 | These are a few ideas for the upcoming week. They're in no particular order but they are the companies I'll be investing in as funds become available in my accounts. They're each showing a nice estimated one year return on investment, increasing earnings, and pay at least a minimal dividend. I believe that each of these has a greater potential return than analysts currently expect. As with all investments, I start with small positions and then add to that position over time through dividend reinvestment, the sale of stock options and direct purchases of the stock. |
Note these following caveats which remain intact:
- Based upon my expectation that the market will pullback next week, I expect to buy shares of SDOW or SPXS. These ETFs seek daily investment results, before fees and expenses, of 300% of the performance of the DJIA or S&P 500 Index. The funds create short positions by investing at least 80% of its assets in the securities that comprise the DJIA or S&P 500 Index and/or financial instruments that provide leveraged and unleveraged exposure to the index. These financial instruments include: futures contracts; options on securities, indices and futures contracts; equity caps, floors and collars; swap agreements; forward contracts; short positions; reverse repurchase agreements; exchange-traded funds; and other financial instruments. It is non-diversified.
- This week I'm once again most interested in the publicly owned family of Gladstone Companies. I personally feel that the markets are so overbought that it's prudent to invest in some solid income producing companies rather than chase companies with relatively high P/E ratios. While there may be great companies out there to invest in, I'd just rather wait for better prices. Each of the Gladstone Companies have their own area they invest in and they each pay a monthly dividend.
- Anyone still interested in investing in specific equities may be interested in one of the following. I believe these are all great companies and great investments but waiting to accumulate these shares may result in lower entry points.
Legg Mason, Inc. is a publicly owned asset management holding company. The firm provides investment management and related services to institutional and individual clients, company-sponsored mutual funds and other pooled investment vehicles through its wholly owned subsidiaries. Legg Mason, Inc. was founded in 1899 and is based in Baltimore, Maryland.
(Summary) (Company) (Chart)
(Summary) (Company) (Chart)
Legg Mason Inc (LM) declares $0.22/share quarterly dividend, 10% increase from prior dividend of $0.20. Forward yield 2.75% Payable July 5; for shareholders of record June 13; ex-div June 9.
| 1 May 2016 Price $32.11 1yr Target $41.18 Analysts 11 Dividend $0.80 Payout Ratio 87.91% 1yr Cap Gain 28.24% Yield 2.49% 1yr Tot Return 30.73% P/E 35.32 PEG 2.30 Beta 1.53 | EPS (ttm) $0.91 EPS next yr $2.64 EPS next 5yr 15.33% 1yr Price Support $40.47 Market Cap $3.44 Bil Revenues $2.74 Bil Earnings $95.20 Mil Profit Margin 3.46% Quick Ratio 2.60 Current Ratio 2.60 Debt/Equity 0.26 | 1yr RevGR 2.67% 3yr RevGR 2.32% 5yr RevGR 1.93% 1yr EarnGR -12.45% 3yr EarnGR --- 5yr EarnGR 9.09% 1yr DivGR 23.07% 3yr DivGR 25.79% 5yr DivGR 39.76% ROA 2.70% ROE 4.20% |
Note: I realize that this next idea may be a controversial choice but I am a long term investor in Apple Inc and I believe the company has a great future in a technology industry that's still in its infancy. The recent pullback my cause consternation for short term traders but long term traders view this as an opportunity.
Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players to consumers, small and mid-sized businesses, education, and enterprise and government customers worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications. It offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers. The company also provides iLife, a consumer-oriented digital lifestyle software application suite; iWork, an integrated productivity suite that helps users create, present, and publish documents, presentations, and spreadsheets; and other application software, such as Final Cut Pro, Logic Pro X, and FileMaker Pro. In addition, it offers Apple TV that connects to consumers’ TV and enables them to access digital content directly for streaming high definition video, playing music and games, and viewing photos; Apple Watch, a personal electronic device; and iPod, a line of portable digital music and media players. Further, the company sells Apple-branded and third-party Mac-compatible, and iOS-compatible accessories, such as headphones, displays, storage devices, Beats products, and other connectivity and computing products and supplies. Additionally, it offers iCloud, a cloud service; AppleCare that offers support options for its customers; and Apple Pay, a mobile payment service. The company sells and delivers digital content and applications through the iTunes Store, App Store, iBooks Store, Mac App Store, and Apple Music. It also sells its products through its retail and online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.
(Summary) (Company) (Chart)
(Summary) (Company) (Chart)
Apple (AAPL) declares $0.57/share quarterly dividend, 9.6% increase from prior dividend of $0.52. Forward yield 2.18% Payable May 12; for shareholders of record May 9; ex-div May 5.
| 1 May 2016 Price $93.74 1yr Target $126.70 Analysts 37 Dividend $2.28 Payout Ratio 25.00% 1yr Cap Gain 35.16% Yield 2.43% 1yr Tot Return 37.59% P/E 9.96 PEG 0.92 Beta 0.98 | EPS (ttm) $9.42 EPS next yr $9.95 EPS next 5yr 10.80% 1yr Price Support $107.46 Market Cap $521.18 Bil Revenues $234.99 Bil Earnings $53.73 Bil Profit Margin 22.86% Quick Ratio 1.00 Current Ratio 1.00 Debt/Equity 0.49 | 1yr RevGR 27.85% 3yr RevGR 14.14% 5yr RevGR 29.07% 1yr EarnGR 42.94% 3yr EarnGR 13.33% 5yr EarnGR 61.43% 1yr DivGR 48.17% 3yr DivGR 38.90% 5yr DivGR --- ROA 19.20% ROE 42.80% |
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