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Honeywell Reaffirms Outlook, Dividend Looks Great

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Image Source: Honeywell – J.P. Morgan Industrials Conference Presentation By Brian Nelson, CFA On Monday, March 15, Honeywell International (HON) reminded us why it is one of our favorite industrial ideas. The firm presented at J.P. Morgan’s Industrial Conference, and we liked what management had to say. Honeywell was a recent addition to the Dividend Growth Newsletter portfolio, and here’s our thoughts on the industrials giant November 27 and the view we still hold today: With GE’s (GE) fall from grace years ago, Honeywell has taken the reigns as one of Valuentum’s top industrial ideas. Though Honeywell’s valuation is not attractive as we’d like it to be at the moment, we recently raised our fair value significantly to north of … Read more

General Electric Provides Upbeat Outlook for 2021

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Image Shown: An overview of GE’s cash flow forecasts on a divisional basis for 2021. Image Source: General Electric – Fourth Quarter of 2020 IR Earnings Presentation By Callum Turcan The ongoing coronavirus (‘COVID-19’) has weighed negatively on the industrial sector for most of 2020, before the space started to recover during the latter part of the year. On January 26, industrial conglomerate General Electric Company (GE) reported fourth quarter earnings for 2020 that beat consensus top-line estimates but missed consensus bottom-line estimates. The company’s business operating segments are broken down into its various GE Industrial divisions (‘Power,’ ‘Renewable Energy,’ ‘Aviation’ and ‘Healthcare’) and GE Capital. What really impressed us was that GE Industrial’s free cash flow came in at … Read more

Lockheed Martin Beats Expectations and Raises Guidance Yet Again

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Image Shown: Lockheed Martin continued to grow its revenues and segment operating profit in the third quarter of fiscal 2020. Image Source: Lockheed Martin Corporation – Third Quarter of Fiscal 2020 IR Earnings Presentation By Callum Turcan On October 20, Lockheed Martin Corporation (LMT) reported third quarter earnings for fiscal 2020 (period ended September 27, 2020) that beat consensus top- and bottom-line estimates. Lockheed Martin’s GAAP sales rose by 9% year-over-year, hitting $16.5 billion, in part due to the company increasing its F-35 aircraft deliveries to 31 in the fiscal third quarter from 28 in the same quarter last fiscal year. Additionally, all four of Lockheed Martin’s core business segments (‘Aeronautics,’ ‘Missiles and Fire Control,’ ‘Rotary and Mission Systems’ and … Read more

Lockheed Martin Secures Major Aircraft Order

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Image Shown: Lockheed Martin Corporation’s ‘Aeronautics’ segment is its largest in terms of operating profit. Management boosted the firm’s operating profit guidance for fiscal 2020 during Lockheed Martin’s latest earnings report. Image Source: Lockheed Martin Corporation – Second Quarter of Fiscal 2020 IR Earnings Presentation  By Callum Turcan On August 14, the US Department of Defense (‘DoD’) awarded Lockheed Martin Corporation (LMT) a ten-year $62.0 billion contract covering the sale of F-16 aircraft to overseas buyers. This is an “indefinite-delivery/indefinite-quantity (‘IDIQ’), fixed-price-incentive contract” and it is possible the ultimate sales figure under this deal will be lower than $62.0 billion. In the press release announcing the contract, the DoD noted the initial delivery order covers 90 aircraft and that this … Read more

Boeing’s Fall from Grace

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Image: Boeing was added to the Dividend Growth Newsletter portfolio January 27, 2017, and removed March 16, 2018, prior to the unfortunate accidents that have claimed the lives of hundreds of people. We warned readers to stay far away of Boeing’s stock days before its huge collapse. The rating agencies have slashed Boeing’s credit rating, and the firm has now suspended its dividend.  By Brian Nelson, CFA We received a comment from a guest about Boeing, and we wanted to clarify our prior research calls on the company. Boeing’s (BA) fall from grace has been largely documented in our prior writings here (March 11, 2020) and here (January 23, 2020), so we won’t spend much time recapping the series of … Read more

FLIR Systems Repositions Itself

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Image Source: FLIR Systems Inc – November 2019 IR Presentation By Callum Turcan An appealing aspect of the defense industry is that it’s largely counter-cyclical, especially for companies that do a lot of business with the US Department of Defense (‘DoD’). The National Defense Authorization Act (‘NDAA’) that covers fiscal 2020 allows for a base budget level of $658.4 billion and an additional $71.5 billion has been allocated to overseas contingency operations. Noteworthy aspects of the NDAA covering fiscal 2020, which was signed into law by President Trump in December 2019, include the creation of a Space Force, a 3.1% pay increase for troops, and paid family leave for all federal workers. With a budget of $738 billion, up $21 … Read more

Dividend Increases/Decreases for the Week Ending May 17

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Below we provide a list of firms that raised their dividends during the week ending May 17. 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 Adams Resources (AE): now $0.24 per share quarterly dividend, was $0.22. Business First Bancshares (BFST): now $0.10 per share quarterly dividend, was $0.08. Chubb (CB): now $0.75 per share quarterly dividend, was $0.73. CoreSite Realty (COR): now $1.22 per share quarterly dividend, was $1.03. Curtiss-Wright (CW): now $0.17 per share quarterly dividend, was $0.15. Extended Stay America (STAY): now $0.23 per share quarterly dividend, was $0.22. … Read more

Dividend Increases/Decreases for the Week Ending September 15

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Below we provide a list of firms that raised/lowered their dividends during the week ending September 15. 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 American Tower (AMT): now $0.66 per share quarterly dividend, was $0.64. Argan (AGX): now $1.00 per share annual dividend, was $0.70. Broadridge Financial Solutions (BR): now $0.365 per share quarterly dividend, was $0.33. Curtis-Wright (CW): now $0.15 per share quarterly dividend, was $0.13. Entravision (EVC): now $0.05 per share quarterly dividend, was $0.03125. Farmers & Merchants Bancorp (FMAO): now $0.26 per share quarterly dividend, was $0.25. … Read more

Prepared Remarks From Nelson Exclusive Conference Call June 30

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Read President of Investment Research Brian Nelson’s prepared remarks for the yearly roundup conference call, held for Nelson Exclusive members. If you would like to subscribe to the Nelson Exclusive publication, please learn more about the publication here. The Nelson Exclusive publication does not reflect real performance. Performance is hypothetical and does not represent actual trading. Ladies and Gentlemen, Thank you very much for joining us on the first conference call for members of the Nelson Exclusive publication. The first year of the publication has surely been an exciting one for all involved. When I first wrote the introductory letter of the Nelson Exclusive on July 1, 2016, we were well-aware the market had laid down the gauntlet for this publication. … Read more

Podcast: Defense Spending and the Explosion of Cyber Crime

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The Valuentum analyst team discusses trends in US and global defense spending and the explosion of Internet crime that is fueling investment in cyber security both in the public and private sectors. ~7 mins. This podcast was originally published November 3, 2016. If you cannot view the video below, please view the transcript that follows or click the link here. Software – Security: CHKP, FEYE, FTNT, IMPV, PANW, PFPT, SYMC, VRSN Aerospace & Defense – Prime: BA, FLIR, GD, LLL, LMT, NOC, RTN Brian Nelson, CFA: This is Brian Nelson for Valuentum Securities, and today I have joining me on our podcast Mr. Kris Rosemann and Mr. Chris Araos. Today, we are going to talk about the landscape for defense spending … Read more