Member Articles

Realty Income Has Avoided Much of the Trouble in Retail

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Image Source: Realty Income Realty Income’s dividend track record largely speaks for itself, and the REIT may be one of the most attractive in its peer universe. With a focus on some of the strongest retail tenants, it has largely avoided most of the trouble in retail, too. The REIT recently declared its 566th consecutive common stock monthly dividend. By Brian Nelson, CFA Those that don’t know Realty Income (O) should get to know it. The real estate investment trust (REIT) isn’t called the ‘Monthly Dividend Company’ for no reason. Its dividend growth track record is simply a sight to see (1), and the company’s dividend yield is still relatively attractive at ~4.6%, better than the that of the average … Read more

CVS Health Still Stuck in Neutral

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CVS Health continues to perform as expected in the current lower reimbursement environment. We remain enthused with the copious amount of free cash flow that the enterprise produces, which has allowed management to continue its shareholder-friendly ways. We remain vigilant for signs of a key inflection point, however, and a catalyst may exist in the results of the current PBM selling season. By Alexander J. Poulos Overview CVS Health (CVS) operates a hybrid pharmacy model–it has melded together a ubiquitous pharmacy chain with a world-class Pharmaceutical Benefit Management (PBM) business. The hybrid model directly contrasts with the model operated by its primary rival Walgreens (WBA), which maintains a focus on pharmacy retail operations. The pharmacy retail field continues to consolidate … Read more

Recent Stock Drops; Dividend Cut Coming at Plains?

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Image Shown: Plains All American’s stock price may be building in a distribution cut that may materialize in the near term. Several companies disappointed the Street as of late. Though the broader equity markets have been generally calm and steadily-advancing, some underlying constituents have been anything but. By Brian Nelson, CFA It’s been a bull market for some time, but that doesn’t mean all is calm within the ranks. Plains All American (PAA) disappointed investors August 8 after performance during its second quarter came in below expectations and the company lowered forward guidance. We’ve been cautious on the master limited partnership (MLP) space and critical of certain industry-specific metrics for some time, so the disappointment shouldn’t be surprising to our readership. … Read more

Our Coverage Universe Ranked By Valuentum Dividend Cushion Ratio (Economic Castle)

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By Brian Nelson, CFA Valuentum’s investment research covers a lot of ground. Not only do we assess fundamental components such as revenue and earnings growth and technical considerations such as relative pricing strength in our 16-page stock reports, but our supplemental dividend reports showcase each firm’s dividend yield, strength and track record. We rely on the weight and depth of our research and analysis, which goes well beyond historical data, to arrive at a pertinent and relevant fundamental free cash flow measure of dividend health, the Valuentum Dividend Cushion. The Valuentum Dividend Cushion ratio is based on the firm’s future fundamental cash-flow generation and the health of its balance sheet, helping investors avoid the two major factors that cause dividend cuts (click here). The ratio is forward-looking … Read more

The Top 25 Most Overvalued Stocks Over $10

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Image Source: lecates To access the 16-page stock report or dividend report of any company in this download, please use the ‘Symbol’ search box in our website header. We think stocks in a screen of the most overvalued companies, on a price-to-fair value rank, may have significant downside pricing risk. Buyer beware. Use the download below to uncover stocks that may be the most overvalued on the market, on the basis of price-to-fair value. How to filter data in Excel? Click here. Download the screener or build your own screener here (xls). Important Note: The data and rankings are updated frequently and are current as of the date of this download. Valuentum may have updated the stock and dividend reports of companies after the published … Read more

The 25 Cheapest Stocks Over $10 on the Market Today

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Image Source: Dave Dugdale Though a screen of the cheapest stocks on the market will include stocks that we think have fallen out of favor with the market (and look underpriced on the basis of our discounted cash-flow process), we also rely on the Valuentum Buying Index, which considers pricing momentum as a key component in the stock-selection process. The discounted-cash flow exercise is vitally important, but it is just one of the many considerations we look at to determine whether any stock is appropriate for either the Best Ideas Newsletter portfolio or Dividend Growth Newsletter portfolio. To access the 16-page stock report of any company of interest, please use the ‘Symbol’ search box in our website header. Use the download below … Read more

Stocks with High Valuentum Buying Index Ratings and Strong Dividend Growth Prospects

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Value-oriented dividend growth investors may be focused on stocks that have high Valuentum Buying Index™ ratings and strong dividend growth prospects. A screen of the list of interesting dividend-paying stocks that may be among the most timely ideas to consider on the basis of our stock-selection methodology, the Valuentum Buying Index, may be of interest to readers. You may see many in a screen with this criteria that are already ideas in the Dividend Growth Newsletter portfolio. Our best dividend growth ideas to consider will always be included in the Dividend Growth Newsletter portfolio. Though the Dividend Growth Newsletter portfolio is often near fully-invested, we may swap in stocks in such a screen, or stocks on the dividend-growth watch list, at the “right” price, … Read more

Stocks That Are Cheap on Both a DCF and Relative Value Basis

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We think stocks that are undervalued on both a discounted cash-flow (DCF) basis and a relative value basis may be attractive to the pure value investor. Stocks that we consider undervalued on both a discounted cash-flow basis and on a relative value basis, if not already rated a 9 or 10 on the Valuentum Buying Index (VBI), may soon become highly-rated on the index once/if their technical/momentum indicators improve. We think a screen like the one described may be one to monitor closely for new ideas (if Best Ideas Newsletter portfolio ideas and/or Dividend Growth Newsletter portfolio ideas are not of interest). Importantly, the Best Ideas Newsletter portfolio puts the Valuentum Buying Index into practice, while the Dividend Growth Newsletter portfolio combines our … Read more

Dividend Yields to Consider Avoiding!

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Image Source: Eugene Zemlyanskiy By Brian Nelson, CFA As many investors know, a company’s stock can often become cheap for good reasons. That is, the stock is not trading cheaply because of Mr. Market’s irrational behavior, but instead is trading at depressed levels due to deteriorating underlying fundamental characteristics that actually justify its current share price, even if traditional valuation techniques (read multiple analysis) suggest the firm’s shares are inexpensive. On a similar note, firms that boast high dividend yields may do so because the market has little confidence in the sustainability of its dividend and believes a cut may be just around the corner. Though we fall short of saying stocks with materially negative Dividend Cushion ratios–our dividend-cut predictive … Read more