Member Articles

ICYMI: Things Have Changed Fast; Inflation and the Fed Have Damaged the Economy

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This article was originally published October 5.   Image Source: EpicTop10.com By Brian Nelson, CFA The year 2022 started out with the popping of the bubble in the alternative investments arena–namely in the cryptocurrency (BITO), non-fungible token (NFT), and the collectibles markets–coupled with worries about the Fed raising interest rates to combat inflation and weakness in the most speculative equity areas, namely disruptive innovation stocks (ARKK). It’s important to note that the consumer price index (CPI) started to edge meaningfully higher in early 2021 (not this year). Though the writing was on the wall with respect to impending Fed tightening, as investors, we have to assess what the Fed will do and the impact on the markets, not necessarily what … Read more

Dividend Increases/Decreases for the Week of October 7

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Below we provide a list of firms that raised their dividends during the week ending October 7. 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                Alpine Summit Energy Partners, Inc. (ALPS.U:CA): now $0.03 per share monthly dividend. Bank OZK (OZK): now $0.33 per share quarterly dividend, was $0.32. Diversified Royalty Corp. (DIV:CA): now CAD 0.0196 per share monthly dividend, was CAD 0.0183. EMCOR (EME): now $0.15 per share quarterly dividend, was $0.13. First Republic Bank DEP SHS REP 1/40th PERP PFD NCUM SER N (FRC.PN): now $0.2812 per share quarterly … Read more

Nike’s Fundamental Backdrop Speaks of Serious Impending Global Recession

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Image Source: Raul Gonzalez By Brian Nelson, CFA In a rapidly declining market as we have been witnessing the past many months, it becomes a relative “game.” Taking on outsize risk to drive positive returns is a quick way to the poor house. There are too many things working against the market for it to pull sustainably higher before year’s end, and we think investors are better off playing defense than attacking the bear. Things are bad out there, and they are likely going to get worse, “Things Are Bad Out There.” It is perfectly reasonable and understandable to have been bullish during the first half of this year, as we were, to at least give the market some breathing … Read more

Dividend Increases/Decreases for the Week of September 30

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Below we provide a list of firms that raised their dividends during the week ending September 30. 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                BancFirst (BANF): now $0.40 per share quarterly dividend, was $0.36. Cal-Maine Foods (CALM): now $0.85 per share quarterly variable dividend, was $0.75. City Holding (CHCO): now $0.65 per share quarterly dividend, was $0.60. Corebridge Financial (CRBG): now $0.23 per share quarterly dividend. The First of Long Island (FLIC): now $0.21 per share quarterly dividend, was $0.20. First High-School Education Group (FHS): now $0.0146 per share … Read more

Things Are Bad Out There

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“I don’t like this market one bit, but we have to endure. Markets will rise again, but there will be a lot more pain to come in the near term. We think the base case is that we get a very bad recession in 2023. We’ve yet to pull the trigger on put option ideas in the simulated newsletter portfolios, but we expect things to get worse before they get better. For readers seeking ongoing option ideas each month, please consider subscribing to our options commentary here.” – Brian Nelson, CFA By Brian Nelson, CFA Things are bad out there, and there’s probably no better way to say it. On September 28, Bloomberg reported that Apple Inc. (AAPL) is now … Read more

Dividend Increases/Decreases for the Week of September 23

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Below we provide a list of firms that raised their dividends during the week ending September 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                Accenture (ACN): now $1.12 per share quarterly dividend, was $0.97. American Tower (AMT): now $1.47 per share quarterly dividend, was $1.43. Bank First (BFC): now $0.25 per share quarterly dividend, was $0.22. Calvin B. Taylor Bankshares (TYCB): now $0.33 per share quarterly dividend, was $0.30. Change Healthcare (CHNG): now $2.00 per share special dividend. CVB Financial (CVBF): now $0.20 per share quarterly dividend, was $0.19. … Read more

Realty Income’s Dividend Growth Track Record Is Stellar

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Image Shown: We like exposure to shares of Realty Income Corporation in our Dividend Growth Newsletter portfolio. Image Source: Realty Income Corporation – Second Quarter of 2022 IR Earnings Presentation By Callum Turcan We include Realty Income Corporation (O), a real estate investment trust (‘REIT’), as an idea in the Dividend Growth Newsletter portfolio because we like the exposure the REIT provides to the commercial property market. Back in November 2021, Realty Income closed its merger with VEREIT and subsequently spun off Orion Office REIT Inc (ONL), a move that effectively saw Realty Income exit the corporate office property space. Realty Income’s portfolio consists of 11,400+ commercial properties in the US, Puerto Rico, and the UK that provide the REIT … Read more

Fed Raises 75 Basis Points; Food Price Inflation Continues to Wreak Havoc on Consumer Budgets

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Image Source: Federal Reserve The Fed upped its key benchmark rate to the range of 3%-3.25% on September 21, but it may not be enough to stem the rise in inflation. We think the market has further room to fall. By Brian Nelson, CFA We think the Fed is looking to crush the economy and break the will of businesses to raise prices. Unfortunately, there is only so much that hiking the federal funds rate can do, and much of the inflation that is hurting the consumer is coming in the form of food prices, and this doesn’t look like it will abate anytime soon. I had warned about a coming market “flush” in a late August video, in part … Read more

Dividend Growth Giant Microsoft Raises Its Dividend 10%!

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Image Shown: Microsoft has been a fantastic dividend grower the past several years. The company announced September 20 another 10% increase in its quarterly dividend per share, to $0.68. Image Source: Microsoft. By Brian Nelson, CFA  On September 20, dividend growth giant Microsoft Corp (MSFT) declared a quarterly dividend of $0.68 per share, a 10% increase from the prior rate, revealing a forward estimated yield of ~1.1% at the time of this writing. Microsoft has been the quintessential dividend growth stock, and the company remains an idea in the simulated Dividend Growth Newsletter portfolio, which has held up quite well during 2022 thus far. Image Shown: The simulated Valuentum newsletter portfolios have held up well in a very difficult market … Read more

Should You Gear Up for the Porsche AG IPO?

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Image Shown: Unit sales at Porsche fell 5% during the first half of 2022, but demand remains particularly strong for its SUV models despite a troubled supply chain and higher input cost inflation. Image Source: Porsche AG. By Brian Nelson, CFA German luxury and sports car maker Porsche AG (POAHY) (POAHF) is planning to go public in the coming weeks, following in the footsteps of Ferrari (RACE), which listed a few years ago. Porsche-owner Volkswagen AG (VWAGY) (VLKAF) has been investing heavily in electric vehicles, and the IPO of the Porsche brand will provide it with fresh capital to be more competitive on that front. The Porsche AG IPO would be one of the biggest ever in Europe at a time when … Read more