5 High-Yielding Strong Dividend Growth Stocks for the Long Haul
August 31, 2015
We’ve never been more concerned about the financial health of dividend growth investors. Perhaps we’re partly to blame for some of the excitement surrounding the strategy that has taken many corners of the web by storm, but we continue to believe it is important for investors to strive to understand the strategy’s fundamental fallacies, which can’t be talked about enough as a means of helping investors understand key risks. For those new to dividend growth investing, part of the strategy centers on identifying stocks that pay dividends that are poised to increase over the long haul, generating in time a yield (a payout) that is a) sufficient on the cost and b) sufficient to generate an adequate income in retirement
Dividend Increases/Decreases for the Week Ending August 28
August 31, 2015
Below we provide a list of firms that raised/lowered their dividends during the week ending August 28. 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 Bank of Nova Scotia (BNS): now C$0.70 per share quarterly dividend, was C$0.68. Blackhawk Bancorp (BHWB): now $0.04 per share quarterly dividend, was $0.02. Canadian Imperial Bank of Commerce (CM): now C$1.12 per share quarterly dividend, was C$1.09. CrossAmerica Partners (CAPL): now $0.5625 per share quarterly dividend, was $0.5475. Educational Development Corporation (EDUC): now $0.09 per share quarterly dividend, was $0.08. EMC Insurance (EMCI): now $0.17
3 Observations
August 28, 2015
Bulls raged back in a big way during the week of trading ending August 28 to erase some of the massive losses experienced from the May 2015 highs of 2,013 on the S&P 500. Though no longer staring down at 1,800, the S&P 500 still closed comfortably shy of 2,000. No matter what next week will bring, almost everybody is expecting more volatility. Could this then mean that we’re back to normal? The market has a very interesting way of disappointing the majority of investors the majority of the time. Here are 3 observations that are worth noting. 1. The Fed Doesn’t Have the Right Data…Yet The stark reality is one of two things: a) either the Fed knows exactly what’s going on
Forget About the New iPhone; The Banks in China!
August 28, 2015
One thing will always be the case – banks never hold enough capital to cover asset losses in excess of the inverse of their leverage. Said differently, if a bank is leveraged 10 to 1–meaning its assets are 10 times as much as its equity–it would only take a 10% decline in the unhedged market-value of asset prices to wipe a bank’s equity capital position clean, all else equal, and provided capital infusions aren’t available. The US lived through this dynamic during the Financial Crisis, and to the credit of the Fed, Treasury, and related participants, they did a fantastic job, all things considered–being that we’re not currently in the midst of a modern-day Great Depression. It is clear to
New Adds: One Name at a Deep Discount and Another Long-time Favorite
August 27, 2015
Shown above: The carnage in the S&P 500. One of the most important measures that we strive to portray is balance. In our recent writings, we’ve demonstrated a very bearish slant on recent developments, and we still hold those views, but our actions within the newsletter portfolios are also very important in understanding how we react to such views. As we’ve outlined many a time before, global economic developments and US equity markets are not always inextricably linked, meaning that there could be times–seemingly more often than not–when the economy is heading south and equity markets hold up fairly well or even advance, and vice versa. Part of the core Valuentum process, however, centers on finding undervalued stocks and letting
Understanding the Market Melt-Up Wednesday
August 27, 2015
The broader US markets continued their roller-coaster ride Wednesday with the Dow Jones Industrial Average (DIA) closing up more than 600 points. There are a number of dynamics at work that explain the large move, which only partially retraces the large declines over the past couple weeks. First, the extreme level of volatility that we are experiencing today in the markets is a direct result of the Fed’s actions to prevent the onset of a modern-day Great Depression toward the latter part of this decade and into this one. By slashing interest rates and engaging in round and after round of quantitative easing for the past several years, the Fed coincidentally pushed yields on fixed-income instruments to insufficient levels for
The Damage Has Already Been Done
August 26, 2015
The Shanghai Index only fell another 1.3% yesterday. The US markets are cheering at the open Wednesday on hopes that last month’s July durable goods number is foretelling of what investors can expect after the latest leg down in the Chinese market and the collapse in US equity markets the past few weeks. Though “core” July durable goods orders were better than expected, pre-collapse data is no longer indicative of the true state of the US economy and what lies ahead, in our view. The Chinese government has gone “all-in” to prop up its bubbly market, one that is trading at 60 times reported earnings, but the impact, while arguably successful in preventing Armageddon in China for now, has only
Valuentum’s Guide to Recent Market Turmoil
August 25, 2015
The global equity markets continue to face immense selling pressure. Chinese markets have wiped out roughly $4.5 trillion in wealth the past couple months alone, and the Dow Jones Industrial Average today racked up its fourth consecutive 200-point loss, the longest streak in its storied history. Major US market indices, including the S&P 500, are in “correction” territory, which is defined as a 10% decline or more from their recent highs. For those that have been following Valuentum’s work, you know that we’ve been all over the recent developments, putting readers far ahead of the market movements. From the email alerts on removing the positions in Kinder Morgan and Energy Transfer Partners to trimming the position in Apple to retaining outsize 30%+ cash positions in both newsletter
The Nelson Tweet
August 25, 2015
The following is what Mr. Nelson wrote at ~6:30am this morning in advance of the day’s trading. Open up 600, finish lower on China fears? — Brian Nelson, CFA (@ValuentumBrian) August 25, 2015
China Eases to Support Country’s Stock Bubble; US Markets Cheer Behavior?
August 25, 2015
Roughly $4.5 trillion has evaporated from the Chinese markets (FXI) since the middle of June – real, tangible wealth that no longer exists. Equities on mainland Chinese exchanges still trade at a median reported earnings multiple of 60+ times, according to Bloomberg. After direct government intervention in the country’s markets failed, China has now moved to cut interest rates and reduce bank reserve requirements, and this somehow has the US markets cheering. Does such irrational behavior by US investors finally mark the peak? Here are 5 observations worth noting. 1. The Financial and Capital Markets are Fragile If the Financial Crisis of 2008-2009 taught this generation anything, it was a lesson in the fragility of the financial and capital markets
