Exclusive Analysis for the Discerning Investor
Dividend-growth portfolio holding Hasbro reported lackluster first-quarter results in April, but the company’s recent success of ‘The Avengers’ could propel earnings in the second and third quarters ahead of consensus estimates. We think Hasbro looks very compelling at current levels.
On Monday, Hasbro () reported disappointing first quarter results. Though we were not happy with the performance in the quarter, we maintain our view that the firm’s dividend growth profile remains strong. Our fair value estimate of Hasbro remains unchanged. Hasbro’s net revenue in the first quarter fell 3%, and the company did little to adjust its cost structure effectively to mitigate the earnings decline. Earnings fell into the red, with the company posting a $0.02 per share net loss during the quarter (it had earned $0.12 per share in the same period a year ago). Excluding severance-related costs, earnings per share came in at $0.04 (consensus estimates were at $0.08 per share). One of the bright spots, however, was that its … Read more
Dividend-growth portfolio holding Hasbro (HAS) reported mixed fourth-quarter results Monday and increased its dividend a whopping 20%, even more than we had anticipated. Though we had expected a nice dividend increase for 2012, we’ll be updating our dividend report on the company shortly. The firm reported a 4% increase in revenue in the fourth quarter from the same period a year ago thanks to strong international growth (up 8%), offset by lower-than-expected growth in its US and Canada segment (down 2%). The top-line was weighed down by challenges in its Games & Puzzles and Girls categories, which fell 11% and 16%, respectively. However, we think management has taken the appropriate steps post-Thanksgiving to re-accelerate growth in these segments via … Read more
With the invention of intuitive iPads and the interactive Xbox Kinect, you would think children would be ready for technology to take over their childhoods. And that may be correct. iBook 2 might result in learning taking place exclusively in the digital world. In the meantime, kids are still kids, and they still enjoy playing with toys. Though it’s unreasonable to expect toys to absolutely explode in popularity, they’ve been around for hundreds of years, and they won’t go completely out of fashion tomorrow. We think the digital age has beaten down shares of Hasbro (HAS) to an attractive valuation. The stock currently trades at around 11x our 2012 earnings forecast, with a dividend yield of almost 3.7%. With a … Read more
Is Quant Value Giving Intrinsic Value Investors a Bad Name? Surely, you don’t believe Warren Buffett’s “style” is out of favor? By Brian Nelson, CFA I need to make sure that you’re aware of something very important. The media and perhaps many investment professionals define the concept of “value” as companies with low price-to-book (P/B) ratios, and the concept of “growth” as companies with high price-to-book ratios. This definition of “value” and “growth” and their corresponding returns have been magnified in writings throughout the media and across quantitative research, even in prestigious journals. Warren Buffett has been rallying against most quantitative applications and how “growth” and “value” are defined in popular media and quantitative research for decades. Here’s one of the Oracle’s most … Read more
Below we provide a list of firms that raised their dividends during the week ending February 11. 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 3M (MMM): now $1.49 per share quarterly dividend, was $1.48. Algoma Steel Group (ASTL): now $0.05 per share quarterly dividend. Amdocs (DOX): now $0.395 per share quarterly dividend, was $0.360. Ameren (AEE): now $0.59 per share quarterly dividend, was $0.55. Ametek (AME): now $0.22 per share quarterly dividend, was $0.20. Ares Management (ARES): now $0.61 per share quarterly dividend, was $0.47. AstraZeneca PLC (AZN): now $1.97 … Read more
Let’s walk through how to use the Valuentum Dividend Growth Portfolio Retirement Model.
Image Source: Mike Lawrence Question: I’m a subscriber. I’m looking at your Dividend Report for Enterprise Product Partners (EPD). 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 … Read more
Below we provide a list of firms that raised their dividends during the week ending February 9. 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 $0.21 per share quarterly dividend, was $0.16. Allergan (AGN): now $0.72 per share quarterly dividend, was $0.70. Allstate (ALL): now $0.46 per share quarterly dividend, was $0.37. ALPS Alerian MLP ETF (AMLP): now $0.2066 per share quarterly dividend, was $0.2052. Anadarko Petroleum (APC): now $0.25 per share quarterly dividend, was $0.05. Archer Daniels Midland (ADM): now $0.335 per share quarterly dividend, was $0.32. … Read more
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