Bluegreen Vacations Corporation (NYSE: BXG) ("Bluegreen Vacations" or the “Company") announced today that its board of directors has declared a quarterly common stock cash dividend of $0.17 per share. The dividend is payable February 15, 2019 to shareholders of record as of the close of trading on January 31, 2019.... more
As a value investor, I am always looking for stunning investment cases which Mr Market has been misjudging for quite a long time. Right now, you simply can't miss the boat of Cisco (CSCO). Over the past several years, management has transformed Cisco's business profile into a coherent growth machine through several acquisitions that will provide sustainable growth going forward. With a juicy dividend yield of more than 3%, it's hard to ignore the opportunity Cisco shares offer today.
Its share price has seen a well-deserved rerating lately, but nonetheless, I feel the Street is still underestimating its dividend growth trajectory, the beneficial impact from its aggressive buyback programs, and its long-term driving forces (IoT, video conferencing). With... more
Author’s Note: This article is a very detailed analysis of Main Street Capital Corp.’s (MAIN) dividend sustainability. I have performed this analysis due to the continued number of readers who have specifically requested such an analysis be performed on MAIN at periodic intervals. For readers who just want the summarized conclusions/results, I would suggest scrolling down to the “Conclusions Drawn” section at the bottom of the article.
Focus of Article:
The focus of this article is to provide a detailed analysis with supporting documentation (via three tests) on the dividend sustainability of MAIN through 2019. This analysis will be provided after a brief overview of MAIN’s regulated investment company (“RIC”) classification per the... more
If cash is king, then there is definitely something peculiar with how AT&T's (T) stock price has languished even as other telecom providers have flourished. In the last 5 years, Verizon (VZ) has provided investors with a 43% return while AT&T sputtered along at just 9.24% - trailing the S&P 500 (SPY) as well, which had a return of almost 49%. And this despite steadily growing free cash flow.
Most of the underperformance has occurred from early 2017. At the start of 2017, AT&T was actually outperforming both Verizon and the broader S&P 500 index, but then started to lag into 2018. Then investor concerns over high debt levels and integration challenges related to the Time Warner acquisition caused the stock to collapse in the second half of the year.
In my constant quest for yield, I am constantly screening for REITs that provide an attractive combination of yield plus appreciation. A few days ago, I wrote a series titled "Do You Feel Lucky," in which I examined a list of REITs yielding 7% plus, 8% plus, and 10% plus.
Often, when you start to climb the yield ladder, you are taking on more risk, and many times the safest opportunities can be found in the companies that generate steady and reliable dividend income, without sacrificing quality.
I have found that the "sweet spot" for many of my top REIT picks yield anywhere from 4% to 6%. I don't have proof to validate the thesis, but I do plan to create a new portfolio in a few days in which I will compare 10 high-yielding REITs and 10 SWANs.
As many... more
Carlyle Group's (CG) strong brand name, track record, and management team are the driving force behind its ability to grow assets, and with it, fees and profits. Alternative assets continue to gain market share as expected returns for traditional equities and fixed income decline while also providing favorable correlation ratios and durability during recessions. While I consider some of its peers attractively valued, such as Blackstone Group (BX), Carlyle appears to be the best among the group at today's pricing. Note these companies are Limited Partnerships and investors are issued a K-1. K-1s are more difficult come tax season for some investors. There are risks associated with the investment as is the case with any security yielding 10%. With Carlyle, however,... more
Main Thesis The purpose of this article is to discuss the merits of the Vanguard High Dividend Yield ETF (VYM) as an investment option at its current market price. While the fund has "high yield" in the name, and its yield is higher than many dividend ETFs, it is markedly lower than ETFs with a specific "high yield" focus. Similarly, VYM's return over the past year has lagged some of these high yield alternatives, which tells me VYM may not be the best option if high yield is an investor's main objective. That said, the fund does offer a fairly good value at current levels, trading at a multiple below the broader market. It is comprised of many high-quality companies, many of which saw strong dividend growth in 2018. Similarly, the fund is long two sectors I... more
The valuation pendulum swings back to the bulls
Tractor Supply (TSCO) is a stock that I’ve been bullish and bearish on at different times in the past. The valuation tends to move wildly from one end to the other, creating opportunities on both the long and short sides. However, the company’s steady earnings growth in recent years, combined with a share price that is right where it was four years ago, has created a chance to buy. Recent results are outstanding from a revenue growth perspective, and it looks to me like it is time to give Tractor Supply another chance from the long side.
Revenue growth is the key
Year-to-date results have been very strong for Tractor Supply, after previous years had shown some slowing of growth. This year,... more
After recently reviewing competitor Home Depot (NYSE: HD), I thought that it makes sense to take a look at Lowe’s Companies (LOW). After all, the two companies form a duopoly on the home improvement industry. Let’s look at the company’s recent financial results, dividend history and valuation to determine if now is the right time to purchase shares of Lowe’s.
Company Background and Recent Financial Results
Lowe’s was founded in 1946 in North Carolina and is the second largest home improvement retailer in the U.S. The company produced nearly $69 billion in sales in 2017 and has a current market capitalization of $78 billion. Lowe’s operates more than 2,100 stores throughout North America. Shares of Lowe’s finished 2018 with a decline of... more
This article is in response to a request from one of my students.
General Motors (GM) has hit a relative high after its investor presentation at Capital Markets Day. The presentation was optimistic, and investors reacted similarly, buying GM up to a near 10% gain. While most of my stock analyses are quantitative in nature, I personally agree that GM’s future looks bright.
The majority of large corporations think dumb and move slow, generally sticking with what works, only making acquisitions to keep up with industry changes. GM, however, is taking responsibility for progression itself, converting Cadillac into a brand for electric vehicle (EVs) and autonomous vehicles (AVs). Many investors are thus looking to GM as a direct competitor to Tesla (TSLA).