Introduction The Dow Jones Industrial Average recently closed above 17,000, a historical record and milestone. Consequently, the question at the forefront of every investor’s mind has understandably been raised. Has the market now become dangerously high and therefore destined for a crash? The truthful answer to this important question is that nobody can know for …
MCD
Medtronic-A Lesson On Reasonableness Despite New Highs
People tend to lump all companies together as “stocks” and today the general characterization is that stocks are “expensive.” While it is true that Medtronic is at an all-time high price, this certainly doesn’t translate to an all-time high valuation. As such, many might be inadvertently passing over perfectly investable opportunities. Everyone is keenly aware …
Qualcomm: Where Innovation Meets Results
Thesis For Growth Qualcomm (QCOM) is a global company founded in 1985 that designs, develops, manufactures, and markets digital telecommunications products and services. The company’s passion is “to continue to deliver the world’s most innovative wireless solutions.” Perhaps the most interesting aspect of the company is the underlying licensing business model. As Qualcomm indicates: “the …
The Dow Hits All-Time Highs, But The Truth Is It Remains Cheaply Valued
The Dow Jones industrial average sits above 15,000, an all-time high. But don’t be fooled, this doesn’t mean that stocks are expensive. I understand that it seems logical to assume that if the Dow Jones industrial average, what many believe to be the bellwether index of the stock market, is at an all-time high, then …
The Best Use of Corporate Profit (cash)
Introduction I have recently authored two articles showing that, all other things being equal, a stock that pays its shareholders a dividend generates a higher total return than a stock with similar growth characteristics that doesn’t. This is based on the reality that stock prices follow earnings in the long run, and it is this …
Blue-Chip Dividend Aristocrats – There is a Lot of Value in this Market: Part 4
This is the fourth in a series of articles designed to counter a pervasive attitude that common stocks are expensive today. Furthermore, we would agree with those that contend that we have been in a stealth bull market for the last 18 months or more. However, would also contend that stocks were so cheap prior …
Don’t Be the Equivalent of a Stock Market Racist
There is no shortage of pundits and prognosticators willing to offer their opinions (rarely based on facts) as to whether or not stocks are cheap or expensive, or as to whether the markets are going to rise or fall. In every case, the opinions and prognostications are directed as generalities such as stocks or markets. …
Our Top 40 Favorite Dividend Champions: Blue-chip Dividend Growth Stocks Today’s Strong Option for Retirement Portfolios Part 2
In part one of this two-part series (Found Here) I laid the groundwork for why I believe that blue-chip dividend paying US equities represent not only a viable, but also a safer investment choice than many give them credit for. I also pointed out why I believe the risk profile on bonds is currently upside …
McDonalds Back In Value, Above-Average Growth and Above-Average Yield
McDonald’s (MCD) is a great favorite of the dividend growth investor. However, Mr. Market knows this and has historically applied a premium valuation to this blue-chip dividend stalwart. Due to its consistently above-average earnings growth, McDonald’s is a company that you could even pay a little too much for and still make money over the …
Newsflash: The Dividend Aristocrats Found The Lost Decade
Introduction There are many people who continue to hold a jaundiced view of stocks because they were traumatized by the last two recessions. Precipitous drops in equity prices drove them to distrust stocks and stock markets. However, I believe that most of the negative sentiment is a function of what I would describe as vague …