US Dividends Aristocrats thread

[Mr. Wood]

CATERPILLAR SIGNS AGREEMENT TO ACQUIRE WEIR OIL & GAS
October 5, 2020

“Combining Weir Oil & Gas’s established pressure pumping and pressure control portfolio with Cat’s engines and transmissions enables us to create additional value for customers,” said Joe Creed, Vice President of Caterpillar’s Oil & Gas and Marine Division. “This acquisition will expand our offerings to one of the broadest product lines in the well service industry.”

 

[Mr. Wood]

October 2020 newsletter
https://drive.google.com/file/d/1lDYthozeCH79ymD9gdD1y3U6ACpG7j6T/view

 

[Mr. Wood]

The Sure Dividend Top 10 – October 2020
Name & Ticker Fair Value

Unum (UNM) $30
Walgreens (WBA) $47
AbbVie (ABBV) $109
M&T Bank (MTB) $136
Huntington Ingalls (HII) $217
Prosperity Bancshares (PB) $74
AT&T (T) $39
Altria (MO) $47
John Wiley & Sons (JW.A) $43
CVS Health (CVS) $79

remember dyodd

 

[Mr. Wood]

BHP to acquire an additional 28 per cent working interest in Shenzi from Hess
06 October 2020

The acquisition would bring BHP’s working interest to 72 per cent and immediately add approximately 11,000 barrels of oil equivalent per day of production (90 per cent oil).

 

[Mr. Wood]

Cisco is ordered to pay $1.9 billion in U.S. patent lawsuit, plans appeal
OCTOBER 6, 2020

Cisco posted $11.2 billion of net income on $49.3 billion of revenue in its latest fiscal year.

 

[Mr. Wood]

Intel Stock Is a Tremendous Value at $50
Oct 2, 2020

Intel’s Improving Earnings

Back in 2017, Intel was earning around $2 per share per year in profits. And that had been relatively stable in prior years as well. Since then, however, earnings growth has exploded, with the company pulling in more than $5 per share in earnings last year. That’s 150% growth in a short period of time.

AMD Fears Are Overblown

When you actually look at the numbers, AMD’s revenues are merely up 25% since 2010 (flat after inflation) and the company is barely profitable even now. AMD has shown strong growth since 2016. However, AMD has catastrophically failed every other time it seemed to get a little operating momentum in the past. AMD is a low-quality cyclical business, not a steady grower.

If anything, Intel’s bigger problem is Nvidia (NASDAQ:NVDA). Nvidia, while having a far smaller research & development budget than Intel, still has twice as much as AMD. Here is 2019 R&D spend by company:

Intel: $13.4 billion
Nvidia: $2.8 billion
AMD: $1.5 billion

 

[Mr. Wood]

McDonald's Reports Third Quarter 2020 Comparable Sales, Raises Quarterly Cash Dividend And Announces November Investor Update
October 8, 2020

Comparable Sales: Monthly comparable sales results improved sequentially for all segments throughout the third quarter of 2020.

U.S.: Comparable sales were positive throughout the quarter, benefiting from strong average check growth from larger group orders as well as strong performance at the dinner daypart. The Company's strategic marketing investments and resulting promotional activity drove low double-digit comparable sales for the month of September, including positive comparable sales across all dayparts. Comparable guest counts remained negative for the quarter.

International Operated Markets: Comparable sales results improved throughout the quarter, with consumer sentiment and government regulations impacting the pace of recovery from COVID-19. Limited operations also remained in place for some markets. Comparable sales varied across markets with negative comparable sales in France, Spain, Germany and the U.K., partly offset by positive comparable sales in Australia.
International Developmental Licensed Markets: Comparable sales results were impacted by negative comparable sales in Latin America and China, partly offset by strong positive comparable sales in Japan.

mcd seems like a middle class luxury in SG, but are actually relatively affordable in US. almost like a staple for a lot of the low and middle income.
no surprises dat US mcd doing well in crisis.

 

[Mr. Wood]

Morgan Stanley to Acquire Eaton Vance
October 8, 2020

big get bigger.

 

[Mr. Wood]

Elon Musk could pocket another $3 billion if Tesla hits earnings goals
Oct. 7, 2020

huat ah!

A Tesla Bull Makes a Bold Call: The Stock Can Triple in Price
Oct. 8, 2020

huat ah!

 

[Mr. Wood]

podcast

David Barr chats with Lauren Templeton, Founder and President of Templeton & Phillips Capital Management
SEPTEMBER 10, 2020

https://www.penderfund.com/podcasts/episode-49-lauren-templeton-templeton-phillips-capital-management/

Key Takeaways
[01:37] David and Lauren’s discuss their shared connection to the MOI Global community.
[04:07] Lauren imparts why she chose to write her book and the “common threads” that made her uncle, Sir John Templeton, a successful investor.
[07:20] Lauren outlines her investment strategy since the start of the global pandemic, also how market leaders responded and her take on what end investors really wanted to hear.
[12:41] David asks Lauren to talk about her early passion for finance and investing.
[18:46] Lauren says how she has explained her career to her children and gives some advice for parents in the industry hoping to do the same.
[21:23] Lauren and David discuss value investing, growth vs value and discipline.
[27:38] Lauren reveals some mistakes she has made along the way that have solidified her investment strategy.
[30:23] David asks Lauren to share where their team is currently finding the most interesting opportunities in the market.
[35:28] Lauren describes how she stays true to her investment process
[41:28] David and Lauren talk about the lack of gender parity in the investment industry and how to overcome it.
[43:38] Lauren and David discuss a very “hot topic” in investing, ESG.
[46:46] David closes the podcast by asking Lauren what she is currently reading.

 

[Mr. Wood]

Investment Summit (2-3 December, Online)

Bringing CEO and CIO perspectives on the most pertinent topics for the investment community:

Market Drivers and Outlook: Learn how macroeconomics, geopolitics, China and market volatility have impacted investment outlook and how you can prepare for 2021 and beyond.
Asset Management Strategies: Go beyond data and learn the methodologies employed by the most successful managers to enhance their understanding of the market and extract financial rewards. Watch out for opportunity identification techniques, industry specific expert takes and great debates.
Investing for a New Reality: A deep-dive into how long-term government, regulatory and investment initiatives will drive change for investors around the world.
Learning from COVID-19: Crisis has created both opportunities and risks. Are you moving fast enough? What does progress look like? Get exclusive insights from industry forerunners, leading asset owners, senior regulators and influential international players as investors look to tackle economic calamity.

 

[Mr. Wood]

Allergan Aesthetics, an AbbVie Company, Acquires Innovative Luminera Dermal Filler Business
October 7, 2020

"The addition of the Luminera assets adds innovative technology, complementing our leading JUVÉDERM® filler franchise. We welcome the Luminera team as we continue to build our global aesthetics company and a world-class product offering for healthcare professionals and patients around the world,"

 

[Mr. Wood]

Dividend Kings In Focus Part 18: Procter & Gamble
October 8th, 2020

P&G has many strong qualities that make it a time-tested dividend growth company. But legendary companies with long histories, such as P&G, may at times need to change direction. Thanks to a significant reshuffling of its brand portfolio a few years ago, P&G once again is positioned to capitalize on global growth opportunities.

P&G has a long history of rewarding shareholders with dividends. P&G has been paying a dividend for nearly 130 years. It has also earned a place on both the Dividend Aristocrats and Dividend Kings lists. For its various accomplishments, P&G earns a place on our list of “blue chip” stocks. You can see the full list of blue chip stocks here.

However, the current valuation – now sitting near a decade high – leaves something to be desired from a value perspective. So much so, that the company’s earnings per share growth and dividend yield could be completely offset by a reduction in the valuation. While we remain enthused about the turnaround of the core business, and the progress that has been made lately, we do not find shares to be attractive at this time.

 

[Mr. Wood]

Dividend Kings In Focus Part 19: Sysco Corporation
Updated on October 9th, 2020

Sysco operates at the top of its industry. Though it is facing headwinds at the moment, we believe that these will mitigate as a recovery from COVID-19 eventually takes place. This should leave Sysco in a solid position once that recovery takes place.

The stock is slightly overvalued, meaning right now is not the best time to buy the stock. We believe future returns will be satisfactory, but not spectacular, for investors buying the stock at the current valuation level.

Still, we believe the stock can generate positive returns even at this valuation, through earnings growth and dividends. As a result, Sysco remains a quality holding within a dividend growth portfolio, but the stock is not a buy at the current price.

 

[ivanftp]

US Dividend Aristocrat significantly underperformed tech ETFs like QQQ and XLK in 2020. Any reason why we should hold on to this group of stocks?

 

[Mr. Wood]

Sure Retirement Newsletter
HIGH-YIELD, HIGH-QUALITY INVESTMENTS
Published on October 11th, 2020
https://drive.google.com/file/d/1lanmF3hdWeZnF4qKkYfSlcAA61iDArLu/view?usp=sharing

We aren’t trying to ‘sell the sizzle’ of a constant
stream of new recommendations when things haven’t changed all that much from the previous month. We’d rather offer the ‘steak’ of our top-ranked securities regardless of which securities were recommended in the previous month.
“Investment is most intelligent when it is most business like.”
-Benjamin Graham

 

[Mr. Wood]

https://drive.google.com/file/d/1lanmF3hdWeZnF4qKkYfSlcAA61iDArLu/view?usp=sharing

Unum Group (UNM)
Oct 2020

Growth Prospects, Valuation, & Catalyst
Over the past decade, Unum grew its earnings-per-share by approximately 8% per year on average. Results were helped by rising premium income, as well as aggressive share repurchases, which retired 5% of the share count each year. The company suspending its share repurchases will be a headwind for future earnings-per-share growth. However, we believe Unum can continue to grow through reasonable improvement in premium and investment income, along with expense management.

We expect Unum to generate adjusted earnings-per-share of $5.00 for 2020. Based on this, the stock has a price-to-earnings ratio (P/E) of just 3.8. During the past decade shares of Unum have traded with
an average P/E multiple of 8 to 9. Our fair value estimate is a P/E ratio of 6.0, which implies the potential for a 9.7% tailwind to annual returns over the next five years. In addition, shareholder returns will be driven by expected earnings growth of 2% per year, and the 6.0% dividend yield. Overall, we expect total annual returns of 17.7% per year over the next five years for Unum stock

 

[Mr. Wood]

https://drive.google.com/file/d/1lanmF3hdWeZnF4qKkYfSlcAA61iDArLu/view?usp=sharing

AbbVie Inc. (ABBV)
Oct 2020

Growth Prospects, Valuation, & Catalyst
Despite the challenge posed by loss of exclusivity on Humira, we believe AbbVie has long-term growth potential. First, it has invested heavily in building its pipeline of new products. For example, AbbVie has seen strong growth from Imbruvica, which saw a 21% increase in sales last quarter. AbbVie also completed the $63 billion acquisition of Allergan (AGN). Allergan’s flagship product is Botox, which diversifies AbbVie’s portfolio with exposure to global aesthetics. The combined company will have annual revenues of nearly $50 billion. AbbVie expects the transaction to be 10% accretive to adjusted earnings-per-share over the first year, with peak accretion of greater than 20%.

Based on expected 2020 earnings-per-share of $10.40, AbbVie trades for a price-to-earnings ratio (P/E) of 8.4. Our fair value estimate for AbbVie is a price-to-earnings ratio of 10.5. We view AbbVie as undervalued. An expanding P/E multiple could boost shareholder returns by approximately 4.6% per year over the next five years. In addition, we expect annual earnings growth of 5.0%, while the stock has a 5.4% dividend yield. We expect total annual returns of 15.0% per year over the next five years.

 

[Mr. Wood]

ah gong but not ah gong

Berkshire Hathaway’s R. Ted Weschler Bought Up Dillard’s Stock

Oct. 9, 2020

Berkshire Hathaway investment manager and one of Warren Buffett ’s lieutenants R. Ted Weschler disclosed a large position in embattled retailer Dillard’s.

Dillard’s (ticker: DDS) stock has tumbled nearly 43% so far this year through Friday’s close. The department-store chain had seen sales tumble and losses widen even before the coronavirus pandemic. Dillard’s stock was removed from the S&P 400 in June 2020 as the company “is no longer representative of the midcap market space,” S&P Dow Jones Indices said in a press release at the time. One observer noted that Dillard’s was among retailers that “face elevated bankruptcy risks.”

Weschler disclosed he had overall ownership of 1.08 million Dillard’s shares, a 5.89% stake, as of Friday. The timing of his purchases of Dillard’s stock wasn’t noted, but he crossed the 5% threshold on Sept. 29, necessitating the filing of a form with the Securities and Exchange Commission. The stake doesn’t represent a Berkshire Hathaway ( BRK.B ) investment.

He noted in the form, “Certain securities reported in this Schedule 13G are held in a trust for the benefit of family members. None of such persons individually own more than 5% of the issuer’s outstanding shares.”

Weschler declined to comment on the investment.

He is now the fifth-largest shareholder in Dillard’s, according to S&P Capital IQ.

 

[Mr. Wood]

Johnson & Johnson Reports 2020 Third-Quarter Results
Oct 13, 2020

- Sales of $21.1 billion reflecting an overall and operational increase of 1.7%, and adjusted operational increase of 2.0% despite the estimated negative impact of the COVID-19 pandemic

- EPS of $1.33 increased 101.5%; adjusted EPS of $2.20 increased 3.8%

- Company increasing guidance for Full Year Reported Sales by $1.0 billion and Adjusted EPS by $0.15 driven by the strength of the recovery and strong underlying business fundamentals

Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 3.3%. The decline was primarily driven by the negative impact of the COVID-19 pandemic and the associated deferral of medical procedures to our Surgery, Orthopaedics, and Vision businesses.