My Best Ideas 7 February 2016 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 8 - 12 February 2016 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)
Chinese markets are closed this week for Lunar New Year
4 month Daily Chart of the DJIA
1 year Weekly Chart of the DJIA
Finding Support on the Weekly Chart 7 February 2016 When the momentum indicators on the daily chart start to confuse everyone with the indecision displayed by traders, it's time to step back and look at the weekly chart. And that's what's going on right now. On the daily chart the RSI is neutral, the MACD is rising, and the Stochastic is falling. And that's confusing. But look at the weekly chart. The RSI's lows are not as low as they were in August, the MACD is rising and it isn't as low as it was in September, and the Stochastic is trying to move higher from an oversold reading. To me this looks like the market has found support near 16,000 and it wants to go higher from there. That isn't to say that the market won't re-test that support level again, it simply means that the market is more likely to go up from here than down. For me, I covered all my shorts last Friday and any pullback near 16,000 would be a signal to go long. Monday Wrap: The DJIA continues to find support just below 16,000. Today it found it near 15,800 twice. Then during the last two hours the market moved higher, but it wasn't enough to turn the market positive. I expect traders to poke at this support level again to see how solid it is before the market moves higher. (A word of caution - no one seems to agree with me!) Tuesday Wrap: The market fell at the open but strong support appeared near 15,880 both in the mid morning and mid afternoon. Then there was a push higher in the late afternoon just like yesterday, but like yesterday, it didn't last long and it wasn't enough. The DJIA ended the day down 11 points. While the markets continue to go sideways, it's nice to see support continue to appear each time the DJIA falls toward 15,800.
Wyndham Hotels February 2016 Wyndham Worldwide is a hospitality company. Co. has three segments: Lodging, which franchises in the upscale, upper midscale, midscale, economy and extended stay segments and provides hotel management services; Vacation Exchange and Rentals, which provides vacation exchange services and products to resort developers and owners of vacation ownership interests (VOIs) and markets vacation rental properties mainly on behalf of independent owners, timeshare developers and other hospitality providers; and Vacation Ownership, which develops and markets VOIs to individual consumers, provides consumer financing in connection with the sale of VOIs and provides property management services at resorts.
Yum! Brands Inc February 2016 Yum! Brands, through its three concepts of KFC, Pizza Hut and Taco Bell, develops, operates, franchises and licenses a system of restaurants which prepare, package and sell a menu of food items. Co. operates in five segments: China Division, including operations in mainland China; India Division, including operations in India, Bangladesh, Nepal and Sri Lanka; The KFC Division, including operations of the KFC concept outside of China and India Divisions; The Pizza Hut Division, including operations of the Pizza Hut concept outside of China and India Divisions; and The Taco Bell Division. As of Dec 27 2014, Co. had over 41,000 restaurants in more than 125 countries and territories.
Viacom Inc 10 February 2016 Viacom is an entertainment content company. Co. operates through two reporting segments: Media Networks, which provides entertainment content and related products for consumers; and Filmed Entertainment, which produces, finances, acquires and distributes motion pictures, television programming and other entertainment content under the Paramount Pictures®, Paramount Vantage®, Paramount Classics®, Paramount Animation®, Insurge Pictures®, Nickelodeon Movies™, MTV Films® and Paramount Television™ brands. Paramount distributes motion pictures theatrically and on DVDs and Blu-ray discs, television, digital and other platforms in the U.S. and internationally for itself and for third parties. (Full Article)
Domtar Corp 9 February 2016 Domtar is engaged in designing, manufacturing, marketing and distributing a range of fiber-based products including communication papers, specialty and packaging papers and absorbent hygiene products. Co. operates two segments: Pulp and Paper, which comprises the design, manufacturing, marketing and distribution of communication papers, specialty and packaging papers, as well as softwood, fluff and hardwood market pulp; and Personal Care, which consists of the manufacturing, marketing and distribution of absorbent hygiene products, marketed primarily under the Attends®, IncoPack® and Indasec® brand names. (Full Article)
Johnson & Johnson 8 February 2016 Johnson & Johnson is a holding company. Through its subsidiaries, Co. is organized into three segments. The Consumer segment includes a range of products used in the baby care, oral care, skin care, over-the-counter pharmaceutical, women's health and wound care markets. The Pharmaceutical segment is focused on five therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, and cardiovascular and metabolic diseases. The Medical Devices segment includes a range of products used in the orthopaedic, surgical care, specialty surgery, cardiovascular care, diagnostics, diabetes care, and vision care markets, which are distributed to wholesalers, hospitals and retailers. (Full Article)
Investing in the Trend 7 February 2016 Sometimes being a Dividend Growth Investor is the hardest job in town. That's because DGIs spend most of their time researching companies to find those unique companies that consistently increase their revenues, earnings and dividends over an extended period of time only to buy them at the wrong time and they go down in price. That's what has happened to a lot of dividend growth... (Full Article)
Amgen Inc. 3 February 2016 Amgen is a biotechnology company that discovers, develops, manufactures and delivers human therapeutics. Co.'s pipeline includes Repatha™ (evolocumab) for dyslipidemia, Corlanor® (Ivabradine) for chronic heart failure, brodalumab for psoriasis and psoriatic arthritis, and AMG 416 for secondary hyperparathyroidism in patients with chronic kidney disease. Co. markets its principal products mainly in the U.S. in oncology, inflammation, nephrology and bone health. Co. markets pegfilgrastim, granulocyte colony-stimulating factor, darbepoetin alfa, recombinant human erythropoietin and romiplostim under the brand names Neulasta®, NEUPOGEN®/GRANULOKINE®, Aranesp®, EPOGEN® and Nplate®, respectively. (Full Article)
Targa Resources 2 February 2016 Targa Resources has general and limited partner interests in Targa Resources Partners LP (the Partnership). The Partnership is engaged in the business of gathering, compressing, treating, processing and selling natural gas and storing, fractionating, treating, transporting, terminaling and selling natural gas liquids (NGLs) and NGL products, and gathering, storing and terminaling crude oil, and refined petroleum products. The Partnership has two primary divisions: Gathering and Processing, consisting of two segments, Field Gathering and Processing, and Coastal Gathering and Processing; and Logistics and Marketing, consisting of two segments, Logistics Assets, and Marketing and Distribution. (Full Article)
Caterpillar Inc. 1 February 2016 Caterpillar is engaged in manufacturing construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Industries supported include: Construction Industries, which supports customers using machinery in infrastructure and building construction applications; Resource Industries, which supports customers using machinery in mine and quarry applications; Energy & Transportation, which supports customers using reciprocating engines, turbines, diesel-electric locomotives, integrated systems and solutions, and related parts; and Financial Products, which provides retail and wholesale financing for Co.'s products. (Full Article)
Allegiant Travel 26 January 2015 Allegiant Travel is more than a low cost airline, it's also a travel agent. But it's a very specialized one. Unlike most airlines, it doesn't emphasize selling high priced tickets to high paying business travelers. They specialize on leisure travelers looking for the best deal while heading toward fun locations. And they have a lot of processes in place that.... (Full Article)
3X ETFs 24 January 2016 Sometimes you just have to ignore all the talking heads on the business channels and just look at the charts. Looking at a chart of the S&P, it looks like the market wants to go up. The RSI, MACD and StochasticRSI are all turning up so I'm buying shares of SPXL to leverage that idea on the way up. It's just another tool in the tool box. (See chart)
Johnson Outdoors 21 January 2016 Johnson Outdoors is one of three companies owned and controlled by the S.C. Johnson Company and it is the only one that is publicly owned. Unlike the other two companies, Johnson Outdoors ispublicly traded and listed on the Nasdaq. The company makes outdoor recreational products including camping gear, fishing equipment, and watercraft. (Full Article)
Interface Inc. 19 January 2016 Interface is the future of carpeting for both the home and the office. It's the world's largest manufacturer of modular carpet that needs minimal installation and can be done literally by anyone. By installing it as squares or planks, the carpet can be easily removed or replaced in a single afternoon. It's also easy for the home owner to... (Full Article)
Tyson Foods 14 January 2016 Tyson Foods is an American multinational corporation based in Springdale, AR, that operates in the food industry. The company is the world's largest processor and marketer of chicken, beef, and pork and annually exports the largest percentage of beef out of the US. Tyson Foods is the second-largest food production company in the Fortune 500 and the second largest meat producer in the world, after Modelez International Inc. (Full Article)
Bunge Ltd. 12 January 2016 Bunge is a global agribusiness and food company incorporated in Bermuda with HQs located in White Plains, NY. In addition to being an international soybean exporter, it's involved in food processing, grain trading, and fertilizer. The company has over 35,000 employees at 400 facilities in 40 countries. (Full Article)
Big Lots 7 January 2016 Big Lots is expected to have a great fourth quarter and this may be the trend that takes the company's stock higher. With earnings expected to increase 20+% for the current year (ending January 2016) and another 12+% next year, the stock of this company may just be in a position to move higher. It's increased earnings that drive stock prices... (Full Article)
Kforce Inc 5 January 2016 Kforce Inc. is a professional staffing services firm whose purpose is to provide expertise to other companies on a short or long term basis. Their name stands for KnowledgeForce and it aptly describes their highly skilled professionals, the knowledge gained from over 50 years of experience, and the power of their team to provide the exact... (Full Article)
Growth and Income Country Style 3 January 2016 Three companies have found both growth and income in some of the most rural parts of this country. They found growth by simply looking around and seeing the vast amounts of farmland that increases an average of 6% per year. They found income in the payments that farmers would make to landowners to lease that farmland... (Full Article)
American Farmland 29 December 2015 American Farmland Company was founded to acquire a diversified portfolio of high quality farmland that can generate stable and growing cash flow. It remained a private company until this past October when it had its initial public offering and got my attention. The idea of owning a company that owns farmland or timberland has appealed to me... (Full Article)
Select Medical Holdings 21 December 2015 Every once in a while the market seems to get it right. In the case of Select Medical I think the market has valued this company correctly. It's growing at about 12% per year, has a P/E ratio of approximately 12, and a PEG of approximately 1. That pretty much hits it on the head when it comes to figuring out value on a napkin. (Full Article)
Tractor Supply Company 16 December 2015 Dividend growth investors tend to worry about a company's stock price only when they're buying the stock and rarely worry about a stock's price once they own it. That's because they tend to own shares forever and the initial price that they paid sets the initial yield they'll receive for their investing funds. From that point on they expect the dividend... (Full Article)
Wabtec Corp 14 December 2015 Wabtec Corp provides highly engineered, value-added products and services to freight rail, passenger transit and industrial customers throughout the world to assist them in increasing their safety, efficiency and productivity. The company manufactures a wide range of products for locomotives, freight cars and passenger transit vehicles, builds... (Full Article)
WisdomTree Investments 10 December 2015 Today, while screening, I was surprised when I found WisdomTree Investments. They sponsor exchange traded funds (ETF) and if you don't know what those are you're missing out on some great derivative investments available today. People who used to invest invest in mutual funds today invest in ETFs. (Full Article)
4 Companies Moving Higher 7 December 2015 Companies are often pushed higher by investors who believe, rightly or wrongly, that the future is bright. That can often be seen in the fundamentals, but not always. The fundamentals are only the historical documentation of the past. In some cases the companies may be at an inflection point and changing quickly. (Full Article)
My New Front Yard on Lake Limestone.
The Berkshires in Western Massachusetts (Photo by Robert McCain)
Lake Buchanan, Burnet, Texas
McLane Stadium on the campus of Baylor University (Photo by Robert McCain)
Final Game at Floyd Casey Stadium - Big 12 Champion Baylor 30 - Texas 10 (Photo by Robert McCain)
The Bar at Luckenbach, Texas.
Sister Creek Vineyard, Sisterdale, Texas
Investors Read These Articles More Than 60,000 Times Each Month.
In 2015 the DJIA ended at 17,425
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.
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.