We all know what surprising The Street will do to a stock’s price. The street focuses on quarterly revenue, EPS, EBIT, EBITDA and margins. The income statement is where you find all the metrics that The Street loves. It therefore must be the most important financial statement. Not! That title goes to the lowly cash flow statement. Ultimately cash flow is what drives the value of any financial asset, including dividend stocks. This week several companies provided their shareholders with a special delivery in the form of higher cash dividends:
Last Monday, I published a stock analysis of Gluskin Sheff (GS) and told you recently that I added this company to my dividend holdings. Today, I’m talking about another addition to my portfolio: Lockheed Martin (LMT). Once again, this is a stock that made my Best 2014 Dividend Stocks book.
Company Description: Hormel Foods Corp. is a multinational manufacturer and marketer of consumer-branded food and meat products. Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
Gluskin Sheff + Associates is one of the first Canadian private wealth management companies founded. GS manages investment portfolios for high net worth clients as well as institutional investors, foundations and municipalities. They claim to be “Stubbornly unconventional”. Founded in 1984 by Ira Gluskin and Gerald Sheff and 24 other private clients, the company is still owned at 26% by senior management and employees. I can appreciate the fact that 26% of shareholders have an even bigger interest in the well being of a company than the average investor. For these people, GS is their whole financial life.
Company Description: Colgate-Palmolive Company (Colgate) is a major consumer products company that markets oral, personal and household care and pet nutrition products in more than 200 countries and territories. Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
There are winners and there are champions in every walk of life. The difference is subtle, but very real. A champions are driven for success and will not let anything stand in their way. Some dividend stocks can be classified as champions. A bad economy, tight credit markets and a dark cloud of uncertainty are enough send some dividend companies running for the exit. However, these are the times that champions stand firm. This week a few companies answered the call and rewarded their shareholders with higher cash dividends:
Company Description: Nucor Corporation is the largest minimill steelmaker in the U.S., Nucor has one of the most diverse product lines of any steelmaker in the Americas. Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description
In September 2011, I did some in-depth research to find long term sustainable dividend stocks and have been doing updates on this Ultimate Sustainable dividend portfolio since then in the attempt to show how well such a portfolio can perform over the long term. I would personally say that things have been going very well and will certainly continue to evolve. I do have a few more things planned which I will discuss in the near future.
I purchased 25 shares of Target Corporation (TGT) on 1/10/13 for $62.50 per share. Target Corporation is a retailer that was incorporated in 1902. It currently operates in two segments: U.S. Retail and Canadian. I’ve talked about Target a lot around here lately, and that’s because I think it’s doing a lot of things right for the long-term, while also facing a lot of near-term uncertainty which is causing its share price to flounder. In addition, the company recently became the victim of a massive data breach when hackers stole the data and credit card information of 70 million customers.
I don’t know if you are like me, but the thing I like the most about managing my own portfolio is buying stocks. The simple fact of adding another company to my investments thinking I will generate profits makes me happy for the day. The second thing I like best is when I sell a stock and cash out the profit. Here again, it’s always fun to look at your paper profit but the best feeling is when you can actually say “I’ve made XX% profit on this trade and the cash is now mine”.