside cases, as in a fair value range, remains par for the course. By Alexander J. Poulos Key Takeaways We wanted to highlight a few key points on what could go wrong on our bullish thesis on Gilead Sciences. We believe the HCV market is stabilizing with Gilead on track to meet its dramatically-reduced revenue forecast. Biktarvy–Gilead’s next-gen HIV product–is poised to steal significant market share. Yescarta, the recently-acquired CAR-T treatment, should generate
Dividend Increases/Decreases for the Week Ending July 13
July 13, 2018
Below we provide a list of firms that raised their dividends during the week ending July 13. 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 Avangrid (AGR): now $0.44 per share quarterly dividend, was $0.432. Bassett Furniture (BSET): now $0.125 per share quarterly dividend, was $0.11. BP Prudhoe Bay Royalty Trust (BPT): now $1.4076 per share quarterly dividend, was $1.2748. Clough Global Allocation Fund (GLV): now $0.1138 per share monthly dividend, was $0.1135. Clough Global Equity Fund (GLQ): now $0.1278 per share monthly dividend, was $0.1234. Clough Global Opportunities Fund (GLO):
In the News: More Tariff Talk Keeps Markets Volatile
July 11, 2018
Many market observers were caught by surprise after President Trump continued down a path of escalating trade tensions late July 10. By Kris Rosemann As with many developments surrounding the Chinese (FXI, MCHI) economy, metals have found themselves at the fore of the discussion. After the Trump Administration threatened additional 10% tariffs on $200 billion in Chinese imports July 10, copper (COPX) and other metals prices plunged as the newest list of targeted goods includes manufacturing export industries, electronics, textiles, metal components, and auto parts. It is worth noting that the US imports far more Chinese goods than vice versa, suggesting China would not be able to match US tariffs dollar-for-dollar if a full-on trade war ensues, though such a
What Are the Qualities of Highly-Rated Stocks on the Valuentum Buying Index?
July 11, 2018
If you were a CEO, what are the 7 most important metrics to focus on to get a rating of 10 on the Valuentum Buying Index? This is a great question because it hits at the absolute heart of the most important concept of investing. Investing may be about buying a great company with a solid and growing dividend, but it most certainly is about buying a great company at a discount to intrinsic value. The difference between what someone can pay for something and what something is worth is the most important concept of investing: price versus value. The price-versus-value component is an integral part of the Valuentum Buying Index. In fact, it is the first component. After all,
Biogen Hits a Potential Home Run
July 10, 2018
We closely follow the progress of the clinical pipeline of companies in the pharma/biotech sector. Unlike other less product-driven industries, the pharma/biotech sector can experience wide swings in operating performance as a result of the lapsing of patent protection on key drugs, underscoring the importance of innovation to replace aging products. Biogen may have hit a home run in the critical field of Alzheimer’s, an area of tremendous untapped need. By Alexander J. Poulos Key Takeaways Biogen’s current product lineup is beginning to show its age, and a fresh injection of novel products may be necessary to jumpstart top-line revenue growth. Spinraza is a notable step in the right direction, but we fear new gene-editing therapies may disrupt Spinraza, thus
