Member Articles

Top Weighted Dividend Growth Newsletter Portfolio Holding Leaps!

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We’ve pounded the table time and time again on Dividend Growth Newsletter portfolio holding Microsoft (MSFT), and shares are surging today on the back of a strong calendar first-quarter report. We are asked quite a bit about how our service differs from others’. Though we’d like to point to our experience and judgment as key considerations, perhaps the most direct answer that speaks to the efficacy of our research, analysis and process rests in our hit rate (the percentage of newsletter portfolio ideas that outperform), which is second to no one. If you’ve read anything about our dividend growth process, it should be no suprise that we expect Microsoft to be a dividend behemoth for decades to come due to its … Read more

Yet Another Best Ideas Portfolio Holding Surges!

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Best Ideas portfolio holding eBay (EBAY) reported excellent first-quarter results, and shares are surging today. We’ve profiled the company many a time before, and it has been in the Best Ideas portfolio for a couple years now, doubling the cost basis. Approaching $60 per share, this story is far from over, and we’re expecting continued value realization following the eBay-PayPal split. The hot hand continues. eBay’s landing page >> 

Here’s A Quick Proof of Why We Think the Way We Do

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Let’s walk through a very basic proof of why we think the way we do. 1) Stocks have an intrinsic value per share that is based on the underlying firm’s future free cash flows and net balance sheet (among other adjustments). Why? Because an investor can buy the whole company outright, pay off the debtholders, and reap the rewards of the future free cash flow stream. 2) Stock prices trade around the firm’s intrinsic value per share, sometimes above it, sometimes below it. Why? Because stock prices are unpredictable in the near term, and purchases and sales can be for a variety of reasons that are unrelated to the fundamentals. 3) Stock prices that are converging to intrinsic value have a greater … Read more

Things for Your Radar Tuesday

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Hearing that: Windows 10 launch will be at the end of July. Positive for Microsoft (MSFT). Teva Pharma (TEVA) and Mylan (MYL) looking to tie the knot. Teva getting a nice bounce. IBM’s (IBM) top-line still weak. No interest in shares. Big Blue is not the blue chip equity it once was. Legacy Reserves (LGCY) cuts dividend. No surprise here. We’ve been expecting this for some time. Under Armour (UA) is too rich for our taste. Shares are off after first-quarter report. Rio Tinto (RIO) sees sharp drop in first-quarter iron ore shipments. We’re not interested in adding. ITW (ITW) suffering from guidance cut. Industrial bellwether supporting case that the industrial economy is slowing a tad. Hasbro (HAS) has a … Read more

Dividend Increases for the Week Ending April 17

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Below we provide a list of firms that raised their dividends during the week ending April 17. 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 Blackstone Group (BX): now $0.89 per share quarterly dividend, was $0.78. CSX (CSX): now $0.18 per share quarterly dividend, was $0.16. Discover Financial Services (DFS): now $0.28 per share quarterly dividend, was $0.24. Donegal Group (DGICA): now $0.135 per share quarterly dividend, was $0.1315. Fidelity Southern (LION): now $0.10 per share quarterly dividend, was $0.09. General Motors (GM): now $0.36 per share quarterly dividend, was $0.30. … Read more

You Must Be So Pleased!

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Image Source: Gage Skidmore We know it’s difficult for new members, especially those not following the newsletter portfolios directly, to read about the “story arc,” or the follow-ups on some of the ongoing ideas held within the newsletter portfolios. But Hasbro (HAS) is a rather unique case. For much of the past decade or so, the firm was simply written off as a physical toy company in a digital world. What we saw that others didn’t, however, was the firm’s lovable brand portfolio and the ongoing opportunity in its Entertainment and Licensing segment. Though the first quarter is the least significant of the year, shares are surging yet again on its quarterly performance. Absent currency exchange fluctuations, revenue advanced an … Read more

The Market Top?

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For those that are following along closely, you shouldn’t be surprised if the market corrects 5%-10% in the coming months. Let’s talk about this. From a technical standpoint, it may not be too far of stretch to say that we’re likely going to test the bottom of the S&P 500 (SPY) uptrend, and that could feasibly mean a drop to the 200-day moving average (blue line above). My technical alerts are telling me that with respect to the S&P 500, we’ve just dipped below the 50-day moving average, an arbitrary simple rolling average but one that is no less self-fulfilling than value investing itself. Don’t panic though. We’ve cut through the 50-day moving average many a time before during this … Read more

Johnson & Johnson Finetunes 2015 Guidance

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It’s pretty incredible if you think about it: Johnson & Johnson (JNJ) hovering around $100 per share. The company was an inaugural addition to the Dividend Growth portfolio in January 2012 in the mid-$60s, and we’re sure that many of you have been holding J&J for much longer than that. The company has been a big winner, with 2013 being an exceptionally good year. 2014 got off to a good start, but since then, share-price performance has been relatively flat, including thus far in 2015. On April 14, Johnson & Johnson released its first-quarter results for 2015. As with many global firms, the company’s performance was hurt by currency issues, but adjusted top-line results advanced more than 3%, led by … Read more

You Have to Want to Serve

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I confess. I went on a short weekend getaway, and the team rested, too. It has been awhile, and frankly, we needed a break. We’re covering a lot of ground at Valuentum, and we’re doing a great job with so many points of research presence. I came home Sunday night after an adventurous but rejuvenating weekend to the following emails: Hello…can you please cancel my subscription and provide a refund for the unused portion of my annual subscription. Thanks Please cancel the renewal of my subscription which expires April 20th. Great information on your site and in the newsletters, I just find myself not having the time to read and utilize them all, as I have multiple other sources of … Read more