Member Articles

Dividend Increases/Decreases for the Week October 8

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Below we provide a list of firms that raised their dividends during the week ending October 8. 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 Cadence Bancorporation (CADE): now $0.158 per share quarterly dividend, was $0.150. Caledonia Mining (CMCL): now $0.14 per share quarterly dividend, was $0.13. CF Bankshares (CFBK): now $0.04 per share quarterly dividend, was $0.03. Coterra Energy (CTRA): now $0.50 per share special dividend, was $0.11. Fortitude Gold (FTCO): now $0.04 per share monthly dividend, was $0.035. Mesabi Trust (MSB): now $1.42 per share quarterly dividend, was $0.09. … Read more

Domino’s Pizza Is a Stellar FCF Generator with an Enormous Growth Runway

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Image Source: Domino’s Pizza Inc – Second Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan One of our favorite capital appreciation ideas is Domino’s Pizza Inc (DPZ), and we include shares of DPZ as an idea in our Best Ideas Newsletter portfolio. The company’s unit economics are incredibly attractive for current and potential franchisees, which encourages current franchises to expand their existing operations and potential franchisees to join the team. At the top end of our fair value estimate range, Domino’s Pizza has a fair value of $541 per share, well above where shares of DPZ are trading at as of this writing. Great Business Model Domino’s Pizza recently launched its first store in Lithuania and now operates … Read more

Innovative Fuel Cell Company Ceres Power Has a Stellar Growth Outlook

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Image Shown: Ceres Power Holdings plc is a pioneer in the fuel cell industry. If Ceres Power and its strategic partners are successful, Ceres Power could offer investors ample capital appreciation upside though we caution that this is a highly speculative name. Image Source: Ceres Power Holdings Plc – First Half of 2021 Interim Report IR Presentation By Callum Turcan We wrote about Ceres Power Holdings plc (CPWHF), a UK-based pioneer in the fuel cell industry focused on building up a commercially viable licensing and royalty business, back in February 2021 (link here). The company is an innovator in the solid oxide fuel cell (‘SOFC’) industry, led by its SteelCell technology, and more recently started pushing into the realm of … Read more

Markets Look Vulnerable, Adding “Protection”

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Image: The S&P 500 (SPY) and corresponding 50-day (green), 100-day (purple), and 200-day moving averages (red). We expect the SPY may have to “correct” to the 200-day moving average, or about $412-$413 per share before it finds its footing. Self-inflicted wounds the past several weeks have altered the market’s sentiment for the worse, and we don’t think the selling is done yet. To read the email, please click here. — Hi everyone: — Volatility has picked up, and options trading is all the rage. — The markets are under pressure again this morning, and we’re not wasting any time to add put option “protection” to both the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio. The last time we added … Read more

Best Idea Visa on the Rebound, Generating Gobs of Free Cash Flow

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Image Shown: Visa Inc is a stellar free cash flow generator and is included as an idea in our Best Ideas Newsletter portfolio. Image Source: Visa Inc – Third Quarter of Fiscal 2021 IR Earnings Presentation By Callum Turcan We’re huge fans of the payment processing and payment solutions space. This industry is supported by secular growth tailwinds due to the global shift away from cash-to-card and card-not-present (e.g. online purchases) purchase options, and the ongoing proliferation of e-commerce. Furthermore, companies in this space benefit immensely from the network effect, which creates an economic moat for their business.  These companies are incredibly lucrative with relatively high operating margins and impressive free-cash-flow generating abilities, aided by their relatively modest capital expenditure … Read more

Dividend Increases/Decreases for the Week October 1

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Below we provide a list of firms that raised their dividends during the week ending October 1. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports, please use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week American Financial (AFG): now $0.56 per share quarterly dividend, was $0.50. BancFirst (BANF): now $0.36 per share quarterly dividend, was $0.34. Bancolombia S.A. (CIB): now $0.067 per share quarterly dividend, was $0.061. Bank OZK (OZK): now $0.29 per share quarterly dividend, was $0.285. Benefit Street Partners Realty Trust (BESP): now $0.355 per share quarterly dividend. Broadstone Net Lease (BNL): now $0.255 per share quarterly dividend, … Read more

Honeywell’s Dividend Growth Supported by Promising Cash Flow Growth Outlook

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Image Source: Honeywell International Inc – Second Quarter of 2021 IR Earnings Presentation By Callum Turcan We view Honeywell International Inc (HON) as one of the best industrial plays out there and include shares of HON as an idea in the Dividend Growth Newsletter portfolio. Honeywell has exposure to the aerospace and downstream energy markets–industries that were hit hard by the coronavirus (‘COVID-19’) pandemic but are now recovering in earnest–and to the proliferation of e-commerce and “smart buildings.”  Furthermore, in the event that a bipartisan infrastructure bill currently awaiting approval in the US House of Representatives gets signed into law, Honeywell has exposure to the expected surge in domestic infrastructure investments. Our fair value estimate for Honeywell sits at $240 … Read more

Facebook’s Stock Sell Off Explained

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Image: Facebook’s free cash flow generation has been resilient in the face of prior iOS updates, and we think it will continue to grow rapidly in the future. Source: Facebook. By Brian Nelson, CFA We never like to see a 10-rated stock sell off, even if it’s up more than 30% so far this year and up over 140% since it registered a 10 on the Valuentum Buying Index in January 2019, but that’s what we’ve been closely following with Facebook (FB). The stock experienced similar selling pressure during the summer of 2018, and while we’re huge fans of this underpriced tech giant in the long run, we think shares may face more selling pressure in the near term. Nonetheless, … Read more

Update on High-Yielding Philip Morris

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Image Shown: Shares of Philip Morris International Inc have performed quite well over the past year. By Callum Turcan One of our favorite high-yielding plays is Philip Morris International Inc (PM)—5.0% yield—the tobacco giant behind the Marlboro cigarette brand (excluding the US market) and the incredibly popular IQOS product, a heated tobacco unit (‘HTU’) offering . Shares of PM are included as in idea in the High Yield Dividend Newsletter portfolio (more on that here) and as of this writing, Philip Morris’ stock price is up 23% year-to-date before taking dividend considerations into account. The top end of our fair value estimate range sits at $119 per share of Philip Morris, indicating there is ample room for shares of PM … Read more

Booming Natural Gas Prices Great News for Chevron and ExxonMobil

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Image Shown: Chevron Corporation – August 2021 IR Presentation By Callum Turcan Natural gas prices in the US measured by the Henry Hub benchmark (UNG) based in Erath, Louisiana, have surged higher over the past several months. This is partially due to the slowdown in domestic oil & gas development activity that occurred back in 2020 in the wake of the coronavirus (‘COVID-19’) pandemic and low crude oil prices. Though crude oil prices, measured by the domestic WTI (USO) and international Brent (BNO) benchmarks, have since recovered, that has not resulted in domestic drilling activity returning to levels seen in 2019, though development activity has recovered somewhat. Henry Hub futures are trading north of $5 per million British thermal units … Read more