Valuentum Exclusive Analysis for the Discerning Investor

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Nov 19, 2021

Update: Johnson & Johnson Is A Stellar Company With Ample Upside
Image Source: Johnson & Johnson – Third Quarter of Fiscal 2021 IR Earnings Presentation. We view Johnson & Johnson's capital appreciation and dividend growth upside potential quite favorably. The top end of our fair value estimate range sits at $206 per share of JNJ. In this article, we cover Johnson & Johnson's stellar financial performance, recent guidance boosts, and some of its legal hurdles. Johnson & Johnson announced on November 12 that it would spinoff its consumer-facing operations while retaining its medical devices and pharmaceutical operations.

Nov 5, 2021

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

Oct 21, 2021

Johnson & Johnson Boosts Guidance Again, Posts Great Earnings Update
Image Shown: Johnson & Johnson reported strong performance across its three core business operating segments in the third quarter of fiscal 2021. Image Source: Johnson & Johnson – Third Quarter of Fiscal 2021 IR Earnings Presentation. On October 19, Johnson & Johnson reported third quarter earnings for fiscal 2021 (period ended around the end of September 2021) that missed consensus top-line estimates but beat consensus bottom-line estimates. The healthcare giant also raised its full-year guidance (again) for fiscal 2021 as its ‘Pharmaceutical’ segment is growing at a robust pace, its ‘Medical Device’ segment is steadily recovering from the worst of the coronavirus (‘COVID-19’) pandemic, and its ‘Consumer Health’ segment is holding up well. We continue to like Johnson & Johnson as an idea in both the Best Ideas Newsletter portfolio and the Dividend Growth Newsletter portfolio.

Aug 18, 2021

Dividend Growth Idea Home Depot Remains Rock-Solid
Image Shown: Shares of Home Depot Inc have moved significantly higher year-to-date and are up approximately 21% through the end of normal trading hours on August 17. On August 17, Home Depot reported second quarter earnings for fiscal 2021 (period ended August 1, 2021) that beat both consensus top- and bottom-line estimates. Comparable sales were up 4.5% year-over-year last fiscal quarter though shares of HD slid lower during the trading session that day as investors were expecting even stronger performance. Shares of HD are up roughly 21% year-to-date as of the end of the normal trading session on August 17 (that includes the impact of the ~4% drop in shares of HD after its earnings report), and in our view, investors were locking in some profits. We liked what we saw in Home Depot’s latest earnings report and includes shares of HD as an idea in the Dividend Growth Newsletter portfolio.

Jul 15, 2021

Answering Some Questions from Our Members
Image Source: Eric. Let’s cover some recently asked questions for the benefit of all.

May 21, 2021

Walmart’s E-Commerce Growth Supports Long Term Dividend Strength
Image Source: Mike Mozart. There are a number of dividend growth stocks that are on our radar, and Walmart is one of them. The company’s e-commerce and omni-channel initiatives have positioned it well for the long haul, and its free cash flow generation covers its cash dividends paid by a large margin. Strong comparable store sales momentum has continued into calendar year 2021 for Walmart, and we’re expecting another solid year of fundamental performance at the company. Walmart’s shares yield ~1.5% at last check, and we believe the company has years of dividend growth ahead of it.

Apr 30, 2021

Domino’s Pizza Well-Positioned for Long Run
Image Shown: Domino’s has the right business model for the long haul. Unit economics are fantastic for franchisees, while same-store sales continue to benefit from first-mover digital initiatives. Earnings per share growth has been stellar for the past decade. Image Source: April 2021 Presentation. Domino’s has the right business model for the digital economy, and we expect robust net unit growth and retail sales growth in the mid-to-high single-digit range over the next few years. This asset-light, free-cash-flow generating franchisor is stealing market share hand over fist, while it drives robust earnings expansion and buys back its own stock (it has a $1 billion repurchase authorization, as of February 2021). Everything seems in place for Domino’s to remain atop the global quick-service pizza industry, as operational simplicity is the name of the game. Investors need to pay attention to Domino’s net debt load, but we see little in the way of this fantastic growth story. The firm remains one of our favorite restaurant ideas and a holding in the simulated Best Ideas Newsletter portfolio.

Apr 30, 2021

High Yielding Philip Morris Boosts Guidance
Image Shown: Philip Morris International Inc has been steadily growing its alternative tobacco product sales during the past several years and its growth outlook on this front is quite bright. RRP stands for reduced-risk products according to Philip Morris. Image Source: Philip Morris International Inc – First Quarter of 2021 IR Earnings Presentation. Philip Morris is a high-yielding income generator with a promising growth outlook. Historically, the firm hasn't allocated a significant amount of capital (or any) towards share repurchases, highlighting management’s commitment to income seeking shareholders. Though we understand that some investors may shy away from the company due to ESG-related considerations, for those that do not have such investment restrictions, we continue to like Philip Morris as an idea in the High Yield Dividend Newsletter portfolio. We view its forward-looking dividend coverage quite favorably, though we would like for management to pare down the firm’s net debt load over the long haul. Recently, shares of PM have been on a nice upward climb indicating investors continue to warm up to Philip Morris’ promising free cash flow growth outlook, supported in part by its alternate tobacco products (and what they imply regarding long-term resiliency versus traditional cigarettes).

Feb 19, 2021

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

Jan 29, 2021

More Earnings Reports: BA, CMCSA, MCD
Image Shown: Though the past year has been brutal for the commercial airliner and aerospace industries, and it will continue to be rough sledding in the near term, Boeing is optimistic that within a few years passenger traffic will return to pre-pandemic levels and resume its growth trajectory thereafter. Image Source: Boeing Company – Fourth Quarter of 2020 IR Earnings Presentation. We are continuing with our coverage of key earnings reports. Ongoing vaccine distribution activities should help global health authorities bring the coronavirus (‘COVID-19’) pandemic under control, though risks remain as new variants of the virus are popping up all over the place (and then spreading aggressively). In this article, we cover the recent earnings reports from Boeing, Comcast, and McDonald's.