Valuentum Exclusive Analysis for the Discerning Investor

Symbol Keyword

Dividend Cushion Ratio Catches Another Dividend Cut
Image Shown: Tupperware Brands Corporation suspended its dividend in November 2019, a pitfall investors could have avoided by utilizing Valuentum’s proprietary Dividend Cushion ratio. Our Dividend Cushion ratio can be a very useful tool for income seeking investors that wish to avoid payout cuts and the likely capital depreciation that follows. The Dividend Cushion ratio is based on our forecast of the firm’s future free cash flows over the next five full fiscal years, less its net debt or plus its net cash position, divided by its expected dividend obligations during this period. We view this as a powerful gauge of a company’s true dividend coverage, as compared to EPS payout ratios which are backward looking and flawed when evaluating the ability to cover future dividend obligations. This metric has been successfully in warning investors about numerous value traps over the years, including packaging company Tupperware Brands Corp. The company sells anything from plastic kitchen storage containers under its Tupperware brand to beauty products under its NaturCare and other brands. The Dividend Cushion also most recently warned about the cut at Core Labs, too.

Our Reports on Stocks in the Containers & Packaging Industry
Image Source: Ball Corp. We've dropped coverage of stocks in the Packaging and Containers industry.

Weyerhaeuser Faces Deteriorating Financials While Trying to Manage a Monstrous Debt Load
Image Shown: Weyerhaeuser Company – Second quarter 2019 IR Presentation. One very interesting space of the REIT investing world includes the timber industry. Weyerhaeuser Company is a Seattle-based timber REIT that controls and owns ~12 million acres of timberland in the US, along with managing ~14 million acres in Canada via long-term licenses. The company commenced operations way back in 1900, and shares of WY yield 4.6% as of this writing. Weyerhaeuser carries too much leverage on the books for us to be interested in shares at this time, especially when considering the recent weakness in its financial performance. Given rising near-term headwinds, we think there are better high-yielding opportunities out there with safer payouts.

Owens-Illinois’ Debt Load Is Daunting, We Are Staying Away From This Value Trap
Image Source: Owens-Illinois Inc -- IR Presentation. Due to Owens-Illinois’ onerous leverage, guidance cut, and signs that the global economy is slowing down, we are staying far from the name. While shares of OI trade decently below the low end of our fair value estimate range we caution that the market is likely right on this one. Owens-Illinois is another example of a Value Trap.

Dividend Increases/Decreases for the Week Ending April 19
Let's take a look at companies that raised/lowered their dividend this week.

Brace for More Volatility
Image shown: The S&P 500 ETF (SPY) since August of last year. The markets have broken through key support levels, and now support has become resistance. Volatility remains heightened since the low-vol ETN blew up in February.This article is the introduction to both the Dividend Growth Newsletter and High Yield Dividend Newsletter, both of which will be released today due to the holiday January 1.

Valuentum Stock Screeners
Brian Nelson provides members with an update on Valuentum's stock screeners and the significant number of forward-looking data we provide. This article was sent to members via email December 29.

Market Mayhem -- Alerts for Members
Dear members -- we released a number of emails today. Please read and let us know if you have any questions. We're here for you.

There Is Milk At The Store
"Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning." -- Winston Churchill

Valuentum’s Weighted Average Cost of Capital (WACC) Distribution
The weighted average cost of capital is one of the most subjective measures in corporate finance, but it is also one of the most important ones.