GOLD

Gold Is But a Shiny Yellow Metal

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Image shown: The performance of an ETF tracking the price of gold bullion, less the expenses to run the ETF, since 2011. “What motivates most gold purchasers is their belief that the ranks of the fearful will grow. During the past decade that belief has proved correct. Beyond that, the rising price has on its own generated additional buying enthusiasm, attracting purchasers who see the rise as validating an investment thesis. As ‘bandwagon’ investors join any party, they create their own truth – for a while.” — Warren Buffett (2011 annual letter to shareholders) By Brian Nelson, CFA Gold prices have been under pressure for years. I’m always uncomfortable talking about the investment prospects of gold (GLD). It’s a sensitive … Read more

Our Reports on Stocks in the Gold Mining Industry

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Images Source: Newmont Mining Structure of the Gold Mining Industry Gold miners are tied to the world price of gold, which depends on a number of demand drivers: industrial and jewelry; gold as an investment; central bank activity; inflation expectations; and speculative trading. If realized prices on the yellow metal fall and remain at low levels, mining profitability would be significantly impaired. Industry constituents must constantly seek to replace reserves depleted by production via new exploration, which remains a speculative activity. Unexpected project cost overruns remain another key risk. In general, we’re not huge fans of the volatile fundamentals of the gold mining sector. Several companies previously in this group have been reassigned to the Diversified Mining Industry here. << … Read more

Dividend Increases/Decreases for the Week Ending March 23

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Below we provide a list of firms that raised their dividends during the week ending March 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 BBX Capital (BBX): now $0.01 per share quarterly dividend, was $0.0075. Children’s Place Retail Stores (PLCE): now $0.50 per share quarterly dividend, was $0.40. Cousins Properties (CUZ): now $0.065 per share quarterly dividend, was $0.06. CSB Bancorp (CSBB): now $0.24 per share quarterly dividend, was $0.22. Enduro Royalty Trust (NDRO): now $0.040499 per share monthly dividend, was $0.037125. Finjan Holdings (FNJN): now $0.08 per share quarterly … Read more

Dividend Increases/Decreases for the Week Ending March 17

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Below we provide a list of firms that raised/lowered their dividends during the week ending March 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 AirBoss of America (ABSSF): now CAD 0.07 per share quarterly dividend, was CAD 0.065. Ashford Hospitality Prime (AHP): now $0.16 per share quarterly dividend, was $0.12. CareTrust REIT (CTRE): now $0.185 per share quarterly dividend, was $0.17. CECO Environmental (CECE): now $0.075 per share quarterly dividend, was $0.066. Dollar General (DG): now $0.26 per share quarterly dividend, was $0.25. Federal Agricultural Mortgage (AGM): now $0.36 per … Read more

Dividend Increases for the Week Ending February 13

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Below we provide a list of firms that raised their dividends during the week ending February 13. 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 Allegion (ALLE): now $0.10 per share quarterly dividend, was $0.08. Auburn National (AUBN): now $0.22 per share quarterly dividend, was $0.215. Cisco (CSCO): now $0.21 per share quarterly dividend, was $0.19. Coca-Cola Enterprises (CCE): now $0.28 per share quarterly dividend, was $0.25. Compass Minerals (CMP): now $0.66 per share quarterly dividend, was $0.60. Dominion Resources (D): now $0.6475 per share quarterly dividend, was $0.60. Excel Trust … Read more

Dividend Increases/Decreases for the Week February 18

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Below we provide a list of firms that raised their dividends during the week ending February 18. 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 Acadia Realty Trust (AKR): now $0.18 per share quarterly dividend, was $0.15. Advance Auto Parts (AAP): now $1.50 per share quarterly dividend, was $1.00. AEGON (AEG): now EUR 0.09 per share semi-annual dividend, was EUR 0.08. AllianceBernstein (AB): now $1.29 per share quarterly dividend, was $0.89. Allstate (ALL): now $0.85 per share quarterly dividend, was $0.81. American Homes 4 Rent (AMH): now $0.18 per share quarterly … 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

Dividend Growth Idea Newmont Surging Higher

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Image Shown: Shares of dividend growth idea Newmont Corporation have surged higher since January 2020. By Callum Turcan Rising geopolitical tensions have pushed COMEX gold prices to the $1,900-$2,000 per troy ounce range as of this writing in late March 2022. We added the gold miner Newmont Corporation (NEM) to the Dividend Growth Newsletter portfolio back in January 2020 (link here) to gain modest exposure to the gold industry. Shares of NEM are trading near the high end of our fair value estimate range of $78 per share as of this writing after surging ~31% over the past year. Newmont has a variable dividend policy that includes a base and variable payout. Shares of NEM yield ~2.8% on a trailing … Read more

US Congress Is Getting Ready to Pass a Massive ~$2.2 Trillion Fiscal Stimulus Bill

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Image Shown: US equities have started to recover some of their lost ground as the likelihood that the US Congress will pass a massive ~$2.2 trillion fiscal stimulus and emergency spending package, dubbed the CARES Act, has increased significantly over the past week as seen through the bounce in the SPDR S&P 500 ETF Trust (SPY). President Trump has clearly indicated that he intends to sign such a bill into law as soon as possible, with the US House of Representatives expected to take up the legislation this upcoming Friday morning on March 27. By Callum Turcan On March 25, the US Senate worked late into the night to secure a bipartisan compromise on a massive ~$2.2 trillion fiscal stimulus … Read more

Dividend Increases/Decreases for the Week May 6

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Below we provide a list of firms that raised their dividends during the week ending May 6. 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 Financial (AFG): now $8.00 per share special dividend, was $0.56. Amerigo Resources (ARREF): now CAD 0.03 per share quarterly dividend. Arbor Realty Trust (ABR): now $0.38 per share quarterly dividend, was $0.37. Arc Resources (AETUF): Now CAD 0.12 per share quarterly dividend, was CAD 0.10. Barrick Gold (GOLD): now $0.20 per share quarterly dividend, was $0.10. Baxter (BAX): now $0.29 per share quarterly dividend, was … Read more