Member Articles

Risk Management: Diversified Stock Selection or Modern Portfolio Theory?

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Image Shown: If one had concentrated in large cap growth the past 10 years (blue fill), or basically in undervalued stocks that had strong momentum, one would have outperformed the category of small cap value (IWN, second best in chart) and the 60/40 stock/bond portfolio (VBINX, orange) by an incredible 200+ percentage points. Image Source: Morningstar. By Brian Nelson, CFA I hosted a small estate sale late last week. Hours in the blistering sun brought a number of interested buyers and some small change, but that several people and families found use for my brother’s things has left a feeling in me that’s priceless. It’s been a while since one of our emails hit your inbox, but things have been slow … Read more

Dividend Growth Idea Qualcomm Proactively Managing Fallout from Global Chip Shortage

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Image Shown: Qualcomm Inc, one of our favorite semiconductor firms, noted in March 2021 that the rollout of 5G wireless networks is accelerating which in turn supports its outlook. We include shares of QCOM as an idea in our Dividend Growth Newsletter portfolio. Image Source: Qualcomm Inc – 2021 Annual Meeting of Stockholders IR Presentation By Callum Turcan One of our favorite ways to gain exposure to the semiconductor industry is Qualcomm Inc (QCOM), and we include shares of QCOM as an idea in the Dividend Growth Newsletter portfolio. Qualcomm’s IP portfolio and the “chips” that it designs play an essential role in enabling 5G connectivity in smartphones, powering the digital capabilities of modern automobiles, and supporting wireless network operations … Read more

Vertex Pharma Still Extremely Healthy Even After VX-864 Disappointment

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Image Shown: Vertex Pharma has a huge net cash position on the balance sheet offering it tremendous financial flexibility. Image Source: Vertex Pharma. By Brian Nelson, CFA A broadly diversified stock portfolio of 15-25 securities or no less than 15 securities across most, if not all S&P 500, sectors may make sense for a lot of long-term investors. Included in this diversified mix of equities may be biotech exposure, and our favorite way to play the speculative biotech space, albeit in a very small allocation in the Best Ideas Newsletter portfolio, is with Vertex Pharma (VRTX). We’re not making any changes to the newsletter portfolio in light of news of a recent setback at the company. On Thursday June 10, … Read more

CubeSmart Outperforms and Boosts Its Full-Year Guidance

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Image Source: CubeSmart – June 2021 IR Presentation By Callum Turcan We are big fans of the self-storage real estate investment trust (‘REIT’) industry given the ability for firms operating in this arena to generate meaningful free cash flows, a difficult task for most REITs considering their hefty capital expenditure requirements. CubeSmart (CUBE) is one of our favorites in the space and we include shares of CUBE as an idea in the High Yield Dividend Newsletter portfolio. Shares of CUBE are up 38% year-to-date as of the end of normal trading hours on June 10, easily outpacing the 12% gain seen in the S&P 500 (SPY) during this period before taking dividend considerations into account. As of this writing, shares of … Read more

Dividend Increases/Decreases for the Week June 11

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Below we provide a list of firms that raised their dividends during the week ending June 11. 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 Realty (ACR): now $0.5391 per share quarterly dividend, was $0.2750. AFC Gamma (AFCG): now $0.38 per share quarterly dividend, was $0.36. ArcelorMittal (MT): now $0.30 per share annual dividend, was $0.20. Caterpillar (CAT): now $1.11 per share quarterly dividend, was $1.03. Chesapeake Utilities (CPK): now $0.48 per share quarterly dividend, was $0.44. China Yuchai (CYD): now $1.70 per share annual dividend, was $0.85. Community … Read more

Public Storage and Philip Morris Are Stellar High-Yielding Opportunities

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Image Shown: Shares of Public Storage (depicted by the orange line) and Philip Morris International Inc (depicted by the blue line) have outperformed the S&P 500 (depicted by the yellow line) year-to-date as of midday trading on June 9, before taking dividend considerations into account. We continue to be huge fans of Public Storage and Philip Morris and include both firms as ideas in our High Yield Dividend Newsletter portfolio. By Callum Turcan Public Storage (PSA), the self-storage real estate investment trust (‘REIT’) primarily focused on the US, and Philip Morris International Inc (PM), the global tobacco giant behind the Marlboro brand and the IQOS offering, are two of our favorite high-yielding ideas. As one can see in the graphic … Read more

News Round Up and Some Answers

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Image Shown: Wendy’s is the latest stock to be swept away by the meme-stock craze, providing further evidence that 1) markets are inefficient and 2) prices and returns are based on future expectations that may be realized or not. By Brian Nelson, CFA Hope you all are doing great. We saw a nice breakout of Facebook’s (FB) share price yesterday, June 7, and we continue to be fans of the social media giant. We view our long-term assumptions as quite reasonable and peg a fair value estimate of $413 per share for this innovative behemoth. There is considerable upside potential as Facebook continues to monetize its massive user base and pursues new initiatives including e-commerce (Shops) and dating (Dating) and … Read more

Favorite Miner Newmont Shines Bright

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Image Source: Newmont Corporation – June 2021 IR Presentation By Callum Turcan On January 13, 2020, we added shares of Newmont Corporation (NEM) as an idea to the Dividend Growth Newsletter portfolio (link here). The gold miner has a top-notch asset base located in favorable mining jurisdictions with ample reserves to maintain and potentially grow its production base over the coming years. Other than gold, Newmont also produces silver, lead, copper, and zinc. Newmont Shines Bright as Stellar Income Growth Idea When Newmont joined the Dividend Growth Newsletter portfolio its quarterly dividend stood at $0.14 per share, though management had communicated on January 6, 2020, that Newmont was set to increase its quarterly payout up to $0.25 per share starting … Read more

Best Idea Vertex Pharma Continues to Impress

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Image Shown: We are big fans of Vertex Pharmaceuticals Inc and include shares of VRTX as an idea in our Best Ideas Newsletter portfolio. The biotech firm posted a solid first quarter 2021 earnings report in late-April. Image Source: Vertex Pharmaceuticals Inc – First Quarter of 2021 Earnings IR Presentation By Callum Turcan On April 29, Vertex Pharmaceuticals Inc (VRTX) reported first quarter 2021 earnings that beat both consensus top- and bottom-line estimates. Its GAAP revenues popped higher by 14% year-over-year as sales of its TRIKAFTA/KAFTRIO therapeutic offerings (TRIKAFTA is the US brand name, KAFTRIO is the European brand name) which treat cystic fibrosis (‘CF’) grew by 33% year-over-year. Economies of scale and revenue growth enabled Vertex Pharma to grow … Read more

Dividend Increases/Decreases for the Week June 4

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Below we provide a list of firms that raised their dividends during the week ending June 4. 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 $1.12 per share quarterly dividend, was $1.09. American Eagle Outfitters (AEO): now $0.18 per share quarterly dividend, was $0.14. Eastern Bankshares (EBC): now $0.08 per share quarterly dividend, was $0.06. Essential Properties (EPRT): now $0.25 per share quarterly dividend, was $0.24. Federal Agricultural Mortgage Corporation PFD C FIX TO FLT (AGM.PC): now $0.375 per share quarterly dividend. First Savings Financial … Read more