US Dividends Aristocrats thread

[Mr. Wood]

The Templeton Way: The Art of Contrarian Investing with Lauren Templeton
Oct 14, 2020

https://www.youtube.com/watch?v=Xmpr3W4lFY8

 

[Mr. Wood]

Dividend Kings In Focus Part 20: Colgate-Palmolive
October 13th, 2020

Colgate-Palmolive (CL) is a consumer staples conglomerate that has increased its dividend for 57 consecutive years, one of the longest streaks in the entire market. Perhaps more impressively, Colgate-Palmolive has paid dividends on its common stock continuously since 1895.

We expect the company to build upon a strong 2020 performance in the coming years, and we see many years of dividend increases coming as well.

However, the stock is pricing in a lot of growth today, and with total projected annual returns under 4%, we rate Colgate-Palmolive a sell. The stock would once again be a buy, if and when it trades below fair value.

 

[Mr. Wood]

Wells Fargo Reports Third Quarter 2020 Net Income of $2.0 Billion, or $0.42 Per Diluted Share
October 14, 2020

“Wells Fargo reported $2.0 billion of net income in the third quarter and diluted earnings per share of $0.42. While our net interest income declined in the third quarter, primarily due to the lower interest rate environment, we saw increases in several other income categories, including robust mortgage banking results. Our third quarter results also included a $718 million restructuring charge, predominantly related to severance expense, and $1.2 billion of operating losses, largely due to customer remediation accruals.”

 

[Mr. Wood]

UNITEDHEALTH GROUP REPORTS THIRD QUARTER PERFORMANCE
October 14, 2020

As expected, strong underlying performance across business segments continued to be impacted by the voluntary consumer and customer assistance initiatives undertaken by the Company. Net earnings of $3.30 per share and adjusted earnings of $3.51 per share declined 10%, while care patterns disrupted by the pandemic moved closer to normal levels. The Company is updating its full year earnings per share outlook for 2020 to net earnings of $15.65 to $15.90 per share and adjusted net earnings of $16.50 to $16.75 per share.

 

[Mr. Wood]

Dividend Kings In Focus Part 21: Hormel Foods Corporation
October 14th, 2020

Hormel Foods Corporation (HRL) is a processed food manufacturer that competes in several grocery categories. The company was founded 129 years ago, and has managed to increase its dividend for the past 54 years.

Hormel’s track record of earnings stability and dividend growth are difficult to match. The company has proven it can survive and thrive in a variety of conditions, including perhaps the most challenging conditions the economy has ever faced with the ongoing pandemic. However, shares have been bid up to the point where we believe they are quite overvalued.

Given this, and despite the company’s 54-year dividend increase streak, Hormel stock is overvalued. With just 0.4% projected total annual returns in the next five years, we rate the stock a sell. Investors should wait for a significantly lower share price before buying Hormel stock.

 

[Mr. Wood]

WALGREENS BOOTS ALLIANCE REPORTS FISCAL YEAR 2020 RESULTS
OCTOBER 15, 2020

Fiscal 2020 highlights, year-over-year

Sales increased 2.0 percent to $139.5 billion, up 2.5 percent on a constant currency basis
Operating income decreased 73.7 percent to $1.3 billion; Adjusted operating income decreased 24.9 percent to $5.2 billion, down 24.8 percent on a constant currency basis
EPS decreased 88.0 percent to $0.52; Adjusted EPS decreased 20.8 percent to $4.74, down 20.6 percent on a constant currency basis; reflecting an estimated adverse COVID-19 impact of approximately $1.06
Net cash provided by operating activities was $5.5 billion, a decrease of $109 million compared with fiscal 2019; Free cash flow increased 5.6 percent to $4.1 billion

not all healthcare related are doing well. must be selective

 

[Mr. Wood]

Johnson & Johnson (JNJ)
https://drive.google.com/file/d/1O23c0bViGMQvfZqShDomnHMrXXvLhuVv/view
Updated October 13th, 2020

Final Thoughts & Recommendation

After reviewing Q3 earnings results, Johnson & Johnson is expected to offer a total annual return of 5.3% through 2025, down slightly from our previous estimate of 5%. Pharmaceutical sales remain strong and the Consumer segment returned to growth. Medical Devices remain weak as the COVID-19 pandemic continues to pressure this segment. We maintain our hold position on the stock due to projected returns, but feel that Johnson & Johnson should be considered a cornerstone of any dividend growth portfolio. We have raised our 2025 price target $3 due to higher EPS estimates.

5 Year Price Target $169

 

[Mr. Wood]

Bill & Melinda Gates Foundation 13F Stock Holdings & Strategy

October 15th, 2020

Final Thoughts
Overall, Bill Gates’ Foundation holds reliable stocks that are able to achieve consistent turnover during the toughest economic environments, in order to provide the Foundation with adequate returns to donate to charitable causes.

As you can see, all of its holdings have a relatively low beta, which helps with avoiding intense price swings, and hence deliver more predictable returns.

The Trust’s largest investment is expected to remain Berkshire, as Warren Buffet’s heavy involvement with the Foundation synergizes with his goal to distribute the majority of his wealth to charity. While many of the stocks mentioned may lack the potential to deliver explosive returns, their huge moat and essential operations to society guarantee them steady profitability, making them an ideal pick for those looking to allocate capital into low-volatility, but also gradually growing companies.

 

[Mr. Wood]

Nokia selected by NASA to build first ever cellular network on the Moon
19 October 2020

LTE/4G technology promises to revolutionize lunar surface communications by delivering reliable, high data rates while containing power, size and cost.
Communications will be a crucial component for NASA's Artemis program, which will establish a sustainable presence on the Moon by the end of the decade.

Nokia’s LTE network – the precursor to 5G – is ideally suited for providing wireless connectivity for any activity that astronauts need to carry out, enabling voice and video communications capabilities, telemetry and biometric data exchange, and deployment and control of robotic and sensor payloads.

race for supremacy again

 

[Mr. Wood]

Big Banks Showing Confidence in the Economy
Oct 16, 2020

Provision for Credit Losses
You see, banks take risks every day when they issue loans to businesses and consumers. No matter how careful they are during the application process, banks know that some of those loans are not going to get paid back.

To account for this risk, banks set aside money that they can use to cover any potential losses they might suffer from delinquent loans. This money shows up on the bank’s financial statements as the “provision for credit losses.”

When the economy is doing well — or is anticipated to do well in the future — banks don’t set aside as much money. They believe businesses and consumers are more likely to stay current on their loans.

Conversely, when the economy is not doing well — or is anticipated not to do well in the future — banks set aside more money. Why? They believe businesses and consumers are more likely to default on their loans.

Confidence at JPMorgan Chase
Looking at the numbers JPMorgan Chase put out in its quarterly earnings press release, you can see that the bank set aside much less money this quarter than it did last quarter — $611 million in the third quarter compared to more than $10 billion in the second.

In fact, JPM set aside less money this quarter than it did the same quarter one year ago. It set aside $611 million in the third quarter of 2020 compared to over $1.5 billion in the third quarter of 2019.

This tells us that JPM is confident the economy has halted its Covid-19 downslide and is likely to continue improving in the future.

Confidence at Goldman Sachs
Goldman Sachs appears to share JPM’s bullish outlook on the economy. Looking at the numbers GS put out in its quarterly earnings press release, you can see that the bank also set aside much less money this quarter than it did last quarter — $278 million in the third quarter compared to nearly $1.6 billion in the second.

And just like we saw with JPM, GS set aside less money this quarter than it did the same quarter one year ago. It set aside $278 million in the third quarter of 2020 compared to $291 million in the third quarter of 2019.

 

[Mr. Wood]

Intel Agrees to Sell Storage Unit to SK Hynix for $9 Billion
Oct 19, 2020

Intel Corp. agreed to sell its Nand memory unit to South Korea’s SK Hynix Inc. for about $9 billion, part of a broader effort by the U.S. chipmaker to concentrate on its main business.

Since taking over as Intel chief executive officer in 2019, Bob Swan has looked to sell several units that aren’t part of the company’s focus on processors for personal computers and servers.

Shedding another non-core business could help Intel focus on fixing its chip technology woes. Despite the delays, the company’s server group has been performing well.

specialisation or concentration risk? hmmm.......

 

[Mr. Wood]

Lockheed Martin Reports Third Quarter 2020 Results
Oct. 20, 2020

third quarter 2020 net sales of $16.5 billion, compared to $15.2 billion in the third quarter of 2019.
Net earnings from continuing operations in the third quarter of 2020 were $1.8 billion, or $6.25 per share, compared to $1.6 billion, or $5.66 per share, in the third quarter of 2019.
Cash from operations in the third quarter of 2020 was $1.9 billion, compared to cash from operations of $2.5 billion in the third quarter of 2019.

“As a result, we delivered strong results across our key financial metrics and
we expect to build on this success through the remainder of the year. Looking ahead to 2021, we remain focused on driving innovation and growing our assets and capabilities to further benefit our customers and shareholders.”

 

[Mr. Wood]

PPG Reports Record Third Quarter 2020 Financial Results

October 19, 2020

third quarter 2020 net sales of about $3.7 billion, down approximately 4% versus the prior year. Selling prices increased by 1.3%. Sales volumes were down about 5% versus the prior year, which reflect ongoing negative economic impacts of the COVID-19 pandemic. Acquisition-related sales added less than 1% to sales growth, and the year-over-year impact from foreign currency translation was minimal.

“Strong year-over-year organic sales growth in global architectural coatings and continued cost management drove earnings growth in our Performance Coatings reporting segment. In addition, our leading technology and service capabilities benefited us as demand for automotive OEM coatings and general industrial coatings began recovering in the quarter, generating strong PPG operating leverage and boosting earnings in our Industrial Coatings reporting segment.

“Looking ahead, we are likely to experience normal seasonal trends in the fourth quarter, especially in our European and North American architectural coatings businesses,” McGarry added. “Even with the continued uncertainty from the pandemic we expect overall economic activity to continue to recover, but in an uneven manner. The pandemic is still significantly impacting the demand for certain coatings products – most notably, global commercial aerospace, marine, and protective coatings that support the oil and gas industry. In addition, we expect that automotive refinish coatings demand in the U.S. and Europe will remain below 2019 levels until there is a return to more normal commuting patterns.

alwys appreciate these honest reviews. not evyday is sunshine and rainbow.

 

[Mr. Wood]

ABBOTT REPORTS THIRD-QUARTER 2020 RESULTS; ACHIEVES STRONG DOUBLE-DIGIT EARNINGS GROWTH AND RAISES GUIDANCE
Oct. 21, 2020

hird-quarter sales growth of 9.6 percent; organic sales growth of 10.6 percent
- Sales growth in Medical Devices and Diagnostics improved significantly versus prior quarter
- Continues to strengthen portfolio with several recent new product approvals, including FreeStyle Libre 3, Libre Sense Glucose Sport Biosensor and MitraClip G4 heart device

In September, Abbott obtained CE Mark for MitraClip® G4, its next-generation MitraClip heart device, the leading minimally invasive mitral valve repair device in the world.
"Our strong results and increased guidance are a direct reflection of our ability to innovate and deliver despite challenging conditions," said Robert B. Ford, president and chief executive officer, Abbott. "Our new product pipeline continues to be highly productive, and we're well-positioned to finish the year with a lot of momentum."

 

[Mr. Wood]

AEP INCREASES QUARTERLY DIVIDEND TO 74 CENTS A SHARE
October 20, 2020

The increase is in line with the company’s 5% to 7% operating earnings growth range.

“AEP remains focused on delivering reliable, affordable and clean energy to our customers, while providing value to our shareholders,” said Nicholas K. Akins, AEP chairman, president and chief executive officer. “AEP has paid a cash dividend on its common stock every quarter since 1910, and we’re pleased our strategic business decisions continue to provide increased returns to our shareholders.”

 

[Mr. Wood]

Coca-Cola Reports Third Quarter 2020 Results, Provides Update on Strategic Actions to Emerge Stronger from the Pandemic
October 22, 2020

Global Unit Case Volume Declined 4%

Net Revenues Declined 9%;
Organic Revenues (Non-GAAP) Declined 6%

Operating Income Declined 8%; Comparable Currency
Neutral Operating Income (Non-GAAP) Grew 7%

Operating Margin Was 26.6% Versus 26.3% in the Prior Year;
Comparable Operating Margin (Non-GAAP) Was 30.4% Versus 28.1% in the Prior Year

EPS Declined 33% to $0.40; Comparable EPS (Non-GAAP) Declined 2% to $0.55

but share price nvr decline

 

[Mr. Wood]

Kimberly-Clark Announces Third Quarter 2020 Results
Oct. 22, 2020

Third quarter 2020 net sales of $4.7 billion increased 1 percent compared to the year-ago period, including organic sales growth of 3 percent.

Diluted net income per share for the third quarter was $1.38 in 2020 and $1.94 in 2019.
Third quarter adjusted earnings per share were $1.72 in 2020 compared to $1.84 in 2019. Adjusted earnings per share exclude certain items described later in this news release.
Diluted net income per share for 2020 is expected to be $6.41 to $6.72.
The company is now targeting full-year 2020 organic net sales growth of 5 percent and adjusted earnings per share of $7.50 to $7.65. The prior outlook was for organic sales growth of 4 to 5 percent and adjusted earnings per share of $7.40 to $7.60.

"We delivered solid organic sales growth in the third quarter, with good underlying performance and increased demand because of COVID-19. We also achieved $140 million of cost savings and returned approximately $560 million to shareholders through dividends and share repurchases. While earnings in the quarter were down as expected, we're raising our full-year outlook and now expect adjusted earnings per share will grow 9 to 11 percent this year. We continue to execute our strategies well and remain very optimistic about our opportunities to deliver balanced and sustainable growth and create long-term shareholder value."

virus turns toilet paper into cash

 

[Mr. Wood]

AT&T Reports Third Quarter 2020 Results
October 22, 2020

Solid wireless and fiber subscriber gains reflect resiliency of core connectivity businesses;
free cash flow guidance updated; debt reduction continues

Free cash flow of $8.3 billion; total dividend payout ratio of 45%
Diluted EPS of $0.39 as reported compared to $0.50 in the year-ago quarter
Adjusted EPS of $0.76 compared to $0.94 in the year-ago quarter

 

[Mr. Wood]

Bank OZK Announces Third Quarter 2020 Earnings
Oct. 22, 2020

KEY BALANCE SHEET METRICS
Total loans were $19.36 billion at September 30, 2020, a 9.2% increase from $17.73 billion at September 30, 2019. Non-purchased loans, which exclude loans acquired in previous acquisitions, were $18.42 billion at September 30, 2020, a 13.0% increase from $16.31 billion at September 30, 2019. Purchased loans, which consist of loans acquired in previous acquisitions, were $0.94 billion at September 30, 2020, a 34.2% decrease from $1.43 billion at September 30, 2019.

Deposits were $21.29 billion at September 30, 2020, a 15.4% increase from $18.44 billion at September 30, 2019. Total assets were $26.89 billion at September 30, 2020, a 14.9% increase from $23.40 billion at September 30, 2019.

Common stockholders’ equity was $4.19 billion at September 30, 2020, a 2.6% increase from $4.08 billion at September 30, 2019. Tangible common stockholders’ equity was $3.51 billion at September 30, 2020, a 3.5% increase from $3.39 billion at September 30, 2019. Book value per common share was $32.37 at September 30, 2020, a 2.3% increase from $31.63 at September 30, 2019. Tangible book value per common share was $27.13 at September 30, 2020, a 3.2% increase from $26.30 at September 30, 2019. The calculations of the Bank’s tangible common stockholders’ equity and tangible book value per common share and the reconciliations to GAAP are included in the schedules accompanying this release.

The Bank’s ratio of total common stockholders’ equity to total assets was 15.57% at September 30, 2020 compared to 17.43% at September 30, 2019. Its ratio of total tangible common stockholders’ equity to total tangible assets was 13.39% at September 30, 2020 compared to 14.93% at September 30, 2019. The calculation of the Bank’s ratio of total tangible common stockholders’ equity to total tangible assets and the reconciliation to GAAP are included in the schedules accompanying this release.

 

[Mr. Wood]

American Express Reports Third-Quarter Revenue of $8.8 Billion and Earnings Per Share Of $1.30
10/23/2020

third-quarter net income of $1.1 billion, or $1.30 per share, compared with net income of $1.8 billion, or $2.08 per share, a year ago.

“While our business continues to be significantly affected by the impacts of the pandemic, our third quarter results have increased our confidence that our strategy for managing through the current environment is the right one,”

ownself comfort ownself?