Brian Nelson

General Electric Is Still in Good Shape

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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 … Read more

Gearing Up for 2015 Outlooks

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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 … Read more

Merger Talk: Coach May Be In Play

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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 … Read more

Dividend Increases for the Week Ending December 12

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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 … Read more

Valuentum Mosaic Exclusive: Talks Between Yahoo and eBay Probable

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Let’s put it this way: the combined eBay and PayPal entity presently listed under the ticker symbol eBay (EBAY) is cheap. The combined company is trading in the mid-$50s with a market capitalization of ~$69 billion at present, and we value its shares in the mid-$70s (a ~$90+ billion valuation). We’re not the only one, in case you think that, despite everything we seem to get correct, we’re off our rockers with this valuation. Stifel, for example, recently labeled $75 per share as an upside case for the company. eBay remains a holding in the Best Ideas portfolio, and the equity markets are simply getting the company’s valuation wrong, in our view. It is one of the few true bargains … Read more

Yum! Brands’ KFC in a Lot of Trouble

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There was a time when Yum! Brands’ (YUM) KFC dominated the US chicken market, but those days are over.  Privately-held Chik-fil-A’s roots date back to the 1960s in Atlanta, but the company has gradually become the largest (yes, the largest) quick-service chicken restaurant chain in the US, based on domestic annual sales over $5 billion (with over 1,850 locations in 41 states and Washington D.C.). Chik-fil-A’s sales levels are better than Popeyes’ (PLKI) comparatively-modest ~$200 million in revenue and Yum! Brands’ ~$3 billion in revenue at its entire US division. Very few investors know about privately-held Chik-fil-A’s continued success in the states, and the firm’s growth is not slowing. From Chik-fil-A’s adorable cow campaign, ‘Eat Mor Chikin,’ where self-interested cows … Read more

Verizon Warns, AT&T and Sprint Sell Off

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The telecom services industry is in a pricing war, and we want no part of it. From outlining how AT&T’s (T) best dividend growth years are behind it (see its dividend report ) and revealing Verizon’s (VZ) potentially prohibitive debt load (see here) to Sprint’s (S) cutthroat pricing behavior and T-Mobile’s (TMUS) aggressive marketing, we’ve been pounding the table on how the telecom services industry is a mess right now. Verizon announced in a warning December 8 that the operating environment is not getting any better, and in our view, it may not for some time: As (Verizon) is accelerating the upgrades of high-quality customers to 4G, total retail postpaid disconnects are trending higher both sequentially and year over year … Read more

Yikes! Investor Expectations

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A few days ago, I received an email from a valued member of ours. He said that our call on Ford (F) was wrong because we removed shares from the Best Ideas portfolio too early. Another member mentioned a couple months ago that we removed Baidu (BIDU) from the Best Ideas portfolio too early, and he was extremely disappointed for this reason. One of our most valued financial advisor clients, whom said that our call on a certain industry had saved him millions in client assets, decided to cancel his subscription due to a structural shift in his business to ETFs. The puzzling part of all of this, however, is that our call on Ford reaped a ~35% gain, the … Read more

Prospect Capital Cuts Dividend

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As is often the case, the larger the dividend yield the more risky the payout. I talk about this quite a bit in the video: ‘Dividends, Dividends, Dividends.’ Please have a look. All else equal, we tend to prefer cash-flow-based operating companies such as Microsoft (MSFT) rather than opaque, risky structures such as business development companies (BDC’s), where traditional fundamental analysis is less-informative. Sure enough, a dividend cut at Prospect Capital (PSEC) came in a warm holiday package today. The business development company announced that it will reduce cash dividends to shareholders to $0.08333 on a monthly basis with the following record and payment dates: 8.333 cents per share for February 2015 (record date of February 27, 2015 and payment … Read more

Dividend Increases for the Week Ending December 5

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Below we provide a list of firms that raised their dividends during the week ending December 5. 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 Agree Realty (ADC): now $0.45 per share quarterly dividend, was $0.43. Alexandria REIT (ARE): now $0.74 per share quarterly dividend, was $0.72. Associated Estates Realty (AEC): now $0.21 per share quarterly dividend, was $0.20. Axis Capital Holdings Limited (AXS): now $0.29 per share quarterly dividend, was $0.27. C.H. Robinson Worldwide (CHRW): now $0.38 per share quarterly dividend, was $0.35. Cameco (CCJ): now C$0.10 per share quarterly … Read more