Member Articles

Salesforce’s Growth Story Continues

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Image Shown: Salesforce Inc expects its impressive revenue growth story will continue at a brisk pace going forward. Image Source: Salesforce Inc – Company IR Presentation By Callum Turcan On December 1, Salesforce Inc (CRM) reported third quarter earnings for fiscal 2021 (period ended October 31, 2020) that saw the Software-as-a-Service (‘SaaS’) giant beat both consensus top- and bottom-line estimates. While Salesforce has historically focused on growing its core customer relationship management (‘CRM’) offerings, the firm more recently has been expanding into new and adjacent areas to extend its impressive growth runway. Acquisitions For instance, Salesforce announced it was acquiring Slack Technologies Inc (WORK) at the start of December for ~$27.7 billion in a cash-and-stock deal. This acquisition will significantly … Read more

DocuSign Has All the Makings of a Long-Term Winning Enterprise

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Image Source: DocuSign Investor Presentation Winter 2020. By Brian Nelson, CFA On December 3, cloud software provider DocuSign (DOCU)–best known for its electronic signature (eSignature)–reported fantastic third quarter fiscal 2021 results. We expect to raise our fair value estimate for shares upon its next update and point to the high end of our existing fair value estimate range of $295 per share for those investors taking an optimistic bent on this disruptive innovator. The company continues to revolutionize the traditional way people conduct business through contracts, offer letters and other agreements, and the outbreak of COVID-19 has only accelerated trends toward virtual business processes. DocuSign is tapping into a very large market opportunity, estimated at ~$50 billion, and the company’s … Read more

This Stock Just Registered a Rare (Perfect) 10 on the VBI!

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By Brian Nelson, CFA — At Valuentum, we like to look at companies from a number of different perspectives. The Valuentum Buying Index (VBI) combines rigorous financial and valuation analysis with an evaluation of a stock’s technicals to derive a rating between 1 and 10 for each company. The VBI places considerable emphasis on a company’s discounted cash-flow (DCF) valuation, its relative (behavioral) valuation versus peers (both forward PE and PEG ratios), and its technicals in order to help readers assess entry and exit points on the most interesting ideas. — Let’s follow the red line on the flow chart above to see how a company can score a 10, the best mark on the index (a “Top Pick”). First, the … Read more

Walking Through the Calculation of the Dividend Cushion Ratio

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A cow for her milk, A hen for her eggs, And a stock, by heck, For her dividends. An orchard for fruit, Bees for their honey, And stocks, besides, For their dividends. – John Burr Williams, “The Theory of Investment Value” (1938) Executive Summary: We believe the Dividend Cushion ratio is one of the most helpful tools an income or dividend growth investor can use in conjunction with qualitative dividend analysis. The ratio is one-of-a-kind in that it is both free-cash-flow based, considers balance sheet health, and is forward looking. Since its development in 2012, we estimate its efficacy at ~90% in helping to forewarn readers of impending dividend cuts. For companies where Valuentum reports are available, the Dividend Cushion ratio can be found in a stock’s Dividend … Read more

Adding 5 Dividend Growth Gems to the Newsletter Portfolio!

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Image Source: Mike Cohen By Valuentum Analysts We are adding five dividend growth gems to fill the ~10% cash allocation in the simulated Dividend Growth Newsletter portfolio that came from removing Intel (INTC) a number of weeks ago. Each gem will be allocated at a 2% weighting. The changes will be reflected in the upcoming December edition of the Dividend Growth Newsletter (see archives), which will be released December 1. Here are the five additions: Qualcomm, Inc. – 2% weighting Qualcomm (QCOM) has revolutionized the mobile phone industry. Through its own R&D and through partnerships with other firms, the company develops breakthrough technology and then licenses it. The firm has one of the strongest Economic Castles in our coverage. We … Read more

Republic Services Is a Great Company

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Image Shown: Shares of Republic Services Inc have been on an upward march over the past six months as investors warmed back up to the waste management company. We appreciate the company’s stable cash flow profile and high quality earnings, and we continue to include shares of RSG at a modest weighting in our Dividend Growth Newsletter portfolio. By Callum Turcan The waste management company Republic Services Inc (RSG) has proven to be incredibly resilient during the ongoing coronavirus (‘COVID-19’) pandemic. We are big fans of its stable cash flow profile and high quality earnings. According to Republic Services’ 2019 Annual Report the firm “is the second largest provider of non-hazardous solid waste collection, transfer, disposal, recycling, and environmental services … Read more

Dividend Increases/Decreases for the Week November 27

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Below we provide a list of firms that raised their dividends during the week ending November 27. 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 Alamos Gold Inc. (AGI): now $0.02 per share quarterly dividend, was $0.015. Becton, Dickinson (BDX): now $0.83 per share quarterly dividend, was $0.79. Bentley Systems (BSY): now $0.03 per share quarterly dividend. Brigham Minerals (MNRL): now $0.24 per share quarterly dividend, was $0.14. Cullen/Frost Bankers (CFR): now $0.72 per share quarterly dividend, was $0.71. Eaton Vance (EV): now $4.25 per share special dividend, was $0.375. First … Read more

Dick’s Sporting Goods’ 2%+ Dividend Yield Is Solid

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Dick’s Sporting Goods put up impressive third-quarter results that showed strong sales performance across both e-commerce and brick-and-mortar. E-commerce/digital/online sales continue to soar across the broader retail arena. Dick’s Sporting Goods’ gross and merchandising margins were healthy during its third quarter, and its inventory is clean as the sporting goods retailer heads into the all-important holiday season. We’re big fans of Dick’s Sporting Goods’ tremendous free cash flow generation and its balance sheet health. For dividend growth investors, Dick’s Sporting Goods offers a compelling combination of a 2%+ dividend yield and an impressive 3.2 Dividend Cushion ratio at the time of this writing. By Brian Nelson, CFA On November 24, Dick’s Sporting Goods (DKS) reported fantastic third-quarter results that showed … Read more

Sonos Showing Signs of Life

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Image Shown: Shares of Sonos Inc are showing signs of life in 2020 after its poor showing in the quarters that followed its initial public offering back in August 2018. By Callum Turcan Shares of the audio streaming services and wireless home audio products company Sonos Inc (SONO) are starting to show signs of life after their poor showing in the quarters that followed its initial public offering back in August 2018. More recently, shares of SONO have started to surge higher after the firm reported fourth quarter and full year earnings for fiscal 2020 (period ended October 3, 2020) on November 18. The company smashed past consensus top- and bottom-line estimates, though most importantly, Sonos provided very promising guidance … Read more

Target Reaches All-Time Highs

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Image Shown: Shares of Target Corporation are now trading near their all-time highs as of this writing. By Callum Turcan Shares of Target Corporation (TGT) recently reached an all-time high after the company reported third quarter earnings for fiscal 2020 (period ended October 31, 2020) on November 18 that smashed past consensus estimates on both the top- and bottom-lines. The top end of our fair value estimate range sits at $182 per share, and as of this writing, shares of TGT are trading near $172, indicating Target appears fairly valued at this time. Shares of TGT yield a decent ~1.6% as of this writing, and we give Target a “GOOD” Dividend Safety rating given its impressive cash flow profile. Operational … Read more