US Dividends Aristocrats thread

[Mr. Wood]

The 7 Best Consumer Staples Stocks Today
Updated on July 18th, 2019

The Kellogg Company (K)
Kroger Company (KR)
Molson Coors (TAP)
Altria Group (MO)
Walgreens Boots Alliance (WBA)
Newell Brands (NWL)
Imperial Brands (IMBBY)

 

[Mr. Wood]

Our 5 Favorite Telecommunication Dividend Stocks Today
Updated on July 19th

Telephone & Data Systems (TDS)
America Movil (AMX)
Comcast Corporation (CMCSA)
Verizon Communications (VZ)
AT&T Inc. (T)

 

[Mr. Wood]

Kansas City Southern Reports Record Second Quarter Results

Second Quarter 2019 Results

Record revenues of $714 million, an increase of 5% from prior year on flat volumes
Operating income of $208 million. Record adjusted operating income of $259 million, excluding restructuring charges related to Precision Scheduled Railroading (“PSR”) initiatives
Reported operating ratio of 70.9%. Adjusted operating ratio of 63.7%, compared to 64.0% in the prior year
Reported diluted earnings per share of $1.28. Record adjusted diluted earnings per share of $1.64, 6% higher than a year ago

 

[Mr. Wood]

Coca-Cola Reports Continued Momentum in Second Quarter; Updates Full Year Guidance

Net Revenues Grew 6%;
Organic Revenues (Non-GAAP) Grew 6%

Operating Income Grew 8%; Comparable Currency

Neutral Operating Income (Non-GAAP) Grew 14%

Operating Margin Was 29.9%; Comparable Operating Margin (Non-GAAP) Was 30.3%, Including the Impact from Currency Headwinds and Acquisitions

EPS Grew 12% to $0.61; Comparable EPS (Non-GAAP) Grew 4% to $0.63,
Despite a 9% Currency Headwind

 

[Mr. Wood]

Starbucks Creamers Launching Nationwide July 22, 2019

Starbucks x Nestle

 

[Mr. Wood]

Kimberly-Clark Announces Second Quarter 2019 ResultsJuly 23, 2019

Executive Summary

Second quarter 2019 net sales of $4.6 billion were even with the year-ago period. Organic sales increased 5 percent while changes in foreign currency exchange rates reduced sales by 5 percent.

Diluted net income per share for the second quarter was $1.40 in 2019 and $1.30 in 2018.

Second quarter adjusted earnings per share were $1.67 in 2019 and $1.59 in 2018. Adjusted earnings per share exclude certain items described later in this news release.

Diluted net income per share for full-year 2019 is expected to be $5.50 to $5.90 compared to the prior estimate of $4.85 to $5.35.

The company is now targeting full-year 2019 organic sales growth of 3 percent and adjusted earnings per share of $6.65 to $6.80. The prior outlook was for organic sales growth of 2 percent and adjusted earnings per share of $6.50 to $6.70.

 

[Mr. Wood]

Stanley Black & Decker Reports 2Q 2019 Results
July 23, 2019

Stanley Black & Decker (NYSE: SWK) today announced second quarter 2019 financial results.

2Q'19 Revenues Totaled $3.8 Billion, Up 3% Versus Prior Year, Driven By Organic Growth And Acquisitions

Operating Margin Rate Was 13.8%; Excluding Charges, Operating Margin Rate Expanded 60 Basis Points Versus Prior Year To 14.8% As Price Actions And Cost Control More Than Offset $110 Million Of Tariff, Commodity And Currency Headwinds

2Q'19 Diluted GAAP EPS Was $2.37; Excluding Charges, 2Q'19 Diluted EPS Was $2.66

Reiterating Full Year Diluted GAAP EPS Guidance Range Of $7.50 - $7.70, Adjusted EPS Guidance Range Of $8.50 - $8.70 And Free Cash Flow

Conversion Estimate Of Approximately 85% - 90%

 

[RobieRox]

Thanks for the invaluable Earning Report update. What trading platform do you use to invest in foreign stocks in Singapore?

 

[Mr. Wood]

The 6 Big Oil Supermajor Stocks Ranked From Best To Worst
Updated on July 23rd, 2019

Royal Dutch Shell (RDS.A)(RDS.B)
Total (TOT)
BP (BP)
Eni (E)
Exxon Mobil (XOM)
Chevron (CVX)

In this article, we will rank the six oil supermajors from best to worst, based on their expected 5-year returns. We calculate expected returns based on the combination of valuation changes, expected earnings growth, and dividend yields.

 

[Mr. Wood]

AT&T Reports Second-Quarter Results
July 24, 2019

Second-Quarter Consolidated Results

Diluted EPS of $0.51 as reported compared to $0.81 in the year-ago quarter
Adjusted EPS of $0.89 compared to $0.91 in the year-ago quarter
Consolidated revenues of $45.0 billion, up 15.3%
Cash from operations of $14.3 billion, up 40%
Capital expenditures of $5.5 billion
Free cash flow of $8.8 billion
Company Raises Free Cash Flow Guidance to $28 Billion Range; Reaffirms Remainder of 2019 Guidance:

Low single-digit adjusted EPS growth;
Dividend payout ratio in the 50s% range;
End-of-year net debt to adjusted EBITDA in the 2.5x range;
Gross capital investment in the $23 billion range

 

[Mr. Wood]

Visa Inc. Reports Fiscal Third Quarter 2019 Results
July 23, 2019

Net income of $3.1B or $1.37 per share
 Net revenues of $5.8B, an increase of over 11%
 Growth in underlying business drivers was strong, accelerating from the prior quarter
 Returned $2.7B of capital to shareholders in the form of share repurchases and dividends

 

[Mr. Wood]

Thanks for the invaluable Earning Report update. What trading platform do you use to invest in foreign stocks in Singapore?

for US stocks, TDameritrade
other markets HK, ASX, interactive broker. but there is inactive fee.
so far I think TDa is most cost effective. not like sg brokers and platforms demand broker commissions and other fees.

 

[RobieRox]

for US stocks, TDameritrade
other markets HK, ASX, interactive broker. but there is inactive fee.
so far I think TDa is most cost effective. not like sg brokers and platforms demand broker commissions and other fees.

Appreciate your reply. Thanks.

 

[bungbang]

Hi! I know you can use FAST fund transfer for TDAM account from your DBS bank; is there any banks in Sgp that I can to do ACH transfer to my Webull trading account in US$?

 

[Mr. Wood]

3M Reports Second-Quarter 2019 Results
Thursday, July 25, 2019

Second-Quarter Summary:

Sales of $8.2 billion, down 2.6 percent year-on-year

Organic local-currency sales declined 0.9 percent year-on-year

GAAP EPS of $1.92 vs. $3.07 last year, down 37.5 percent year-on-year
Adjusted EPS of $2.20 vs. $3.07 last year, down 28.3 percent year-on-year

Q2 2019 excludes $0.28 per share non-cash charge from Venezuela deconsolidation

Q2 2018 includes $0.48 per share benefit from divestiture gain, net of related restructuring actions

Announced acquisition of Acelity Inc., expected to close in Q4 2019
Affirming full-year 2019 organic growth and adjusted earnings expectations

 

[Mr. Wood]

Invesco Reports Results for the Three Months Ended June 30, 2019

Revenues grew quarter over quarter and year over year

Ending AUM of $1.2 trillion, $224.4 billion from OppenheimerFunds acquisition

OppenheimerFunds integration on track to deliver expected benefits and $475 million net cost synergies

 

[Mr. Wood]

ABBV earnings
AbbVie Reports Second-Quarter 2019 Financial Results
July 26th, 2019


Analyst view

ABBV Beats Revenue & Earnings Expectations, Raises Guidance; Shares +2%

This morning before the markets opened, AbbVie reported financial results for the second quarter of fiscal 2019. The company’s performance beat analyst expectations on both revenue and earnings

On the top line, AbbVie generated net revenues of $8.255 billion, which decreased by 0.7% on a GAAP basis. Adjusted net revenues were flat on a reported basis and increased 1.5% operationally (which excludes the impact of foreign exchange fluctuations).

The most important revenue figure for AbbVie is the sales generated by its flagship drug Humira, which is responsible for more than half of the company’s revenue and is the highest-grossing drug in the world.

In the second quarter, U.S. Humira revenue increased by 7.7% to $3.793 billion while international Humira revenue decreased by 35.2% (or 31.0% operationally) due to enhanced biosimilar competition in international markets.

Importantly, Humira’s international weakness was broadly expected and was offset by strength in other parts of AbbVie’s portfolio. The company’s Hematologic Oncology portfolio generated $1.268 billion of revenue in the second quarter, which represents an increase of 38.7% on a reported basis and 39.1% on an operational basis.

The most important drug within the Hematologic Oncology portfolio is Imbruvica, which generated net revenues of $1.099 billion, an increase of 29.3%.

Moving down the income statement, AbbVie’s adjusted gross margin ratio was 82.7% while its adjusted operating margin was 48.2% - both well above many of its peers in the publicly-traded universe.

On the bottom line, AbbVie’s adjusted diluted earnings-per-share figure came in at $2.26, which represents an increase of 13% over the $2.00 generated last year. Much of this gain was due to the company’s actual business growth, but a tailwind from share repurchases also helped. AbbVie’s diluted shares outstanding decreased from 1,572 last year to 1,484 this year for a decline of 5.6%.

AbbVie’s Chairman and Chief Executive Officer, Richard A. Gonzalez, made the following statement about AbbVie’s performance in the quarter:

“We continue to see strong momentum in our business, as we delivered revenue and adjusted EPS ahead of our expectations for the quarter and announced plans to acquire Allergan, a transformative transaction that will provide scale and diversity to our business and position AbbVie for top-tier performance over the long term. Based on our strong performance year-to-date and our confidence in the outlook for the second half, we are raising our revenue and adjusted EPS guidance for 2019.”

As the above quote implies, AbbVie increased its financial guidance for fiscal 2019 with the publication of its second quarter earnings release. The company now expects to generate adjusted earnings-per-share between $8.82 and $8.92 (previous guidance was between $8.73 and $8.83). At the midpoint, the company’s new guidance band represents year-on-year growth of 12.1%.

Overall, it was an excellent quarter from AbbVie. The company continues to perform well, yet the market fails to reward it with a reasonable valuation. AbbVie is trading at $68.00 in this morning’s premarket trading right now, which implies a price-to-earnings ratio of 7.7 using the midpoint of its new guidance band. Fortunately, the company is aggressively repurchasing stock at these discounted valuations, which will boost its per-share intrinsic value over time.

Given all of this, AbbVie continues to earn a strong buy from Sure Dividend at current prices.

Disclosure: Ben Reynolds and Nick McCullum are both personally long ABBV.

 

[Mr. Wood]

MCD earnings report
https://corporate.mcdonalds.com/content/dam/gwscorp/investor-relations-content/quarterly-results/Q2_2019_99.1.pdf
July 26th, 2019

Analyst view

McDonald's Beats Comparable Sales Estimates, Surges to New All-Time High

This morning before the markets opened, McDonald’s Corporation (MCD) reported financial results for the second quarter of fiscal 2019. The company met expectations for both revenue and earnings and surged to a new all-time high in premarket trading after announcing better-than-expected comparable store sales.

Let’s begin by discussing McDonald’s top line results. The company’s consolidated revenues were flat from the previous year (they increased by 3% in constant-currencies) due to a combination of strong comparable store sales and fully offset by the impact of McDonald’s continued refranchising efforts.

While McDonald’s consolidated revenue growth was not too impressive, the company’s operational results were better. The company generated global comparable store sales growth of 6.5% and systemwide sales growth of 8% in constant currencies. Remarkably, McDonald’s has now achieved 16 consecutive quarters of positive global comparable sales growth.

Further down the income statement, McDonald’s operating income increased by 1% (4% in constant currencies) while diluted earnings-per-share increased by 4% (or 7% in constant currencies).

Excluding one-time accounting charges – which primarily includes the strategic restructuring charge of $0.05 in the prior year – McDonald’s adjusted earnings-per-share increased by 3%, or 7% in constant currencies.

Overall, it was a solid quarter from McDonald’s, and the company’s fundamental financial results continue to impress us. However, McDonald’s is trading at a fairly unreasonable valuation – around 26.6 times earnings, to be precise. Because of its excessive earnings multiple, McDonald’s earns a sell recommendation from Sure Dividend at current prices.

 

[Mr. Wood]

GOOG GOOGL earnings
Alphabet Announces Second Quarter 2019 Results
July 25, 2019

Analyst view

Alphabet Beats Earnings Expectations, Announces $25 Billion Share Repurchase Program; Shares +8%

Last night after the markets closed, Alphabet Inc. (GOOG) (GOOGL) – the parent company of Google – reported financial results for the second quarter of fiscal 2019. The company beat expectations on both the top and bottom lines while also announcing a significant $25 billion share repurchase program, causing shares to rise by more than 8% in this morning’s premarket trading.

Here are what the numbers look like. On the top line, Alphabet generated revenues of $38.9 billion, which increased by 19% versus the same period a year ago, or 22% on a constant-currency basis.

Importantly, this actually represents revenue growth acceleration for Alphabet, which has seen its revenue growth decline in recent years.


Further down the income statement, Alphabet generated operating income of $9.2 billion, which represents an operating margin of 24%, and operating income growth of 13.1% year-on-year.

The company’s bottom line results were even stronger. Alphabet generated adjusted net income of $9.9 billion, which grew 20.3%, while diluted earnings-per-share of $14.21 increased by 20.9% over the same period a year ago.

Google’s operational results announced in the quarterly press release were staggering. For one, the company’s headcount now sits at 107,646, which represents an immense 20.9% increase over last year’s 89,058.

The company’s Cloud and YouTube segments are its fastest-growing units at this time. With respect to Google Cloud, the company’s CEO Sundar Pichai said on the company’s earnings call that “We continue to build our world-class cloud team to help support our customers and expand the business and are looking to triple our salesforce over the next few years.”

Separately, the CEO also said:

“Q2 was another strong quarter for Google Cloud, which reached an annual revenue run rate of over $8 billion and continues to grow at a significant pace. Customers are choosing Google Cloud for a variety of reasons. Reliability and uptime are critical. Retailers like Lowe's are leveraging the Cloud as one of the important tools to transform their customer experience and supply chain.”

The company also singled out YouTube as “the second largest driver of revenue growth across Alphabet” in the second quarter.

Within its press release, Alphabet also announced that its Board of Directors has authorized the repurchase of up to an additional $25 billion of its Class C capital stock. This amounts to approximately 3% of Alphabet’s current market capitalization. The repurchase authorization has no expiration date.

Overall, it was an excellent quarter from Alphabet. The company has great growth prospects and is trading near our fair value estimate, so it earns a buy recommendation from Sure Dividend at current prices.

Disclosure: Nick McCullum has a long position in GOOG.

 

[Mr. Wood]

CL earnings release
Colgate Announces 2nd Quarter 2019 Results
Jul 26, 2019

Analyst view

Colgate-Palmolive's Adjusted EPS Decline 6% In Q2 2019 Earnings Release

Colgate-Palmolive (CL) reported underwhelming results for its second quarter of fiscal 2019 this morning.

Revenue declined 0.5% versus the same quarter a year ago. Excluding the effects of foreign exchange, organic sales increased 4.0%.

The bottom line showed worse performance. Adjusted earnings-per-share declined 6%. The company’s gross margin actually increased slightly versus the same quarter a year ago, but higher overhead and advertising expenses reduced operating margin. The company’s adjusted operating margin declined from 25.8% in Q2 2018 to 24.0% in Q2 2019.

The company’s CEO Noel Wallace had the following to say about the company’s results:

“We have achieved another quarter of sequential improvement in organic sales growth with the strong 4.0% increase driven by both positive volume and higher pricing. In particular, it was terrific to see positive pricing across every operating division…

Excluding charges resulting from the Global Growth and Efficiency Program in both 2018 and 2019, the charge related to U.S. tax reform in 2018 and the benefit from a foreign tax matter in 2018, based on current spot rates, we continue to plan for a year of gross margin expansion, increased advertising investment and a mid-single-digit decline in earnings per share.”

While Colgate-Palmolive’s Q2 2019 results were very close to in line with analyst estimates, we do not believe these results are driving shareholder value growth.

The company was able to grow constant-currency adjusted sales, but actual sales declined slightly despite 3.0% higher advertising expenses. This shows that the company is having to spend more to retain its current sales volume. Said another way, Colgate-Palmolive is less efficient today than it was a year ago.

For an established company like Colgate-Palmolive, bottom line results (earnings-per-share) are of critical importance. The company’s focus on growing the top line has resulted in a decline in earnings-per-share. This means investors can expect the dividend payout ratio to rise and the company’s dividend to increase only modestly. As a Dividend King, we do expect continued dividend growth at Colgate-Palmolive.

We see Colgate-Palmolive as significantly overvalued today. The company trades with a valuation that would be more suitable for a quickly growing stock – and that’s not Colgate-Palmolive today. Due to the company’s weak growth prospects and high valuation, we rate Colgate-Palmolive as a sell at current prices.