Valuentum Exclusive Analysis for the Discerning Investor

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Apr 8, 2020

ASML Holding Is an Impressive Enterprise with a Pristine Balance Sheet and Rock-Solid Growth Trajectory
Image Source: ASML Holding NV – 2019 Annual Report. Netherlands-based ASML Holding NV supplies lithography systems and services to the makers of semiconductors and semiconductor components, primarily to firms with operations in East Asian and US markets. The firm’s stock price has rebounded sharply since the middle of March 2020, and as of this writing, shares of ASML yield ~1.1% (due to the firm paying out its dividend in euro, there are foreign currency effects to be aware of). We like ASML’s focus on innovation, its pristine balance sheet, rock-solid growth trajectory, and quality cash flow profile.

Mar 21, 2020

Top Ten Dividend Growth Stocks to Consider Amid COVID-19
Image Shown: A look at some of the top dividend growth stocks to consider, companies with strong Dividend Cushion ratios and nice payout growth trajectories, in light of ongoing turbulence in equity markets. The 'Multiplier' column multiplies a company's dividend yield by its Dividend Cushion ratio. The novel coronavirus (‘COVID-19’) pandemic continues to wreak havoc on global economies, credit and equity markets, and the livelihoods of many. We sincerely hope everyone stays safe during this pandemic. US equities have sold off aggressively during the past month, with the S&P 500 down ~25% year-to-date as of this writing, punishing the names of several top quality dividend growth opportunities that we will highlight in this note today.

Feb 13, 2020

Cisco Continues to Showcase Its Free Cash Flow Strength
Image Source: Cisco Systems Inc – Second Quarter Fiscal 2020 IR Earnings Presentation. On February 12, Cisco reported second-quarter earnings for fiscal 2020 (period ended January 25, 2020) that beat consensus estimates on both the top- and bottom-line. However, shares of CSCO still fell initially on the news, possibly due to the company’s forward guidance for the third quarter falling short of expectations. Cisco is currently undergoing a major transition from a company that primarily sells hardware to one that also offers material subscription-based services and software, in order to offset the structural declines facing the enterprise data application management space (which can be summed up as many/most enterprises around the world switching their IT infrastructure needs off-site to more flexible, powerful, and often relatively cheaper cloud computing offerings when considering the dynamic effects of the change). Shares of CSCO are included in both our Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio as we appreciate the strength of its free cash flows, its pristine balance sheet (nice net cash balance), and see the firm’s strategic shift as one with promise (albeit, this is still a work in process).

Jan 31, 2020

Coronavirus May Trigger Long-Anticipated Global Recession
Image: Wuhan New Coronavirus. This was the catalyst that nobody was expecting, a novel coronavirus that nobody had in their economic models. We think global economic activity is slowing as we speak, and the spread of the virus may only accelerate in mainland China and elsewhere. Investors should keep a level head and perhaps think about adding protection to their portfolios before it becomes too expensive.

Jan 28, 2020

Intel Roars Higher
Image Shown: Intel Corporation, a top weighted holding in our Dividend Growth Newsletter portfolio and a medium weighted holding in our Best Ideas Newsletter portfolio, posted a tremendous fourth quarter report for fiscal 2019 on January 23. Shares of INTC marched meaningfully higher on January 24. Image Source: Fourth Quarter Fiscal 2019 Earnings IR Presentation. A top weighted holding in our Dividend Growth Newsletter portfolio and medium weighted holding in our Best Ideas Newsletter, Intel Corp posted blowout earnings on January 23. Full year revenue for fiscal 2019 hit a record of $72.0 billion on a GAAP basis, up 2% year-over-year, while GAAP diluted EPS rose by 5% to $4.71 (on a non-GAAP basis, diluted EPS was up 6% year-over-year, hitting $4.87). Intel beat both top- and bottom-line consensus estimates and guided for a strong fiscal 2020. Shares of INTC now yield ~1.9% on a forward-looking basis as of this writing after management pushed through a 5% sequential dividend increase in conjunction with the record earnings report.

Jan 24, 2020

Dividend Increases/Decreases for the Week Ending January 24
Let's take a look at companies that raised/lowered their dividend this week.

Jan 13, 2020

Intel Has Performed Well Since Acquiring Mobileye
Image Shown: Intel Corporation (represented by the blue line in the graph above), a long time holding in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios, has substantially outperformed the NASDAQ 100 index (black line) and the S&P 500 index (orange line) since the period just before announcing its ~$15 billion deal to acquire Mobileye in March 2017, before taking dividends into consideration (given that Intel pays out a decent dividend, that wouldn’t change this picture materially). We continue to like Intel in both our newsletter portfolios and its ~2.1% yield as of this writing provides investors with a nice income stream. Intel’s dividend will likely continue to experience strong per share growth over the coming years, in our view, a growth trajectory that’s well supported by Intel’s 2.1x Dividend Cushion ratio.

Dec 30, 2019

Dividend Growth Newsletter Portfolio Delivers Again in 2019
 The story of the Dividend Growth Newsletter portfolio this year was one dominated by big tech. Apple trounced the return of what could be considered our benchmark by about 80 percentage points. It basically beat the S&P Dividend ETF SDPR by a factor of about 5 times! 2019 was simply the year to own Apple, and my goodness we had it right near the top of both the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio. You would think this was a no-brainer, as everyone loves Apple, but many a portfolio manager did not own Apple this year. Apple also upped its dividend 5%+ during 2019...

Dec 17, 2019

Cisco, Intel, Johnson & Johnson, and PayPal in the News
Cisco is trading at the low end of our fair value estimate range, and the company’s healthy dividend yield is well supported. Intel remains one of our favorite ides, and we expect a stellar dividend-growth trajectory at the company, too. Johnson & Johnson’s shares look poised to break out to new highs, and PayPal continues to execute nicely.

Dec 16, 2019

As Expected, Broadcom’s Organic Revenues Didn’t Grow in Fiscal 2019
Image Source: Broadcom Inc – November 2019 IR Presentation. On December 12, Broadcom reported fourth-quarter earnings for its fiscal 2019 (period ended November 3, 2019). While GAAP revenues for the full fiscal year were up 8% year-over-year, hitting $22.6 billion, please note that includes the uplift from Broadcom acquiring CA Technologies. Shares of AVGO initially traded down 2%-3% on December 13, as investors digested the firm’s guidance for fiscal 2020. As of this writing, shares of AVGO yield 3.4%.