Member Articles

Bullish News for the Apple Ecosystem

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Wednesday night, we encountered a number of positive data points for Best Ideas Newsletter holding Apple (click ticker for report: ) that support our long thesis. Apple on the Offensive Apple marketing chief Phil Schiller provided some interesting thoughts in a Wall Street Journal interview. Since Steve Jobs passed away, we haven’t heard any of the top brass at Apple make negative comments about Android (click ticker for report: ). The timing might not be coinicidental, as the interview was released the day before Samsung unveils its Galaxy SIV. Schiller criticized the user experience, saying: “When you take an Android device out of the box, you have to sign up to nine accounts with different vendors to get the experience iOS comes … Read more

If Yields Go Up, Are BDCs Done For?

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Key Takeaways: ·         What are BDCs? Business development companies (BDCs) allow small investors access to a private equity-like investment that often sports a high yield. ·         How do BDCs make money? Like any capital source, BDCs make the spread between the yield on investments and cost of the debt. BDCs can also make money from well-performing assets that are sold. ·         What are the Risks of BDCs? Poor portfolio performance, mismanagement, and interest rate swings are among the main risks to BDCs. ·         Why is the Sector under Pressure? Record low SBIC debenture costs could come to an end if interest rates rise. BDC investments start to look less attractive on a relative basis when yields rise. ·         Which BDC … Read more

Dividend Increases/Decreases for the Week of November 17

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Below we provide a list of firms that raised their dividends during the week ending November 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                          AECOM (ACM): now $0.22 per share quarterly dividend, was $0.18. Agilent Technologies (A): now $0.236 per share quarterly dividend, was $0.225. Alibaba (BABA): now $1.00/ADS annual dividend. Amkor Technology (AMKR): now $0.07875 per share quarterly dividend, was $0.0750. Artisan Partners Asset Management (APAM): Now $0.65 per share quarterly dividend, was $0.61. BankFirst Capital (BFCC): now $0.90 per share dividend, was $0.85. Berry Global Group … Read more

Dividend Increases/Decreases for the Week of February 14

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Below we provide a list of firms that raised their dividends during the week ending February 14. 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                          Acadia Realty Trust (AKR): now $0.20 per share quarterly dividend, was $0.19. American Business Bank (AMBZ): now $0.25 per share quarterly dividend. American Homes 4 Rent (AMH): now $0.30 per share quarterly dividend, was $0.26. AstraZeneca (AZN): now $1.03 per share semi-annual dividend, was $0.50. Avista (AVA): now $0.49 per share quarterly dividend, was $0.47. Brookfield (BN): now $0.09 per share quarterly dividend, was … Read more

Dividend Increases/Decreases for the Week of February 28

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Below we provide a list of firms that raised their dividends during the week ending February 28. 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                          AerCap (AER): now $0.27 per share quarterly dividend, was $0.25. Affinity Bancshares (AFBI): now $1.50 per share special dividend. Allstate (ALL): now $1.00 per share quarterly dividend, was $0.92. American Financial (AFG): now $2.00 per share special dividend, was $0.80. AMERISAFE (AMSF): now $0.39 per share quarterly dividend, was $0.37. Anheuser-Busch InBev (BUD): now EUR 1.00 per share annual dividend, was EUR 0.82. Aura … Read more

Understanding How Dividends Impact Intrinsic Value Estimation

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  “Dividends are a transfer of cash to the shareholders that the shareholders owned anyway.” — Brian Nelson, CFA By Brian Nelson, CFA Many investors use the strategy of dividend growth investing as a means to generate increasing income in their retirement portfolios to stay ahead of inflation, or as a means to grow an income stream in the decades before retirement. Though we think such a strategy has merit, we think it’s important for readers to understand how a cash dividend payment impacts the valuation (intrinsic worth) of a company. In this article and for analytical purposes, we use the terms ‘dividend’ and ‘distribution’ interchangeably, even though the tax implications for investors are different. Let’s address the important concept … Read more

The Correction: Markets Collapse! Ebola Fears!

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This is why you pay us to do our job. We put you way ahead of the market, while others sat back and did nothing. This is what we talk about when we try to feed your mental model with the right information: “We’re not after a ‘two-second advantage’ on widely disseminated market-moving information. We’re trying to get you the right information…even before it becomes information.” We take our job seriously, and we sincerely care about you and your wealth. You now know that beyond a shadow of a doubt. The Dow Jones Industrial Average is down 300+ points at the time of this writing.   Please consider cancelling your free research provider or your higher-paid investment service provider because … Read more

Dividend Increases/Decreases for the Week Ending February 12

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Below we provide a list of firms that raised/lowered their dividends during the week ending February 12. 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 AGL Resources, Inc. (GAS): now $0.53 per share quarterly dividend, was $0.51. Allstate (ALL): now $0.33 per share quarterly dividend, was $0.30. American International Group (AIG): now $0.32 per share quarterly dividend, was $0.28. Aubum National Bancorporation (AUBN): now $0.225 per share quarterly dividend, was $0.22. Bank of Botetourt (BORT): now $0.12 per share quarterly dividend, was $0.10. Canadian General Investments, Limited (CGRIF): now C$0.16 per … Read more

Nelson’s Quick Thoughts on Midstream Energy MLPs

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Image Source: Roy Luck Nelson’s Take We continue to be quite cautious on the midstream MLP business model (AMLP), including Energy Transfer Partners’ (ETP), given its extreme capital-market dependency (i.e. the continuous need for new equity and debt capital), and we maintain our view that the group is 1) inextricably tied to energy resource pricing, if not directly (5%-10%) than indirectly through the financial health of their upstream customer bases and 2) the credit markets via ongoing project-financing requirements and outsize debt loads. Many in the group continue to be capital-intensive, highly-leveraged entities that have little cash cushions on the books to handle exogenous shocks. Most, if not all, generate traditional free cash flow (CFO less all capex) shortfalls, after … Read more