Valuentum Exclusive Analysis for the Discerning Investor

Symbol Keyword

May 14, 2023

There Are No Free 'Income' Lunches
Image Source: Jeffrey Beall. 2023 has been a great year thus far, and we continue to highlight the best areas for consideration following a great relative year in 2022. Highly-rated ideas on the Valuentum Buying Index are few and far between, but we’ll be going to “fully invested” soon enough. The regional banking crisis is having a muted impact on market sentiment at this point, and the Fed looks to be winning the battle against inflation. We’re excited about what the back of 2023 may look like, and we hope you are, too.

Mar 30, 2023

Dividends, Dividends, Dividends
Valuentum's President of Investment Research Brian Nelson shares three unique insights on dividends not commonly discussed among investors. The transcript of the video can be found in this article.

Mar 23, 2023

The Dividend Cushion Ratio: Unadjusted Is Less Subjective, Adjusted Is More Subjective
Image Source: Mike Lawrence. Question: I'm a subscriber. I'm looking at your Dividend Report for Enterprise Product Partners. It says your Valuentum Adjusted Dividend Cushion ratio for EPD is 1.8 (a ratio that includes future expected proceeds from capital raising endeavors in the coming years), but several lines below it says the Unadjusted Dividend Cushion ratio, which is your regular normal ratio (a ratio that does not include future expected proceeds from capital raising endeavors in the coming years), is 0.22. Please explain the difference between the two ratios, and what is considered a good ratio for the Unadjusted Dividend Cushion ratio, what is an excellent score, what is neutral and what is poor? Also, how much relative importance should I give to each ratio? Also, further down in the section on Unadjusted Dividend Cushion, the chart of EPD has a large negative number in the blue bar, and your text says: "Generally speaking, the greater the 'blue bar' to the right is in the positive, the more durable a company's dividend, and the greater the 'blue bar' to the right is in the negative, the less durable a company's dividend." So that means that EPD's dividend isn't durable, yet your report earlier says that EPD's Dividend Safety rating is GOOD. Can you elaborate?

Feb 27, 2023

Our Reports on Stocks in the Oil and Gas Complex Industry
Our reports on stocks in the Oil and Gas Complex industry can be found in this article. Reports include BKR, HAL, SLB, BP, CVX, COP, XOM, SHEL, TTE, CTRA, EOG, OXY, PXD, ENB, ET, EPD, MMP, KMI, PSX.

Jan 20, 2023

Energy Pipelines: What a Difference A Few Years Have Made!
Image: Midstream energy companies have significantly improved their free cash coverage of their payouts in recent years. We’ve taken note. Source: Relevant 10-Q filings. We can hardly believe how much better things are looking for midstream pipeline companies these days, particularly as it relates to free cash flow coverage of their payouts, but also as it relates to improved financial transparency. Many midstream MLPs continue to be saddled with huge net debt positions, but what a difference a few years have made! Capital discipline is making their dividends/distributions incrementally more attractive, and we’ve taken note.

Dec 22, 2022

Be Careful With Celebrity Endorsement of Investment Products
Image Source: EpicTop10.com. 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. Be sure to use caution with celebrity endorsements of investment products, however.

Nov 1, 2022

Enterprise Products Partners Reports Strong 3Q, Impressive ~7.5% Distribution Yield
Image Source: Enterprise Products Partners. The Alerian MLP ETF has faced considerable pressure during the past 10 years, generating a paltry annualized return, but shares of many constituents have improved during 2022 as energy resource prices have bounced back. Though we generally shy away from MLPs, more generally, Enterprise Products Partners is one of our favorites given the increased transparency it provides to investors when it comes to cash-flow metrics. Since its IPO, Enterprise Products Partners has raised its distribution 24 years in a row. Shares yield ~7.5% at this time.

Oct 31, 2022

Recent Fair Value Estimate Changes
Let's have a look at recent fair value estimate changes across our coverage universe.

Oct 30, 2022

Something New!
Hi everyone: To stay true to our mission, you'll find something new regarding our methodology. In the coming weeks, you'll see this table in our work going forward.

Oct 27, 2022

VBI Ratings Not as Impressive As We Would Have Liked in 2022
Image: How the VBI rating system has ranked equities so far this year. At Valuentum, we use the Valuentum Buying Index (VBI) to source ideas into diversified simulated newsletter portfolios, and the VBI may be most applicable to the simulated Best Ideas Newsletter portfolio, where we generally like to include ideas when they register a high VBI rating and remove them when they register a low VBI rating. We always use the VBI in a portfolio setting and never by itself. Let's talk more about the VBI rating system in this work.