MSFT

Intel Leaps to $30 Per Share; PC Demand Stabilizing

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Intel (INTC) is one of the most-followed firms on Valuentum’s website, and for good reason: the company is a holding in the portfolio of the Best Ideas Newsletter and pays out a lofty 3.3% annualized dividend yield at present levels. For our new members, our best ideas are always included in the Best Ideas portfolio and Dividend Growth portfolio. We first highlighted Intel in the August 2011 edition of our Best Ideas Newsletter and added shares to the portfolio in September 2011 at just under $20 each. Though a 50% move upward to its current price is noteworthy, Intel has also paid a nice ~3% annual dividend yield along the way. We attribute the recent acceleration in the firm’s price … Read more

MoneyShow Slide Deck: The Valuentum Dividend Cushion

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Tuesday, May 13, 2014, 4:00 pm – 4:30 pm The Ultimate Dividend Growth Investing Tool    Valuentum’s President of Equity Research Brian Nelson, CFA, walks through the benefits of intelligent dividend growth investing and the importance of not only focusing on the payout ratio but also future cash flows when assessing the safety and potential growth of a firm’s dividend. In this must-attend… Please select the image below or click to view the presentation. Join Brian Nelson, CFA, at The MoneyShow Las Vegas, May 12-15, 2014. Brian will share his investing strategies with you face to face in two presentations: The Ultimate Dividend Growth Investing Tool and 3 Top Stock Ideas for Your Radar. If you are interested in meeting … Read more

Earnings from 15 Dividend Growth Giants

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History has revealed that the best performing stocks during the previous decades have been those that shelled out ever-increasing cash to shareholders in the form of dividends. In a recent study, S&P 500 stocks that initiated dividends or grew them over time registered roughly a 9.6% annualized return since 1972 (through 2010), while stocks that did not pay out dividends or cut them performed poorly over the same time period. Such analysis is difficult to ignore, and we believe investors may be well-rewarded in future periods by finding the best dividend-growth stocks out there. Let’s take a look at the recent performance of 15 high dividend payers and disclose their ‘valuation ratings’ and most recent Valuentum Dividend Cushion scores. Valuentum … Read more

Encouraging News Regarding Worldwide PC Shipments

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You may not have noticed it, but Intel (INTC) has rallied nearly seven points since the bottom established in late 2012 – that’s roughly a 40%+ upward advance through today. On Wednesday, International Data Corp (IDC) released some very good news for the PC supply chain. Though worldwide personal computer (PC) shipments continued to decline during the first quarter of 2014, the pace of the fall was nearly a percentage point better than expected (-4.4% versus -5.3% forecast, -5.6% in the fourth quarter, and -7.3% in the third quarter). Much of the upside surprise during the period came from mature commercial markets as technical support for Windows XP expired. After eight consecutive quarters of declines in worldwide PC shipments, we’re … Read more

Software: Adobe Keeps Rolling; Oracle Hit by Venezuela Forex Issues

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On Thursday, Adobe (ADBE) put up better-than-expected fiscal first-quarter performance and issued a strong outlook, while Oracle’s (ORCL) fiscal third-quarter results faced currency challenges and its forward guidance came in about as expected. Adobe achieved revenue of $1 billion, at the high end of the targeted range (and above consensus), and exited the fiscal first quarter with an impressive 1.84 million paid Creative Cloud subscriptions, an increase of 405,000 on a sequential basis. Adobe Marketing Cloud quarterly revenue jumped 24% during the period, to $267 million, a nice showing. Diluted earnings per share on a non-GAAP basis came in at $0.30, beating the consensus figure by $0.05. The fiscal first-quarter results were solid, but the company’s outlook was even better. … Read more

Microsoft Almost Hits $40 Per Share

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We tell our members exactly what we mean. For those that watch the Dividend Growth portfolio closely and analyze our 16-page reports, you’re well aware that we’ve been pounding the table on Microsoft’s (MSFT) undervaluation for some time. Image Source: Valuentum  The software giant is just another great example of the process in action. In every 16-page report, the last page reveals the rating history on each company. Since the middle of 2012 (see below), we’ve been saying that Microsoft’s shares are going to buck the historical malaise and rise to $40+ on the basis of our fair value estimate. The software giant also registered a coveted 9 on the Valuentum Buying Index in September 2012. And its hefty dividend … Read more

Thank you…

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By Brian Nelson, CFA Earlier this week, I received an email from a colleague and valued member of our services. I wanted to share it here for others to read. I haven’t included his name, but if he wants me to, I can add it in. It is filled with wisdom, experience and kindness. And it really made my year to read his words. The Valuentum community, I believe, is the best community of investors out there. Sir, if you do happen to read your own email on our site, we very much have appreciated your feedback, and we hope to continue to live up to your praises. We are dedicated, and our team has been rejuvenated by your words. … Read more

Valuentum’s Dividend Growth Portfolio Gems Shine Bright

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We couldn’t be happier with the fundamental performance of two of the larger holdings in the Dividend Growth portfolio. Procter & Gamble (PG) and Microsoft (MSFT) both reported solid fiscal second-quarter earnings (calendar fourth-quarter earnings) this week. Procter & Gamble boasts some of the most-recognized branded consumer packaged goods and holds a significant share position in the markets in which it operates. The company boasts 120+ consecutive years of dividend payments and 55+ consecutive years of dividend increases. Procter & Gamble’s dividend payout is rock-solid, and we were reminded as much when it released fiscal second quarter results Friday. On an adjusted basis, organic growth advanced 3%, leading to a solid currency-neutral, core earnings-per-share advance of 8% during the period, … Read more

Icahn’s In-depth Letter to Apple Still Does Not Remove Time Horizon

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We believe Apple’s (AAPL) shares have valuation upside (see 16 page report), but as we have outlined before here, activist investor Carl Icahn’s proposal to force Apple to buy back stock over a certain time period (“during fiscal 2014”) as opposed to under a certain price (our fair value estimate) is imprudent. We encourage Icahn to further revise his proposal. Additionally, we think Icahn’s valuation process is too simplistic (see footnote 1), and we encourage him to disclose a more rigorous valuation assessment of the firm that takes long-term forecasts into consideration. Said differently, we’d like him to justify why Apple should trade for 16 times earnings on the basis of Apple’s own financials, not merely use the consensus market multiple for justification. … Read more