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Dividend Increases/Decreases for the Week of August 22

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Below we provide a list of firms that raised their dividends during the week ending August 22. 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                          Altria (MO): now $1.06 per share quarterly dividend, was $1.02. American Financial (AFG): now $0.88 per share quarterly dividend, was $0.80. Automotive Properties Real Estate Investment Trust (APR.UN:CA): now CAD 0.0685 per share monthly dividend, was CAD 0.0670. Avnet (AVT): now $0.35 per share quarterly dividend, was $0.33. Bank7 (BSVN): now $0.27 per share quarterly dividend, was $0.24. Bay Commercial Bank (BCML): now $0.25 … Read more

There Will Be Volatility

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By Brian Nelson, CFA Last year, 2022, was a big test for equity investors, and the downside volatility that we witnessed during the year wasn’t comfortable, to say the least. Following the COVID-19 crash and rebound during 2020, and then the market surge in 2021, it wouldn’t be a stretch to say many investors’ heads are probably still spinning from all the volatility witnessed to start this decade. That said, part of what we’ve been warning about the past few years with respect to the equity market, especially in Value Trap, is that the proliferation of price-agnostic trading (e.g. quant, machine/algorithmic trading, etc.) will only lead to more and more market volatility, so while we were somewhat surprised by last … Read more

AT&T Disappoints Again

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Image: AT&T is back in the doghouse, as free cash flow generation came in worse than expected during its first-quarter 2023 results. Image Source: AT&T By Brian Nelson, CFA It’s unbelievable. As soon as we started to warm up to AT&T (T) in October of last year, noting that its free cash flow generation was looking a lot better, the company falls off the tracks again. During the first quarter of 2023, AT&T’s cash flow from operations dropped more than $950 million on a year-over-year basis, while capital spending and cash paid for vendor financing soared. Non-GAAP free cash flow came in at $1.0 billion (missing expectations), while the company shelled out $2 billion in dividends during the period. Excluding … Read more

Verizon’s Big Share-Price Drop Opens Opportunity for 6.8% Dividend Yield

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Image: Verizon’s shares have been punished, but this has opened an opportunity for a 6.8% dividend yield. Image Source: TradingView By Brian Nelson, CFA When Verizon (VZ) reported third-quarter results in late October, the company’s revenue advanced 4% on a year-over-year basis, exceeding the consensus estimate, while non-GAAP earnings per share came in at $1.32 per share, beating the consensus estimate by a few pennies, but down slightly on a year-over-year basis. Adjusted EBITDA fell 0.4% from the same period last year. Verizon is one of the leading communication service providers in the world, and its operations span data, video and voice services across its networks and platforms. The company’s two reportable segments, Verizon Consumer Group and Verizon Business Group, … Read more

Cisco Systems Reduces Guidance After Noisy Quarter, Remains Free Cash Flow Giant Backed By Pristine Balance Sheet

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Image Source: Cisco Systems Inc – Third Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan On May 18, Cisco Systems Inc (CSCO) reported third quarter earnings for fiscal 2022 (period ended April 30, 2022) that missed consensus top-line estimates but beat consensus bottom-line estimates (specifically for its non-GAAP performance). One of the biggest updates from this earnings report was that Cisco Systems reduced its full year guidance for fiscal 2022. The news initially sent shares of CSCO sharply lower, though Cisco Systems remains a free cash flow cow with a pristine balance sheet. It was an incredibly noisy earnings report for the firm for reasons we will cover in this article. We include Cisco Systems as an idea … Read more

Cisco Posts Great Earnings Update; Increases Dividend and Share Buyback Authority

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Image Shown: Cisco Systems Inc is a very shareholder friendly company. Image Source: Cisco Systems Inc – Second Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan On February 16, Cisco Systems Inc (CSCO) reported second quarter earnings for fiscal 2022 (period ended January 29, 2022) that smashed past both consensus top- and bottom-line estimates. Shares of CSCO surged higher initially after its earnings were made public as the company offered up promising near term guidance, indicating that its positive momentum seen of late is expected to continue. We include shares of CSCO as an idea in both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios. Cisco announced a 3% sequential increase in its quarterly dividend in conjunction … Read more

Cisco Systems Posts Solid Earnings Update; Supply Chain Hurdles Impacting Near Term Outlook

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Image Source: Cisco Systems Inc – First Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan On November 17, Cisco Systems Inc (CSCO) reported first quarter earnings for fiscal 2022 (period ended October 30, 2021) that missed consensus top-line estimates but beat consensus bottom-line estimates. Shares of CSCO fell initially after its latest earnings update was published due to its near term guidance coming in a tad softer than expected, though we caution that this is primarily due to supply chain headwinds negatively impacting Cisco Systems and the networking hardware industry more broadly. As global health authorities work towards bringing the coronavirus (‘COVID-19’) pandemic to an end worldwide, the supply chain situation should improve going forward. We include Cisco … Read more

Large Cap Growth Has More Room To Run

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“The stylistic area of large cap growth has been one of our favorite areas because of the strong net cash rich, free cash flow generating, secular growth powerhouses that make up much of the space. The image is a rundown of the key Valuentum statistics for the top 15 holdings of the Schwab U.S. Large Cap Growth ETF (SCHG). We believe where large cap growth goes, so does the broader market, considering the hefty weightings of some of these stocks in other broad-based indices. Based on the high end of our fair value estimate range for this group of bellwethers, the broader U.S. markets still have room to run, to the tune of 7%+, despite the many highs already reached … Read more

Dividend Increases/Decreases for the Week August 21

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Below we provide a list of firms that raised their dividends during the week ending August 21. 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 American Financial (AFG): now $2.00 per share annual dividend, was $1.80. APTIV PFD A 5.5% (APTV.PA): now $1.4208 per share quarterly dividend. Atrion (ATRI): now $1.75 per share quarterly dividend, was $1.55. Banco Santander, S.A. GTD PFD SECS 6 (SAN.PB): now $0.2639 per share quarterly dividend, was $0.2556. Brighthouse Financial PFDs (BHFAO): now $0.5953/ADS quarterly dividend. Community Bank System (CBU): now $0.42 per share quarterly dividend, … Read more

June Dividend Growth Newsletter & Intrinsic Value Investing

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“But how, you will ask, does one decide what [stocks are] “attractive”? Most analysts feel they must choose between two approaches customarily thought to be in opposition: “value” and “growth,”…We view that as fuzzy thinking…Growth is always a component of value [and] the very term “value investing” is redundant.“  —                — Warren Buffett, Berkshire Hathaway annual report, 1992 — By Brian Nelson, CFA — To add our new options commentary to your membership, please register here ($500/year). — Hi everyone!  — We remain unequivocally bullish on the markets and intrinsic value investing. We believe value today rests within companies that have strong net cash positions (all cash less short- and long-term debt) and solid expected future free cash flows … Read more