Sound Valuation Is More Important Than Time In The Market: Part 1
I believe that two of the most important investing principles that prudent investors should embrace are valuation and time in the market. Consequently, the title of this article is mildly misleading, because both concepts are extremely important towards achieving long-term investing success. In other words, I believe attempting to argue the importance of one over the other is a waste of time and energy.
Here’s Why Valuation Determines Total Dividend Payments for Overvalued Stocks: Johnson & Johnson
In my most recent article a reader made a comment where a question was asked that I believe deserved a good answer. The following excerpt of the comment really reached out to me because this person claims to have been asking this question for 5 years without receiving a good answer.
WEC Energy Grp Inc. and NextEra Energy Inc.: My 2 Favorite Utility Companies, But I Hate Their Stock
It is quite easy to get caught up, and quite hard to avoid getting caught up in a great bull market like the one we are currently in. However, it’s important to remind ourselves that: “everybody is a genius in a bull market.”
7 China-based Stocks for High Growth at a Reasonable Price
China has rapidly become the second largest economy in the world – second only to the United States, and by some calculations the largest. As a result, China also has some of the fastest-growing publicly traded companies on the planet.
Are FANG Investors Playing the Role of Greater Fools?
Introduction The greater fool theory is an investing metaphor that suggests that if you pay more for a stock than it is worth (intrinsic value indicates) that you are only doing this on the basis that a fool greater than you will come along and willingly pay you more.
4 Big Advantages of Investing in Undervalued Dividend Growth Stocks: Here Are 12 to Consider
Value investing is a proven long-term investing strategy that produces above-average results at below-average risk – if engaged in properly. However, there are four primary advantages to investing in undervalued dividend growth stocks that facilitate strong long-term performance while simultaneously lowering risk.
Update on Owens & Minor Inc.: An Undervalued Speculation or a Value Trap?
Owens & Minor Inc. reported earnings yesterday and simultaneously revised their 2018 earnings outlook lower. As fate would have it, I produced an article and a video where I highlighted 12 undervalued dividend growth research candidates which included Owens & Minor.
My Dirty Dozen Undervalued Dividend Growth Stocks
Introduction Relative to historical norms the overall stock market as measured by the S&P 500 is overvalued with the current blended P/E ratio of 19.2. Historically, the S&P 500 would be considered fairly-valued when its P/E ratio was between 15 to 16.
25 Real-Life Examples: How High Valuation Can Hurt Investors, Let Me Count the Ways
It almost every article I have ever published, I talk about valuation in one manner or another. So much so, that readers have dubbed me Mr. Valuation. The primary reason I am so obsessed about valuation is because I believe it is one of the most important and yet mostly ignored and overlooked concepts in the investing world.
Long-term Microsoft Shareholders Your Money May Be in Jeopardy
Microsoft (MSFT) reported strong 4th quarter and fiscal year 2018 earnings. The company’s earnings per share beat the analyst estimates by $.05 and their revenue of $30.09 billion beat analyst estimates by $860 million. All in all, it was a great quarter and investors initially responded positively in after-hours trading.
Electronic Arts Inc.: Rationally Valued Based on History Overvalued Based on Future Growth
At the request of one of our subscribers to our YouTube channel I offer the following analyze out loud video on the growth stock Electronic Arts, Inc (EA). In the long run, earnings determine market price and the rate of change of earnings growth will determine a company’s valuation past, present and future.
Coca-Cola: FAST Fundamental Analysis
Coke is one of the most, if not the most, recognized brands in the world. As a stock, The Coca-Cola Company (KO) is a blue-chip Dividend Aristocrat that has increased its dividend for 56 consecutive years. The company is A+ rated by S&P Capital IQ, offers a current dividend yield of 3.6% and a market cap of more than $184 billion. Even though nothing that I’ve said so far is likely to be news to most people, there is a reason for me mentioning these things.
PepsiCo: Rare Opportunity to Buy at a Better Valuation: Part 6
PepsiCo (PEP) is a Dividend Aristocrat, Champion and blue-chip stalwart that has increased its dividend for 46 consecutive years. Therefore, it should be no surprise that just as we saw with Procter & Gamble in part 5, this blue-chip stalwart has traditionally commanded a higher valuation (earnings multiple) than the average stock.
It Is No Longer a Gamble Investing in Procter & Gamble: Part 5
To put Procter & Gamble’s current valuation into perspective, this blue-chip can be purchased today with a 3.7% current dividend yield which is hovering around the highest it has been over the past two decades. Furthermore, Procter & Gamble appears attractively valued over virtually every rational valuation metric that prudent value investors might consider.
Campbell Soup Company: High-Yield and Speculative Capital Gain Potential-Part 4
This is the fourth of what will be a long-running series highlighting dividend growth stocks that have technically entered bear market territory. Many investors define a bear market as when prices fall at least 20%. After coming out of the true bear market inspired by the Great Recession, stocks have generally been enjoying a very strong and long-lasting bull market.
3M Company: It Didn’t Take a Crystal Ball to See That It Was Overvalued: Part 3
Regular readers of my work will attest to the fact that I am an avid proponent of valuation. So much so, that I cannot recall writing an article where I didn’t discuss the importance of only investing in a stock when it was fairly-valued, or better yet – undervalued.
Dividend Growth Stocks in a Stealth Bear Market! Kimberly-Clark Corporation: Part 2
In part 1 found here of this multi-part series I discussed how several blue-chip dividend growth stocks have already entered a bear market. Therefore, I thought it would be helpful to provide FAST Graphs analyze out loud videos on several dividend growth stocks that have corrected from high valuation levels to more reasonable levels.
Have You Noticed That Many Dividend Stocks are Finally in a Bear Market? General Mills Inc.: Part 1
For quite some time I have been complaining that most best-of-breed dividend growth stocks were overvalued. Frankly, for the most part I continue to hold that opinion. On the other hand, I am also starting to see what I’ll call a stealth bear market for many dividend growth stocks.
What Can I Expect to Make If I Invest in Johnson & Johnson Today?
Overview AAA rated Johnson & Johnson (JNJ) has produced one of the most impeccable and consistent long-term records of fundamental results and growth. No matter whether you are measuring earnings, cash flows or dividends, you will be hard-pressed to find any company in any industry with a more consistent and complete record of operating excellence...
The Final 10 of 50 Faster Growing Dividend Growth Stocks: Part 5
This is the fifth of a five-part series presenting 50 dividend growth stocks that I have screened for current fair value. With this article, I will be covering 10 additional dividend growth research candidates with moderate to higher yields in addition to the initial 40 that I presented...
10 Fairly Valued Dividend Growth Stocks for Total Return: Part 4
This is the fourth of a five-part series presenting 50 dividend growth stocks that I have screened for current fair value. With this article, I will be covering 10 additional dividend growth research candidates with moderate to higher yields...
The S&P 500 is Overvalued These 10 Dividend Growth Stocks Are Not: Part 3
This is the third of a five-part series presenting 50 dividend growth stocks that I have screened for current fair value. With this article I will be covering 10 additional dividend growth research candidates with moderate to higher yields in addition to the initial 20 that I presented...
10 More of 50 Fairly-Valued Dividend Growth Stocks Offering Moderately High Yields: Part 2
This is the second of a five-part series presenting 50 dividend growth stocks that I have screened for current fair value. With this article I will be covering 10 additional dividend growth research candidates.
While Most Dividend Growth Stocks Remain Too Expensive – Here Are 50 That Are Not! Part 1 of 5
The Great Recession of 2008 – which ended in the spring of 2009 – brought on one of the greatest and longest bull markets in modern history. For true value-oriented dividend growth investors, the recession created a virtual cornucopia of excellent dividend growth stock investment opportunities that existed until the end of August 2013.
Has the Lithium Bubble Burst or Is It Just Leaking Rarefied Air?
Over the last couple of years lithium producers and miners have enjoyed a parabolic jump in their stock prices and market caps. As I will later illustrate, much of the gains for lithium related companies have come as a result of the “hype” surrounding electric automobile development.
Why We Sold Walmart - It’s Not Why You Think
Introduction Walmart’s stock price took a bath early last week, and there are a lot of opinions regarding where the stock price now sits. The catalyst was their 4th quarter and fiscal year-end 2018 annual report (note: Walmart has a January 31 fiscal year end).
Has Amazon (Jeff Bezos) Taught This Old Value Dog a New Trick?
There is the old adage: “you can’t teach an old dog new tricks.” Well, I have been a “card-carrying” and fully committed value investor for more than 45 years now. I think that qualifies me as an “old” value investing dog.
Peter Lynch Taught Me to Invest in Ultra Beauty Inc.
In his best-selling book “One up on Wall Street” Peter Lynch included this subtitle on his cover: “How to use what you already know to make money in the stock market.” And later in the book he talks about “the power of common knowledge.” Stating it over simplistically, Peter Lynch often talked about getting his best ideas from observing his family’s shopping habits.
Invest In Walgreens Or CVS – Speculate In Rite Aid
For many years now, investing in healthcare related stocks has presented me with a conundrum of sorts. Demographic forces, primarily the graying of America (and the world for that matter), suggests powerful future growth potential and demand for healthcare related products and services. On the other hand, healthcare and its costs have long been a political hotbed.
Mister Valuation plans for 2018: A New Year a New and Better Approach
Every year I take the holidays off in order to reflect on what I have accomplished for the year, but more importantly, to think deeply about and contemplate what I might do better in the upcoming New Year. This process has provided me with numerous inspirations over the years, and this particular year was no exception.
Cardinal Health: A Dividend Aristocrat the Risk Is Already Priced In-Part 2 of 7
As a value investor, I am totally cognizant of the reality that attractively valued bargains are hard to find in a strong bull market. Moreover, as an experienced value investor I clearly understand that low valuations in a raging bull market are usually associated with issues and challenges sometimes real, sometimes imaginary. The key to success is to identify when current problems are temporary, thereby creating long-term opportunity.
Aflac: A Valuation Conundrum? Fairly Valued Dividend Aristocrats: Part 1 of 7
Aflac (AFL) is a Dividend Aristocrat that has increased its dividend for 35 consecutive years. However, it is only one of seven Dividend Aristocrats that I consider attractively valued in light of the current bull market. Therefore, this will be the first in a series of seven articles where I will cover these seven attractively valued Dividend Aristocrats.
Celgene: Growth At A Reasonable Price Even On Revised Guidance
This article is an update to my original article on Celgene (CELG) published on June 22, 2017. Celgene reported their financial results yesterday October 26, 2017, and although the quarter was good, lowered guidance crushed the stock price. In my opinion, some of the sag in price was justified, but for the most part an overreaction.
Are These 5 Dow Stocks As Cheap As They Appear?: Part 5 of 5
This is the final installment of the five-part series where I examined the past operating histories and valuations of the 30 Dow Jones Industrial Average stocks. With this 5 Part series I attempted to cover the 30 Dow stocks in order of highest valuations to lowest.
Why Are These 6 Dow Stocks Fairly Valued?: Part 4 of 5
Thus far, with the first 3 parts of this five-part series, we’ve examined 60% (18 of 30) of the 30 stocks in the Dow Jones Industrial Average. What we found so far were that the majority of these constituents are currently overvalued or at least fully valued. Finally, with this Part 4, we will examine 6 additional Dow constituents that appear fairly valued with blended P/E ratios of 14-16.
Are These The 6 Best Stocks In The Dow Jones Industrial Average? – Part 3 Of 5
In Part 1 and Part 2 of this series I covered 12 of the 30 Dow Jones Industrial Average stocks that I considered the most expensive of the index. With this part 3 I will be looking at 6 additional Dow stocks that for the most part I would consider fully valued to only moderately overvalued.
6 More Expensive Stocks in the Dow Jones Industrial Average: Part 2 of 5
In part 1 of this five-part series, I covered what I considered the 6 most expensive stocks in the Dow Jones Industrial Average Index of 30 stocks. With this part 2, I’m going to cover 6 additional Dow stocks that I consider overvalued currently. So far, these two articles represent approximately 40% of the stocks in the Dow Jones that appear overvalued.
The 6 Most Expensive Stocks in the Dow Jones Industrial Average: Part 1 of 5
When the Dow Jones Industrial Average first hit 20,000 in January of this year it generated quite a buzz within the financial community. Since January the Dow Jones Index has continued to rise and currently is over 22,700. However, the Dow Jones is not the only market index that is currently sitting at or near all-time highs. The broader S&P 500 index is also at a historic peak.
What Could I Realistically Make If I Invested in Apple Today?
Just as it always does, Apple’s (AAPL) Keynote event generated quite a buzz. In addition to announcing several new products and upgrades, this year’s event inaugurated the Steve Jobs Theater at Apple Park. And as usual, reactions to the presentation have been quite strong.
My Visa Long is Getting Long in the Tooth
Over my lifetime I have invested in many different things. In the process of doing that, I have learned that there are really only two types of investors. As an investor, you are either active or passive. Being active implies directly managing or being in control of your investment.
Choosy Investors Choose J.M. Smucker and The Dividend Adds Value
The J.M. Smucker Company (SJM) is a “Dividend Contender” that has increased its dividend for 20 consecutive years. After being overvalued for most of fiscal year 2017 (fiscal year ends in April) the company has since fallen into attractive valuation territory.
Costco After the Recent Correction-Overvalued Or Undervalued?
This is the fourth in a series of articles where I will cover popular and/or high profile stocks. The primary objective of this series will be to put a spotlight on the importance of forecasting future growth prior to making an investment decision.
Searching for Alphabet’s True Worth? Should we Google it?
This is the third in a series of articles where I will cover popular and/or high profile stocks. The primary objective of this series will be to put a spotlight on the importance of forecasting future growth prior to making an investment decision.
Priceline: A Growth Powerhouse – Forecast Profits and/or Cash Flow Not Prices!
This is the second in a series of articles where I will cover popular and/or high profile stocks. The primary objective of this series will be to put a spotlight on the importance of forecasting future growth prior to making an investment decision.
Nvidia: Forecast Profits and/or Cash Flow Not Prices!
This will be the first in a series of articles where I will cover popular and/or high profile stocks. The primary objective of this series will be to put a spotlight on the importance of forecasting future growth prior to making an investment decision.
Get Real About Assessing Your Stock Investments: Growth And Value Impact Capital Appreciation
I believe, and there is plenty of evidence to back my belief, that current market conditions are at an extreme. Although rare, it’s not unusual for aberrant market action to occur. Warren Buffett once said: “The fact that people will be full of greed, fear or folly is predictable. The sequence is not predictable.”
Could This Be Why Warren Buffett Sold General Electric Bought Synchrony?
Warren Buffett has long been considered the consummate value investor. His penchant for value investing is generally attributed to his relationship with the renowned father of value investing Ben Graham. However, what is often overlooked is the influence that partner Charlie Munger brought to Warren Buffett’s investing philosophy.
Lowe’s Companies Inc.: Attractively Valued Dividend Aristocrat for Total Return
Much of my dividend growth investing is currently focused on looking for high quality dividend growth stocks that are yielding 3% or better. The reason is quite simple. I am managing dividend growth portfolios for clients that are retired and require at least a yield of 3% or better in order to live on.