Dividend Increases/Decreases for the Two Weeks Ending January 2
January 5, 2015
Below we provide a list of firms that raised/lowered their dividends during the two weeks ending January 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 Alamo (ALG): now $0.08 per share quarterly dividend, was $0.07. Bank of the Ozarks (OZRK): now $0.13 per share quarterly dividend, was $0.125. FelCor (FCH): now $0.04 per share quarterly dividend, was $0.02. Investar Holding (ISTR): now $0.007 per share quarterly dividend, was $0.006. Teekay LNG (TGP): now $0.70 per share quarterly dividend, was $0.69. TerraForm (TERP): now $0.27 per share quarterly dividend, was $0.225.
Fantasy Yields Are For Fools
January 3, 2015
Brian Nelson, CFA We spend a lot of time talking about the safety of a firm’s dividend. In fact, we were the pioneers of the Dividend Cushion ratio, a comprehensive cash-flow based measure of the health of a firm’s dividend that takes into consideration all aspects of the company’s financial statements – not just the relationship between dividends per share and earnings per share, the payout ratio. As readers have come to learn, if a company’s Dividend Cushion ratio is below 0, there is significant risk to the sustainability of the payout. Most recently, the Dividend Cushion ratio highlighted the substantial risk related to Seadrill’s (SDRL) payout (in advance of the suspension), and the Cushion, as we call it here
See Valuentum’s Brian Nelson January 17th in Milwaukee
January 1, 2015
The AAII Milwaukee Chapter will present: “The Twenty-Fifth Annual Mid-Winter Retreat†The Twenty-Fifth Annual MidWinter Retreat promises to be an exceptional event. This popular meeting is an all-day Saturday event featuring several in-depth seminars on various investment topics, the opportunity to socialize with fellow members and the great food and atmosphere of the Westmoor Country club. Date: Saturday, January 17, 2015 Time: 7:15 – 7:55 a.m. Registration/Continental Breakfast 7:55 a.m. Program Location: Westmoor Country Club400 S Moorland RdBrookfield, WI262-796-7800 Dividend Growth Investing: 8:00 a.m.–9:00 a.m. Brian Nelson will discuss how to analyze and identify companies that offer the best dividend growth opportunities. He will discuss the importance of dividends to total return and how to identify companies whose dividend payments might be
HCV Competition Not New “News” for Gilead
December 26, 2014
Let’s set one thing straight. On a fundamental basis, biotech firm Gilead Sciences (GILD) is performing quite well, contrary to what its recent stock price move might suggest. Prescriptions for the firm’s Harvoni and Sovaldi hepatitis-C drugs continue to track slightly ahead of projections, and we would expect a slightly stronger-than-forecast fourth-quarter report as a result. In coming periods, we look forward to positive management commentary that speaks to the strength and sustainability of the firm’s hepatitis-C franchise (about half of Gilead’s sales). Any commentary, in light of the recent uncertainty and growing competition in the hepatitis C market, will be reassuring for investors that have been anxiously pursuing tax-loss selling and profit-taking in Gilead’s shares the past few weeks.
Dividend Increases for the Week Ending December 19
December 22, 2014
Below we provide a list of firms that raised their dividends during the week ending December 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 3M (MMM): now $1.025 per share quarterly dividend, was $0.855. AES (AES): now $0.10 per share quarterly dividend, was $0.05. Amgen (AMGN): now $0.79 per share quarterly dividend, was $0.61. Andersons (ANDE): now $0.14 per share quarterly dividend, was $0.11. Apollo Residential Mortgage (AMTG): now $0.45 per share quarterly dividend, was $0.44. AT&T (T): now $0.47 per share quarterly dividend, was $0.46. Balchem (BCPC): now $0.30
Stocks Catapult Back To Near All-Time Highs
December 19, 2014
It appears that we may get a Santa Claus rally after all. Call it window dressing. Call it drinking at the Fed’s punch bowl. Call it what you will. But the Dow Jones Industrial Average (DIA) polished off its biggest two-day gain in six years to propel itself back to near all-time highs again. The S&P 500 (SPY), shown above, is now within throwing distance of setting new record ground, and spirits remain high as we approach the Christmas holiday and New Year. Collapsing prices at the gas pump, though highlighting risks to global economic growth, may be helping to spread the holiday cheer. For clarification, we continue to be optimistic about the future returns in the newsletter portfolios, but
General Electric Is Still in Good Shape
December 17, 2014
General Electric (GE) continues to represent a rare opportunity for dividend growth investors. Most (not all) dividend growth investors seem to dedicate their analysis to what has happened to the dividend in the past, instead of thinking about what will happen to the dividend in the future – not next quarter or next year, but over the next 5, 10, 20 years. Holdings in the Dividend Growth portfolio aren’t chosen because they are heroes of yesteryear, but instead, they are chosen because we think they will be the best dividend growth performers in the future. In this light, we think GE continues to be shunned by new dividend growth investors that are looking to its dividend cut in 2009 as
Gearing Up for 2015 Outlooks
December 16, 2014
Though the firms below aren’t included in the newsletter portfolios, we keep a close eye on them should an opportunity ever present itself. Not only are they fantastic companies with strong business models, but they also provide insight into the broad industries in which they operate. With only a couple weeks left in 2014, management teams are actively preparing their budgets for 2015. Let’s have a look at what a few bellwethers have been saying about their outlooks for next year. Industrial Bellwether 3M (MMM) The maker of Post-it notes has become the poster child of aggressive dividend growth policy as of late. Having traditionally raised its dividend a penny or two per year in the past, 3M upped the
Merger Talk: Coach May Be In Play
December 13, 2014
With interest rates at lows, the equity markets at all-time highs, and executive teams looking for strategic and opportunistic growth opportunities, the table is set for some wheeling and dealing, in our view. We think Coach (COH), the aspirational maker of handbag and accessories, is on the radar of a number of suitors, the most likely being LVMH Moet Hennessy (LVMHF), according to Prime Retailer: LVMH groups representatives have recently shown interest in Coach, sources say. Recent shows and fashion line has appealed to the design team of LVMH, one of the persons admits. It could be the turnaround that attracts LVMH – turning its attention from classical high end luxury accessories label to full RTW apparel lineup. There are
Dividend Increases for the Week Ending December 12
December 13, 2014
Below we provide a list of firms that raised their dividends during the week ending December 12. 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 Abbott (ABT): now $0.24 per share quarterly dividend, was $0.22. Avago Technologies (AVGO): now $0.35 per share quarterly dividend, was $0.32. Banco Latinoamericano De Comercio (BLX): now $0.385 per share quarterly dividend, was $0.35. BioMed Realty (BMR): now $0.26 per share quarterly dividend, was $0.25. Bristol-Myers Squibb (BMY): now $0.37 per share quarterly dividend, was $0.36. Buckle (BKE): now $0.23 per share quarterly dividend, was $0.22. Capella
