Labor and the Economic Cycle
June 5, 2017
As we arguably near the “peak” in the business cycle, labor is starting to demand more, a dynamic that we believe is emblematic of the period of aging economic expansion. Let’s have a look at what’s happening in the fight for higher wages. By Brian Nelson, CFA Each business cycle is different in both magnitude and duration, but there are some common qualities that define where an economy might be within the cycle. First, it has been more than 8 years since the March 2009 stock-market panic bottom, a period that witnessed firms such as Lehman Brothers, Bear Stearns, and AIG (AIG) flounder. The unemployment rate peaked at 10% during that difficult time. Since then, the US economy has emerged
Dividends Increases/Decreases for the Week Ending June 2
June 5, 2017
Below we provide a list of firms that raised/lowered their dividends during the week ending June 2. 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 American Tower (AMT): now $0.64 per share quarterly dividend, was $0.62. CoreSite Realty (COR): now $0.90 per share quarterly dividend, was $0.80. KLA-Tencor (KLAC): now $0.59 per share quarterly dividend, was $0.54. Laurentian Bank of Canada (LRCDF): now CAD 0.62 per share quarterly dividend, was CAD 0.61. Lowe’s Companies, Inc. (LOW): now $0.41 per share quarterly dividend, was $0.35. Monro Muffler (MNRO): now $0.18 per share
Dollar General: 27 Consecutive Years and Counting
June 2, 2017
The dollar store industry is one that often flies under the radar of many investors that are looking for more glamorous ideas. However, the often-counter recessionary trends of their businesses coupled with unit proliferation makes them worthy of consideration, in our view. We like Dollar General the most. By Brian Nelson, CFA We added discount retailer Dollar General (DG) to the Best Ideas Newsletter portfolio April 13, “…2 New Additions to the Best Ideas Newsletter Portfolio.” The 75+ year old company that offers everything from food and snacks to cleaning supplies and clothing has more than 13,300 stores in 40+ states. Despite its already massive store base and a retail environment that remains in flux, fiscal 2016 marked its 27th
Dividend Increases/Decreases for the Week Ending May 26
May 29, 2017
Below we provide a list of firms that raised/lowered their dividends during the week ending May 26. 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 Advanced Drainage Systems (WMS): now $0.07 per share quarterly dividend, was $0.06. Agree Realty (ADC): now $0.505 per share quarterly dividend, was $0.495. Bank of Montreal (BMO): now CAD 0.90 per share quarterly dividend, was CAD 0.88. Bunge (BG): now $0.46 per share quarterly dividend, was $0.42. China Yuchai (CYD): now $0.90 per share annual dividend, was $0.85. Clipper Realty (CLPR): now $0.095 per share quarterly
Alexion’s Executive Departures and an Update from Regeneron Pharma
May 26, 2017
Image shown above: Performance of Regeneron since the summer of 2013. An executive scandal continues to mar the performance of Alexion Pharmaceuticals. The CFO has resigned his position effective the end of August, but there is more to this story. Let’s also talk Regeneron. By Alexander J. Poulos We continue to admire innovative companies in industries that can have a meaningful impact on our everyday lives. Valuentum’s Best Ideas Newsletter portfolio, for example, houses a number of technology firms that have become ubiquitous in our daily lives. We admire such companies, but while also innovative, entities in the mid- to large-cap biotech industry (IBB, XLF) can be considered much more risky on a fundamental basis than any newsletter portfolio holding,
Alerts – Spring Cleaning in the Newsletter Portfolios
May 25, 2017
We’re making a number of changes to the newsletter portfolios. By Brian Nelson, CFA Changes in Dividend Growth Newsletter portfolio We’re removing Medtronic. Medtronic (MDT) reported decent fiscal fourth-quarter results May 25 that showed revenue advancing ~5% and bottom-line earnings-per-share beating consensus by a couple pennies. We’re not messing around in this frothy market though, and we’ve learned from our miscue with Teva Pharma (TEVA). Medtronic has too much debt this late into the credit cycle for our comfort, and frankly, we’re starting to question more and more why it might have changed how it measures free cash flow. We’re letting shares go from the Dividend Growth Newsletter portfolio. The company was added to the Dividend Growth Newsletter portfolio under
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May 25, 2017
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Pipeline Woes Continue to Plague Amgen
May 24, 2017
Image Source: kibbles_bits By Alexander J. Poulos Earnings Release We have written a few bearish pieces on biotech stalwart Amgen (AMGN) this year. In the first piece, “The Dreaded Patent Cliff: 3 Pharmaceutical Companies at Risk,” we presented a number of areas of concern, most notably the expected drop in revenue from Amgen’s two main products. In its first-quarter earnings release, issued April 26, Amgen posted earnings per share of $3.15 on a non-GAAP basis versus $2.90 for the same period last year. Upon first glance, the numbers would indicate solid growth, but upon further examination, a worrisome trend emerges. The “earnings beat” is a direct result of a decrease in expenses and a lower share count, as top line
Cracker Barrel Hits the Trifecta!
May 23, 2017
Image Source: Mike Mozart Cracker Barrel increased its full-year earnings guidance, raised its regular dividend, and issued a special payout. The market was pleased. By Brian Nelson, CFA Dividend Growth Newsletter portfolio holding Cracker Barrel (CBRL) released fiscal third-quarter results May 23 that came in above the company’s internal expectations, leading the unique restaurant concept to raise its full-year profit target. It now expects earnings per share for fiscal 2017 to be in the range of $8.25-$8.35, above its previous target of $8.10-$8.25 and ahead of consensus expectations. Of course we liked this news, and we continue to believe Cracker Barrel is one of the best dividend growth ideas in all of the restaurant space, from quick service to fast
Dividend Increases/Decreases for the Week Ending May 19
May 22, 2017
Below we provide a list of firms that raised/lowered their dividends during the week ending May 19. 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 BGC Partners (BGCP): now $0.18 per share quarterly dividend, was $0.16. Citi Trends (CTRN): now $0.08 per share quarterly dividend, was $0.06. Chubb (CB): now $0.71 per share quarterly dividend, was $0.69. Exchange Bank (EXSR): now $0.85 per share quarterly dividend, was $0.80. Farmers & Merchants Bancorp (FMCB): now $6.75 per share semi-annual dividend, was $6.55. First Midwest (FMBI): now $0.10 per share quarterly dividend, was
