Philip Morris Is One of Our Favorite High-Yielding Income Generation Ideas
October 20, 2022
Image Shown: Philip Morris International Inc expects alternative nicotine products will grow at a robust pace over the coming years, with an eye towards heated tobacco units and oral nicotine products. By capitalizing on those opportunities, the company aims to diversify its revenues away from traditional cigarette sales. Image Source: Philip Morris International Inc – 2021 Investor Day Event Presentation By Callum Turcan The tobacco company behind international sales of the Marlboro cigarette brand and the IQOS heated tobacco offering, Philip Morris International Inc (PM), is one of our favorite high-yielding income generation ideas. Philip Morris is a stellar cash flow generator with ample pricing power, and management has laid out a sound strategy for how the firm intends to
PepsiCo May Be A Rare Winner in This Inflationary Environment
October 20, 2022
Image Source: PepsiCo Inc – Third Quarter of Fiscal 2022 Earnings Press Release By Callum Turcan On October 12, PepsiCo Inc (PEP) reported third quarter earnings for fiscal 2022 (period ended September 12, 2022) that beat both consensus top- and bottom-line estimates, primarily due to the enormous price increases the consumer staples giant pushed through. The company also raised its full-year guidance for fiscal 2022 in conjunction with its latest earnings report, which sent shares of PepsiCo sharply higher during the following trading days. We assign PepsiCo a fair value estimate of $164 per share and the upper end of our fair value estimate range stands at $197 per share. With shares trading at ~$173 each, we think the company’s
High Yield Dividend Newsletter Portfolio Continues to Deliver!
October 19, 2022
Image: The year-to-date simulated performance of the High Yield Dividend Newsletter portfolio, which continues to hold up well during 2022, while offering an attractive forward estimated dividend yield. Data retrieved interim session October 19. By Brian Nelson, CFA Valuentum’s newsletter product suite continues to deliver in good times and bad. For those of you interested in high dividend paying stocks, we offer a High Yield Dividend Newsletter and a simulated High Yield Dividend Newsletter portfolio, which has been holding up well amid the weakness across both the stock and bond markets this year. Based on our calculations, the simulated High Yield Dividend Newsletter portfolio now boasts an estimated forward dividend yield of ~5.44% and is down only approximately 10% on
Johnson & Johnson Reports Mixed 3Q Results, Plans to Spin Off Consumer Health Division Mid-to-Late 2023
October 19, 2022
Image Source: Johnson & Johnson By Brian Nelson, CFA On October 18, Johnson & Johnson (JNJ) reported mixed third-quarter results that showed adjusted operational sales growth of 8.2%, but adjusted earnings per share falling 1.9%. Negative currency impacts posed a stiff headwind to its ‘International’ operations, and we would expect this to be a recurring theme across multi-nationals during third-quarter earnings season. We’re sticking with Johnson & Johnson as one of the top weightings in the simulated Dividend Growth Newsletter portfolio. On an adjusted operational basis (i.e. excluding currency headwinds and any acquisitions and divestitures), the company’s business remained resilient in otherwise what can be described as a very uncertain economic backdrop. Its ‘Consumer Health’ division experienced adjusted operational sales
Dividend Growth Newsletter Portfolio Idea Lockheed Martin Continues to Power Ahead in 3Q 2022, Showcases Strong 3% Dividend Yield
October 18, 2022
Image: Lockheed Martin F-16CM 55th Fighter Squadron. Image Source: Tomas Del Coro By Brian Nelson, CFA Lockheed Martin (LMT) was added to the simulated Dividend Growth Newsletter portfolio in January 2020, a couple months before the worst of the COVID-19 crisis, and while its share price hasn’t kept pace with a broad market index since then, the stock has held up quite well since the beginning of this year. Lockheed Martin put up decent third-quarter 2022 results October 18. There were a number of things that we liked about the defense giant’s quarter. For starters, revenue nudged up on a year-over-year basis, reversing weakness witnessed through the first nine months of this year, while backlog advanced to $139.7
Dividend Growth Idea UnitedHealth Group Outperforming
October 18, 2022
Image Shown: Shares of dividend growth idea UnitedHealth Group Inc have put up stellar performance so far in 2022. By Callum Turcan On October 14, UnitedHealth Group Inc (UNH) reported third quarter 2022 earnings that beat both consensus top- and bottom-line estimates. The health care giant also increased its full-year guidance for 2022 (again) during its latest earnings update after previously boosting its full-year guidance during both its first and second quarter earnings reports. We include shares of UnitedHealth Group as an idea in the Dividend Growth Newsletter portfolio as the company is a stellar free cash flow generator backed up by a pristine balance sheet and bright growth outlook. Shares of UNH yield ~1.3% as of this writing. Earnings
Banks Held Up in 3Q 2022 But Mortgage Market Dynamics and Consumer Health Are Big Economic Concerns
October 14, 2022
Image: Homebuyer mortgage payments on new homes have increased more than 50% since last year due to rising interest rates. We think this is a precursor to lower housing prices, which could have implications across the banking and financials sector. Image Source: Redfin By Brian Nelson, CFA We’ve never been huge fans of taking on outsized banking and financials exposure in the simulated newsletter portfolios for a number of reasons. First, the banking industry, much like the insurance industry, is generally muted exposure to the broader economic environment. Though having some exposure to banking and financials may make sense, long-term investors are going to get a better bang for their buck with general operating entities that aren’t necessarily tied to
NextEra Energy Is a Great Income Growth Idea
October 14, 2022
Image Shown: NextEra Energy Inc is a great income growth idea that complies with ESG investing standards as the company is investing heavily in renewable energy power generation assets and battery storage facilities. Image Source: NextEra Energy Inc – June 2022 IR Presentation By Callum Turcan The utility sector is home to companies with stable and highly visible cash flows, particularly as it concerns regulated utility operations, given the essential nature of the services these enterprises provide. Regulated utility operations refers to utilities that participate in rate cases with state-level public utilities commissions (‘PUCs’), with these rate cases largely setting the parameters of what the relevant utility can charge its customers. Generally speaking, PUCs and the rate case process allows
