Five Undervalued Blue Chips with Above-average and Growing Yield

Yesterday the following PRNewswire press release reported that S&P indices announced a powerful uptrend in dividend increases for calendar year 2011.  This provides continued validation of the unique opportunity that blue-chip dividend paying stocks offer investors today. Five Dividend Paying Blue Chips Offering Yields Above the 10-year Treasury Bond The following table lists five blue-chip Read more about Five Undervalued Blue Chips with Above-average and Growing Yield[…]

The S&P 500 ends Q2, 2011 Fairly Valued, Year-end Target 1467

Earnings Yield the Foundation of Valuation Individual companies derive their value from the amount of earnings and cash flows they are capable of generating for their stakeholders.  The market will inevitably capitalize a publicly traded company’s shares based on the velocity and volume of earnings generated.  A PE ratio of plus or minus 15 generally Read more about The S&P 500 ends Q2, 2011 Fairly Valued, Year-end Target 1467[…]

Visa and MasterCard Deserved a Higher Price

Introduction Both Visa, Inc. (V) and MasterCard, Inc. (MA) enjoyed explosive moves in their stock values on Wednesday, June 29, 2011.  Visa was up over 15% and MasterCard over 11% thanks to the Fed’s more liberal-than-expected stance on debit fee regulations.  In our opinion, this perceived regulatory overhang had caused the share prices of these Read more about Visa and MasterCard Deserved a Higher Price[…]

5 Dividend Paying Giants of Technology Trading at Absurdly Low Valuations?

Any owner of a business will tell you that the value of their business is based upon the earnings and cash flows it generates on their behalf.  The more profitable the business is, the more valuable it is to its owners.  In addition to just being common sense, this principle is also mathematically sound.  When Read more about 5 Dividend Paying Giants of Technology Trading at Absurdly Low Valuations?[…]

Sysco (SYY): Gourmet Stock at a Fast Food Price with a Sweet Dividend Dessert

Sysco Corp. is the largest food service distributor in the United States with an approximately 17% market share of this highly fragmented industry. Founded in 1969 and headquartered in Houston, Texas, Sysco went public in 1970 with a base of $115 million in combined sales from their originating nine small food distributors with the dream Read more about Sysco (SYY): Gourmet Stock at a Fast Food Price with a Sweet Dividend Dessert[…]

Want to Seek ‘Significant’ Alpha? Look Beyond Dividend Stocks

On March 30, 2011 an author that I have a great deal of respect for published an article titled “Investors who seek Alpha should seek out dividend stocks”. Although I share an appreciation and penchant for owning quality dividend paying growth stocks, I also took exception to the innuendo and conclusions that his article presented. Read more about Want to Seek ‘Significant’ Alpha? Look Beyond Dividend Stocks[…]

Q1 2011: The S&P Is Fairly Valued

As investors, we do not believe in forecasting stock markets or stock prices on individual stocks. Instead, we approach investing as the process of calculating intrinsic value based on fundamentals. To us, the most important fundamental to be considered when evaluating the True Worth™ of a market or a common stock is earnings. Therefore, it’s Read more about Q1 2011: The S&P Is Fairly Valued[…]

5 Dividend Champions That Work Hard for Your Money

You worked hard over your lifetime to build a nest egg in order to fund your retirement. Doesn’t it make sense that now that you’re retired your money should work as hard for you as you worked for it? When you were working, you were accustomed to receiving a raise in pay each year. Why Read more about 5 Dividend Champions That Work Hard for Your Money[…]

Warren Buffett Bought Lubrizol on the Cheap

Monday’s announcement that Berkshire Hathaway (BRK.A) is purchasing Lubrizol (LZ) for $135 a share is just one more example that Warren Buffett is the consummate value investor. Even after paying a $30 premium over the $105 closing price on Friday, we believe that Berkshire Hathaway is purchasing this specialty chemical company at a discount to Read more about Warren Buffett Bought Lubrizol on the Cheap[…]

Pitney Bowes: Is the 6% Yield Worth the Risk?

Pitney Bowes (PBI), headquartered in Stamford, Connecticut, and founded 1920 is the world’s largest manufacturer of postage meters and mailing equipment. The company operates in more than 100 countries throughout the world and employs some 35,000 people. There was a time, in the not-too-distant past, when Pitney Bowes was an above-average growth story, with a Read more about Pitney Bowes: Is the 6% Yield Worth the Risk?[…]