Member LoginDividend CushionValue Trap |
Fundamental data is updated weekly, as of the prior weekend. Please download the Full Report and Dividend Report for
any changes.
Jun 28, 2022
High Yield: Diversified Refiner Phillips 66 A Good Replacement for Broad Consumer Staples Exposure
Image Source: Phillips 66 Investor Update May 2022. Phillips 66 is a top-notch operator in the downstream space with impressive refining and petrochemical assets supported by various midstream operations. Its investment-grade credit rating (A3/BBB+), with stable outlooks, better enables Phillips 66 to tap capital markets at attractive rates, something that we especially like when considering new ideas in the high yield dividend space. A growing global middle class and a growing global population supports Phillip 66's longer term outlook for refined product demand. We like the company as a high yield dividend consideration. Jun 28, 2022
High-Yielding CubeSmart Is A Compelling Income Generation Idea
Image Source: CubeSmart – June 2022 IR Presentation. The self-storage industry is home to several of our favorite income generation ideas due to the ability for companies operating in this space to generate substantial free cash flows after covering their total dividend obligations. Due to the favorable tax regime, most of these firms tend to be structured as real estate investment trusts (‘REITs’). CubeSmart is a self-storage REIT that is entirely focused on the U.S. market, and we include shares of CUBE as an idea in the High Yield Dividend Newsletter portfolio. As of this writing, shares of CUBE yield ~4.0%, and our fair value estimate for the firm stands at $56 per share, well above where shares of CUBE are trading at as of this writing. Jun 28, 2022
Nike’s Gross Margin Falls, Inventory Leaps in Fourth Quarter Fiscal 2022
Image Source: Valuentum. Nike CEO John Donahoe may have said it best in its fourth-quarter fiscal 2022 press release: “Nike’s results this fiscal year are a testament to the unmatched strength of our brands and our deep connection with consumers. Our competitive advantages, including our pipeline of innovative product and expanding digital leadership, prove that our strategy is working as we create value through our relentless drive to serve the future of sport.” What more can we say about this great company. We like its financials quite a bit, fourth-quarter fiscal 2022 earnings came in better than expected, the company is navigating supply chain issues, inflationary pressures, and weakness in Greater China quite well, and it just launched a new massive buyback program to take advantage of its underpriced stock. Nike boasts an impressive Dividend Cushion ratio of 3.8, and we’re reiterating our $139 per share fair value estimate on shares. Shares yield ~1.1% at the time of this writing. Jun 26, 2022
Valuentum's Dividend Growth Strategy 'Outperforming'
Image: The Valuentum Dividend Growth strategy has delivered thus far in 2022. With the S&P 500, as measured by the SPY, down 18.1% (negative 18.1%) thus far in 2022 and the S&P Dividend ETF (SDY) down 6.7% (negative 6.7%), the Valuentum dividend growth strategy, as measured by the hypothetical performance of the Dividend Growth Newsletter portfolio (as shown above), is down an estimated 4.6% (negative 4.6%) so far in 2022, all on a price-only basis. Though two percentage points better than the S&P High Yield Dividend Dividend Aristocrats Index doesn't seem like much, the large cap tilt of the simulated Dividend Growth Newsletter portfolio makes such "outperformance" significant and material. The benefits of a dividend growth strategy, in general, have also been on display so far in 2022, with the simulated Dividend Growth Newsletter portfolio "outperforming" the SPY by an estimated ~13.5 percentage points, on a price-only basis. With the half year mark of 2022 nearing, we wanted to continue to provide updates on the "performance" tracking across a variety of our publications. In case you missed them, please find the year-to-date evaluations of the simulated Best Ideas Newsletter portfolio, the Exclusive capital appreciation and short idea considerations, the simulated High Yield Dividend Newsletter portfolio, as well as our additional options commentary for your convenience. The links are provided as follows. In this article, we'll talk about the "performance" of the simulated Dividend Growth Newsletter portfolio relative to traditional benchmarks and in the context of modern portfolio theory, though we stress that our dividend growth focus is on long-term income expansion not short-term relative price performance, per se. Jun 24, 2022
Best Idea Korn Ferry Enters New Fiscal Year on a High Note
Image Shown: Best idea Korn Ferry posted a stellar fourth quarter of fiscal 2022 earnings report with several of its core financial metrics reaching all-time highs. The firm also issued out favorable near term guidance in conjunction with its latest earnings update. We continue to be huge fans of the global management consulting firm. Image Source: Korn Ferry – Fourth Quarter of Fiscal 2022 IR Earnings Presentation. On June 22, global management consulting firm Korn Ferry reported fourth quarter earnings for fiscal 2022 (period ended April 30, 2022) that smashed past both consensus top- and bottom-line estimates. The firm also raised its dividend 15% sequentially to $0.15 per share or $0.60 on an annualized basis in conjunction with its earnings update, good for a forward-looking yield of ~1.1% as of this writing. Korn Ferry’s dividend growth story offers incremental upside to its substantial capital appreciation potential. We include Korn Ferry as an idea in the Best Ideas Newsletter portfolio and our fair value estimate sits at $86 per share, with the lower end of our fair value estimate sitting at $69 per share. As of this writing, shares of KFY are trading well below the low end of our fair value estimate range. Jun 24, 2022
Dividend Increases/Decreases for the Week of June 24
Let's take a look at firms raising/lowering their dividends this week. Jun 23, 2022
Register for This Educational Webinar Series!
Image: Valuentum's Brian Nelson sharing his investment knowledge with individual investors. Nelson is hosting a multi-part online education webinar where, in addition to teaching financial statement analysis, he will show how to use the discounted cash-flow model on companies of your choosing. An unparalleled learning experience -- where you get to pick the date/time and part of the content (models)! Jun 22, 2022
Dividend Growth Idea Oracle Showing Serious Growth Momentum
Image Source: Oracle Corporation – September 2019 IR Presentation. On June 13, Oracle Corp reported fourth quarter earnings for fiscal 2022 (period ended May 31, 2022) that beat both consensus top- and bottom-line estimates. The tech giant also provided favorable constant currency revenue growth guidance for its cloud businesses for fiscal 2023. Shares of ORCL initially surged higher in the wake of its latest earnings report before drifting modestly lower along the decline in broader equity markets. We include Oracle as an idea in the Dividend Growth Newsletter portfolio and shares of ORCL yield ~1.9% as of this writing. Jun 20, 2022
Consumer Staples Struggling with Higher Inflationary Costs, Group Hits 52-Week Lows
Image: The Vanguard Consumer Staples ETF (VDC) has notched a new 52-week low, and investors should note that we don’t think consumer staples entities are immune to an environment of higher inflation, where their price increases may not be fully absorbed by the consumer. Due to the commoditization of many of the goods produced in the consumer staples space, we think the consumer may instead trade down to off-brands or white label (“store brand”) products than pay up for branded merchandise. From where we stand, bellwethers in the consumer staples sector can’t price successfully ahead of inflationary headwinds, and many are experiencing tremendous gross margin pressure. Not only this, but in many cases, we think branded staples are experiencing demand (volume) destruction as consumers balk at price increases that still fall short of offsetting the heightened cost environment. Many consumer staples equities have huge net debt positions and hefty dividend obligations, and while many of the types of products they produce consumers cannot do without, we think we might see the consumer staples group’s share prices come under continued pressure in this market environment and eventually fetch what we think would be a market multiple (roughly three turns of earnings lower, or ~19x earnings to ~16x earnings). Even if this may not happen, however, there still appears to be some tough sledding ahead on a fundamental basis given report commentary, and we’ll look to evaluate our newsletter portfolios and their exposure to the consumer staples arena in the coming weeks to months. What remains clear is that the outlook for many consumer staples entities is not pretty. Jun 18, 2022
The Stock Market Is Nearing Technical Support Levels
Image: This year has been a difficult one for equity investors, but the selling pressure that has been common in the markets may start to slow as broader indices such as the S&P 500 begin to approach technical support levels. On the S&P 500, we think there is substantial technical support in the 3,200-3,500 range, which to us suggests that further near-term downside may be limited. The S&P 500 closed at 3,674.84 on Friday, June 17, and we think fair value is much higher. What might be a fair value for the S&P 500 today? Well, throwing the 10-year S&P 500 average multiple of 16.9x on 2023 expected earnings numbers of 251.76 gets to a 4,255 mark on the S&P 500, which is above the last closing level of 3,674.84 for the index. Benchmark Treasury rates remain low relative to history, and balance sheets of many S&P 500 companies are overflowing with net cash, supporting such a multiple, too. All told, investors might expect the stock market to hit technical support levels on the S&P 500 of 3,200-3,500 in the near term, but from where we stand, stocks remain an attractive proposition at the moment and a very attractive consideration over the long haul.
prev12345678910111213141516171819202122232425
26272829303132333435363738394041424344454647484950 51525354555657585960616263646566676869707172737475 767778798081828384858687888990919293949596979899100 101102103104105106107108109110111112113114115116117118119120 121122123124125126127128129130131132133134135136137138139140 141142143144145146147148149150151152153154155156157158159160 161162163164165166167168169170171172173174175176177178179180 181182183184185186187188189190191192193194195196197198199200 201202203204205206207208209210211212213214215216217218219220 221222223224225226227228229230231232233234235236237238239240 241242243244245246247248249250251252253254255256257258259260 261262263264265266267268269270271272273274275276277278279280 281282283284285286287288289290291292293294295296297298299300 301302303304305306307308309310311312313314315316317318319320 321322323324325326327328329330331332333334335336337338339340 341342343344345346347348349350351352353354355356357358359360 361362363364365366367368369370371372373374375376377378379380 381382383384385386387388389390391392393394395396397398399400 401402403404405406407408409410411412413414415416417418419420 421422423424425426427428429430431432433434435436437438439440 441442443444445446447448449450451452453454455456457458459460 461462463464465466467468469470471472473474475476477478479480 481482483484485486487488489490491492493494495496497498499500 501502503504505506507508509510511512513514515516517518519520 521522523524525526527528529530531532533534535536537538539540 541542543544545546547548549550551552553554555556557558559560 561562563564565566567568569570571572next The High Yield Dividend Newsletter, Best Ideas
Newsletter, Dividend Growth Newsletter, Nelson Exclusive publication, and any reports, articles and content found on
this website are for information purposes only and should not be considered a solicitation to buy or sell any
security. The sources of the data used on this website are believed by Valuentum to be reliable, but the data’s
accuracy, completeness or interpretation cannot be guaranteed. Valuentum is not responsible for any errors or
omissions or for results obtained from the use of its newsletters, reports, commentary, or publications and accepts
no liability for how readers may choose to utilize the content. Valuentum is not a money manager, is not a
registered investment advisor and does not offer brokerage or investment banking services. Valuentum, its employees,
and affiliates may have long, short or derivative positions in the stock or stocks mentioned on this site.
|