Member Articles

Dividend Growth Giant Lockheed Martin’s Share Price Surges 35%+ in 2022

by

Image: Lockheed Martin’s shares have been bolstered by a robust share buyback program during the fourth quarter of 2022. Though we still expect shares to be resilient, some technical consolidation may be necessary. Image Source: TradingView By Brian Nelson, CFA We added Lockheed Martin (LMT) to the Dividend Growth Newsletter portfolio all the way back in January 2020 before the COVID-19 meltdown. Shares had lagged the S&P 500 for some time after surfacing the portfolio idea, but certainly not during 2022. Lockheed Martin’s shares have surged more than 35% during 2022, beating the market by a huge margin. We continue to like shares, but we would expect some share-price consolidation during 2023 after the huge gains. When Lockheed Martin reported … Read more

Exclusive Call: What To Expect From Valuentum in 2023

by

Video: 2022 was a successful year by almost every measure from the simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio to the simulated High Yield Dividend Newsletter portfolio and Exclusive publication and beyond. There were some disappointments in 2022, of course, but the year showed the value of a Valuentum membership. Join President of Investment Research Brian Nelson on this year’s Exclusive conference call to learn what to expect from Valuentum in 2023. Cheers! Transcript President of Investment Research Brian Nelson: Happy Holidays everyone! I hope that you are enjoying this special time of year with family and friends, and I wish you all a wonderful 2023! I just wanted to take a few minutes to recap … Read more

Verizon’s Big Share-Price Drop Opens Opportunity for 6.8% Dividend Yield

by

Image: Verizon’s shares have been punished, but this has opened an opportunity for a 6.8% dividend yield. Image Source: TradingView By Brian Nelson, CFA When Verizon (VZ) reported third-quarter results in late October, the company’s revenue advanced 4% on a year-over-year basis, exceeding the consensus estimate, while non-GAAP earnings per share came in at $1.32 per share, beating the consensus estimate by a few pennies, but down slightly on a year-over-year basis. Adjusted EBITDA fell 0.4% from the same period last year. Verizon is one of the leading communication service providers in the world, and its operations span data, video and voice services across its networks and platforms. The company’s two reportable segments, Verizon Consumer Group and Verizon Business Group, … Read more

Salesforce Doesn’t Make the Cut for the Newsletter Portfolios

by

Image: How we rank our favorite ideas. We’re huge fans of ideas in the simulated newsletter portfolios and Exclusive publication. We like the ideas in the simulated newsletter portfolios and Exclusive publication the best. By Brian Nelson, CFA Salesforce, Inc. (CRM) has never been an idea in the simulated newsletter portfolios since inception, and that’s not going to change anytime soon. Its share price has been roughly cut in half in 2022, and we’re sticking with our $130-$196 per share fair value estimate range following the company’s disappointing outlook for the fourth quarter of fiscal 2023. Weakness across the software space and the exit of co-CEO Bret Taylor and Stewart Butterfield, the head of Salesforce-owned Slack, aren’t reassuring. Risks are … Read more

Raising Our Fair Value Estimate of Dividend Aristocrat Caterpillar

by

Image: Caterpillar’s financial momentum is impressive. Image Source: Caterpillar By Brian Nelson, CFA We’ve raised our fair value estimate of Caterpillar Inc. (CAT) to $238 per share from $192 previously. As witnessed in Deere & Company’s (DE) fiscal fourth-quarter results, too, Caterpillar is driving considerable pricing expansion across its portfolio, and the impact on its financials has been quite impressive. Though not an idea in any newsletter portfolio, Caterpillar’s shares yield ~2% at the time of this writing, slightly better than the average S&P 500 company. The company is proud to be a Dividend Aristocrat. When Caterpillar reported third-quarter 2022 results back in October, the company recorded a 21% increase in revenue while adjusted profit per share leapt to $3.95 … Read more

FedEx’s Revenue Falls, Operating Income Tumbles in Fiscal Second Quarter

by

Image: FedEx’s revenue faced significant pressure during its second quarter of fiscal 2023. Image Source: FedEx By Brian Nelson, CFA On December 20, FedEx Corp (FDX) didn’t deliver what investors wanted when it issued its fiscal second-quarter results for its fiscal 2023. Though the firm’s non-GAAP earnings per share came in slightly better than the consensus forecast, the company’s top line missed by a large margin, declining ~3% on a year-over-year basis. We recently lowered our fair value estimate of FedEx to $214 per share from $293 per share, but even this reduced estimate may be a bit too bright given our growing concerns over its fiscal 2025 targets. We continue to be cautious on shares of FedEx in light … Read more

Dividend Increases/Decreases for the Week of December 23

by

Below we provide a list of firms that raised their dividends during the week ending December 23. 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 $5.00 per share special dividend, was $0.18. ATN International (ATNI): now $0.21 per share quarterly dividend, was $0.17. Autoscope Technologies (AATC): now $0.13 per share quarterly dividend, was $0.12. Bird Construction (BIRDF): now CAD 0.0358 per share dividend, was CAD 0.0325. Builders Capital Mortgage (BCF:CA): now $0.2016 per share quarterly dividend. Cadiz 8.875% DEP PFD A (CDZIP): now $0.56 per share … Read more

Be Careful With Celebrity Endorsement of Investment Products

by

Dear members: — Have you ever wondered why so many trust the TV for financial advice or stock tips? — You guessed it: It comes back to “brain science” or the concept of familiarity. When we see a celebrity or our favorite stock guru on the television, it arouses our emotions and connects us with the idea, making the experience more memorable. The brain tends to treat our favorite newscaster or celebrity as a trusted, familiar friend, and therefore we translate those feelings into expertise and a “valid” endorsement. — As humans, we can sometimes be misled. Recently, Kim Kardashian had to pay $1.26 million to settle an SEC charge that she promoted a cryptocurrency while failing to disclose she … Read more

Nike’s Weak Earnings Growth, Markdowns, and Lofty Inventory Levels Still Telling of a Struggling Consumer

by

  Image Source: Valuentum By Brian Nelson, CFA The health of the consumer continues to be one of the biggest questions heading into 2023. Many consumers are working through the excess savings garnered via COVID-19 stimulus (and many market observers expect this savings to run out by mid-2023) and credit card debt is on the rise. Inflation is taking a bite out of consumer discretionary spending as more and more of consumer financial capacity is being allocated to necessities including food and grocery items. Food at home costs have soared, and many have had to cut back in other areas. Nike’s (NKE) second-quarter fiscal 2023 results, released December 20, showed a very discerning consumer that is looking to drive a … Read more

Our Reports on the Real Estate Investment Trusts (REITs)

by

Dividend Yield: Estimated on a forward-looking annualized basis. VBI: The Valuentum Buying Index, a timeliness indicator that overlays a price-to-fair-value estimate consideration. Fair Value Estimate: Derived by Valuentum’s enterprise valuation process. Dividend Cushion ratio: A ratio assessing the health of the dividend (the higher, the better). Data as of the date of this article. Individual company reports may have been updated subsequent to the publishing of this article, so please download a company’s stock and dividend report for its latest information and data. Note: The data in the tables of each of the below companies’ respective stock pages is updated the weekend after the publishing of this update. Please click on a company name below to view the corresponding equity … Read more