Sunday, April 22, 2018

Weekend Reading Links - April 22, 2018

For your weekend reading pleasure, the articles listed below contain some of the best dividend and value investing insights found on the web. They were written by various members of the Dividend Investing and Value Network over the past week:


Continue Reading »

Thursday, April 19, 2018

Tobacco Companies Offer An Opportunity For Income Investors Today

I was reviewing my portfolio today, and noticed that tobacco companies are getting smoked this morning. Phillip Morris International is down 16% as of the time of this writing, while Altria is down 8%.

Altria yields close to 5% today, and sells at a forward P/E of 14.20. PMI also yields 5% and sells at a forward P/E of 16.20.

I believe that this is an overreaction to the slight revenue miss by Phillip Morris International this morning. I also believe that these stocks could get lower today too. As a result, I believe that there is some opportunity to start reviewing tobacco companies for further research. I am going to look closely into adding more shares on the way down. 

I already own too much Phillip Morris International (PM), but I do want to add some more to Altria (MO).

You may check my last analysis of Altria here:

That being said, it is better to slowly add to positions over time, and not put everything at once. This is a risk management technique I learned during the 2007 - 2009 bear market.
Thank you for reading!




Continue Reading »

GM is an Icon… But Can It Be More Than That?

Summary

  • GM has greatly improved its financial health and is back on “growth mode”.
  • GM has eyes on the future to fuel its growth (electric & autonomous car).
  • There are several clouds looming (competition, high debts, underfunded pension plans).
Are you ready to give it a second chance? This is often a question investors must ask themselves when they look at a company that already cut their dividend. Did management really understand what put them there in the first place? While General Motors (GM) has done a marvelous job at getting back from the dead, I’m not sure it can be qualified as a “safe dividend payer” yet. GM was once admired by many as the world’s #1 automotive constructor. After its fall in 2008-2009, the company worked very hard to bring its iconic brand to the top. It did a great job, but is it enough?

Understanding the Business

General Motors doesn’t need a presentation. Even my 6-year-old can tell the difference between a GM and a Ford since there are so many of their cars on the market. GM is not only a leader in the automotive industry, it is also a leader in the high-margin pickup truck sub-segment.


Continue Reading »

Wednesday, April 18, 2018

20 Highest Yielding Dividend Contenders

Attached you can find the 20 higest yielding Dividend Contenders. The table is a screenshot from the Dividend Champions Financial Factsheet Excel Table.


Continue Reading »

Recent Posts From DIV-Net Members