Brian Nelson

Dividend Increases/Decreases for the Week of June 9

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Below we provide a list of firms that raised their dividends during the week ending June 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                          Alexandria Real Estate Equities (ARE): now $1.24 per share quarterly dividend, was $1.21. Casey’s General Stores (CASY): now $0.43 per share quarterly dividend, was $0.38. Guess? (GES): now $0.30 per share quarterly dividend, was $0.23. Johnson Controls International (JCI): now $0.37 per share quarterly dividend, was $0.36. NetEase (NTES): now $0.465 per share quarterly dividend, was $0.435. Oil Dri (ODC): now $0.29 per share … Read more

Apple’s ‘Vision Pro’ Not in Our Valuation Model; Expect Upside

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Image: Apple released its first major product since the Apple Watch in the Vision Pro on June 5. The device opens the door to the era of spatial computing and is priced at $3,499. By Brian Nelson, CFA Apple (AAPL) unveiled its Vision Pro at the company’s Worldwide Developers Conference on June 5. We were impressed with the new major product launch, its first since the release of the Apple Watch nearly a decade ago but estimating the total market opportunity for a $3,499 device is a difficult one. The Vision Pro will be available in early 2024 and will compete in many areas with the Meta (META) Quest, and we expect Apple’s annual numbers come next year to be … Read more

ALERT: Going to “Fully Invested” in the Best Ideas Newsletter Portfolio

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Image: Since the publishing of the first edition of the book Value Trap, the stylistic area of large cap growth (SCHG) has meaningfully outperformed both the equal-weight S&P 500 (SPY) and small cap value (IWN). Summary of Best Ideas Newsletter portfolio changes UnitedHealth Group (UNH): 0% –> 4%-6% Booking Holding (BKNG): 0% –> 4%-6% Chipotle (CMG): 1%-2% –> 6%-8% Technology Select Sector SPDR (XLK): 0% –> 4%-6% By Brian Nelson, CFA With the debt-ceiling debate behind the markets, the regional banking crisis largely in the rear-view mirror, and the Fed winning the fight against inflation, a continuation of the strength in the markets as witnessed from the October 2022 lows can probably be expected. We “rode” the latest upswing with … Read more

Dividend Increases/Decreases for the Week of June 2

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Below we provide a list of firms that raised their dividends during the week ending June 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                          Bruker (BRKR): now $0.06 per share quarterly dividend, was $0.05. Clearway Energy (CWEN): now $0.3818 per share quarterly dividend, was $0.3745. Golar LNG (GLNG): now $0.25 per share quarterly dividend, was $0.15. Infosys Limited (INFY): now $0.213349 per share semi-annual dividend, was $0.2005. Laurentian Bank of Canada (LB:CA): now CAD 0.47 per share quarterly dividend, was CAD 0.46. National Bank of Canada (NA:CA): now … Read more

ICYMI: The Impact Rising Interest Rates Have on Equity REITs

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Image: REITs have not performed as well as one might have thought. The Vanguard REIT ETF has underperformed the broader market considerably since 2015, while dividends per share have not grown much, if at all, since 2005. Source: Vanguard By Brian Nelson, CFA The question on most everyone’s minds: How will equity real estate investment trusts (REITs) fare in the current rising interest-rate environment? The topic has long been debated and studied, and there are myriad opinions on the subject. From where we stand, however, there are two main moving parts consisting of fundamental and investment dynamics that investors should be aware of. Let’s have a look. Fundamental Considerations In the discounted cash-flow (enterprise) valuation context, a rising nominal interest rate (real + inflation) … Read more

Phillips 66’s Stock May Be Volatile But Its Management Remains Very Shareholder Friendly

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Image: Phillips 66’s shares have been quite volatile as refining margins ebb and flow, but shares are up nicely since the start of 2021 even as they’ve given up some ground so far in 2023. By Brian Nelson, CFA The refining business isn’t an easy one. Not only are refiners exposed to potentially higher feedstock costs but prices at the pump could further squeeze refining margins at times. What we like about Phillips 66 (PSX) is that it generally has advantaged feedstock resources, and it is extremely shareholder friendly. The company recently raised its dividend to $1.05 per common share on a quarterly basis and expects to return $10-$12 billion in shareholder distributions between July of last year and year-end … Read more

Dividend Increases/Decreases for the Week of May 26

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Below we provide a list of firms that raised their dividends during the week ending May 26. 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 Tower (AMT): now $1.57 per share quarterly dividend, was $1.56. Autoscope Technologies (AATC): now $0.26 per share quarterly dividend, was $0.12. Bank of Montreal (BMO): now CAD 1.47 per share quarterly dividend, was CAD 1.43. Bank of Nova Scotia (BNS): now CAD 1.06 per share quarterly dividend, was CAD 1.03. Canadian Imperial Bank (CM): now CAD 0.87 per share quarterly dividend, was CAD … Read more

Nvidia Rockets Higher to Propel Large Cap Growth

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Image: Nvidia powers higher after releasing better-than-expected second-quarter fiscal 2024 guidance. The company continues to be a driver behind the outperformance of large cap growth as a stylistic area. By Brian Nelson, CFA We haven’t seen a quarterly guidance beat like this since Synaptics (SYNA) put up a monster quarter when Apple (AAPL) started using its innovative click-wheel technology in the first-generation iPod, almost 20 years ago. Nvidia Corp.’s (NVDA) outlook for the second quarter of its fiscal 2024 was phenomenal thanks to tremendous interest in its chips that power artificial intelligence [AI]. We expect a material increase in our fair value estimate of Nvidia, but shares remain quite pricey, in our view. Revenue during Nvidia’s fiscal second quarter is … Read more

Dick’s Sporting Goods Trades at Less Than 10x Expected Fiscal 2023 Earnings; We Like Shares

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Image Source: Dick’s Sporting Goods By Brian Nelson, CFA When it comes to retail exposure, Dick’s Sporting Goods (DKS) is one of our top considerations. The company reported strong first-quarter fiscal 2023 results for the period ending April 29, 2023, that showed 3.4% same-store-sales growth and a 19% advance in non-GAAP earnings per diluted share. For fiscal 2023, management is targeting positive same-store sales expansion and earnings per diluted share in the range of $12.90-$13.80, implying that shares are trading at less than 10x expected fiscal 2023 earnings. The company has considerable long-term operating lease liabilities, but it has a net cash position. Dick’s Sporting Goods raised its dividend considerably recently, and we continue to like shares in the Dividend … Read more

Call Me Unconcerned

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Image: Large cap growth has dominated returns the past five years. The Best Ideas Newsletter portfolio continues to have significant exposure to this area. By Brian Nelson, CFA When it comes to the financial markets, the debt ceiling debate is nothing to worry about. Countries (sovereigns) cannot generally default on debt that is denominated in their own currency. The concern that there will be any sort of calamity if the U.S. government doesn’t raise the debt ceiling is far overblown, in our view. The political will of the U.S. to pay its debt will only resolve itself in time, and any risk premium built into Treasuries as a result of the debt ceiling showdown will be fleeting. Of course, nobody … Read more