Dividend Growth Idea Oracle Showing Serious Growth Momentum
June 22, 2022
Image Source: Oracle Corporation – September 2019 IR Presentation By Callum Turcan On June 13, Oracle Corporation (ORCL) reported fourth quarter earnings for fiscal 2022 (period ended May 31, 2022) that beat both consensus top- and bottom-line estimates. The tech giant also provided favorable constant currency revenue growth guidance for its cloud businesses for fiscal 2023. Shares of ORCL initially surged higher in the wake of its latest earnings report before drifting modestly lower along the decline in broader equity markets. We include Oracle as an idea in the Dividend Growth Newsletter portfolio and shares of ORCL yield ~1.9% as of this writing. Quarterly Update In the fiscal fourth quarter, Oracle’s GAAP revenues grew by 5% year-over-year and were up
Consumer Staples Struggling with Higher Inflationary Costs, Group Hits 52-Week Lows
June 20, 2022
Image: The Vanguard Consumer Staples ETF (VDC) has notched a new 52-week low, and investors should note that we don’t think consumer staples entities are immune to an environment of higher inflation, where their price increases may not be fully absorbed by the consumer. Due to the commoditization of many of the goods produced in the consumer staples space, we think the consumer may instead trade down to off-brands or white label (“store brand”) products than pay up for branded merchandise. By Brian Nelson, CFA On June 10, the U.S. Bureau of Labor Statistics released its Consumer Price Index Summary for May showing inflation continues at an elevated pace, “with the indexes for shelter, gasoline, and food being the largest
Prologis Buying Duke Realty as Logistical Real Estate Market Consolidates Further
June 14, 2022
Image Shown: Prologis Inc is merging with Duke Realty Corporation through an all-stock acquisition that will see Prologis cement itself as a logistical real estate powerhouse in the US and worldwide. Image Source: Duke Realty Corporation / Prologis Inc – June 2022 IR Presentation announcing the acquisition of Duke Realty by Prologis By Callum Turcan On June 13, Prologis Inc (PLD) announced it was buying Duke Realty Corporation (DRE) through an all-stock transaction worth ~$26 billion when including the assumption of debt. In the wake of severe capital market volatility, some major deals in the real estate investment trust (‘REIT’) space are still getting done. Back in May 2022, Duke Realty rejected Prologis’ previous offer worth ~$24 billion as being
Best Idea Korn Ferry Supported by Stellar Financials
June 14, 2022
Image Shown: Korn Ferry put up tremendous performance in the quarter ended January 2022 and provided favorable near term guidance in conjunction with its fiscal third quarter earnings update. We include Korn Ferry in our Best Ideas Newsletter portfolio. Image Source: Korn Ferry – Third Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan The global organizational consulting firm Korn Ferry (KFY) is included in the Best Ideas Newsletter portfolio and we continue to be huge fans of the name. Korn Ferry is a tremendous free cash flow generator with a stellar business model. The differentiated nature of its offerings provides Korn Ferry with ample pricing power, allowing it to preserve its margins in the face of major inflationary
Dividend Increases/Decreases for the Week of June 10
June 10, 2022
Below we provide a list of firms that raised their dividends during the week ending June 10. 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 ACRES Commercial Reality Corp. 7.875 CUM PFD D (ACR.PD): now $0.4921 per share quarterly dividend. BRT Apartments (BRT): now $0.25 per share quarterly dividend, was $0.23. Cardinal Energy (CRLFF): now CAD 0.05 per share monthly dividend, was CAD 0.015. Caseys General Stores (CASY): now $0.38 per share quarterly dividend, was $0.35. Caterpillar (CAT): now $1.20 per share quarterly dividend, was $1.11. Citizens Financial Services (CZFS): now
Taiwan Semi Firing on All Cylinders
June 10, 2022
Image Source: Taiwan Semiconductor Manufacturing Company – First Quarter of 2022 IR Earnings Presentation By Callum Turcan Semiconductor components, or “chips,” are the bedrock of the digital economy. Taiwan Semiconductor Manufacturing Company (TSM) operates numerous semiconductor fabrication sites all of the world, with its major manufacturing hub located in Taiwan, that produce chips utilized in all sorts of applications. Furthermore, Taiwan Semi is one of only a handful of companies capable of producing high-end chips at scale. Taiwan Semi’s business model revolves around producing chips for third-parties as the firm does not design semiconductor components itself, and the company is the largest semiconductor foundry in the world (foundries are chip fabrication sites specifically built to meet third-party needs). We are
Albemarle Raises Guidance Twice in One Month!
June 9, 2022
Image Shown: An overview of Albemarle Corporation’s business profile. We include Albemarle as an idea in our ESG Newsletter portfolio. Image Source: Albemarle Corporation – May 2022 IR Presentation By Callum Turcan When the specialty chemicals company Albemarle Corporation (ALB) published its first quarter 2022 earnings report on May 4, the firm boosted its full-year guidance in a big way. That guidance boost was attributed to outperformance at its lithium operations and to a lesser extent, its bromine operations, which offset major inflationary headwinds facing its refining catalysts operations. In the wake of favorable contract negotiations covering sales of lithium derivatives and related products, Albemarle further boosted its full-year guidance in late May (on May 23). Two favorable guidance increases
