Member Articles

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

Best Ideas Visa, Alphabet Hit 52-Week Highs

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Image: The top weightings in Valuentum’s Best Ideas Newsletter portfolio just hit 52-week highs. By Brian Nelson, CFA We’re reiterating our view that investors should stay aggressive with their allocations to equities, “12 Reasons to Stay Aggressive in 2024,” and our top two weightings in the Best Ideas Newsletter portfolio, Visa (V) and Alphabet (GOOG) just hit 52-week highs. These are two of our favorite names on the marketplace, with targeted weightings of 10%-12% of portfolio construction seeking long-term capital appreciation. During the past year, Visa’s shares are up nearly 20%, while Alphabet’s shares are up more than 60%. Position sizing, or the weighting ranges we assign to each company within a newsletter portfolio, is important as it is another way to … Read more

Boeing In Negative Headlines Again; Part of 737 Max Fuselage Blows Out During Commercial Flight

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  Image: Boeing’s shares have been quite volatile the past couple years. By Brian Nelson, CFA On January 6, Boeing (BA) received some more bad news. Part of a fuselage installed on one of its new eight-week old 737 Max 9 aircraft blew out on an Alaska Airlines (ALK) flight. There were no reported injuries because of the mishap, but understandably passengers were undoubtedly shaken up. Some posted videos of the experience. Boeing had been working hard to get back on track with customer perception of the safety of its 737 MAX line-up, and we view the incident as yet another hiccup in the firm’s relations with the public. Key Boeing supplier Spirit AeroSystems (SPR) installed the part on the … Read more

In the News: Apple, Nvidia, ANSYS

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By Brian Nelson, CFA The first week of trading in the new year wasn’t very welcome, but we think it is far too early to draw any conclusions about how the rest of the year will be. The Dow Jones Industrial Average (DIA), S&P 500 (SPY), and NASDAQ (QQQ) faced selling pressure in the first week due in part to investors waiting until the new year to book the huge gains garnered during 2023. The market continues to digest critical employment data, as it watches movements in the 10-year Treasury closely, a key benchmark rate for asset pricing that now stands just north of 4%. Many bulls are saying 2024 may be a difficult year after the worst start in … Read more

Dividend Increases/Decreases for the Week of January 5

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Below we provide a list of firms that raised their dividends during the week ending January 5. 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                          ABM Industries (ABM): now $0.225 per share quarterly dividend, was $0.22. Alamo (ALG): now $0.26 per share quarterly dividend, was $0.22. Bank OZK (OZK): now $0.38 per share quarterly dividend, was $0.37. Barloworld Limited (BRRAY): now $0.0982 per share semi-annual dividend, was $0.0624. Barry Callebaut AG (BRRLY): now $0.158 per share annual dividend, was $0.145. Biloxi Marsh Land (BLMC): now $0.125 per share annual … Read more

It’s All About Free Cash Flow – Walgreens Cuts Its Payout

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Image: Walgreens’ shares have been under consistent pressure for years, and a turnaround is not guaranteed. By Brian Nelson, CFA Back in early December, we said the following about Walgreens (WBA): Walgreens is a household name, but its wheeling and dealing over the past few years has created a convoluted situation that can best be observed by the company’s deteriorating operating cash flow. As shown in the company’s cash flow statement…capital expenditures are eating up a high percentage of operating cash, and its fiscal 2023 free cash flow — as measured by cash flow from operations less all capital spending — is now materially below that of cash dividends paid. The firm also issued guidance recently that came in below … Read more

2023 Was a Fantastic Year! Are You Ready for 2024?

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By Brian Nelson, CFA 2023 was a fantastic year by almost any measure, with the S&P 500 (SPY) advancing almost 25%. The markets bounced back from a very difficult 2022 and overcame a crisis in the regional bank sector and rising mortgage rates through the course of the year. The great promise of artificial intelligence [AI], easing inflation, and a dovish Fed pivot late in the year helped to propel the broader indices higher. As we look out into 2024, we think there are 12 reasons why investors should stay aggressive in this new bull market, “12 Reasons to Stay Aggressive in 2024.” Valuentum’s newsletter suite has delivered throughout the good times and bad times. 2023 numbers were great, but … Read more

Kinder Morgan’s ~6.4% Dividend Yield Is Much Stronger These Days

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Image: Kinder Morgan is back on track. Image Source: Kinder Morgan. By Brian Nelson, CFA Early in December, Kinder Morgan (KMI) released financial expectations for 2024 that showed the midstream energy giant is back on track. Excluding its recent purchase of NextEra Energy Partners’ (NEP) STX Midstream assets, Kinder Morgan expects 5% expansion in adjusted EBITDA and distributable cash flow [DCF] in 2024 thanks to growth in its Natural Gas Pipelines and Energy Transition Ventures segments coupled with rate escalations across its operations. For 2024, management is targeting its 7th consecutive year of dividend increases with a projected annualized dividend of $1.15 in 2024. Net debt-to-Adjusted EBITDA is targeted at 3.8x at the end of 2024, a level that is materially … Read more

Dividend Increases/Decreases for the Week of December 29

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Below we provide a list of firms that raised their dividends during the week ending December 29. 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                          AMCON Distributing (DIT): now $0.28 per share special dividend, was $0.18. Banco de Sabadell (BNDSY): now EUR 0.03 per share interim dividend. Bankinter, S.A. (BKNIY): now $0.1266 per share quarterly dividend, was $0.1105. Borr Drilling (BORR): now $0.05 per share quarterly dividend. Cadiz Inc. 8.875% DEP PFD A (CDZIP): now $0.56 per share quarterly dividend, was $0.55. Crescent Capital BDC (CCAP): now $0.41 per … Read more