My Best Ideas 26 February 2017 This is a list of companies that have a very nice estimated one year return on invested capital based on the sum of the delta of the one year estimated price target plus the calculated one year dividend yield. (Full List)
Dividend Increases 27 February - 3 March 2017 This is a list of those companies that have recently increased their dividends. The list includes the amount and percentage of the increase, the forward dividend yield, and the ExDividend, Record and Payment dates. (Full List)
The Dumb Money Arrives 26 February 2017 The third leg has just about run its course. The first leg went from 18,200 to 19,200. The second leg went to 20,000. And the third leg carried the index up to 20,800. There may be just a little more to go but I wouldn't count on much more. The institutions are selling into the strength of the ETFs as the retail market now uses ETFs as their surrogate for buying individual stocks. In fact the ETF market has been the vehicle for bringing in the retail market under the guise of the ETFs being lower risk than owning individual stocks. But spreading the risk is not lowering the risk, and the institutional investors know that. They see the P/E ratio of the SPX at 26.5 and they're lowering their risk by transferring it to the retail market. It's how dumb money stays dumb. Sad. Sunday Afternoon: Futures are down 20, oil is at $54.02, and gold is $1258 per ounce. Monday Close: Today was a struggle for the indexes. While opening to the downside, they wobbled most of the day and finished to the upside, but only by a couple of basis points. With volume continuing to fall it really appears that the markets are taking a breather. Tuesday Close: The markets struggled at the open and then deteriorated throughout the day. This could very likely be the beginning of a pullback in the indexes. With the market up 14% since the election, a pullback of just a few percent would not be unexpected.
Advanced Micro Devices 28 February 2017 Despite competing against both Intel and Nvidia, AMD is excelling and the stock has been moving higher. And while the other companies are getting all the press, AMD continues to match their performance at significantly less cost. The stock is extended but the trend remains upward. I'm buying on pullbacks.
Advanced Micro Devices Weekly Chart
Facebook 27 February 2017 I can't imagine a brand as well known as Facebook, with the possible exception of Coca-Cola. I also can't imagine a company more dominant than Facebook with the possible exception of Amazon. Practically everyone in the world uses Facebook, Instagram, WhatsApp or Messenger, so to write an article on Facebook is rather presumptuous and almost a waste of time. But here it goes because Facebook is far from over. In fact it may just be getting started. (Full Article)
A Reminder That I'm My Own Best Advisor 24 February 2017 I spend a lot of time writing articles, but I spend even more time re-reading and thinking about these articles. That's because some of the best ideas I can find are usually located right here. I'm not sure what other writers do, but I actually transact the ideas laid out in these articles. And so far I've given myself some great ideas. (Full Article)
Mobileye 23 February 2017 Mobileye is an Israeli technology company that develops vision-based advanced driver assistance systems (ADAS) providing warnings for collision prevention and mitigation. Mobileye N.V. headquarters and main R&D centre is located in Jerusalem, Israel, operating under the company name Mobileye Vision Technology. (Full Article)
LeMaitre Vascular 22 February 2017 LeMaitre Vasculardeclared a $0.055/share quarterly dividend, a 22.2% increase from its prior dividend of $0.045. The forward yield is now 0.89% and payable on April 6, for shareholders of record March 22. The ex-dividend is March 20. For additional information on this company, see the full article here.
LeMaitre Vascular Dividend History
Walgreens Boots Alliance 21 February 2017 It's getting harder and harder to find a great dividend stock that has great fundamentals and is technically a great price. But if you look close enough and long enough, you can always find that special case that's both fundamentally sound and somewhat technically inexpensive. Today I came across Walgreens Boots Alliance. (Full Article)
Talend 17 February 2017 Talend is an application software company that's only been trading for a few months and already it's been easy to see the downward sloping trendline and the curving support line. Once the two lines intersected the stock jumped. This company needs more investigation. There's something going on here. (Daily Chart)
Talend Weekly Chart
Chart Flipping Strategy 17 February 2017 Investors and traders that rely solely on the fundamentals of a company and dismiss the technical aspects of price analysis are doing themselves a huge disfavor. They're often misinformed about the value of technical analysis and end up buying the right stock at the wrong time. And that can take years to overcome. (Full Article From February 2015)
Qualcomm 16 February 2017 It appears like Qualcomm's fight with Apple is starting to subside as the shares start to move higher. This may be a great time to pick up shares of this great company. Watch this year's CES speech by CEO Mollenkop titled "5G Brings the Invention Revolution". (Daily Chart)
Options for Increased Income 14 February 2017 Selling covered calls is a tactic I use to increase the income I receive from dividends paid by the shares of companies I own. Selling cash secured puts is a tactic I use to bring income into my account other than my own hard earned cash and to enter positions at a price below the current price which is more appropriate to the underlying value of the stock. (Full Article)
Celgene Corporation 13 February 2017 This just may be a great time to begin buying shares of Celgene Corporation. This company has been in an overall uptrend for the last 15 years and technicians are seeing something that may be signaling a move higher. Shares rose from 2003 - 2007 before hitting resistance near $40 per share. It then moved sideways for the next six years. (Full Article)
Twilio 9 February 2017 Twilio is a cloud based communication Platform as a Service (PaaS) company that allows software developers to make and receive phone calls and to send and receive text messages using its web service APIs. Twilio uses Amazon Web Services to host telephony infrastructure and provide connectivity between HTTP and the public switched telephone network through its APIs. I find this to be rather interesting.
Ambarella 8 February 2017 Ambarella is the system on a chip that made GoPro the sensation that it was. It allowed for High Definition video capture that captured the attention of everyday sports enthusiasts. And as GoPro sold millions of units so did Ambarella sell millions of chips. Today Ambarella is much more than GoPro as it expands it's market for video chips. (Full Article)
Splunk 7 February 2017 Splunk's products enable users to collect, index, search, explore, monitor, and analyze data regardless of format or source.
Neenah Paper 6 February 2017 Neenah has recently pulled back to a six month support level which offers an opportunity to buy shares at a relatively low risk cost as long as proper stops are employed. After rising to near $90 the stock has been falling back to support near $81 per share. The stock has now bounced off this level twice and Friday it headed higher once again. (Full Article)
Broadcom Daily Chart
Broadcom and Skyworks 3 February 2017 AVGO and SWKS are two semi-conductor companies that seem to be critical to an ever expanding mobile computer industry and are necessary as the tech industry continues to evolve. Currently these shares may be overpriced but they're also highly desirable.
Skyworks Daily Chart
Nvidia Call Options 2 February 2017 Nvidia options are now experiencing such a significant amount of premium for such a relatively short period of exposure that it has now become too tempting not to take advantage of the situation. I expect to continually execute this tactic until the market squeezes the premiums.
Nexstar Media Group 1 February 2017 I'm always interested in media companies at all levels of the industry and Nexstar is one of the largest in ownership of local television stations. In just 20 years it has grown from a single station in Scranton, PA, to the largest portfolio of local broadcast television stations in the United States. (Full Article)
DJIA Daily Chart with ADX Indicator
Monitoring the ADX 31 January 2017 Following the ADX would have gotten an investor into the market on Nov 7, out of the market on 17 January, back into the market on 24 January and back out today. It's an interesting indicator worth spending the time to learn. It can be a nice addition to the MACD and RSI Indicators.
The January Effect 26 January 2017 There's an old adage on Wall Street that states "As January Goes, So Goes the Full Year". This may not be true 100% of the time but it is reliable enough that investors should be aware of what this theory states. And with the DJIA ending this past year at 19,762, this effect could just be happening again this year.
Hanesbrands (HBI) declared a $0.15/share quarterly dividend which is a 36.4% increase from its prior dividend of $0.11. The forward yield is now 2.65% and payable March 7 for shareholders of record Feb. 14. The ex-div date is Feb. 10.
Universal Forest Products 25 January 2017 Universal Forest Products manufactures and distributes wood and wood alternative products, pressure-treated wood, and roof systems for onsite construction and manufactured housing. The company's main markets are retail outlets of building materials, industrial, commercial construction and concrete forming, manufactured housing/RV and residential construction. (Full Article)
Prospect Capital 22 January 2017 I was reminded recently that I haven't looked at Prospect Capital Corporation recently and perhaps I should review in once again, which was a very good idea. In fact, I haven't looked at the numbers since 2013. I liked it then and I like it now, and all this time it's been distributing money to its shareholders on a monthly basis. (Full Article)
Nvidia Corp 20 January 2017 Nvidia designs graphics processing units (GPUs) for the gaming market, as well as system on a chip units (SOCs) for the mobile computing and automotive market. Since 2014, Nvidia has shifted to become a platform company focused on four markets — Gaming, Professional Visualization, Data Centers and Auto. (Full Article)
L3 Technologies 19 January 2017 L3 Technologies supplies C3ISR systems (command, control, and communications, intelligence, surveillance and reconnaissance) ocean products, avionics, training devices and services, instrumentation, space and navigation products to different agencies of the US Government. Its customers include the Department of Defense, the Department of Homeland Security,... (Full Article)
Gladstone Land 17 January 2017 No surprise to reader's of these articles that I like farmland, timberland, farm products and farm machinery. Gladstone Land is no exception. This company is still growing into its stated mission and is in the process of filling out its portfolio of owned farms so this company is still at the beginning of its wealth creation phase. (Full Article)
Gladstone Land continues to Grow.
Royal Gold Inc. 15 January 2017 There are basically three ways to add gold to your portfolio: (1) buy gold bullion or coins, (2) buy shares of a gold mining company, and (3) buy shares of a company that's a streaming and royalty company. They each will be tied to the price of gold which is affected by the economy and the value of the dollar, but streaming and royalty payments may be the best of the three investments. And that's what Royal Gold does. (Full Article)
BG Staffing 12 January 2017 With the incoming administration wanting to Make America Great Again, it can easily be assumed that businesses will be hiring. That's where the Staffing and Outsourcing Industry excels. While many industries will be adding full time employees, others will add part time employees and BG Staffing will be one of many companies ready to assist. (Full Article)
Raytheon Company 10 January 2017 If you're like me, you believe that the new federal administration will bring in a greater emphasis on national defense and therefore more business for the defense industries. So I'll be looking at the numbers of several defense companies over the next few days and weeks to see if any of these companies fit with my investing strategy. (Full Article)
Wyndham Worldwide Dividend History
Wyndham Worldwide 9 January 2017 Wyndham Worldwide Corp may not be one of the most exciting companies in the world but it is building a reputation for having a growing dividend. But despite its fundamentals, I believe I'm late in finding these shares. At $76 per share I'll have to wait for a pullback. I would rather pay something close to $66 per share... (Full Article)
Dogs of the Dow 5 January 2017 The Dogs of the Dow is an investment strategy in which an investor annually invests in the ten Dow Jones Industrial Average stocks whose dividend is the highest fraction of their price. Proponents of the this strategy believe that the dividend yield of the companies listed in the DJIA is a measure of the average worth of the company whereas the... (Full Article)
Broadridge Financial 3 January 2017 Broadridge Financial Solutions, Inc. is a financial industry servicing company founded in 2007 as a spin-off from the company Automatic Data Processing or ADP. The company's main function is in securities processing, clearing and investor communications, while the main business of Broadridge is electronic proxy voting. (Full Article)
Accenture 29 December 2016 Accenture PLC is a global professional services company and provides strategy, consulting, digital, technology and operations services to 94 of the Fortune Global 100 companies and more than 75% of the Fortune Global 500. As of 2016, the company reported net revenues of $32.9 billion, with more than 384,000 employees serving clients... (Full Article)
Activision Blizzard 27 December 2016 Activision Blizzard is increasing its user base and as well as it's overall video game engagement stats while at the same time its growth opportunities continue to increase. They've been expanding their user base and deepening their engagements and recently announced 544 million monthly active users (MAU) across Activision, Blizzard, and King. (Full Article)
Invitae: A First Look 21 December 2016 Invitae is not a company I would normally look at for a number of reasons - its stock price is falling, it's loosing money, and there's no dividend. But it's a genetic testing company pushing the envelope on the number of genes it's testing while dropping the price incredibly fast. Drop that kind of intensity right in the middle of an exploding science like genomics and the financial and health benefits are astronomical. (Full Article)
Fortune Brands Home and Security 20 December 2016 Fortune Brands was originally part of a holding company founded in 1969 and known as American Brands. The American Brands company had a significant diversity of products but in December 2010 it announced that the company planned to focus solely on its liquor business and spin off or sell the other parts of the company... (Full Article)
The Rising SPX PE Ratio The P/E ratio for the S&P500 ratio doesn't get over 25 very often and when it has in the past, it wasn't long before things went south. A quick look at the history of the SPX PE ratio shows the ratio going to extreme levels during the bank meltdown recession of 2009 and the tech sector disaster at the turn of the century. (Full Article)
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In 2016 the DJIA ended at 19,762
In 2015 the DJIA ended at 17,425
In 2014 the DJIA ended at 17,823
In 2013 the DJIA ended at 16,576
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My Investing Strategy I like to keep things simple when I invest because I'm a pretty simple guy. And I don't think there's a simpler or an easier way to invest than "Buy, Write, Collect". Here's the three steps in their entirety. 1. Buy the Stock, 2. Write the Option, and 3. Collect the Dividend. (Full Article)
A Basic Options Strategy If you’ve ever considered an options strategy as part of your overall investment strategy, here’s a relatively simple trade that I often execute to supplement my dividend income. (Full Article)
Reviewing Those Dividend Increases I've listed companies increasing their dividend in the Dividend Increases part of this site because I've found this to be a fertile area for finding candidates for consideration. Companies that pay an annual dividend of at least 2% and increase that dividend at a rate greater than inflation for a number of years are the kind of companies that every DGI is attracted to. And if that company has a one year estimated capital gain of 10% or more, I start to buy shares in that company.
Buying Great Companies I've posted a lot of great companies that have raised their dividend pretty consistently over the years and that's the key to becoming a successful investor. It's really not as hard as most people think. Study those companies that raise their revenues, earnings and dividends over an extended period of time. Read their history. And learn what makes a great investment.
DISCLAIMER I am not a licensed investment adviser, and I am not providing investment advice for you on this site. Please consult with an investment professional before you invest your money. Any opinion expressed here should not be treated as investment advice. I am not liable for any losses suffered by any party because of data or information published on this blog. Past performance is not a guarantee of future performance. Unless your investments are FDIC insured, they may decline in value.