US Dividends Aristocrats thread

[Mr. Wood]

Computer Services (CSVI)
July 9th, 2020

Final Thoughts & Recommendation
Since it bottomed at the end of 2018, Computer Services has enjoyed a 120% rally, primarily thanks to accelerated earnings growth. While it has an exceptional growth record and continues to grow without any signs of fatigue, the stock has become richly valued. As a result, it may offer lackluster returns over the next five years. While the stock may maintain its premium valuation for a considerable period, it will have significant downside risk whenever it faces an unexpected headwind. We thus rate it as a sell, despite its high quality.

 

[Mr. Wood]

Fiat Chrysler recalls more than 900,000 U.S. vehicles due to faulty air bag covers
JULY 11, 2020

The recall is limited to 2007-2011 Dodge Nitro SUVs, 2008-2010 Chrysler Town & Country and Dodge Grand Caravan minivans, the Italian-American automaker said.

does tsla, nkla make their own airbags?

 

[Mr. Wood]

Amgen Announces Additional Investment In BeiGene
Jul 12, 2020

This additional investment reflects Amgen's confidence in the progress the companies are making in their ongoing oncology collaboration in China, the world's second largest pharmaceutical market.

 

[Mr. Wood]

PepsiCo Reports Second-Quarter 2020 Results
July 13, 2020

we are not providing a financial outlook for fiscal year 2020 at this time. However, we continue to believe we have ample liquidity and flexibility to meet the needs of our business and return cash to shareholders. We remain focused on winning in the marketplace with our strong portfolio of brands in attractive categories, agile supply chain and flexible go-to-market systems, while also building on our competitive advantages, to emerge an even stronger company in the future.”

 

[Mr. Wood]

Delta Air Lines Announces June Quarter Financial Results and Update on COVID-19 Response Actions
July 14, 2020

June Quarter Financial Results
• Adjusted pre-tax loss of $3.9 billion excludes $3.2 billion of items directly related to the impact of COVID-19 and the company’s response, including fleet-related restructuring charges, write-downs related to certain of Delta’s equity investments, and the benefit of the CARES Act grant recognized in the quarter
• Total adjusted revenue of $1.2 billion, which excludes refinery sales, declined 91 percent versus prior year on system capacity reduction of 85 percent compared to the prior year
• Total operating expense decreased $4.1 billion over prior year. Total adjusted operating expense decreased $5.5 billion or 53 percent in the June quarter compared to the prior year, driven by lower capacity- and revenue-related expenses and strong cost management throughout the business
• At the end of the June quarter, the company had $15.7 billion in liquidity

 

[Mr. Wood]

JPMORGAN CHASE REPORTS SECOND-QUARTER 2020 NET INCOME OF $4.7 BILLION, OR $1.38 PER SHARE
14 Jul 2020

Net income was $4.7 billion, down 51%, driven by reserve builds across the firm.

Net revenue was $33.8 billion, up 15%. Net interest income was $14.0 billion, down 4%, with the impact of lower rates predominantly offset by higher net interest income in CIB Markets and balance sheet growth. Noninterest revenue was $19.9 billion, up 33%, largely driven by higher CIB Markets revenue and Investment Banking fees. The increase in revenue also included $678 million of markups on held-for-sale positions in the bridge book and a $510 million gain in Credit Adjustments & Other in CIB driven by funding spread tightening on derivatives.

Noninterest expense of $16.9 billion, up 4%, predominantly driven by higher revenue-related expense, primarily compensation, largely offset by lower structural expense.

The provision for credit losses was $10.5 billion, up $9.3 billion from the prior year driven by reserve builds which reflect further deterioration and increased uncertainty in the macroeconomic outlook as a result of the impact of COVID-19. The Wholesale reserve build was $4.6 billion across multiple sectors, and the Consumer reserve build was $4.4 billion, largely in Card.

 

[Mr. Wood]

Google to invest $10 billion in India
July 13, 2020

Investments will focus on four areas:

First, enabling affordable access and information for every Indian in their own language, whether it’s Hindi, Tamil, Punjabi or any other

Second, building new products and services that are deeply relevant to India’s unique needs

Third, empowering businesses as they continue to embark on their digital transformation

Fourth, leveraging technology and AI for social good, in areas like health, education and agriculture

indians rak Indians but sinkies pwn sinkies

 

[Mr. Wood]

Boeing lands the first order of the F-15EX
2020/07/13

The contract award is a massive win for Boeing and gives a second life for the F-15 production line in St. Louis, Mo. After years of urging the Air Force to consider an advanced version of the F-15 as a complementary capability to Lockheed Martin’s F-35, Boeing found an ally in the Defense Department’s Cost Assessment and Program Evaluation office, which in 2019 forced the service to purchase F-15EX planes in order to build capacity.

amdk help amdk whereas sinkies pwn sinkies

 

[Mr. Wood]

Walmart leads $1.2 billion investment in India’s Flipkart
July 14, 2020

The American retail group said the fresh capital would help Flipkart, which was valued at $20.8 billion two years ago, further grow its e-commerce marketplace in India as the world’s second largest internet market begins to recover from Covid-19 crisis. A group of other existing investors also participated in the new financing round, a Flipkart spokesperson told TechCrunch but declined to identify them individually.

India the next china?

 

[Mr. Wood]

Wells Fargo Reports Second Quarter 2020 Net Loss of $2.4 Billion
July 14, 2020

Board of Directors intends to reduce third quarter 2020 common
stock dividend to $0.10 per share

Financial results:
Net loss of $2.4 billion and diluted loss per share of $0.66
Revenue of $17.8 billion, down from $21.6 billion in second quarter 2019
Noninterest expense of $14.6 billion, up $1.1 billion from second quarter 2019

 

[Mr. Wood]

ABBOTT REPORTS SECOND-QUARTER 2020 RESULTS, EXCEEDS ANALYSTS' EXPECTATIONS
July 16, 2020

Second-quarter worldwide sales of $7.3 billion decreased 8.2 percent on a reported basis and 5.4 percent on an organic basis, which excludes the impact of foreign exchange.
Reported diluted EPS from continuing operations under GAAP was $0.30 and adjusted diluted EPS from continuing operations, which excludes specified items, was $0.57 in the second quarter.
Abbott projects full-year 2020 diluted EPS from continuing operations on a GAAP basis of at least $2.00 and full-year adjusted diluted EPS from continuing operations of at least $3.25.

headlines sounds jsm, but actual is down.

In April, Abbott announced CE Mark approval for its TriClip™ heart valve repair system, the world's first minimally invasive, clip-based tricuspid heart valve repair device.
In June, Abbott announced U.S. FDA approval of FreeStyle® Libre 2 as an integrated continuous glucose monitoring (iCGM) system for adults and children ages 4 and older with diabetes, achieving the highest level of accuracy and performance standards.1
Last week, Abbott announced U.S. FDA approval of its next-generation Gallant™ implantable cardioverter defibrillator and cardiac resynchronization therapy defibrillator devices to help manage heart rhythm disorders. These devices offer Bluetooth technology and a new patient smartphone app for improved remote monitoring and enhanced patient-physician engagement.
"Our diversified business model has proven to be a true strength during this time," said Robert B. Ford, president and chief executive officer, Abbott. "We're a leader in the global COVID-19 testing efforts, we've continued to advance our pipeline and, importantly, we saw significant improvements in growth trends throughout the quarter in the business areas that were initially most impacted by the pandemic."

buy is buy the future earnings.

 

[Mr. Wood]

Johnson & Johnson Reports 2020 Second-Quarter Results
July 16, 2020

· Sales of $18.3 billion reflecting a decline of 10.8%, operational decline of 9.0%* and adjusted operational decline of 8.8%*, primarily driven by the negative impact of the COVID-19 pandemic

· EPS of $1.36 decreased 34.6%; adjusted EPS of $1.67 decreased 35.3%*; 2019 included gain from sale of Advanced Sterilization Products (ASP) business

· Company increasing Full Year Sales and EPS guidance

and we remain focused on advancing the development of a vaccine to help address this pandemic and save lives.

“We are bringing together our best minds, our global footprint and our sophisticated supply chain technology to deliver on our commitment to provide the vaccine on a not-for-profit basis for emergency pandemic use, globally. We know the need is urgent, and every day we commit to doing our part to find a solution for the global good.”

 

[Mr. Wood]

Domino's Pizza® Announces Second Quarter 2020 Financial Results
July 16, 2020

Global retail sales growth (excluding foreign currency impact) of 8.1%

U.S. same store sales growth of 16.1%

International same store sales growth of 1.3%

Global net store growth of 84

Diluted EPS up 36.5% to $2.99

The second quarter marked the 106th consecutive quarter of international same store sales growth and the 37th consecutive quarter of U.S. same store sales growth.

 

[Mr. Wood]

Burger King shops in China close following state-run TV expose
July 17, 2020

U.S. fast-food chain Burger King has suspended operations at a number of its outlets in eastern China and is looking into allegations that it served expired food to customers.

Alibaba Group Holding, Apple and Starbucks have been targets of the "315 Night Show" in previous years, drawing apologies from those accused of misbehaving. The censure of Burger King and GM, the only foreign companies named this year, takes place against a backdrop of rising tensions between China and the U.S.

chines eat anything and scared of expired food

 

[Mr. Wood]

BlackRock Reports Second Quarter 2020 Diluted EPS of $7.85
July 17, 2020

“BlackRock’s globally integrated asset management and technology platform generated $100 billion of total net inflows in the second quarter, representing 10% annualized organic base fee growth.

4% increase in revenue year-over-year reflects higher performance fees and 17% growth in technology service revenue, driven by continued Aladdin® momentum

10% increase in operating income year-over-year also reflects lower G&A expense, including the impact of $59 million of product launch costs in the prior year quarter

22% increase in diluted EPS reflects higher year-over-year nonoperating income, a lower effective tax rate and a lower diluted share count in the current quarter

 

[Mr. Wood]

get rich slowly.

 

[Mr. Wood]

Franklin Templeton Expects to Close Acquisition of Legg Mason on July 31, 2020
July 17, 2020

Pursuant to the merger, which was announced on February 18, 2020, Franklin Templeton will acquire Legg Mason for $50.00 per share of common stock in an all-cash transaction. Franklin Templeton will also assume approximately $2 billion of Legg Mason’s outstanding debt.

big become bigger

 

[Mr. Wood]

Chevron to Buy Noble Energy in $5 Billion Oil-Patch Tie-Up
JUL 20, 2020

Chevron announced on Monday that it will buy Noble at for $10.38 a share, or 0.1191 a Chevron share. At that level, the deal represents a roughly 7.6% premium over Noble’s Friday closing price of $9.65 and nearly 12% based on a 10-day average.

Including Noble debt, the total enterprise value of the deal is $13 billion.

Chevron announced on Monday that it will buy Noble at for $10.38 a share, or 0.1191 a Chevron share. At that level, the deal represents a roughly 7.6% premium over Noble’s Friday closing price of $9.65 and nearly 12% based on a 10-day average.

Including Noble debt, the total enterprise value of the deal is $13 billion.

 

[Mr. Wood]

The Fascinating Facts Behind Warren Buffett’s Best Investment
July 22, 2020

Our advantage, rather, was attitude: we had learned from Ben Graham that the key to successful investing was the purchase of shares in good businesses when market prices were at a large discount from underlying business values.”

 

[Mr. Wood]

Coca-Cola Reports Second Quarter 2020 Results
July 21, 2020

Global Unit Case Volume Declined 16%
Net Revenues Declined 28%;
Organic Revenues (Non-GAAP) Declined 26%
Operating Income Declined 34%; Comparable Currency
Neutral Operating Income (Non-GAAP) Declined 25%
Operating Margin Was 27.7% Versus 29.9% in the Prior Year;
Comparable Operating Margin (Non-GAAP) Was 30.0% Versus 30.3% in the Prior Year
EPS Declined 32% to $0.41; Comparable EPS (Non-GAAP) Declined 33% to $0.42

• Innovating quickly to address consumer needs: The company recently announced plans to roll out a new pouring option to meet consumer needs with its latest Coca-Cola Freestyle technology innovation – contactless, mobile pouring using a smartphone. As the coronavirus pandemic continues to reshape consumer behaviors, the contactless Coca-Cola Freestyle solution allows consumers to choose and pour drinks in just a few seconds, without creating an account or downloading an app. The mobile experience is rolling out to Coca-Cola Freestyle dispensers across the United States by the end of the year.

• Addressing social justice concerns: The company is taking a multi-faceted approach to social justice, focusing on listening, leading, investing and advocating. This includes meeting with stakeholders, employees and other business leaders. The company has paused social media activity for July to review policies, including its own, and to hold partners to a higher level of accountability and transparency. The company has committed to spend an incremental $500 million with Black-owned suppliers over the next five years in the United States. In support of social justice, The Coca-Cola Foundation has contributed $4 million to several initiatives and, to date, the company has contributed an additional $1.3 million through brands Coca-Cola and Sprite.