PG

The Most Important Topic in Stock Investing

by

President of Equity Research, Brian Nelson, discusses why price vs. value is the paramount consideration in stock investing. Brian Nelson, CFA: This is Brian Nelson from Valuentum Securities. Today, I wanted to talk about a number of investment concepts that I think are absolutely paramount for every investor to know.  The very first concept is price versus value, and this one is paramount to any investment process. Now I’m not just giving this lip service–this is just one of the core concepts of investing, equity investing. The reality of stock investing is that each company has a present value of future free cash flows that it generates, and those future free cash flows roll up to a fair value, the … Read more

Campbell Soup Representative of Weakening Consumer Staples Equities

by

Image Source: Neil Conway When our team presented at the CFA Society of Houston in March 2017, we warned about the possible coming pressures on consumer staples stocks, and so far, our concerns have come to fruition. Not only have a number of high-profile players in the tobacco and beverage arena soured, but household consumer products and packaged foods players have felt the pain, too. Campbell Soup’s recent fallout has been among the worst. Shares have been halved since mid-2017. Download slide deck — March 8, 2017: Trust the Numbers, Not Just Management, CFA Society Houston, Kris Rosemann and Brian Nelson, CFA By Brian Nelson, CFA The consumer staples sector, as measured by the Consumer Staples Select SPDR ETF (XLP), has … Read more

We Said Consumer Staples Would Underperform

by

Consumer Staples Stocks Underperform — We think investors are wising up to the risks of consumer staples stocks, and increasing risk-free rates seem to already be complicating the investment decision-making process for many investors. Consumer staples equities in the S&P 500 are currently trading at ~19.4 times forward 12-month earnings, well above their sub-17 times 10-year trailing average. We believe investors will continue to swap out of these steady-eddy, but overpriced, gems in the near term, in favor of higher-beta commodity and energy-oriented companies as the market sets up to surge in 2017. We have been warning about the tipping point in Treasury yields and implications on dividend-paying consumer staples equities for some time. – Brian Nelson CFA, December 2016, … Read more

Procter & Gamble Pressured By Pricing

by

Image Source: Mr.TinDC Recently-transformed consumer staples giant Procter & Gamble’s fiscal 2018 third quarter report left a bit to be desired as pricing woes weighed on organic top-line performance. The company is also shifting its Consumer Health business as it has agreed to acquire Merck KGaA, Darmstadt, Germany’s Consumer Health business. By Kris Rosemann Shares of former simulated Dividend Growth Newsletter portfolio idea Procter & Gamble (PG) hit their lowest mark since early 2016 in the trading session April 19 following its fiscal 2018 third-quarter report. We believe the company may have made its transition to a more-focused entity too rapidly as it continues to navigate multiple difficult operating environments around the globe. Its strategy to focus only on its … Read more

ICYMI: Valuentum’s Improved Stock and ETF Web Pages

by

Valuentum has rolled out improved stock and ETF web pages on its website valuentum.com/. Now, subscribers can access key proprietary information on the stock and ETF web pages in addition to the customary stock and ETF reports. Dear reader, We have some exciting news that we can’t wait to share with you! At valuentum.com/, we have rolled out new stock and ETF pages that conveniently include a variety of our proprietary metrics from the Dividend Cushion ratio to the Economic Castle rating and beyond! There’s even mouseover functionality so you can learn about how we define the key metrics across our stock-selection and dividend growth methodologies. You’ll still have access to the stock and dividend reports on the landing pages, … Read more

Dividend Increases/Decreases for the Week Ending April 13

by

Firms Raising Their Dividends This Week Aon (AON): now $0.40 per share quarterly dividend, was $0.36. Automatic Data Processing (ADP): now $0.69 per share quarterly dividend, was $0.63. Bed Bath & Beyond (BBBY): now $0.16 per share quarterly dividend, was $0.15. Carnival (CCL): now $0.50 per share quarterly dividend, was $0.45. Clough Global Equity Fund (GLQ): now $0.1257 per share monthly dividend, was $0.1226. Clough Global Opportunities Fund (GLO): now $0.1031 per share monthly dividend, was $0.1013. Enterprise Products Partners (EPD): now $0.4275 per share quarterly dividend, was $0.425. First Republic Bank (FRC): now $0.18 per share quarterly dividend, was $0.17. Genesis Energy (GEL): now $0.52 per share quarterly dividend, was $0.51. Gladstone Investment (GAIN): now $0.067 per share monthly … Read more

Dividend Growth Portfolio: Adding Two New Gems

by

  We’re making some moves in the Dividend Growth Newsletter portfolio today. By Brian Nelson, CFA We decided to remove Boeing (BA) and Procter & Gamble (PG) from the Dividend Growth Newsletter portfolio recently. You can view the Dividend Growth Newsletter notification log here. We still like both companies a lot. Boeing has a fantastic position and an inherently hedged business portfolio, while Procter & Gamble still retains some of the best consumer brands, even after a rather aggressive brand simplification process. However, Boeing has run too far too fast, and we can’t rule out P&G turning into another General Electric (GE) given its decision, too, to shrink its brand exposure. We’re replacing those two stalwarts with two key players … Read more

Alert: Dropping P&G; Also — Intel’s Dividend Hike; General Motors Puts Up Strong March Sales

by

We were reminded of some good news from Intel and General Motors, but the time has come to part with Procter & Gamble. We may have included it in the simulated Dividend Growth Newsletter portfolio too long. By Brian Nelson, CFA Hope you all had a warm holiday weekend. It was pleasant this morning to be reminded that simulated newsletter portfolio idea Intel (INTC) increased its dividend 10% when it reported quarterly results January. The dividend will be payable on June 1 to shareholders of record on May 7. The enthusiasm behind our call on Intel and our article in the April edition of the Dividend Growth Newsletter was a bit short-lived given the recent rumors in the PC market, … Read more

Our Ideas Are Performing Awesome So Far in 2018!!! 6 of the Top 7 of the Dow!

by

By Brian Nelson, CFA Every day we think about how we can make things easier for our members. Instead of having to visit multiple links on our website with screens, you now have access to one downloadable Excel file where you can sort and rank how you wish. Of course, you can always find those screens in the newsletters, each and every month, too, but we think a weekly data download is a huge value add to our offering. Can you imagine getting updated data every week for 52 weeks of the year for what we charge, let alone two newsletters, hundreds of reports, commentary, and education material? Wow, right? People keep saying we do too much, but when our … Read more

The “Luck” and “Randomness” of Index Funds

by

Please select the image below to download the document. Image shown, page 1 of 14. Tickerized for Valuentum’s coverage universe.