Valuentum Exclusive Analysis for the Discerning Investor

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Jan 13, 2020

Intel Has Performed Well Since Acquiring Mobileye
Image Shown: Intel Corporation (represented by the blue line in the graph above), a long time holding in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios, has substantially outperformed the NASDAQ 100 index (black line) and the S&P 500 index (orange line) since the period just before announcing its ~$15 billion deal to acquire Mobileye in March 2017, before taking dividends into consideration (given that Intel pays out a decent dividend, that wouldn’t change this picture materially). We continue to like Intel in both our newsletter portfolios and its ~2.1% yield as of this writing provides investors with a nice income stream. Intel’s dividend will likely continue to experience strong per share growth over the coming years, in our view, a growth trajectory that’s well supported by Intel’s 2.1x Dividend Cushion ratio.

Jan 12, 2020

Capital Appreciation or Dividend Growth?
Image source: David Mulder. “Xilinx crushed the market over its holding period of a matter of a few weeks during 2019” is not something that we think dividend growth investors are focused on, or even care to hear.

Jan 10, 2020

Newmont’s Outlook is Bright Due to More Than Just Gold Prices Rallying
Image Source: Newmont – Third Quarter 2019 Earnings IR Presentation. Newmont Corp announced a huge boost to its dividend on January 6, with its quarterly payout growing by 79% to $0.25 per share from $0.14 previously. As of this writing, that’s good for a forward-looking yield of ~2.4%. Additionally, the company reiterated its commitment to buying back its stock now that the merger between Newmont and Goldcorp is firmly in the rear view mirror (Newmont Corporation used to be known as Newmont Goldcorp Corporation, a name that was shortened this year). We continue to like the name as one of the top gold mining plays.

Jan 10, 2020

Our Reports on Stocks in the Semiconductor Equipment Industry
Image Source: Applied Materials. We've optimized our technology coverage.

Jan 9, 2020

ALERT: Facebook at All-Time Closing Highs
"I'm completely baffled by Facebook's pricing action, and I still think this one will again return to new highs." -- Nelson, December 20, 2018, with shares trading at ~$130 each. Shares of Facebook registered an all-time closing high of $218.30 per share January 9, 2020.

Jan 7, 2020

Dividend Cushion Ratio Catches Another Dividend Cut
Image Shown: Tupperware Brands Corporation suspended its dividend in November 2019, a pitfall investors could have avoided by utilizing Valuentum’s proprietary Dividend Cushion ratio. Our Dividend Cushion ratio can be a very useful tool for income seeking investors that wish to avoid payout cuts and the likely capital depreciation that follows. The Dividend Cushion ratio is based on our forecast of the firm’s future free cash flows over the next five full fiscal years, less its net debt or plus its net cash position, divided by its expected dividend obligations during this period. We view this as a powerful gauge of a company’s true dividend coverage, as compared to EPS payout ratios which are backward looking and flawed when evaluating the ability to cover future dividend obligations. This metric has been successfully in warning investors about numerous value traps over the years, including packaging company Tupperware Brands Corp. The company sells anything from plastic kitchen storage containers under its Tupperware brand to beauty products under its NaturCare and other brands. The Dividend Cushion also most recently warned about the cut at Core Labs, too.

Jan 4, 2020

Valuentum Exclusive Success Rates Trump Even the Best Quant Hedge Funds
Image: President of Investment Research Brian Nelson, CFA. A new book, “The Man Who Solved the Market,” hit bookshelves last year, and thus far it has been a hit. The text goes into the story of quant hedge fund Renaissance Technologies and its hedge fund, the Medallion Fund, which has put up mammoth returns since inception.

Jan 2, 2020

FLIR Systems Repositions Itself
Image Source: FLIR Systems Inc – November 2019 IR Presentation. US equity indexes continue to march upwards, and as of this writing, are at or near all-time highs. We couldn’t be more pleased with the performance of our Best Ideas Newsletter and Dividend Growth Newsletter portfolios. Our team continues to sift through Valuentum’s coverage universe to find top quality investment opportunities, and we are taking a deeper look at the defense industry in light of its counter-cyclical and (somewhat) recession-resistant qualities.

Dec 30, 2019

Dividend Growth Newsletter Portfolio Delivers Again in 2019
 The story of the Dividend Growth Newsletter portfolio this year was one dominated by big tech. Apple trounced the return of what could be considered our benchmark by about 80 percentage points. It basically beat the S&P Dividend ETF SDPR by a factor of about 5 times! 2019 was simply the year to own Apple, and my goodness we had it right near the top of both the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio. You would think this was a no-brainer, as everyone loves Apple, but many a portfolio manager did not own Apple this year. Apple also upped its dividend 5%+ during 2019...

Dec 27, 2019

Johnson & Johnson Rebounds
Image Shown: Shares of Johnson & Johnson are on the rebound as various analysts are coming around to the name. We continue to like Johnson & Johnson in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios and view recent technical strength in shares of JNJ as a sign that the market is finally taking into consideration the company’s numerous guidance boosts and more importantly, the strength of its expected future free cash flows. Going forward, powerful tailwinds supporting rising healthcare expenditures in the US and abroad will continue to support Johnson & Johnson. To read more about those favorable tailwinds, check out this article here.