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Dividend Growth Portfolio Idea Dick’s Sporting Goods Raises Dividend 16%!

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  Image Source: Mike Mozart. Dick’s Sporting Goods put up its best same-store-sales growth rate in history during 2020. We continue to like shares of the sporting goods retailer in the Dividend Growth Newsletter portfolio. By Brian Nelson, CFA Kudos to one of the latest additions to the Dividend Growth Newsletter portfolio, Dick’s Sporting Goods (DKS). The company announced March 9 concurrent with its fourth-quarter 2020 press release that it increased its quarterly payout 16%, to $0.3625 per share, or $1.45 per share on an annualized basis, good enough for a nice ~2% forward expected dividend yield. The latest iteration of the Dividend Growth Newsletter portfolio can be found here. With a Dividend Cushion ratio of 3.2 at its last … Read more

ALERT: Raising Cash in the Newsletter Portfolios

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January 27, 2021 ALERT: Raising Cash in the Newsletter Portfolios We are raising the cash position in the simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio to 10%-20%. — By Brian Nelson, CFA — Our research has been absolutely fantastic for a long time, but 2020 may have been our best year yet. You can read the 2020 recap here. With the S&P 500 trading within our fair value estimate range of 3,530-3,920 (and the markets rolling over while showing signs of abnormal behavior), we’re raising the cash position in the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio to 10%-20%. — For more conservative investors, the high end of this range may even be larger, especially … Read more

Peloton Makes a Bet on US Manufacturing

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Image Shown: Shares of Peloton Interactive surged higher during 2020. The firm recently announced it would acquire an exercise equipment manufacturer based in the US. As demand for Peloton’s products has been incredibly strong of late, the firm has had trouble keeping up, which in turn has led to delayed deliveries of its “premium” exercise bikes. This acquisition is expected to help alleviate those concerns. By Callum Turcan The exercise bike and digitally-oriented exercise training service provider Peloton Interactive Inc (PTON) announced it was acquiring Precor, an exercise equipment manufacturer, for $420 million in cash (before closing adjustments) on December 21. Peloton aims to complete the transaction by early 2021 (calendar year), and by the end of 2021, the goal … Read more

Omni-Channel Strategy at Dick’s Sporting Goods Makes It a Long-Term Dividend Growth Idea

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Image Source: Dick’s Sporting Goods Inc – Third Quarter of 2020 Earnings Infographic By Callum Turcan The ongoing coronavirus (‘COVID-19’) pandemic, due to the desire of households to socially distance, has driven a meaningful amount of consumer spending to e-commerce platforms. Retailers that invested heavily in their online operations, while also bulking up their omni-channel sales capabilities, were in a much better position when the pandemic hit than those that had to rely largely on their physical footprint. Over the past year, “contactless” delivery options have become much more popular. That includes fulfillment options such as curbside pickup and in-store pickup (usually in specially designated areas), where consumers purchase goods online and then travel to the relevant physical store location … Read more

Dick’s Sporting Goods’ 2%+ Dividend Yield Is Solid

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Dick’s Sporting Goods put up impressive third-quarter results that showed strong sales performance across both e-commerce and brick-and-mortar. E-commerce/digital/online sales continue to soar across the broader retail arena. Dick’s Sporting Goods’ gross and merchandising margins were healthy during its third quarter, and its inventory is clean as the sporting goods retailer heads into the all-important holiday season. We’re big fans of Dick’s Sporting Goods’ tremendous free cash flow generation and its balance sheet health. For dividend growth investors, Dick’s Sporting Goods offers a compelling combination of a 2%+ dividend yield and an impressive 3.2 Dividend Cushion ratio at the time of this writing. By Brian Nelson, CFA On November 24, Dick’s Sporting Goods (DKS) reported fantastic third-quarter results that showed … Read more

Nelson: I’m Not Worried About This Market

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Dear members: — First of all, I wanted to share a heartfelt thank you to all that sent kind words regarding the passing of my brother. My inbox was overflowing with your love and kindness. Len was a great person and my best friend. Without him, I don’t think Valuentum would have come into existence. Your words have been very comforting to me and my family during this difficult time. Thank you again. — With that said, I continue to be bullish on the markets over the long haul. We maintain our view that longer-duration enterprise free cash flows are worth more than they were prior to the COVID-19 market collapse, and valuation adjustments are being reset higher as a … Read more

Third-Level Thinking and “Keynesian Convergence”

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Image: The analytical process of the Valuentum Buying Index rating system.  By Brian Nelson, CFA In the 2011 book, The Most Important Thing, co-founder of asset management firm Oaktree Capital Management, Howard Marks, divided stock market analytics into two levels of thinking, first-level and second-level. Marks used a few examples to explain the difference between these two levels of thinking: First-level thinking says, “It’s a good company; let’s buy the stock.” Second level thinking says, “It’s a good company, but everyone thinks it’s a great company, and it’s not. So the stock’s overrated and overpriced; let’s sell.” First-level thinking says, “The outlook calls for low growth and rising inflation. Let’s dump our stocks.” Second-level thinking says, “The outlook stinks, but … Read more

3 Lessons in Portfolio Management Over 10 Years

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Dear members: — We’re finally getting a pause in the rapid ascent of the markets on September 3rd. Though headlines may look scary and momentum/volatility investors could start to pile on to the downside, a modest retracement is actually a good thing. We continue to focus on the long haul with our processes, and we’re viewing the sell-off as profit taking, for the most part. — In the near term, the markets will also have to digest some speculators betting on mean reversion between “value” (cyclical) versus “growth” (secular), but we maintain the view that the value-versus-growth conversation is largely nonsense (see block quotes below), and mean reversion is something akin to the gamblers’ fallacy, in my humble opinion. Investors should also continue … Read more

Valuentum Website Overview

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Overview of the key features of valuentum.com/ (03:55). Valuentum (val∙u∙n∙tum) [val-yoo-en-tuh-m] Securities Inc. is an independent investment research publisher, offering premium equity reports, dividend reports, and ETF reports, as well as commentary across all sectors/companies, a Best Ideas Newsletter (spanning market caps, asset classes), a Dividend Growth Newsletter, modeling tools/products, and more. Independence and integrity remain our core, and we strive to be a champion of the investor. Valuentum is based in the Chicagoland area. Valuentum is not a money manager, broker, or financial advisor. Valuentum is a publisher of financial information. The Benefits of Premium Membership >> Subscribe Now!