Valuentum Securities Stock Research

Video: Our Top Stocks for 2024

Valuentum's President of Investment Research Brian Nelson walks through the success of Valuentum's newsletter suite, the state of the economy and markets, and offers his favorite idea for each sector. Tune into this must-watch video.

Video: Our Top Stocks for 2024 Valuentum's President of Investment Research Brian Nelson walks through the success of Valuentum's newsletter suite, the state of the economy and markets, an...

3 Dividend Growth Stocks For The Long Run

"We think dividend growth investors should focus on total return first, and then move on to the evaluation of a company's dividend health. We believe that total return is a function of a company's net cash position and future expectations of free cash flow, and in this article, we have highlighted three strong, net-cash-rich, free cash flow generators that also have increased their dividends consistently over the years. Though these names are not hidden by any stretch, the strong performance of the Magnificent 7 reveals that investors don't need to look very far to find some of the best-performing ideas. Make sure that you know the Dividend Cushion ratio for companies in your dividend growth portfolio!"

3 Dividend Growth Stocks For The Long Run We think dividend growth investors should focus on total return first, and then move on to the evaluation of a company's dividend health. We believe that total return is a function of a company's net cash position and future expectations of free cash flow, and in this article, we have highlighted th...

REITs Will Likely Continue To Underperform

"This article clearly explains that REIT dividends are risky and showcases that REIT investors have missed out on a lot of total return during the past decade or so. One has to go back a long time to see any real return from REITs, and changing working and shopping habits will likely continue to punish the broader REIT sector. We view REITs as a game of financial leverage tied to the vicissitudes of the commercial real estate cycle, all for a dividend yield that approximates that of risk-free assets these days. REITs seem to have a large following these days and many will come to the defense of REITs in their own way, but from a bird's eye view of this market, we remain puzzled by the love affair some have for them. We can only posit that some have a myopic focus on REIT-specific metrics, are not getting the best information when it comes to capital-market dependence risk, and perhaps don't truly understand the structural dynamics of the dividend payment with respect to the free dividends fallacy (i.e. that a REIT's share price is adjusted downward by the amount of the dividend on the ex-dividend date). In our view, the structural dynamics that have hurt REITs for the past decade won't be going away anytime soon, and for investors looking to maximize their returns and the longevity of their retirement savings, there are much better options than REITs."

REITs Will Likely Continue To Underperform Image: REITs have not performed as well as some may have thought. This article clearly explains that REIT dividends are risky and showcases that REIT investors have missed out on a lot of total return during the past decade or so. One has to go back a long time to see any real return from REITs...

The Crash Higher Is Coming

The Crash Higher Is Coming Big-cap tech and large-cap growth stocks continue to outperform, and we expect them to lead in the future. Click here for a detailed analysis.

A great primer on understanding why the stock price is adjusted downward by the amount of the dividend on the ex-dividend date, tying enterprise valuation to total return and explaining why investors should view dividends as capital appreciation that otherwise would have been achieved had the dividend not been paid. Hope you enjoy!

Should Microsoft Pay A Special One-Time Dividend (Again)? Should Microsoft pay a special one-time dividend? After reading the article, what are your thoughts on special one-time dividends? Read more here.

Berkshire’s Stake in Apple Has Been a Boon for Shareholders

Berkshire’s Stake in Apple Has Been a Boon for Shareholders Berkshire Hathaway fits the bill of the types of companies we’re looking for in this market environment. The company holds a nice cash position on the books, to the tune of ~$147.4 billion, while notes payable and other borrowings stood at ~$125.3 billion--good for a solid net cash position. Opera...

Don't Destroy Wealth One Dividend At A Time

Don't Destroy Wealth One Dividend At A Time Explore here to know the relationship between dividends and stock prices, the importance of cash flow, and how to avoid wealth destruction in retirement.

Finally, The U.S. Markets Are Making Sense Again!

Finally, The U.S. Markets Are Making Sense Again! 2022 was a confusing year, with dividend-paying stocks remaining resilient despite the Fed raising rates to levels above their collective yields. Read more here.

Expect Huge Equity Returns This Decade, Much More Volatility However

Expect Huge Equity Returns This Decade, Much More Volatility However We expect huge equity returns this decade, but much more volatility – the kind of volatility that will make holding stocks painful at times (and shake out some investors at the worst possible time), but it is what it is, as it has always been. We’re as bullish today as we’ve ever been. Cheers!

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Stock Market Locked in Technical Downtrend; Millionaires Expect More Pain in 2023

Stock Market Locked in Technical Downtrend; Millionaires Expect More Pain in 2023 This market just doesn’t want to go higher in the near term, and the latest bull trap wasn’t encouraging at all. We think long term investors should stay the course, but it is looking more and more like we won’t see a stock market bottom until sometime in 2023. Santa brought coal this year.

Waste Management’s Free Cash Flow Facing Pressure from Sustainability Initiatives

Waste Management’s Free Cash Flow Facing Pressure from Sustainability Initiatives 2023 will mark the 20th consecutive year that Waste Management has increased its dividend payout. Though free cash flow is facing pressure due to its sustainability growth initiatives, the company’s valuable disposal capacity and pricing power across its municipal solid waste operations are a coup...

Union Pacific Outperforming North American Rail Traffic Trends But Facing Inefficiencies and Inflation Hurdles

Union Pacific Outperforming North American Rail Traffic Trends But Facing Inefficiencies and Inflation Hurdles The rail industry may have avoided a labor strike, but North American rail traffic remains under pressure, while many operators are struggling with inflationary pressures and operational inefficiencies. Union Pacific remains our favorite way to play the rails, but 2022 has been a difficult year for....

Moderna’s Personalized Cancer Vaccine (PCV) Could Be a Game-Changer When Combined with Merck’s KEYTRUDA

Moderna’s Personalized Cancer Vaccine (PCV) Could Be a Game-Changer When Combined with Merck’s KEYTRUDA Moderna and Merck have revealed what could be a big breakthrough with respect to investigational cancer treatment, but we remind investors that the news is a Phase 2b study, and there is still a meaningful probability that the Phase 3 trial for the immunotherapy may be unsuccessful. Still, the Phase...

Oracle Puts Up Huge Revenue Growth Number in Second Quarter Fiscal 2023 Results

Oracle Puts Up Huge Revenue Growth Number in Second Quarter Fiscal 2023 Results On December 12, Oracle Corporation reported better than expected second quarter fiscal 2023 results for the three months ended November 30. Total revenue advanced 18% in the quarter on a year-over-year basis, leaping 25% in constant currency, thanks in part to strong performance at its infrastructur...

American Tower Ups Dividend Payout 6%+ But Shares Not Immune to REIT Sector Weakness

American Tower Ups Dividend Payout 6%+ But Shares Not Immune to REIT Sector Weakness Cell tower operator American Tower raised its dividend more than 6% from its last payout in October, and while we like the payout growth momentum, we’re taking note of weakening AFFO and free cash flow trends. The REIT’s net debt position takes on greater prominence in the current rising interes...

We Win Some, We Lose Some: Best Idea Exxon Mobil Expects Huge Cash Flow Growth in Coming Years

We Win Some, We Lose Some: Best Idea Exxon Mobil Expects Huge Cash Flow Growth in Coming Years It would have been difficult to sit out energy during 2022 and have a good year. Though the areas of dividend growth and high-yield dividend investing have held up better than more speculative areas, energy has been a key source of alpha across our newsletter suite this year. We added Exxon Mobil mi...

Honeywell's ESG Efforts May Benefit from More Board Diversity and Moving Beyond Its Asbestos-Saddled Past

Honeywell's ESG Efforts May Benefit from More Board Diversity and Moving Beyond Its Asbestos-Saddled Past - Valuentum Securities Inc. Honeywell’s 100+ page Environmental Social and Governance Report for 2022 is a tremendous resource that indicates Honeywell means business when it comes to ESG-related efforts. The firm has a lot of work to do to get to carbon neutral by 2035, and we’d like to see a more diverse board and perhap...

CubeSmart Raises Dividend 14% But We’re Monitoring High Net Debt Load and Deteriorating Occupancy Rates

CubeSmart Raises Dividend 14% But We’re Monitoring High Net Debt Load and Deteriorating Occupancy Rates CubeSmart announced a 14% increase in its dividend payout December 7. The REIT upped its guidance for earnings per share and adjusted FFO when it reported its third-quarter results last October but deteriorating occupancy rates and the impact of rising interest rates on the firm’s massive net debt...

Korn Ferry Beats Expectations in Second Quarter

Korn Ferry Beats Expectations in Second Quarter Businesses around the world are dealing with new challenges in a post COVID-19 world, and global consulting firm Korn Ferry is working hard to build solutions for them. We continue to include Korn Ferry as an idea in the simulated Best Ideas Newsletter portfolio. We continue to be huge fans of its e...

REITs May Continue to Face Pressure

REITs May Continue to Face Pressure Equity and mortgage REITs have been under considerable pressure during 2022. Institutional investors seem to be fleeing the sector, but retail investor interest still seems unusually high. We think this might be a tell-tale sign that retail investors could end up getting burned, if they haven’t be...

Maintaining Our Fair Value Estimates Across Ad-Driven Social Media Equities In Light of Long Term AI-Driven Chatbot Threats

Maintaining Our Fair Value Estimates Across Ad-Driven Social Media Equities In Light of Long Term AI-Driven Chatbot Threats Image: ChatGPT is taking the Internet by storm. A poem generated by the AI-driven chatbot in a matter of seconds about outperforming the stock market. Image Source: ChatGPT. We weren’t just having fun when we tested a new chatbot asking it to write a poem about outperforming the market. I...

Apple iPhone Supply Disruptions Not Likely to Hurt Markets with Overall Holiday Sales Reportedly Strong

Apple iPhone Supply Disruptions Not Likely to Hurt Markets with Overall Holiday Sales Reportedly Strong Image: Holiday sales are expected to expand ~2.5% in 2022 over very strong growth in 2021 and 2020. Image Source: Adobe. Apple's sales of the iPhone 14 Pro and iPhone 14 Pro Max will come in lower than expected this holiday season due to labor unrest in Zhengzhou, but holiday sales for 2022 ove...

Dollar General Resets Expectations; We’re Watching Free Cash Flows Closely

Dollar General Resets Expectations; We’re Watching Free Cash Flows Closely Though comparable store sales have been consistent over the years at Dollar General, we think the concept is getting “tired” as inflation eats into its value offerings. Inventories are ballooning at the firm and internal supply chain problems will eat into earnings during the fourth quarter of f...

UnitedHealth Group Sets Bar Low with Newly Issued 2023 Guidance; We Expect Upward Revisions Throughout the Year

UnitedHealth Group Sets Bar Low with Newly Issued 2023 Guidance; We Expect Upward Revisions Throughout the Year We are huge fans of UnitedHealth Group, and its dividend growth potential remains immense. Since 2010, UnitedHealth Group has increased its dividend at a double-digit pace each year. The top end of our fair value estimate range sits at $618 per share of UnitedHealth Group, indicating that the health...

Deere’s Incredible Pricing Power Shines Through in Fiscal Fourth Quarter

Deere’s Incredible Pricing Power Shines Through in Fiscal Fourth Quarter Deere & Company put up excellent fiscal fourth quarter results November 23, and the highlight of the quarter was the firm’s tremendous pricing power. Its outlook for fiscal 2023 was solid, too, and we expect considerable operating income expansion on the back of strong double-digit top-line growth...

Dick’s Sporting Goods Defies Skeptics, Puts Up Strong Comp Performance in Fiscal Third Quarter

Dick’s Sporting Goods Defies Skeptics, Puts Up Strong Comp Performance in Fiscal Third Quarter On November 22, Dick’s Sporting Goods reported fiscal third quarter results for the period ending October 29 that beat expectations on both the top and bottom line, but the real story was the sporting good retailer’s same-store sales performance, which far exceeded the consensus expectation for ...

Procter & Gamble’s Bright Investor Day Buoys Our Views on Stock

Procter & Gamble’s Bright Investor Day Buoys Our Views on Stock Procter & Gamble has raised its dividend in each of the past 66 years and has paid a dividend in each of the past 132 years. Though the maker of Pampers, Bounty, Tide, Crest, and a number of other household brands is facing the market realities of inflationary pressures on consumers, input cost head...

Target’s Holiday Outlook Sends Mixed Messages; Big Sales Data Week Ahead

Target’s Holiday Outlook Sends Mixed Messages, Big Sales Data Week Ahead Both Walmart and Target indicated that discretionary spending may face some pressure heading into the holiday season. Strength in beauty, skin care, and cosmetics may not be enough to cushion the blow that home electronics, sporting goods retailers, and toy makers may face. Though incrementally more...

Cisco Raises Fiscal 2023 Guidance But Orders Face Difficult Comps

Cisco Raises Fiscal 2023 Guidance But Orders Face Difficult Comps Image: Cisco’s annualized recurring revenue (ARR) continues to advance nicely. Image Source: Cisco. Cisco’s first-quarter results for fiscal 2023, released November 16, were solid, and the firm’s pace of annualized recurring revenue continues to advance nicely, giving it nice....