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Fundamental data is updated weekly, as of the prior weekend. Please download the Full Report and Dividend Report for any changes.
Oct 2, 2020
Our Thoughts on the Oil & Gas Industry
Image Shown: Crude oil prices, measured by the WTI benchmark, plummeted during the initial phases of the COVID-19 pandemic and have yet to fully recover. Declines in global crude oil prices have depressed prices for natural gas, natural gas liquids, and liquified natural gas as well. We expect that it will take some time for the oil and gas industry to truly recover, and hefty net debt loads combined with onerous dividend obligations are making that a very tough task. Juicy dividend yields are a sign of the headwinds facing the oil and gas industry and are not a sign of strong underlying strength in those firms that are paying out generous dividends. Most of the juicy dividend yields within the energy space are a sign of the stress facing those companies and the industry at-large, and we caution that the chance other oil majors follow Shell and BP in cutting their payout remains very likely. For instance, Exxon Mobil’s payout is simply not well-covered in the current raw energy resources pricing environment and the firm is taking on a lot of debt to cover those obligations. Chevron Corporation’s payout is also on shaky ground as it generated negative free cash flows during the first half of 2020 while carrying a large net debt load at the end of June, though like Exxon Mobil, Chevron’s management team has stuck with its current dividend policy so far. Like Shell, Chevron also grew its natural gas and LNG business meaningfully over the past few years, but that strategy did not pan out as intended.
Oct 1, 2020
ICYMI -- News Brief: FDX, CBRL, ADBE, XOM
Image Source: Exxon Mobil. The dichotomy in the global economy remains. Restaurants such as Cracker Barrel continue to struggle mightily while those tied to e-commerce proliferation such as FedEx are thriving. Those with strong recurring revenue business models such as Adobe continue to do well, and we remain bearish on the outlook for the energy sector and point to the increased likelihood of Exxon Mobil cutting its payout.
Sep 29, 2020
Facebook’s Promising Growth Outlook
Image Shown: Top-weighted Best Ideas Newsletter portfolio holding Facebook Inc has seen its stock price surge higher over the past year and we see room for considerably more capital appreciation upside. Facebook’s growth trajectory will depend in large part on how effective the firm is at generating more revenue per active user, especially in markets outside of the US & Canada. The emergence of a large global middle class should assist in these endeavors. We view Facebook’s growth outlook quite favorably and continue to be big fans of the social media giant. Facebook continues to be one of our favorite companies out there. Shares of Facebook are included as a top-weighted holding in our Best Ideas Newsletter portfolio. Our fair value estimate for FB sits at $284 per share, though should the firm outperform our “base case” assumptions, Facebook could carry a fair value estimate as high as $355 per share. We are enormous fans of Facebook’s net cash balance (~$58.2 billion in net cash at the end of June 2020), high quality cash flow profile (relatively modest capital expenditures are required to maintain a certain level of revenue), and incredibly promising long-term outlook that is supported by secular growth tailwinds.
Sep 27, 2020
Costco Closes Out Fiscal 2020
Image Shown: Shares of Costco Wholesale Corporation have been on an upswing over the past five years. The ongoing coronavirus (‘COVID-19’) pandemic has upended daily activities and encouraged households worldwide to stockpile consumer staples products. When Costco Wholesale Corp reported its fourth quarter fiscal 2020 earnings (16-week period ended August 31, 2020) on September 24, management noted that Costco’s worldwide foot traffic was down ~1% year-over-year last fiscal quarter though its average basket size was up ~13% year-over-year during this period. Households are apparently making the most out of every shopping trip in order to socially distance. Costco’s ancillary businesses, like its in-store opticians and food courts operations, were hurt by temporary closures last fiscal quarter, though its core business held up very well. Costco’s gas business took a hit from reduced travel demand, though its membership renewal rates were broadly flat versus the same period a year ago last fiscal quarter.
Sep 26, 2020
Update on Johnson & Johnson
Image Shown: An overview of Johnson & Johnson’s expectations for fiscal 2021 provided during its second quarter of fiscal 2020 earnings report. We continue to like shares of Johnson & Johnson as a top-weighted holding in our Dividend Growth Newsletter portfolio. Image Source: Johnson & Johnson – Second Quarter of Fiscal 2020 Earnings IR Presentation. Johnson & Johnson is a top-weighted holding in our Dividend Growth Newsletter portfolio, and we continue to be big fans of the healthcare and consumer staples giant. The company recently published some key updates that we wanted to draw our members’ attention towards. Before we begin, please note that Johnson & Johnson is near the front of the pack when it comes to developing a potential coronavirus (‘COVID-19’) vaccine. Should Johnson & Johnson prove successful, global health authorities would be better able to combat the severity of the COVID-19 pandemic.
Sep 25, 2020
PayPal and Visa Expand Partnership
Image Shown: Shares of Best Ideas Newsletter portfolio holding PayPal Holdings Inc have surged higher this year. We continue to be big fans of the company.The payment processing and payment solution space is incredibly attractive given the secular growth tailwinds supporting companies operating in the financial tech industry. As consumers are increasingly using cards and digitally-oriented payment services during the ongoing coronavirus (‘COVID-19’) pandemic, demand for the various “cash-less” payment options offered by PayPal Holdings and Visa is on the rise. Please note that rising demand for payment processing, cross-border transactions, and similar services is increasing from both consumers and businesses alike. This is more than just a short-term adjustment to cope during the COVID-19 pandemic; the transition towards a “cash-less society” has been underway for some time. We continue to like shares of both PayPal and Visa as top-weighted holdings in our Best Ideas Newsletter portfolio.
Sep 23, 2020
Microsoft Makes a Clever Acquisition
Image Shown: An overview of the performance of some of Microsoft Corporation’s business segments during the fourth quarter of fiscal 2020, including highlights from its ‘Xbox content and services’ segment. We continue to like shares of Microsoft as a holding in both our Best Ideas Newsletter and Dividend Growth Newsletter portfolios. Image Source: Microsoft Corporation – Fourth Quarter of Fiscal 2020 Earnings PowerPoint Presentation. On September 21, Microsoft Corp announced it was acquiring ZeniMax Media, owner of the videogame developer and publisher Bethesda Softworks, for $7.5 billion in cash. Bethesda is perhaps best known for AAA franchises like Fallout and The Elder Scrolls, among other well-known franchises including DOOM, Quake, Wolfenstein, and Dishonored. Please note that Bethesda makes videogames for both seasoned and casual gamers for console, PC, and mobile devices. More recently, Bethesda has experimented with launching iterations of game titles that were previously geared towards seasoned gamers on consoles and PCs on mobile devices that are geared towards more casual gamers. This can be seen through the 2019 launch of Bethesda’s The Elder Scrolls: Blades videogame on Apple iOS powered devices and devices powered by Alphabet Android. Bethesda later launch The Elder Scrolls: Blades on Nintendo's Switch console, which is a handheld device. Previously, titles within The Elder Scrolls universe such as The Elder Scrolls IV: Oblivion and The Elder Scrolls V: Skyrim were made for consoles and PCs, and these games were geared more so towards seasoned gamers. We see this leveraging of IP as a clever move by Bethesda.
Sep 22, 2020
Update on TikTok Saga
Image Shown: Shares of Oracle Corporation, a holding in our Dividend Growth Newsletter portfolio, have performed well recently as excitement grows over the company’s improving long-term growth outlook. Oracle may soon become a strategic shareholder in the rising social media star TikTok, alongside Walmart Inc and various US-based venture capital firms. Some big news emerged this past weekend involving TikTok that we wanted to bring to our members attention. We covered this story in detail in late-August and mid-September, and encourage our members to check out those articles for additional background information. In brief, TikTok is currently owned by Beijing-based ByteDance, a company that has been accused of being an extension of China’s central government (meaning a security threat to Western interests) which in turn prompted the White House to push for a sale of TikTok’s US operations or an outright shutdown/ban of the app in the US. This past weekend, President Trump stated he approved of a proposed deal that would involve Oracle Corp and Walmart taking a strategic equity stakes in a newly created firm called TikTok Global, which will likely be based in the US.
Sep 21, 2020
CubeSmart Remains Rock-Solid
Image Shown: An overview of CubeSmart’s core geographical focus. We continue to like CubeSmart as a holding in our High Yield Dividend Newsletter portfolio. Image Source: CubeSmart – September 2020 IR Presentation. One of our favorite industries as it relates to locating high-quality high-yielding companies with promising dividend growth runways is the self-storage real estate investment trust (‘REIT’) space, particularly companies with operations primarily (if not entirely) in the US. Within this industry, CubeSmart is one of our favorites and remains a holding in our High Yield Dividend Newsletter portfolio. Shares of CUBE yield ~4.0% as of this writing. The self-storage REIT continued to make good on its dividend obligations during the coronavirus (‘COVID-19’) pandemic, a task made easier through CubeSmart’s ability to generate meaningful free cash flows. Unlike most other REITs, REITs operating in the self-storage space tend to be able to generate substantial free cash flows, and CubeSmart is no exception as we cover in this note.
Sep 18, 2020
Dividend Increases/Decreases for the Week September 18
Let's take a look at companies that raised/lowered their dividend this week.



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.