Dividend Increases for the Week Ending May 23
May 26, 2014
Below we provide a list of firms that raised their dividends during the week ending May 23. 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 States Water (AWR): now $0.213 per share quarterly dividend, was $0.203. Bristow Group (BRS): now $0.32 per share quarterly dividend, was $0.25. Bunge Limited (BG): now $0.34 per share quarterly dividend, was $0.30. CryoLife (CRY): now $0.03 per share quarterly dividend, was $0.0275. Daktronics (DAKT): now $0.10 per share quarterly dividend, was $0.09. Donaldson Co (DCI): now $0.165 per share quarterly dividend, was $0.14. Extra
Valuentum Interim Newsletter Update
May 23, 2014
Summary Best Ideas, Dividend Growth Portfolio Holding Apple Crosses Above $600! Best Ideas, Dividend Growth Portfolio Holding Altria Keeps Marching Higher! Removing DirecTV from Best Ideas Portfolio June Edition of Dividend Growth Newsletter to Be Released June 1 Dear Member, We’d like to share a few updates today. First of all, we are very pleased with Apple’s (AAPL) recent stock-price performance. As you know, Apple is the largest weighting in the Best Ideas portfolio and one of the largest positions in the Dividend Growth portfolio. We’re very excited about the acceleration of the company’s iPhone 6 launch, and we think the firm is worth north of $700 on the basis of our discounted cash-flow analysis. View its landing page here.
Reynolds American and Lorillard Looking to Join Forces; Altria Benefits from SABMiller Strength
May 22, 2014
According to recent reports, tobacco giants Reynolds American (RAI) and Lorillard (LO) continue to work to tie the knot. The speculated deal is rumored to be a three-way transaction that involves Reynolds’ shareholder British American Tobacco (BTI), but the timing of any deal is uncertain, and any specific pricing information has been limited. Usually, consolidation results in an industry with significantly more pricing power, but the tobacco makers already have substantial strength in this department. We would therefore expect the transaction, if consummated, to result more in cost savings than in revenue enhancements. We’d also expect the deal, if completed, to result in some divestitures to please regulators, and we think this could pave the way for either Philip Morris (PM),
Merger Mania: AT&T Ties the Knot with DirecTV; Pfizer Ups Offer for AstraZeneca; Siemens Complicates Matters for GE
May 19, 2014
Over the weekend, AT&T (T) and DirecTV (DTV) entered into a definitive agreement in which AT&T will acquire DirecTV in a cash-and-stock transaction for $95 per share on the basis of AT&T’s Friday closing price. In light of this announcement, we plan to remove DirecTV from the Best Ideas portfolio early next week, recording a significant gain from the $55 per share cost basis in the portfolio. We trust you are very happy with this news. Though some investors will choose to hang onto shares in the event that AT&T’s equity increases before DirecTV is de-listed from the exchange (thereby driving DirecTV’s shares higher), we’re comfortable taking the hefty per-share profit on the pay-TV provider very soon and not waiting
Dividend Increases for the Week Ending May 16
May 19, 2014
Below we provide a list of firms that raised their dividends during the week ending May 16. 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 ACE Limited (ACE): now $0.65 per share quarterly dividend, was $0.63. Albany International (AIN): now $0.16 per share quarterly dividend, was $0.15. American Express (AXP): now $0.26 per share quarterly dividend, was $0.23. Anadarko Petroleum (APC): now $0.27 per share quarterly dividend, was $0.18. Arctic Cat (ACAT): now $0.125 per share quarterly dividend, was $0.10. Clorox (CLX): now $0.74 per share quarterly dividend, was $0.71. Gentex
Valuentum’s May Edition of Its Best Ideas Newsletter
May 15, 2014
Apple and DirecTV Lead the Charge, by Brian Nelson, CFA The Best Ideas portfolio (see page 8) had another strong month. For starters, portfolio holding Apple shot up significantly thanks to the announcement that it will deliver a large amount of cash to shareholders via buybacks, up its dividend, and split its stock to gain better appeal within the retail investor crowd. For us, the biggest news at Apple is yet to come (see page 4). The iPhone maker will be pulling forward the launch of the iPhone 6 to August, one month earlier than expected. Though Apple has had successful product launches in the past, we think this one will be its most successful iteration. With a larger screen the
Cisco’s Fiscal Third-Quarter Results Better-Than-Feared
May 15, 2014
“One major criticism that we always hear about value investing is ‘what’s your risk management, how do you know when you’re wrong’? Well, a great value investor gives himself a margin of safety, in other words you don’t have to know how much a fat person weighs to realize they’re overweight. Like John Keynes said ‘It is better to be roughly right than precisely wrong.’ If you come to a conclusion that a $100 stock is trading at $65, even if you’re overestimating the stock’s value by 25%, at $81.25 there is still plenty of room for the stock to appreciate to $100.” — The Irrelevant Investor The discounted cash-flow (DCF) process is one of the most informative paths to
ALERT: AT&T Reportedly Planning to Offer Fair Value to Buy DirecTV; We Think a Higher Offer Is in the Cards
May 13, 2014
On Monday, Bloomberg reported that AT&T (T) is in advanced talks to acquire all of the outstanding shares of DirecTV (DTV) for as much as ~$100 each, almost precisely at our $99 per share cash-flow-derived fair value estimate of DirecTV’s equity. We had previously outlined the strong case for a suitor to offer a price north of $99 per share for the pay-TV provider, and we believe that a higher offer price may be required to seal this deal for a couple reasons. First, the reported offer price, as is, represents essentially the fair value of DirecTV on a standalone basis, excluding any synergies and cost-savings that would accrue to the combined entity. DirecTV shareholders are entitled to a portion
MoneyShow Slide Deck: The Valuentum Dividend Cushion
May 12, 2014
Tuesday, May 13, 2014, 4:00 pm – 4:30 pm The Ultimate Dividend Growth Investing Tool Valuentum’s President of Equity Research Brian Nelson, CFA, walks through the benefits of intelligent dividend growth investing and the importance of not only focusing on the payout ratio but also future cash flows when assessing the safety and potential growth of a firm’s dividend. In this must-attend… Please select the image below or click to view the presentation. Join Brian Nelson, CFA, at The MoneyShow Las Vegas, May 12-15, 2014. Brian will share his investing strategies with you face to face in two presentations: The Ultimate Dividend Growth Investing Tool and 3 Top Stock Ideas for Your Radar. If you are interested in meeting
Dividend Increases for the Week Ending May 9
May 12, 2014
Below we provide a list of firms that raised their dividends during the week ending May 9. 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 AAON (AAON): now $0.13 per share semi-annual dividend, was $0.10. Ametek (AME): now $0.09 per share quarterly dividend, was $0.06. Argo Group (AGII): now $0.18 per share quarterly dividend, was $0.15. Arsenal Energy (AEYIF): now $0.065 per share quarterly dividend, was $0.06. Assurant (AIZ): now $0.27 per share quarterly dividend, was $0.25. Autoliv (ALV): now $0.54 per share quarterly dividend, was $0.52. Baker Hughes (BHI): now
