Coca-Cola Appears Fairly Valued At Current Levels

Coca-Cola Performance Suffering From Chronic Overvaluation Even though Coca-Cola has produced an exemplary record of earnings growth and accompanying dividend increases, shareholder performance has suffered since calendar year 1998 due to their shares trading at an excessive valuation. Therefore, even with earnings consistently growing, Coca-Cola’s share price had nowhere to go but down based on[…]

Analyzing Intel Corp.: A Dividend Challenger

Intel Corp.: A Dividend Challenger with 8 Consecutive Years of Dividend Increases Since dividends are paid out of earnings, a clear perspective of a company’s historical earnings growth record is a vital component of a dividend investor’s prudent due diligence process. The following graph plots Intel Corp.’s earnings per share since 2003. A quick glance[…]

DaVita: A Healthy Growth Option

DaVita, which is Italian for “giving life” is precisely what DaVita, Inc. (DVA), the company, does for its patients. This company has produced a superb record of consistent earnings growth that held through the recessions of 2001 and 2008 as if they never happened. Demographics indicate a huge opportunity for this quality healthcare company that[…]

6 Telecommunications Utility Stocks With Yields From 7% To 10%

Once thought of as including extremely conservative offerings, the telecommunications utility industry is faced with a rapidly changing competitive landscape and significant technological change. Consequently, change seems to be the banner cry of most companies operating in this once-staid industry. Telecommunications utility companies are therefore finding themselves in a state of flux in order to[…]

Hewlett-Packard Is GULP (Going At An Unreasonably Low Price)

Hewlett-Packard (HPQ) is a technology stalwart that has undeniably engaged in many missteps in recent times, especially regarding the CEO position. All of these issues have certainly not gone unnoticed as the market is currently capitalizing this industry leading technology giant at a mere 7.2 times earnings. Furthermore, it should not go unnoticed that Hewlett-Packard[…]

A Dividend Champion On Target (TGT) For Offering Yield And An Above-Average Total Return

Target Corp. (TGT) is a Dividend Champion that has increased their dividend every year for 44 consecutive years. Perhaps even better, Target offers prospective shareholders a dividend yield that is greater than what they can earn from a 10 year Treasury bond. But best of all, Target is trading at one of its lowest valuations[…]

5 Utilities With 4% Or Better Yields

The following table summarizes five eastern regulated utilities that appear to be reasonably valued, and lists them in order of dividend yield highest to lowest. From left to right, the table shows the company’s stock symbol and name. Next, two valuation metrics are listed side-by-side; the current PE ratio followed by the historical normal PE[…]

Express Scripts Inc.: An Unbelievable History Of Growth And A Great Future

Express Scripts (ESRX) has generated one of the best records of consistent earnings growth on the planet. As one of the largest pharmacy benefit management companies in the country, Express Scripts is a great demographic play considering the Graying of America. Furthermore, now that the odds that their $29 billion merger with Medco (MHS) will[…]

Medco Health Solutions: A Short-Term Arbitrage, Long-Term Opportunity

 Medco Health Solutions is one of the nation’s largest pharmacy benefit managers that covers approximately one in five Americans. Once combined with Express Scripts, the synergies between these two companies should provide a powerful combination. Over the short run, the value of Medco shares should rise to the $71 purchase price assuming the deal goes[…]