ARLP

Air Quality Standards Take Aim at Coal

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After competing with an abundance of lower-priced, cleaner natural gas, coal miners (KOL) may now have to deal with more demand headwinds as governments aim to reduce coal burning. The US Expectations are already for as much as 27 gigawatts’ worth of coal generation (about 8.5% of the US coal fleet) to retire by 2016. This percentage could rise to nearly 17% (one-sixth) by 2020, according to the Energy Information Administration. In addition to the expected retirements, the Environmental Protection Agency (EPA) plans to block all new coal-fired plants unless the construction of these plants coincides with expensive technology that captures greenhouse gas emissions. Image Source: Energy Information Administration Though the EPA forecasts that no traditional coal-fired power plants (1) … Read more

The Valuentum Dividend100 Publication; A Must-Have For Any Income Investor

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Dividend investors literally have thousands of income stocks to choose from. So what are they to do, and where can they go for the most trusted forward-looking opinions on dividend growth and safety? That’s the question we seek to answer with our ValuentumDividend100 publication. In this document, we showcase the top 100 high-quality, dividend growth gems within our coverage universe. Whether you’re looking to build a portfolio consisting of high-yielding, dividend-growers or simply seeking to augment it with a few income gems, the Valuentum Dividend100 is an essential resource for any income investor. We outline some of the key components of our Dividend100 publication below, and explain how you can get the most from each of one Sign Up for … Read more

There Is Milk At The Store

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This article first appeared in the September edition of the High Yield Dividend Newsletter. For more information about this publication, please see here. “Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.” — Winston Churchill By Brian Nelson, CFA Very few of us could have imagined that we’d witness the bull market that began on that fateful day in March 2009 that might very well mark a generational low. In 2009, major investment banks around the globe were struggling to survive, and the fallout in the mortgage markets left the banks holding paper that nobody wanted to own, let alone buy. The global financial system … Read more

Dividend Increases/Decreases for the Week Ending May 1

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Below we provide a list of firms that raised their dividends during the week ending May 1. 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 Ames National (ATLO): now $0.25 per share quarterly dividend, was $0.24. American Water Works (AWK): now $0.55 per share quarterly dividend, was $0.50. Apple (AAPL): now $0.82 per share quarterly dividend, was $0.77. Capital Power Income (CPAXF): now CAD 0.48 per share quarterly dividend, was CAD 0.45. Cheniere Energy Partners (CQP): now $0.64 per share quarterly dividend, was $0.63. Coca-Cola FEMSA, S.A.B. de C.V. (KOF): now … Read more

Nelson: The 16 Most Important Steps To Understand The Stock Market

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A previous version of this article appeared on our website July 21, 2013. Refreshed and updated throughout, as of July 2018. By Brian Nelson, CFA After earning my MBA at the University of Chicago Booth School of Business and training stock and credit analysts from large organizations over the past decade or so, I have heard just about every question (though I admit I am still surprised by many things and remain a very humble student of the markets). I’ve also spent years perfecting the discounted cash flow process for large research organizations such as Morningstar and studied under one of the most famed aggressive growth investors of all time, Richard Driehaus. My knowledge runs the gamut from value through … Read more

Dividend Increases/Decreases for the Week Ending October 26

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Firms Raising Their Dividends This Week Access National (ANCX): now $0.17 per share quarterly dividend, was $0.16. Alliance Resource Partners (ARLP): now $0.525 per share quarterly dividend, was $0.52. American Electric Power (AEP): now $0.67 per share quarterly dividend, was $0.62. Apollo Senior Floating Rate Fund (AFT): now $0.10 per share monthly dividend, was $0.10. Bank of Hawaii (BOH): now $0.62 per share quarterly dividend, was $0.60. Bank of Marin Bancorp (BMRC): now $0.35 per share quarterly dividend, was $0.32. Brookline Bancorp (BRKL): now $0.105 per share quarterly dividend, was $0.10. Cabot Oil & Gas (COG): now $0.07 per share quarterly dividend, was $0.06. Cheniere Energy Partners (CQP): now $0.58 per share quarterly dividend, was $0.56. Coca-Cola European (CCE): now … Read more

Efficacy of the Dividend Cushion Ratio

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A version of this article was originally published September 2019. The Dividend Cushion ratio is one of the most powerful financial tools an income or dividend growth investor can use in conjunction with qualitative dividend analysis. The ratio is one-of-a-kind in that it is both free-cash-flow based and forward looking. Since its creation in 2012, the Dividend Cushion ratio has forewarned readers of approximately 50 dividend cuts. We estimate its efficacy at ~90%. By Valuentum Analysts  Key Takeaways: The Dividend Cushion ratio is a helpful tool to use to cushion your dividend growth or income portfolio against potential dividend cuts. The ratio also helps to assess the growth potential of a company’s dividend, above and beyond current expectations of payout … Read more

2,350-2,750 on the S&P? Could the Coronavirus Catalyze a Financial Crisis?

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Image: We think a rather modest sell-off in the market to the target range of 2,350-2,750 on the S&P 500 is rather reasonable in the wake of one of the biggest economic shocks since the Global Financial Crisis. The chart above shows how far markets have advanced since 2011, and an adjustment lower to the target range of 2,350-2,750 is rather modest in such a context and would only bring markets to late 2018 levels (note red box as the target range). The range reflects ~16x S&P 500 12-month forward earnings estimates, as of February 14, adjusted down 10% due to COVID-19. When companies like Visa talk about a couple percentage points taken off of growth rates, one knows that … Read more

Valuentum’s Joint Outlook for the Railroad and Coal Industries

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Key Takeaways: North American railroads operate as an oligopoly, benefit from substantial barriers to entry, and boast significant pricing power. Free cash flow generation trends are strong at the largest operators–Union Pacific (UNP) and Canadian National (CNI)–but industry-wide free cash flow margins (free cash flow divided by revenue) average in the mid-single-digits as elevated maintenance capital costs weigh on conversion rates. Canadian National and Union Pacific are currently the most efficient operators (as measured by their respective operating ratios), while Genessee & Wyoming (GWR) and Canadian Pacific (CP) trail the pack. Coal is the single most important commodity to the railroads, accounting for more than 20% of class I railroad freight revenue. Though US coal volumes should advance over the … Read more

Dividend Increases/Decreases for the Week April 30

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Below we provide a list of firms that raised their dividends during the week ending April 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 Alexander & Baldwin (ALEX): now $0.16 per share quarterly dividend, was $0.15. Altra Industrial Motion (AIMC): now $0.08 per share quarterly dividend, was $0.06. Ameriprise Financial (AMP): now $1.13 per share quarterly dividend, was $1.04. American Water Works (AWK): now $0.6025 per share quarterly dividend, was $0.5500. Ames National (ATLO): now $0.26 per share quarterly dividend, was $0.25. Apple (AAPL): now $0.22 per share quarterly dividend, … Read more