Member Articles

Earnings Roundup: NFLX, ASML, T, ABT

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By Brian Nelson, CFA Netflix (NFLX) Lands WWE Raw and Puts Up Huge Streaming Paid Member Number Image: Netflix’s substantially improved free cash flow has made it a clear winner in the streaming wars. Image Source: Netflix. On January 23, Netflix reported mixed fourth-quarter results that showed a beat on the top line, but a bottom-line miss. The mixed performance, however, was overshadowed by a huge growth number in new global streaming paid memberships of 13.12 million during the quarter and a landmark $5 billion deal with TKO Group (TKO) to begin streaming WWE Raw exclusively on Netflix beginning in January 2025. 2023 was a banner year for Netflix. The company grew revenue 12% (up from 6% last year), pushed … Read more

Earnings Roundup: LMT, PG, MMM, GE, JNJ, VZ

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By Brian Nelson, CFA Lockheed Martin’s (LMT) Backlog Reaches Record Highs Dividend Growth Newsletter portfolio holding Lockheed Martin reported solid fourth-quarter 2023 results January 23 that showed a beat on both the top and bottom lines, but revenue growth remained challenged in the quarter, declining on a year-over-year basis. The defense contractor continues to be shareholder-friendly, returning a nice chunk of the $6.2 billion in free cash flow it generated during 2023. Lockheed Martin ended the year with a record backlog of $160.6 billion and remains well-positioned to support the U.S. and its allies with myriad defense technologies. The company is targeting 2024 revenue in the range of $68.5-$70 billion, a modest increase from the $67.6 billion it posted in … Read more

Chinese Equities Still Uninvestable

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Image: Large cap Chinese equities are back to levels first reached in 2005, almost two decades ago. By Brian Nelson, CFA Chinese equities (MCHI) used to be praised for their diversification benefits in a global portfolio, but over the past 20 years, they haven’t done much. The iShares China Large-Cap ETF (FXI) is now back to levels first reached in 2005, and we see little reason why Chinese equities will catch a bid given the strength in other alternatives, namely U.S. indices, particularly the Nasdaq (QQQ), and in risk-free assets, including certificates of deposit at local and online banks. On January 22, Reuters reported that China’s major state-owned banks are working to support the yuan, while selling U.S. dollars, so … Read more

3 Substantial Benefits of Dividend Growth Investing

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Dear members: There are three primary benefits of a well-executed dividend growth strategy, one that is carried out with prudence and care and one that pays careful attention to the intrinsic value of the stock and its critical cash-based components. Albert Einstein is reported to have called compound interest the “eighth wonder of the world,” but dividend growth investing has the potential to offer long-term investors so much more! Let’s explain. 1) Reinvested Dividends Compound Over Time Over the past decade, I have grown to appreciate the compounding dynamics of reinvested dividends on appreciating stocks even more than historical studies have revealed. The strategy of dividend growth investing not only benefits from the reinvestment of dividends into the purchase of … Read more

Stock Reports on 25 Dividend Kings to Pad Your Dividend Growth Portfolio

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Image Source: Jason Train By Valuentum Analysts Investors love dividends! After all, research has shown that companies that have paid an ever-increasing dividend for a long time do quite well in the stock market. In this note, you can download the stock reports of 25 Dividend Kings, or stocks that have raised their dividends in each of the past 50 years! Please select the company’s name/symbol below to download the 16-page report. Don’t forget that we also have Dividend Reports for these companies, too!  —– Genuine Parts (GPC) — 67 Years   Parker-Hannifin (PH) — 67 Years   Procter & Gamble (PG) — 67 Years   Emerson Electric (EMR) — 66 Years   3M (MMM) — 65 Years   Coca-Cola … Read more

In the News: MSFT, AAPL, SAVE, ALB

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Image: Microsoft and Apple have been strong performers the past several years, with Microsoft recently surpassing Apple’s market capitalization to become the largest entity in the S&P 500. By Brian Nelson, CFA The start of trading in 2024 hasn’t been tracking the way that we like, but it’s way too early to sound the alarm on any sort of correction. The employment markets remain very healthy, both as it relates to unemployment and wage gains, while inflation looks to be largely under control, with the market expecting a number of rate cuts during 2024. We continue to like the areas of big cap tech and large cap growth in the current market environment. Microsoft (MSFT) is now the largest company … Read more

FedEx’s ESG Initiatives Are Refreshing Reminder of Great Companies Doing Things Right

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By Brian Nelson, CFA  Back on December 19, FedEx (FDX) reported second quarter results for its fiscal 2024. Revenue fell 2.6% on a year-over-year basis, but the company was still able to drive operating income and adjusted operating income higher to the tune of 9% and 17%, respectively. FedEx’s revenue outlook for the remainder of fiscal 2024 wasn’t great, and the company now expects a low-single-digit decline in revenue from 2023 (was “approximately flat” previously). The package shipping giant, however, raised its earnings per share forecast for 2024 to $15.35-$16.85 per share before the MTM (mark-to-market) retirement plans accounting adjustments (from $15.10-$16.60 previously).  Though FedEx is an important data point for the health of the consumer, we’re not reading too … Read more

UnitedHealth Group Still a Free-Cash-Flow Generating Machine

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Image: UnitedHealth Group continues to drive strong revenue and operating earnings performance. Image Source: UnitedHealth Group. By Brian Nelson, CFA On January 12, healthcare benefits provider UnitedHealth Group (UNH) reported strong fourth-quarter 2023 results that showed revenue advancing 14% on a year-over-year basis thanks to strength at its UnitedHealthcare and Optum divisions, while earnings from operations advanced 11.6%. UnitedHealth is facing some temporary cost pressures in its business due to pent-up demand for discretionary procedures following the worst of the COVID-19 pandemic, but its net margin held up fine in the period, coming in at 5.8%, the same level a year ago. Management reaffirmed its previously-issued 2024 guidance, and we continue to like UnitedHealth Group as a key weighting in … Read more

Dividend Increases/Decreases for the Week of January 12

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  Below we provide a list of firms that raised their dividends during the week ending January 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                          A2B Australia Limited (CGAAY): now $0.7671 per share dividend, was $0.0567. AbbVie (ABBV): now $1.55 per share quarterly dividend, was $1.48. Apogee (APOG): now $0.25 per share quarterly dividend, was $0.24. Apollo Global Management, Inc. SER A MAND CNVp (APO.PR.A): now $0.844 per share quarterly dividend, was $0.75. ATCO (ACO.X:CA): now CAD 0.4898 per share quarterly dividend, was CAD 0.4756. ATCO Ltd. (ACO.Y:CA): … Read more

Dividend King Leggett & Platt’s Payout May Be Worth the Risk

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Image: Leggett & Platt has put together a long track record of consecutive annual dividend increases, but recent performance suggests that the dividend may be at risk in the longer run. Its 7.1% dividend yield may be worth the risk, however. By Brian Nelson, CFA Leggett & Platt (LEG) has raised its dividend for more than 50 consecutive years, putting it in the coveted category of being a Dividend King. However, the bedding, flooring and textile product maker has fallen on some difficult times. The company sports a Dividend Cushion ratio of -1.2 (negative 1.2), indicating that our future expectations of its dividend payments over the next five years coupled with its net debt position fall far below the cumulative … Read more