Valuentum Exclusive Analysis for the Discerning Investor

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Mar 16, 2021

Roblox Goes Public; Strong Balance Sheet and Expected Free Cash Flow
Image Source: Roblox Corporation – S-1/A SEC Filing. Roblox Corp recently went public through a direct listing on March 10, 2021. The video game platform company has an extensive growth runway with multiple avenues to further expand its business. We are impressed with its free cash flow generating abilities, pristine balance sheet, and strong growth rates of late. Roblox’s outlook for 2021 indicates its growth story is expected to continue this year in earnest. Capital appreciation seeking investors should take a deeper look at Roblox, though we caution that its co-founder, CEO, and chairman controls most of the company’s voting power.

Mar 16, 2021

Honeywell Reaffirms Outlook, Dividend Looks Great
Image Source: Honeywell – J.P. Morgan Industrials Conference Presentation. 2021 will be a solid year for Honeywell, but we expect 2022 and 2023 to be even brighter, as some of the company’s revenue initiatives bear fruit in a much healthier industrial marketplace buoyed by greater infrastructure spending. The cost cuts put in place during COVID-19 should help with margin improvement as economic conditions pick up, putting the firm in a position to surprise to the upside. We expect continued dividend growth. Honeywell yields 1.7% at the time of this writing.

Mar 15, 2021

AT&T’s Video Streaming Growth Story Is Starting to Take Flight
Image Source: AT&T Inc – 2021 Investor & Analyst Day Presentation. On March 12, AT&T hosted its 2021 Analyst & Investor Day event. In conjunction with the event, AT&T issued long-term financial and operational guidance which included a substantial upward revision in its expected HBO/HBO Max subscriber growth over the coming years. We continue to be big fans of AT&T as a high yielding opportunity and include AT&T as an idea in the High Yield Dividend Newsletter portfolio. As of this writing, shares of AT&T yield ~7.0%.

Mar 12, 2021

Oracle Beats Consensus Estimates and Raises Its Dividend By 33%
Image Source: Oracle Corporation – September 2019 Financial Analyst Meeting Presentation. On March 10, Oracle Corp reported third quarter earnings for fiscal 2021 (period ended February 28, 2021) that beat both consensus top- and bottom-line estimates. We include Oracle as an idea in the Dividend Growth Newsletter portfolio, and we are big fans of its impressive free cash flow generating abilities. The company’s Dividend Cushion ratio of 3.0 (a stellar ratio) earns Oracle an “EXCELLENT” Dividend Safety rating, and please note that these metrics incorporate our expectations that Oracle will push through meaningful payout increases over the coming fiscal years. We give Oracle an “EXCELLENT” Dividend Growth rating. In conjunction with its latest earnings report, Oracle boosted its quarterly dividend up to $0.32 per share, up 33% on a sequential basis. At the new payout level, shares of ORCL yield ~1.9% as of this writing. Management also recently increased Oracle’s share buyback authority by $20.0 billion. We continue to like exposure to Oracle in the Dividend Growth Newsletter portfolio and were impressed with the company’s latest earnings report and recent operational updates.

Mar 12, 2021

Newmont Doubles Down on the “Golden Triangle”
Image Shown: Newmont Corporation has an impressive project pipeline that will help ensure the gold miner’s production levels stay healthy over the decades to come, underpinning its promising long-term cash flow trajectory. We continue to like Newmont as an idea in our Dividend Growth Newsletter portfolio. Image Source: Newmont Corporation – March 2021 IR Presentation. We include gold miner Newmont Corp as an idea in the Dividend Growth Newsletter portfolio. Though gold prices have shifted somewhat lower over the past few months, they remain at levels where Newmont’s free cash flow growth outlook is incredibly bright. Shares of NEM yield ~3.8% on a forward-looking basis as of this writing after the company approved a large dividend increase in February 2021. In this article, we cover Newmont’s recent acquisition, which will add another long-term development opportunity to its global portfolio in a region that was already home to one of Newmont’s promising development opportunities.

Mar 10, 2021

Dividend Growth Portfolio Idea Dick’s Sporting Goods Raises Dividend 16%!
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. Dick’s Sporting Goods showcased the strength of its business model during 2020, and while it may not be able to duplicate the results in 2021, we think the future is bright. Free cash flow generation trends are solid, its balance sheet is healthy, and dividend coverage is sound. As more and more consumers choose healthier lifestyles, Dick’s Sporting Goods remains in a sweet spot to capture continued demand. With a solid 2% dividend yield, the company remains a holding in the simulated Dividend Growth Newsletter portfolio. We expect continued strong dividend growth for years to come.

Mar 10, 2021

Chipotle Improving Its Digital Menu to Support Its E-commerce Growth Runway
Image Shown: Over the past year, shares of Chipotle Mexican Grill Inc have been on an upward tear, supported by the restaurant’s improving omni-channel selling capabilities. Shares of Chipotle Mexican Grill surged higher during normal trading hours March 9 after the firm announced it was adding customizable quesadilla offerings to its digital menu in the US and Canada starting March 11. This offering is only available for customers ordering while using Chipotle’s digital platforms (potentially due to the longer preparation times) and will likely require new cooking equipment at the company’s restaurants. The company offers both home delivery and curbside/drive-thru pickup services (including its order ahead and pickup services) through its digital platform. We continue to be huge fans of Chipotle and include the company as an idea in our Best Ideas Newsletter portfolio.

Mar 10, 2021

Johnson & Johnson’s COVID-19 Vaccine Gets the Green Light
Image Shown: We include Johnson & Johnson as an idea in both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios. The health care giant is home to over two dozen ‘platforms/products’ that generate $1.0+ billion in annual sales, as you can see in the above graphic. Recently, Johnson & Johnson’s COVID-19 vaccine received emergency use authorization from the US CDC, which will provide public health authorities with another arrow in their quiver as it relates to bringing an end to the public health crisis. Image Source: Johnson & Johnson – Fourth Quarter of 2020 IR Earnings Presentation. At the end of February 2021, the US Centers for Disease Control and Prevention (‘CDC’) gave emergency use authorization for the single-shot vaccine developed by Janssen, a subsidiary of Johnson & Johnson, to inoculate patients aged 18 years and older from the coronavirus (‘COVID-19’). We have been covering this story for some time and are delighted to see that Johnson & Johnson’s COVID-19 vaccine crossed the finish line. Having another safe and viable COVID-19 vaccine at their disposal should go a long way in assisting global health authorities in eventually bringing the pandemic under control. We covered the interim safety and efficacy data from Johnson & Johnson’s Phase 3 COVID-19 vaccine clinical trial previously. Johnson & Johnson is included as an idea in both the Best Ideas Newsletter and Dividend Growth Newsletter portfolios, and we continue to like exposure to the name. The top end of our fair value estimate for JNJ sits at $172 per share, and we are big fans of its promising dividend growth trajectory. Shares of JNJ yield ~2.6% as of this writing.

Mar 5, 2021

Our Thoughts on Berkshire Hathaway’s Latest Annual Report
Image Shown: Shares of Berkshire Hathaway Inc Class B stock have been on an upward climb since June 2020 with room for additional capital appreciation upside. The top end of our fair value estimate range for BRK.B sits at $275 per share. We continue to like exposure to Berkshire Class B stock in our Best Ideas Newsletter portfolio. The top end of our fair value estimate range sits at $275 per share of BRK.B, indicating the company has room for additional capital appreciation upside as of this writing even after moving higher over the past several months. Just like any investor, Mr. Buffett will not always get it right, but we appreciate his candor when he gets something wrong. Bigger picture, the outlook for the US economy appears strong as public health authorities are utilizing COVID-19 vaccine distribution efforts to help bring an end to the crisis. Mr. Buffett, in his letter, was very upbeat about the US economy. We will end with this comment from the Oracle of Omaha: “Our unwavering conclusion: Never bet against America.”

Mar 5, 2021

Dividend Increases/Decreases for the Week March 5
Let's take a look at companies that raised/lowered their dividend this week.