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How Some Members Use Valuentum’s Investment Services

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By Brian Nelson, CFA Thank you for your membership to Valuentum. We serve a wide variety of investors, including dividend growth investors, value investors, and pure Valuentum investors, among others. Many different types of investors and professionals use our research and financial analysis in a whole host of applications from individual stock-selection to the evaluation of closed-end funds to an overlay in a money-management setting and beyond. We wanted to make sure that you know that, if you’re a dividend growth or income investor, that there are others that use our website to utilize the Valuentum process, fair value estimates and other metrics. Similarly, if you’re a practitioner of the Valuentum system, I wanted to make sure that you are … Read more

REITs Will Likely Continue To Underperform

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By Brian Nelson, CFA Stock prices and returns are in part a function of the cash-based sources of intrinsic value: net cash on the balance sheet and future expectations of free cash flow. Though there are many ways to slice and dice a company with respect to equity analysis, to arrive at an intrinsic value estimate of a firm, it generally comes down to these two important cash-based dynamics. Due to the nature of their business models, most REITs have lofty net debt positions, and many are investing in real estate at a pace that is faster than that which they are generating operating cash flow. One good example of the trouble brewing on many a REIT’s cash flow statement … Read more

2022 Oil & Gas Market Update: “The Outlook for Crude Oil Prices Remains Quite Bullish”

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Transcript Hello, this is Callum Turcan, Associate Director of Research at Valuentum Securities. WTI and Brent have pulled back moderately from recent highs, though near-term futures remain just above $100 per barrel which is well above levels seen last year. As of early July, both WTI and Brent are in backwardation, meaning spot prices are trading at a higher price than later dated future contracts. In other words, the trajectory of future crude oil prices is expected to have a downward slope. Please note that backwardation does not mean that things are going to rapidly deteriorate for the global energy complex, as this dynamic is due to global oil inventories steadily declining over the past two years or so. Backwardation … Read more

ICYMI: Valuentum’s Brian Nelson on the Latest Howard Marks’ Memo: “Something of Value”

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Valuentum’s President of Investment Research Brian Michael Nelson, CFA, explains why there are not really value and growth stocks, why most of the research in quantitative finance is spurious and needs to be redefined on a forward-looking basis, and why enterprise valuation (not the efficient markets hypothesis) should be the organizing principle of finance. Nelson explains his views about valuation, what it means to be a value investor, and investing in the context of Oaktree Capital Howard Marks’ latest memo, “Something of Value,” January 11, 2021. Please don’t forget to give the second edition of the book “Value Trap” a 5-star rating on Amazon here. Thank you for your membership! —– Tickerized for holdings in the IWM. Valuentum members have … Read more

Value Is Not Static and the Qualitative Overlay Is Vital to Our Process

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With prudence and care, the Valuentum Buying Index process and its components are carried out. Our analyst team spends most of its time thinking about the intrinsic value of companies within the context of a discounted cash-flow model and evaluating the risk profile of a company’s revenue model. We have checks and balances, too. First, we use a fair value range in our valuation approach as we embrace the very important concept that value is a range and not a point estimate. A relative value overlay as the second pillar helps to add conviction in the discounted cash-flow process, while a technical and momentum overlay seeks to provide confirmation in all of the valuation work. There’s a lot happening behind the scenes even before a VBI rating is published, but it will always be just one factor to consider. Within any process, of course, we value the human, qualitative overlay, which captures a wealth of experience and common sense. We strive to surface our best ideas for members.

Dividend Increases/Decreases for the Week Ending January 26

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Below we provide a list of firms that raised/lowered their dividends during the week ending January 26. 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 $1.36 per share quarterly dividend, was $1.17. AGCO (AGCO): now $0.15 per share quarterly dividend, was $0.14. Air Products and Chemicals (APD): now $1.10 per share quarterly dividend, was $0.95. Alaska Air (ALK): now $0.32 per share quarterly dividend, was $0.30. ALLETE (ALE): now $0.56 per share quarterly dividend, was $0.535. Alliance Data Systems (ADS): now $0.57 per share quarterly dividend, was $0.52. … Read more

Dividend Increases/Decreases for the Week Ending October 27

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Below we provide a list of firms that raised/lowered their dividends during the week ending October 27. 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 1st Constitution Bancorp (FCCY): now $0.06 per share quarterly dividend, was $0.05. Abaxis (ABAX): now $0.16 per share quarterly dividend, was $0.14. AbbVie (ABBV): now $0.71 per share quarterly dividend, was $0.64. AFLAC (AFL): now $0.45 per share quarterly dividend, was $0.43. Agnico Eagle (AEM): now $0.11 per share quarterly dividend, was $0.10. Alliance Holdings (AHGP): now $0.735 per share quarterly dividend, was $0.73. Alliance Resource … Read more

Dividend Increases/Decreases for the Week Ending April 26

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Below we provide a list of firms that raised their dividends during the week ending April 26. 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 ACNB (ACNB): now $0.25 per share quarterly dividend, was $0.23. AGCO (AGCO): now $0.16 per share quarterly dividend, was $0.15. Agree Realty (ADC): now $0.57 per share quarterly dividend, was $0.555. Alliance Resource Partners (ARLP): now $0.535 per share quarterly dividend, was $0.53. Ameriprise Financial (AMP): now $0.97 per share quarterly dividend, was $0.90. AmeriServ Financial (ASRV): now $0.025 per share quarterly dividend, was $0.02. ASML … Read more

Dividend Increases/Decreases for the Week Ending January 31

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Below we provide a list of firms that raised their dividends during the week ending January 31. 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 1st Constitution Bancorp (FCCY): now $0.09 per share quarterly dividend, was $0.075. Alaska Air (ALK): now $0.375 per share quarterly dividend, was $0.350. ALLETE (ALE): now $0.6175 per share quarterly dividend, was $0.5875. AmerisourceBergen (ABC): now $0.42 per share quarterly dividend, was $0.40. Anthem (ANTM): now $0.95 per share quarterly dividend, was $0.80. Apartment Investment (AIV): now $0.41 per share quarterly dividend, was $0.39. Apollo Global … Read more

Dividend Increases/Decreases for the Week Ending May 1

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Below we provide a list of firms that raised their dividends during the week ending May 1. 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 Ames National (ATLO): now $0.25 per share quarterly dividend, was $0.24. American Water Works (AWK): now $0.55 per share quarterly dividend, was $0.50. Apple (AAPL): now $0.82 per share quarterly dividend, was $0.77. Capital Power Income (CPAXF): now CAD 0.48 per share quarterly dividend, was CAD 0.45. Cheniere Energy Partners (CQP): now $0.64 per share quarterly dividend, was $0.63. Coca-Cola FEMSA, S.A.B. de C.V. (KOF): now … Read more