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Triangle Capital Corporation

9/18/2014

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Dividend growth investors normally aren't interested in accumulating shares in Business Development Companies (BDC) like Triangle Capital Corporation. But investors interested in a healthy current stream of income, however, are often very interested. I personally believe that even dividend growth investors can benefit from owning a few shares of a BDC. 

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Companies like Triangle can help any investor increase his current income and assist that investor in the early stages of accumulating positions in dividend growth companies. The downside to owning shares in companies like this is that the stagnant dividend is subject to the deteriorating effects of inflation. Without increasing dividends, purchasing power will decrease over time. Smart investors will greatly appreciate these dividends and diversify their portfolios.


The Company
Triangle Capital Corporation (TCAP) is a BDC (Business Development Company) specializing in private equity and mezzanine investments. It focuses on leveraged buyouts, management buyouts, ESOPs, change of control transactions, acquisition financings, growth financing, and recapitalizations in lower middle market, mature, and later stage companies. The firm prefers to make investments in many business sectors including energy, manufacturing, distribution, transportation, communications, restaurants, media, health services, and others. It primarily invests in companies located in the United States, with emphasis on the Southeast and Mid-Atlantic. The firm makes equity investments between $1 million and $25 million and debt investments between $5 million and $30 million per transaction, in companies having annual revenues between $20 million and $200 million and EBITDA between $3 million and $35 million and can also co-invest. It primarily invests in senior subordinated debt securities secured by second lien security interests in portfolio company assets, coupled with equity interests. The firm also invests in senior debt securities secured by first lien security interests in portfolio companies. Triangle Capital Corporation was founded in 2002 and is based in Raleigh, North Carolina. (Daily Chart) (Weekly Chart)
16 September 2014
Price $26.50
1yr Target $29.63
Analysts 4
1yr Cap Gain 11.81%
Dividend $2.16
Yield 8.15%
1yr Tot Return 19.96%

Market Cap $740.41 Mil
Payout Ratio 77.10%
Beta 0.61
EPS (ttm) $2.80
EPS next yr $2.40
P/E 9.46

PEG 1.89

Forward P/E 11.04

Debt/Equity 0.84
ROA 9.60%
ROE 17.50%



The Fundamentals
Revenues have been on a pretty steady incline for the last few years as can be seen in the data below. The one exception during this period was 2009 when the US was experiencing a rather severe recession and companies weren't borrowing to expand their businesses. Earnings, however, have been erratic at best. Up years were followed by down years which were followed by up years, etc. 

Dividends have been the most consistent but they have been consistent at a cost (see below). The cost has been allowing the payout ratio to vary from 54.19% to 344.68% over this period. Without more stability in future earnings, the payout will continue to vary for the next couple of years. Eventually things will start to settle down and it's reasonable to expect that future dividends will begin to increase at a rate more in line with the expected rate of increase in revenues and/or earnings (near 10%). 

There are many things that can influence future revenues and earnings like inflation, management's ability to raise funds through borrowing and secondary stock offerings, management's ability to make loans, and the ability of their customers to stay out of bankruptcy. As a result, companies like Triangle Capital Corporation have to be monitored regularly, but the dividend income these companies produce is excellent. 
 
Year
2015 Est
2014 Est
2013
2012
2011
2010
2009
2008
2007
Revenues
$121.74 Mil
$102.98 Mil
$80.79 Mil
$73.95 Mil
$52.46 Mil
$28.20 Mil
$20.86 Mil
$21.35 Mil
$12.73 Mil
Earnings
$2.40
$2.18
$2.94
$2.25
$2.90
$1.99
$0.47
$1.11
$1.31
Dividends
$
$
$2.16
$2.02
$1.77
$1.65
$1.62
$1.13
$0.71
Payout Ratio
%
%
73.46%
89.77%
61.03%
82.91%
344.68%
101.80%
54.19%
Revenue Growth Rate
1 year = 9.24%
2 year = 24.09%
3 year = 41.52%
4 year = 40.28%
5 year = 30.49%

Earnings Growth Rate
1 year = 30.66%
2 year = 0.68%
3 year = 13.74%
4 year = 58.14%
5 year = 21.50%

Dividend Growth Rate
1 year = 6.93%
2 year = 10.46%
3 year = 9.29%
4 year = 7.45%
5 year = 13.83%



The Technicals
The technicals aren't providing any information on the future direction for this stock. With the RSI and MACD both near the centerline on both the daily and weekly chart, the charts are telling me that this company is moving sideways, at least for the near future. The ADX shows that there's no pressure by the buyers or sellers trying to push the stock either up or down. Once again this indicator is telling me that this company is moving sideways. 
 
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Daily Chart
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Weekly Chart


Conclusion
I like BDCs and there are a number of them available to invest in. I have an entire section devoted to listing 35 BDCs that are worth investigating located here. While I consider this company to be a good investment for an investor like me looking for current income with minimal growth, my favorite BDC is Prospect Capital Corporation (PSEC). I intend to build a small position in Triangle Capital Corporation in the near future to augment my current dividend income. If the company is able to stabilize and increase its dividend annually at a rate near 10%, I'll likely add to that position in the future. 


The Live Interactive Chart


Additional Articles of Interest

"Prospect Capital Corporation Redux" dated 17 December 2013

"Prospect Capital Corp" dated 2 September 2013

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0 Comments

Another Look at Upstream Oil & Gas Cos

9/16/2014

0 Comments

 
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I like and appreciate the steady stream of income that flows from the upstream oil and gas companies into my brokerage account. There's generally no growth with any of these stocks or their dividend, so the whole point of owning them is for that flow of income. 

Below are nine companies that have dividend yields between 8.26% and 10.87%. A few of them also are estimated to increase their stock prices from depressed levels. All of them are worth additional analysis. 


Data as of 15 September 2014

BreitBurn Energy Partners L.P. (BBEP) engages in the acquisition, exploitation, and development of oil and gas properties in the United States. The company’s properties include natural gas, oil, and midstream assets comprising fields in the Antrim Shale in Michigan, and the New Albany Shale in Indiana and Kentucky; the Evanston and Green River Basins in southwestern Wyoming, the Wind River and Big Horn Basins in central Wyoming, and the Powder River Basin in eastern Wyoming; the Permian Basin in Texas; the Los Angeles Basin in California; the Belridge Field in the San Joaquin Basin in California; and fields in Florida’s Sunniland Trend. As of December 31, 2012, its total estimated proved reserves were 149.4 million barrels of oil equivalent. BreitBurn GP, LLC serves as the general partner to the company. BreitBurn Energy Partners L.P. was founded in 2006 and is headquartered in Los Angeles, California. (Daily Chart) (Weekly Chart)

Price $21.70
1yr Target $23.42
No. of Analysts 15
1yr Cap Gain 7.93%
Dividend $2.01
Yield 9.26%
1yr Tot Return 17.19%

P/E Ratio N/A
PEG N/A

EPS (ttm) -$1.57
Div Payout Ratio N/A
EPS next year $0.88
Forward P/E Ratio 24.69
ROA -3.90%
ROE -8.60%

3yr RevGR 27.19%
3yr EarnGR 9.65%


EV Energy Partners, L.P. (EVEP) is engaged in the acquisition, development, and production of oil and natural gas properties in the United States. The company operates in two segments, Exploration and Production, and Midstream. Its properties are located in the Barnett Shale; the Appalachian Basin; the Mid–Continent areas in Oklahoma, Texas, Arkansas, Kansas, and Louisiana; the Monroe Field in northern Louisiana; Central and East Texas; the San Juan Basin; Michigan; and the Permian Basin. As of December 31, 2013, the company had estimated net proved reserves of 13.1 million barrels of oil, 819.7 billion cubic feet of natural gas, and 48.9 million barrels of natural gas liquids. EV Energy GP, L.P. serves as the general partner of EV Energy Partners, L.P. The company was founded in 2006 and is based in Houston, Texas. (Daily Chart) (Weekly Chart)

Price $37.40
1yr Target $42.75
No. of Analysts 10
1yr Cap Gain 14.30%
Dividend $3.09
Yield 8.26%
1yr Tot Return 22.57%

P/E Ratio N/A
PEG N/A

EPS (ttm) -$1.68
Div Payout Ratio N/A
EPS next year $1.89
Forward P/E Ratio 19.82
ROA -3.50%
ROE -7.70%


3yr RevGR 22.25%
3yr EarnGR N/A
3yr DivGR 0.98%


Legacy Reserves LP (LGCY) owns and operates oil and natural gas properties in the United States. As of December 31, 2013, the company owned interests in producing oil and natural gas properties in 664 fields comprising 8,071 gross productive wells, including 3,734 operated and 4,337 non-operated wells located in the Permian Basin, Texas Panhandle, Wyoming, North Dakota, Montana, Oklahoma, and other states. It had proved reserves of approximately 87.6 million barrels of crude oil equivalent. Legacy Reserves GP, LLC serves as the general partner of the company. Legacy Reserves LP was founded in 2005 and is headquartered in Midland, Texas. (Daily Chart) (Weekly Chart)

Price $29.03
1yr Target $33.14
No. of Analysts 12
1yr Cap Gain 14.16%
Dividend $2.44
Yield 8.41%
1yr Tot Return 22.56%

P/E Ratio N/A
PEG N/A

EPS (ttm) -$1.19
Div Payout Ratio N/A
EPS next year $0.80
Forward P/E Ratio 36.11
ROA -3.80%
ROE %-13.50


3yr RevGR 30.56%
3yr EarnGR N/A
3yr DivGR 5.40%


Linn Energy, LLC (LINE) an independent oil and natural gas company, acquires and develops oil and natural gas properties. The company’s properties are located in Rockies, the Mid-Continent, the Hugoton Basin, California, the Permian Basin, Michigan, Illinois, and East Texas in the United States. As of December 31, 2013, it had proved reserves of 6,403 billion cubic feet equivalent; and operated 19,810 gross productive wells. The company was founded in 2003 and is headquartered in Houston, Texas. (Daily Chart) (Weekly Chart)

Price $30.78
1yr Target $34.00
No. of Analysts 13
1yr Cap Gain 10.46%
Dividend $2.90
Yield 9.42%
1yr Tot Return 19.88%

P/E Ratio N/A
PEG N/A

EPS (ttm) -$4.19
Div Payout Ratio N/A
EPS next year $1.50
Forward P/E Ratio 20.57
ROA -7.30%
ROE -21.60%


3yr RevGR 44.00%
3yr EarnGR N/A
3yr DivGR 4.33%


LRR Energy, L.P., (LRE) through its subsidiary, LRE Operating, LLC, engages in the acquisition, exploitation, development, and operation of oil and natural gas properties in North America. The company holds interests in various properties located in the Permian Basin region in west Texas and southeast New Mexico; the Mid-Continent region in Oklahoma and east Texas; and the Gulf Coast region in Texas. As of December 31, 2011, it had total estimated proved reserves of approximately 28.8 million barrels of oil equivalent. LRE GP, LLC serves as the general partner of the company. LRR Energy, L.P. was founded in 2011 and is based in Houston, Texas. (Daily Chart) (Weekly Chart)

Price $18.21
1yr Target $19.56
No. of Analysts 9
1yr Cap Gain 7.41%
Dividend $1.98
Yield 10.87%
1yr Tot Return 18.29%

P/E Ratio N/A
PEG N/A

EPS (ttm) -$2.53
Div Payout Ratio N/A
EPS next year $1.26
Forward P/E Ratio 14.48
ROA -13.10%
ROE -32.30%


3yr RevGR N/A
3yr EarnGR N/A
3yr DivGR N/A


Memorial Production Partners LP, (MEMP) through its subsidiary, Memorial Production Operating LLC, engages in the acquisition, development, exploitation, and production of oil and natural gas properties. Its properties consist of operated and non-operated interests in producing and undeveloped leasehold acreage, and interests in identified producing wells principally located in Texas, Louisiana, and offshore southern California. As of December 31, 2012, its total estimated proved reserves were approximately 609 billion cubic feet of natural gas equivalent; and owned interests in 1,671 gross producing wells. Memorial Production Partners GP LLC serves as the general partner of Memorial Production Partners LP. The company was founded in 2011 and is based in Houston, Texas. (Daily Chart) (Weekly Chart)

Price $22.65
1yr Target $25.11
No. of Analysts 10
1yr Cap Gain 10.86%
Dividend $2.20
Yield 9.71%
1yr Tot Return 20.57%

P/E Ratio N/A
PEG N/A

EPS (ttm) -$3.21
Div Payout Ratio N/A
EPS next year $2.02
Forward P/E Ratio 11.23
ROA -11.60%
ROE -38.70%


3yr RevGR N/A
3yr EarnGR N/A
3yr DivGR N/A


Mid-Con Energy Partners, LP (MCEP) engages in the acquisition, exploitation, development, and production of oil and natural gas properties in North America. Its properties are located in Southern Oklahoma, Northeastern Oklahoma and parts of Oklahoma, and Colorado within the Hugoton Basin in the Mid-Continent region of the United States. The company owns a 75% average working interest in 272 net producing wells, 107 net injection wells, and 61 net wells shut-in or waiting on completion. As of December 31, 2012, its total estimated proved reserves were approximately 13.1 million barrels of oil equivalent. Mid-Con Energy GP, LLC serves as the general partner of Mid-Con Energy Partners, LP. The company was founded in 2011 and is headquartered is Dallas, Texas. (Daily Chart) (Weekly Chart)

Price $21.58
1yr Target $25.83
No. of Analysts 7
1yr Cap Gain 19.69%
Dividend $2.06
Yield 9.55%
1yr Tot Return 29.24%

P/E Ratio 22.72
PEG 12.98

EPS (ttm) $0.95
Div Payout Ratio 216.80%
EPS next year $1.76
Forward P/E Ratio 12.27
ROA 8.60%
ROE 23.60%

3yr RevGR N/A
3yr EarnGR N/A
3yr DivGR N/A


New Source Energy Partners L.P. (NSLP) engages in the acquisition and development of oil and natural gas properties in the United States. As of June 30, 2012, the company had 89,116 gross acres in the Golden Lane field in east-central Oklahoma; and 127 gross proved undeveloped drilling locations. As of June 30, 2012, its estimated proved reserves on its properties consist of 14.2 MMBoe. New Source Energy GP, LLC operates as a general partner of the company. The company was founded in 2012 and is based in Oklahoma City, Oklahoma. New Source Energy Partners L.P. operates as a subsidiary of New Source Energy Corp. (Daily Chart) (Weekly Chart)

Price $23.09
1yr Target $29.00
No. of Analysts 5
1yr Cap Gain 25.60%
Dividend $2.34
Yield 10.13%
1yr Tot Return 35.73%

P/E Ratio 13.50
PEG N/A

EPS (ttm) $1.71
Div Payout Ratio 133.30%
EPS next year $2.13
Forward P/E Ratio 10.85
ROA 5.60%
ROE 10.70%

3yr RevGR N/A
3yr EarnGR N/A
3yr DivGR N/A


Vanguard Natural Resources, LLC, (VNR) through its subsidiaries, engages in the acquisition and development of oil and natural gas properties in the United States. It owns properties and oil and natural gas reserves primarily located in nine operating areas: the Arkoma Basin in Arkansas and Oklahoma; the Permian Basin in West Texas and New Mexico; the Big Horn Basin in Wyoming and Montana; the Piceance Basin in Colorado; South Texas; the Williston Basin in North Dakota and Montana; the Wind River Basin in Wyoming; the Powder River Basin in Wyoming; and Mississippi. As of December 31, 2012, the company had total proved reserves of 152.2 million barrels of oil equivalent, as well as owned working interests in 2,266 net productive wells and approximately 785,085 gross undeveloped acres. Vanguard Natural Resources, LLC was founded in 2006 and is headquartered in Houston, Texas. (Daily Chart) (Weekly Chart)

Price $29.06
1yr Target $32.00
No. of Analysts 12
1yr Cap Gain 10.12%
Dividend $2.52
Yield 8.67%
1yr Tot Return 18.79%

P/E Ratio 363.25
PEG 165.11

EPS (ttm) $0.08
Div Payout Ratio N/A
EPS next year $1.42
Forward P/E Ratio 20.42
ROA 0.20%
ROE 0.50%

3yr RevGR 68.71%
3yr EarnGR -8.27%
3yr DivGR 5.37%


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Yum Brands, Inc

9/15/2014

0 Comments

 
Investors considering starting a position in Yum Brands may be a lot smarter than you think. Everyone knows about the problems KFC is having with their suppliers in China and those concerns have affected the price of Yum stock. It's also affected a lot of other companies too. 

Everyone also knows that it's only a matter of time before the American companies fix the problems in China and bring their food supply chain up to American standards. The only question is how long will it take and haw much damage will be done to the stock prices of these companies. This type of situation is ideal for a dividend growth investor. Yum is a company with a great history of increasing revenues, earnings and dividends and yet they are being depressed by an event that will soon be repaired. The result is that the company is on sale for anyone with a longer term horizon.  


The Company
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YUM! Brands, Inc. (YUM), together with its subsidiaries, operates quick service restaurants in the United States and internationally. It operates in six segments: YUM Restaurants China, YUM Restaurants International, Taco Bell U.S., KFC U.S., Pizza Hut U.S., and YUM Restaurants India. The company develops, operates, franchises, and licenses a system of restaurants, which prepare, package, and sell various food items, as well as operates casual dining concept restaurants. As of August 11, 2014, it operated approximately 40,000 restaurants in 125 countries and territories primarily under the KFC, Pizza Hut, and Taco Bell brands, which specialize in chicken, pizza, and Mexican-style food categories. The company was formerly known as TRICON Global Restaurants, Inc. and changed its name to YUM! Brands, Inc. in May 2002. YUM! Brands, Inc. was founded in 1997 and is based in Louisville, Kentucky. (Daily Chart) (Weekly Chart)

14 September 2014
Price $71.58
1yr Target $80.55
No. of Analysts 17
1yr Cap Gain 12.53%
Dividend $1.48
Yield 2.06%
1yr Tot Return 14.59%

EPS (ttm) $2.64
Div Payout Ratio 56.06%
EPS next year $3.94

P/E Ratio 27.11
PEG 1.81

Forward P/E Ratio 18.15
ROA 13.80%
ROE 54.20%


Yum Brands is constantly looking for new ideas in the restaurant industry and two of their most recent ideas revolve around a Vietnamese fast food concept and a new way of cooking and serving chicken to compete with Chick-Fil-A. 

Yum has opened two new restaurants in Dallas, TX, called the Banh Shop. The restaurants are subtitled "Saigon Street Food." This fast food concept appears to be a direct attack on Chipotle's Southwest Asian offshoot concept - The ShopHouse. While Yum has opened two of the Banh Shop restaurants, Chipotle has opened 8 of theirs. At this point it really hasn't been determined if Asian cuisine will work in the fast food industry, which is dominated by pizza, tacos, chicken and hamburgers. 

Another concept that Yum is exploring is a chicken sandwich shop in which chicken is served similarly to the way hamburgers are served at 5 Guys restaurants or In-N-Out Burger. The concept is directly aimed at Chick-Fil-A. The sandwich shop is located in Arlington, TX, and is simply called Super Chix. Customers start with the basic chicken burger and then add various toppings. It's generally served with fries and a drink. This concept could become very successful at one thing KFC has had so much trouble doing - selling a chicken sandwich.



--- Wednesday, September 10, 2014 ---
YUM! Brands (YUM) declares $0.41/share quarterly dividend, 10.81% increase from prior dividend of $0.37. Forward yield 2.25% Payable Nov. 7; for shareholders of record Oct. 17; ex-div Oct. 15.


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KFC is a fast food restaurant chain that specializes in fried chicken. It's the world's second largest restaurant chain (as measured by sales) after McDonald's, with 18,875 outlets in 118 countries and territories as of December 2013. KFC popularized chicken in the fast food industry, diversifying the market by challenging the established dominance of the hamburger. KFC was one of the first fast food chains to expand internationally, opening outlets in the United Kingdom, Mexico, and Jamaica by the mid-1960s. In 1987 KFC became the first Western restaurant chain to open in China. China is now the company's single largest market.
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Pizza Hut is an American restaurant chain with  international franchises, known for pizza and side dishes. In 2012, the company had more than 6,000 Pizza Hut restaurants in the United States, and had more than 5,139 store locations in 94 other countries and territories. Pizza Hut is split into several different restaurant formats; the original family-style dine-in locations; store front delivery and carry-out locations; and hybrid locations that offer carry-out, delivery, and dine-in options. Many full-size Pizza Hut locations offer lunch buffet, with "all-you-can-eat" pizza, salad, bread sticks, and a special pasta.
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Taco Bell is an American chain of fast-food restaurants that serve a variety of Tex-Mex foods including tacos, burritos, quesadillas, nachos, other specialty items, and a variety of "value menu" items. Taco Bell serves more than 2 billion customers each year in more than 6,500 restaurants mostly in the U.S., more than 80 percent of which are owned and operated by independent franchisees. Taco Bell created U.S. Taco Co. in 2014. The menu will consist of tacos with American fillings, and will not sell food sold in Taco Bell restaurants such as burritos. It was launched in Huntington Beach, California in August 2014


The Fundamentals
Revenues have been increasing at a pretty steady rate for the last ten years and estimates have revenues continuing to increase into the next two years. The only down years were 2009 which can be attributed to the recession that hit YUM's customers pretty hard, and 2013 which is associated with the supply problems in China. Earnings, on the other hand, were less affected in 2009 but did decrease in 2013 for reasons similar to the decrease in revenues. 

The good news for dividend growth investors is that the dividend continued to increase throughout this entire period. YUM was able to do this by allowing the payout ratio to increase from approximately 40% of earnings to 60% of earnings. As future earnings improve YUM is expected to restrain dividend increases as they allow the payout ratio to fall back toward 40%. Beyond 2016 I expect the dividends to once again increase at a level comparative to the rate of increase in earnings.

Estimated increases in revenue in 2014 is 4.89% and in 2015 is 10.20% Estimated increases in earnings in 2014 is 38.21% and in 2015 is 15.88%. Estimated increases in dividends in 2014 is 7.8% and in 2015 is 9.86% 

Year
2015 Est
2014 Est
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
Revenues
$15.12 Bil
$13.72 Bil
$13.08 Bil
$13.63 Bil
$12.62 Bil
$11.34 Bil
$10.83 Bil
$11.27 Bil
$10.41 Bil
$9.56 Bil
$9.34 Bil
$9.01 Bil
$8.38 Bil
Earnings
$3.94
$3.40
$2.46
$3.38
$2.74
$2.38
$2.22
$1.96
$1.68
$1.46
$1.27
$1.21
$1.01
Dividends
$1.67
$1.52
$1.41
$1.24
$1.07
$0.92
$0.80
$0.72
$0.52
$0.28
$0.22
$0.15
N/A
Payout Ratio
42.38%
44.70%
57.31%
36.68%
39.05%
38.65%
36.03%
36.73%
30.95%
19.17%
17.32%
12.39%
N/A
Revenue Growth Rate
1 year = -4.04%
2 year = 1.80%
3 year = 4.82%
5 year = 3.02%
10 year = 4.55%

Earnings Growth Rate
1 year = -27.22%
2 year = -5.25
%
3 year = 1.09%
5 year = 4.64%
10 year = 9.31%

Dividend Growth Rate
1 year = 13.70%
2 year = 14.79%
3 year = 15.13%
5 year = 14.38%
9 year = 27.95%



The Technicals
From a technical perspective YUM once again finds itself moving higher from below the MACD centerline and bouncing off its lower Bollinger Band. These are good signs but they're not currently being confirmed by the ADX. This is a mixed message. The only information I can gain from the technicals is that there appears to be support at the lower Bollinger Band near $70 so the current price seems to be a very good entry point.
 
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Daily Chart
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Weekly Chart


The Competition
Yum Brands, Inc is part of the Restaurant Industry which is part of the Services Sector of the economy. Below are a few of the major corporations included in this industry. They each pay at least a minimal dividend and they are listed in the order of their market capitalization.

  1. McDonald's Corporation  (MCD)
  2. Yum Brands, Inc.  (YUM)
  3. Burger King Worldwide, Inc  (BKW)
  4. Darden Restaurants, Inc.  (DRI)
  5. Dunkin' Brands Group, Inc.  (DNKN)
  6. Domino's Pizza, Inc.  (DPZ)
  7. Brinker International, Inc. (EAT)
  8. The Wendy's Company  (WEN)
  9. Cracker Barrel Old Country Store, Inc.  (CBRL)
  10. Jack in the Box, Inc.  (JACK)
  11. The Cheesecake Factory, Inc.  (CAKE)
  12. Texas Roadhouse, Inc.  (TXRH)
  13. DineEquity, Inc. (DIN)
  14. Sonic Corporation  (SONC)
  15. Bob Evans Farms, Inc.  (BOBE)
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Conclusion
Although the P/E ratio will disturb dividend growth investors I feel this is an aberration resulting from the events occurring in China. I also feel that this problem is curable and that YUM is expending tremendous resources to fix the problem. As the situation improves, so will their earnings. In fact I believe that things will rapidly improve in 2014 and 2015. Based on that, I expect to initiate a position in YUM over the next couple of weeks. I believe this company can easily produce a return on investment of 15% or greater over the next 12 months and that it can once again grow its dividend 15% per year beginning in 2016. That kind of dividend growth is exactly what a dividend growth investor dreams about. 


The Live Interactive Chart


Additional Articles of Interest

"The Restaurant Industry", published 24 July 2014
"Cracker Barrel Old Country Store", published 13 August 2014
"McDonald's Corp", published 16 August 2014
"Brinker International",  published 25 August 2014
"DineEquity, Inc.", published 29 August 2014
"Texas Roadhouse", dated 12 September 2014


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0 Comments

Texas Roadhouse

9/12/2014

0 Comments

 

The Company
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Texas Roadhouse, Inc. (TXRH) operates a full-service casual dining restaurant chain. The company operates restaurants under the Texas Roadhouse name, as well as franchises its restaurants. It also provides supervisory and administrative services for other franchise Texas Roadhouse restaurants. As of May 5, 2014, the company operated approximately 425 restaurants in 48 states, as well as in 3 countries internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky. 
(Daily Chart) (Weekly Chart)



11 September 2014
Price $27.00
1yr Target $30.47
Analysts 15
1yr Cap Gain 12.85%
Dividend $0.60
Yield 2.22%
1yr Tot Return 15.07%

Market Cap $1.88 Bil
Payout Ratio 50.84%
Beta 0.84
EPS (ttm) $1.18
EPS next yr $1.47
P/E 22.88
PEG 1.83
Debt/Equity 0.09
ROA 9.70%
ROE 14.30%


The Fundamentals
From a fundamental perspective the company's numbers are about as clean and consistent as I can ever expect from any company. Revenues have been increasing at a regular rate for the last 9 years. Notice the consistency in the revenue growth rates below. Similarly, the earnings have been increasing each of the last nine year. In fact the revenues as well as the earnings have not stagnated or declined at all during this period. This kind of regularity is rarely found in my analysis. 

Dividends were started only a couple of years ago but based on the increasing revenues and earnings I expect that dividends will be maintained and even increased each year going forward. While I expect rate of dividend increases to eventually slow from the upper 20% level to a more seasonal mid-teen level, this is still a very desirable level for most dividend growth investors. This company could very likely be on several of the analyst's buy lists in the very near future.
 
Year
2015 Est
2014 Est
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
Revenues
$1.71 Bil
$1.56 Bil
$1.43 Bil
$1.26 Bil
$1.10 Bil
$1.00 Bil
$942.33 Mil
$880.46 Mil
$735.08 Mil
$597.13 Mil
$458.78 Mil
$363.01 Mil
Earnings
$1.47
$1.26
$1.13
$1.00
$0.88
$0.80
$0.67
$0.52
$0.51
$0.44
$0.42
$0.24
Dividends
$0.72
$0.60
$0.48
$0.37
$0.32
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Payout Ratio
48.97%
47.61%
42.47%
37.00%
36.36%
N/A
N/A

N/A
N/A
N/A
N/A
N/A
Revenue Growth Rate
1 year = 13.49%
2 year = 14.01%
3 year = 12.52%
4 year = 11.05%
5 year = 10.19%
Earnings Growth Rate
1 year = 13.00%
2 year = 13.31%
3 year = 12.07%
4 year = 13.95%
5 year = 16.79%
Dividend Growth Rate
1 year = 29.72%
2 year = 22.47%


The Technicals
It's obvious from the charts below that this stock is being pushed higher by investors. It's most obvious on the daily chart. The price of the stock is moving higher and taking the Bollinger Bands with it. It's pushing the upper band higher and it's also staying above the 10 day and 20 day moving average. The RSI is above the 70 line, the MACD is above both the zero line and the signal line, and the ADX lines are in the correct order and moving higher. Everything on the daily chart says this stock is overpriced but it also says that it's not running out of steam either. 

On the weekly chart it appears a little more subdued. The RSI has not moved up as high on this chart compared to the daily chart. This indicates that the longer term trend may not be as aggressive as the shorter term trend. The MACD is also subdued and is hanging around the zero line indicating that this stock wants to go sideways long term. Finally the ADX shows that from a long term perspective, there's simply no pressure up or down. 

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Daily Chart
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Weekly Chart


The Competition
Texas Roadhouse, Inc is part of the Restaurant Industry which is part of the Services Sector of the economy. Below are a few of the major corporations included in this industry. They each pay at least a minimal dividend and they are listed in the order of their market capitalization.

  1. McDonald's Corporation  (MCD)
  2. Yum Brands, Inc.  (YUM)
  3. Burger King Worldwide, Inc  (BKW)
  4. Darden Restaurants, Inc.  (DRI)
  5. Dunkin' Brands Group, Inc.  (DNKN)
  6. Domino's Pizza, Inc.  (DPZ)
  7. Brinker International, Inc. (EAT)
  8. The Wendy's Company  (WEN)
  9. Cracker Barrel Old Country Store, Inc.  (CBRL)
  10. Jack in the Box, Inc.  (JACK)
  11. The Cheesecake Factory, Inc.  (CAKE)
  12. Texas Roadhouse, Inc.  (TXRH)
  13. DineEquity, Inc. (DIN)
  14. Sonic Corporation  (SONC)
  15. Bob Evans Farms, Inc.  (BOBE)
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Conclusion
In terms of its fundamentals, Texas Roadhouse appears to be an excellent investment for dividend growth investors. It's a company that has a dividend in excess of 2.2% and a dividend growth rate well into the mid-twenty percent range. Even with an expected slowdown of the dividend growth rate to a rate commensurate with its revenue and earnings growth rates in the low to mid-teens, this is a company that is highly desirable. 

Technically the charts are telling the investor that this stock will be a bargain if, and when, it pulls back to the $24-$25 area. The fundamentals are telling the investor that it may not get back to that level any time soon. If it gets above $27.50 and holds, this stock may run up to new all time highs. 

Starting a small position at prices below $27.50 may be a prudent strategy for an investor. The stock may find resistance at this level and if so, any subsequent pullback is an opportunity to add to that small position while not having totally committed at the higher level. If instead it pushes through $27.50 on normal to greater than normal volume, the stock is probably going to go a lot higher. A breach through that level would force me to immediately commit the remainder of my funds. 

I plan to start a position on this stock this week. I also plan to add to that position as quickly as possible, as funds (dividends) are deposited into my account. This stock looks like it will very quickly become an important part of my portfolio.  


The Live Interactive Chart


Additional Articles of Interest

"The Restaurant Industry", published 24 July 2014
"Cracker Barrel Old Country Store", published 13 August 2014
"McDonald's Corp", published 16 August 2014
"Brinker International",  published 25 August 2014
"DineEquity, Inc.", published 29 August 2014


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Three Department Stores

9/10/2014

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The modern department store is a retail shopping establishment offering a wide range of consumer goods under one roof. Department stores usually sell a variety of products, including clothing, furniture, home appliances, toys, cosmetics, etc. They typically allow shoppers to choose between multiple merchandise lines, at variable price points, in different product categories usually referred to as "departments". They have a long connected history with the rise of the middle class in the modern world. Today they are less ostentatious and are often found in or near local shopping malls. They are also all going online too. I wanted to take a quick look at a couple of these department stores to see if there are any worth further investigation. 
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Data as of 9 September 2014

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The TJX Companies, Inc. (TJX) operates as an off-price apparel and home fashions retailer in the United States and internationally. The company operates in four segments: Marmaxx, HomeGoods, TJX Canada, and TJX Europe. Its apparel and home fashions chains sell family apparel, including footwear and accessories; fine jewelry and accessories; and home fashions comprising home basics, accent furniture, lamps, rugs, wall décor, decorative accessories, and giftware, as well as other merchandise. The company operates its stores under the T.J. Maxx, Marshalls, HomeGoods, Winners, HomeSense, T.K. Maxx, and Sierra Trading Post trademarks. The TJX Companies, Inc. also sells its products through tjmaxx.com and SierraTradingPost.com in the United States, as well as through tkmaxx.com in Europe. As of February 1, 2014, it operated 1,079 T.J. Maxx, 942 Marshalls, 450 HomeGoods, and 4 Sierra Trading Post stores in the United States; 227 Winners, 91 HomeSense, and 27 Marshalls stores in Canada; and 371 T.K. Maxx and 28 HomeSense stores in Europe. The company was founded in 1956 and is headquartered in Framingham, Massachusetts. (Daily Chart) (Weekly Chart)

Price $59.72
1yr Target $65.04
No. of Analysts 25
1yr Cap Gain 8.90%
Dividend $0.70
Yield 1.17%
1yr Tot Return 10.07%

P/E Ratio 19.64
PEG 1.73

EPS (ttm) $4.08
Div Payout Ratio 17.15%
EPS next year $4.73
Forward P/E Ratio 12.54
ROA 6.00%
ROE 14.70%

3yr RevGR 7.63%
3yr EarnGR 21.00%
3yr DivGR 24.30%


First Look: The TJX Companies have a lot going for them. They sell a large variety of merchandise at various price points under various department store names. The one year capital gain is acceptable and the yield in marginal, but together they result in a one year return on shareholder investment of over 10%. Yet that low yield will scare away a lot of dividend growth investors. On the plus side, the stock has a P/E ratio of less than 20, a forward P/E of less than 13, and a 3 year dividend growth rate of 24.30%. I believe there's enough data here to necessitate further analysis in a future article.

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Macy's, Inc. (M), together with its subsidiaries, operates stores and Internet Websites in the United States. Its stores and Websites sell a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. The company also operates Bloomingdale’s Outlet stores that offer a range of apparel and accessories, including women's ready-to-wear, fashion accessories, jewelry, handbags, and intimate apparel, as well as men's, children's, and women's shoes. As of February 25, 2014, it operated approximately 840 stores under the Macy's and Bloomingdale's names in 45 states of the United States, the District of Columbia, Guam, and Puerto Rico, as well as the macys.com and bloomingdales.com Websites; and 13 Bloomingdale's Outlet stores. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy’s, Inc. in June 2007. Macy’s, Inc. was founded in 1830 and is headquartered in Cincinnati, Ohio. (Daily Chart) (Weekly Chart)

Price $60.43
1yr Target $64.62
No. of Analysts 17
1yr Cap Gain 6.93%
Dividend $1.25
Yield 2.06%
1yr Tot Return 8.99%

P/E Ratio 15.00
PEG 1.19

EPS (ttm) $4.03
Div Payout Ratio 31.01%
EPS next year $5.01
Forward P/E Ratio 12.06
ROA 7.00%
ROE 25.50%

3yr RevGR 3.72%
3yr EarnGR 24.64%
3yr DivGR 70.08%


First Look: There's not a more famous name in department stores than Macy's. As a result it automatically requires additional investigation in a future article. But more than that, the stock has a dividend yield above 2%, a P/E ratio of 15, a forward P/E just above 12, and a 3 year dividend growth rate above 70% (although that dividend growth rate is suspect and needs further investigation).

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Kohl’s Corporation (KSS) operates department stores in the United States. It offers exclusive and national brand apparel, footwear, accessories, beauty, and soft home products to children, men, and women customers. As of February 1, 2014, it operated 1,158 family-oriented department stores and a Website, Kohls.com. Kohl’s Corporation was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin. (Daily Chart) (Weekly Chart)

Price $59.28
1yr Target $59.81
No. of Analysts 21
1yr Cap Gain 0.89%
Dividend $1.56
Yield 2.63%
1yr Tot Return 3.52%

P/E Ratio 14.53
PEG 2.55

EPS (ttm) $4.08
Div Payout Ratio 38.23%
EPS next year $4.73
Forward P/E Ratio 12.54
ROA 6.00%
ROE 14.70%

3yr RevGR 1.13%
3yr EarnGR 3.39%
3yr DivGR 78.21%


First Look: At first blush Kohl's just doesn't appear to present a sufficient case for investment. Although the yield is above 2% and the P/E ratio is below 15 (both pluses), the 3 year earnings growth rate seems subpar and the 3 year dividend growth rate is suspect. While there may be something to this stock, there's just too many more companies with better fundamentals worth investigating. In the meantime, I'll just put this one off to the side and relook the fundamentals again in about 6 months. 

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The Spoils

9/9/2014

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The Spoils - 

"Something valuable or desirable that someone gets by working or trying hard."

(As defined by the  Merriam-Webster Dictionary)
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Nissan 370Z
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A Quick Look at Conoco and Occidental

9/6/2014

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Two of the largest independent oil and gas companies specializing in upstream operations are ConocoPhillips and Occidental Petroleum Corporation. They're organized as corporations rather than Master Limited Partnerships (MLP) so they won't appear in the section of this website titled E&P MLPs. They do, however, operate in the same space. And I'm always interested in upstream oil and gas companies.  

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ConocoPhilips, until recently, was a major integrated oil company along the likes of ExxonMobil and Chevron. But with the spinoff of Phillips 66 the company has jettisoned its midstream and downstream operations and concentrated on the upstream portion of their operations. ConocoPhillips today has become an upstream exploration and production oil and gas company with world wide operations. 

Occidental Petroleum, on the other hand, is an oil and gas company that has always been concentrated on upstream operations but has also developed midstream operations and a chemical business. As a result, the two companies can't be compared to each other on a strictly organizational basis, but they're similar enough to be compared on the basis of their fundamentals. And with a little effort (beyond the scope of this article) these two companies can be compared to the E&P MLPs to determine the best place to invest future funds. 

A quick look at the numbers below illustrate the difficulty investors have in deciding on which company to invest in. At first blush an investor interested in capital gains will surely select ConocoPhillips because of its one year total shareholder return (18.28%). The dividend growth investor will select Occidental Petroleum Corp because of its dividend growth rates (16.16%-20.08%). 

Which company an investor decides to invest in will provide unique psychological insight into their own investing philosophy. It's information that every investor should know and comes to terms with in order to become a better investor.

Hopefully this look into the fundamentals of ConocoPhillips and Occidental Petroleum will provide a small glimpse into the benefits of owning these two companies and allow investors to decide which company deserves a more thorough analysis.  

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ConocoPhillips
ConocoPhillips (COP) explores for, develops, and produces crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. Its portfolio includes North American shale and oil sands assets; legacy assets in North America, Europe, Asia, and Australia; various international developments; and exploration prospects. ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas. 
(Daily Chart) (Weekly Chart)
4 September 2014
Price $79.85
1yr Target $91.54
1yr Cap Gain 14.63%
Dividend $2.92
Yield 3.65%
1yr Tot Return 18.28%

1yr DivGR 2.27%
3yr DivGR 7.80%

5yr DivGR 7.50%
Payout Ratio 44.99%

Beta 1.01
EPS (ttm) $6.49
EPS next yr $6.62
P/E 12.30
PEG 1.85
ROA 7.70%
ROE 17.30%



Occidental Petroleum Corp
Occidental Petroleum Corporation (OXY) engages in the acquisition, exploration, and development of oil and gas properties in the United States and internationally. The company operates in three segments: Oil and Gas; Chemical; and Midstream, Marketing and Other.  The company was founded in 1920 and is headquartered in Houston, Texas. 

(Daily Chart) (Weekly Chart)
4 September 2014
Price $102.37
1yr Target $110.77
1yr Cap Gain 8.20%
Dividend $2.88
Yield 2.81%
1yr Tot Return 11.01%

1yr DivGR 18.51%
3yr DivGR 20.08%

5yr DivGR 16.16%
Payout Ratio 37.79%

Beta 1.51
EPS (ttm) $7.62
EPS next yr $7.45
P/E 13.43
PEG 2.17
ROA 8.70%
ROE 14.00%

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Technical Analysis Strategy and Tactics

9/5/2014

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The fundamentals of companies can only take an investor so far in his research. They're great at helping the investor determine which stocks are the best stocks to invest in, but they're often quite limited in determining the appropriate time frame in which to buy the stocks. And, as in all things in life, timing is everything. That's where technical analysis excels. Technical analysis will provide the strategic and tactical perspectives to make the winning trades. And that's why I'm both a fundamentalist and a technician. I want to find and buy the best companies at the best price.
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When I’m looking at a chart of a stock's daily price movements, I’m actually looking at the daily activities of every investor that's bought or sold that stock that day. Each candlestick on the daily charts represent a single day’s activity. This type of chart is generally referred to as a Daily Chart because it records the trading activity on a daily basis. That’s the time frame in which I feel most comfortable buying and selling securities. It’s also the most common time frame used by most investors and it's the easiest chart to find on the internet.

Two websites that are my favorites for finding daily charts are StockCharts.com and FINVIZ, but there are quite a few others. But daily charts aren’t the only charts that I use. I also use weekly charts. Weekly charts provide me with a much longer perspective on the company's stock price and volume. 

Other investors may use monthly charts, hourly charts and some may even use minute charts, but I don’t usually have a need for those charts very often. I concentrate on using the daily and weekly charts. Luckily for all of us technical traders out there trading every day, everything we study and learn about charts on any given time frame applies equally to every other time frame we view. I can use the same price and volume metrics and the same momentum indicators and oscillators that I use on the daily charts on every other time frame I analyze. They’re all applicable on any chart based on any time frame. It’s one of the nicest things about studying and learning technical analysis.

For trading purposes I personally feel most comfortable trading with daily charts. Monthly charts seem too glacial to me and I’ve never been interested in intraday charts. The volatility just seems like random noise. Intraday charts always seem too erratic and I can't ever seem to get any solid confirmation signals to trade these charts. Intraday charts are generally used by day traders and I’ve never been interested in day trading. If anything, I’m a swing trader for high beta stocks and a buy-and-hold investor for my core holdings.

Whenever I use two charts of the same stock that are of different time frames, I rely on the longer time frame to identify the major trend with its major support and resistance levels. I then use the shorter time frame chart for the basis of making the actual trade. Ideally I’d like my trade to be in sync with both charts but I can only do this if the two time frames are in sync with each other. If both charts are showing an uptrend I want to be trading long. If both charts are trending down then I want to be trading short. By trading in sync with the two different charts my probability of completing a successful trade is greatly enhanced. 


However, if the two charts are out of sync that’s a red flag for me. I have to ask myself if a trade like that makes sense. Usually it doesn't. I also like to check the various momentum indicators and oscillators on each chart to look for evidence of any additional confirmation.

The advantage of reviewing the longer horizon chart is knowing the bigger picture and seeing the overall longer trend. This not only gives me a clearer picture of the stock’s major movements, it gives me the knowledge that can keep me from getting shaken out of a stock prematurely. This kind of knowledge will allow me to hold on to my successful trades longer for larger gains. It also can reduce the number of trades required over time and the number of commissions I would have to pay.

The two charts below are the Daily Chart and the Weekly Chart for AT&T. As you look at these you can see that price and volume are similarly plotted and momentum indicators and oscillators are applicable to both. On the weekly chart it’s easy to see the major trend as well as the major support and resistance levels. This is the strategical perspective. On the daily chart it's easy to seeing the short term direction. This is the tactical perspective. These two perspectives together provide the information necessary to make that high probability trade. 


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Daily Chart
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Weekly Chart

The above article includes many of the ideas originally published in the article "Trading in Two Time Frames" dated 9 September 2013. For that article and many other interesting articles, please click on the "MORE INFORMATION" button below.

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Comcast Corporation Update

9/4/2014

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Anyone visiting this website on 24 April 2014 (or looking through the section titled "Previous Articles") saw an article on Comcast Corporation outlining my approach to accumulating shares. At the time I wrote -
"A pull back may or may not occur with this stock so I may start a small buying program at this current $51.21 price level. Obviously I'd love to have bought this stock earlier this week at prices below $50.00 so any pull back to that level will only encourage me to load up on this stock. I believe this stock has the potential to move well into the 60s."
I did buy a small number of shares at the then current price and then loaded up even more on the pullback to the high $40s. Today it's in the mid $50s so I thought I'd revisit the stock and see where it's going from here. My main concern when re-looking at companies is to ask myself, "Would I buy this stock at today's prices? And if not, why am I still holding these shares?" The answer to these questions will determine if I add to my position going forward. So let's take a look.

The Company
Comcast Corporation (CMCSA) operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks segments. The Cable Communications segment offers video, high-speed Internet, and voice services to residential and business customers under the XFINITY brand name. The Cable Networks segment operates national cable networks, which provide entertainment, news and information, and sports content; regional sports and news networks; international channels; and cable television production operations, as well as owns digital media properties. The Broadcast Television segment operates NBC and Telemundo broadcast networks, NBC and Telemundo owned local broadcast television stations, and broadcast television production operations, as well as owns digital media properties. The Filmed Entertainment segment produces, acquires, markets, and distributes live-action and animated filmed entertainment under the Universal Pictures, Focus Features, and Illumination names. The Theme Parks segment operates theme parks; studios; Island of adventures; and a dining, retail, and entertainment complex. Comcast Corporation was founded in 1963 and is headquartered in Philadelphia, Pennsylvania. (Daily Chart) (Weekly Chart)
1 September 2014
Price $54.72
1yr Target $62.71
1yr Cap Gain 14.60%
Dividend $0.90
Yield 1.64%
1yr Tot Return 16.24%


5yr DGR 26%
3yr DGR 28%
Payout Ratio 31.69%

Beta 1.24
EPS (ttm) $2.84
EPS next yr $3.28
P/E 19.27
PEG 1.13

ROA 4.80%
ROE 14.70%


The Fundamentals
The fundamentals remain the same as they were when they were documented in the earlier article. What has basically changed is that the stock has moved up from $51.21 to $54.72 (+6.85%) from the previous article (even more if you bought on the pullbacks below $50 like I did). More importantly, the estimated one year target price has moved up from $60.46 to $62.71 (+3.72%). This means that the stock is estimated to increase 14.60% more from here. Adding in the current dividend yield of 1.64% and the one year total shareholder return is 16.24%. This is an excellent one year return for any stock!

Finally, considering that the stock has 3 and 5 year dividend growth rates of 28% and 26%, this stock becomes a dividend growth investor's dream. 

Conclusion
If I didn't already own this stock I'd be buying it at this price. Therefore that tells me that this is a stock that I will not only continue to hold but will continue to add to my holdings. I'm already up well over 6% on this stock and now there's the potential to be up another 14% this next year. All the while I'll be watching the dividends grow at a very fast and very nice pace.


Related Article:
"Comcast Corporation" dated 24 April 2014

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Casinos on Land and at Sea

9/3/2014

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While investors are never interested in gambling, they can sometimes be interested in casinos. For the most part companies that run casinos are actually entertainment companies. Their business model is comprised of gambling, resort living, fine dining and live stage shows. But their lure has always been legalized gambling. 

Below you'll find an initial look at 4 companies in the casino business. Two of them are very famous hotels/casinos, and two of them are very famous cruise lines/casinos. At first glance it's apparent that the two land based casinos are showing a better one year total shareholder return, but initial looks can sometimes be misleading. If you're interested in investing in this industry, please use the following information as a starting point only. There's a lot more to these companies than what I've included in this article.  



Data as of 1 September 2014

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Las Vegas Sands Corp. (LVS) develops, owns, and operates integrated resorts in Asia and the United States. The company owns and operates The Venetian Macao Resort Hotel, Sands Cotai Central, the Four Seasons Hotel Macao, the Plaza Casino, and the Sands Macao in Macau, the People’s Republic of China. It also owns and operates the Marina Bay Sands in Singapore; The Venetian Resort Hotel Casino, The Palazzo Resort Hotel Casino, and Five-Diamond luxury resorts on the Las Vegas Strip; the Sands Expo and Convention Center in Las Vegas, Nevada; and the Sands Casino Resort Bethlehem in Bethlehem, Pennsylvania. The company’s integrated resorts comprise accommodations, gaming, entertainment and retail facilities, convention and exhibition facilities, celebrity chef restaurants, and other amenities. Las Vegas Sands Corp. was founded in 1988 and is based in Las Vegas, Nevada. (Daily Chart) (Weekly Chart)

Price $66.51
1yr Target $84.25
No. of Analysts 20
1yr Cap Gain 26.67%
Dividend $2.00
Yield 3.00%
1yr Tot Return 29.67%

P/E Ratio 20.53
PEG 1.22
EPS (ttm) $3.24
Div Payout Ratio 61.72%
EPS next year $4.17
Forward P/E Ratio 15.94
ROA 11.80%

ROE 35.60%

3yr RevGR 25.89%
3yr EarnGR 75.20%
3yr DivGR N/A


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Carnival Corporation (CCL) operates as a cruise company worldwide. It operates in two segments, North America; and Europe, Australia, & Asia. The company offers various cruise products and services through a fleet of 101 cruise ships under the brand names of Carnival Cruise Lines, Holland America Line, Princess Cruises, and Seabourn in North America; and AIDA Cruises, Costa, Cunard, Ibero Cruises, and P&O Cruises in Europe, Australia, and Asia. It also provides vacations to various cruise destinations; and owns and operates 11 hotels or lodges, and approximately 300 motorcoaches and 20 glass-domed railcars. The company sells its cruise services through travel agents, including wholesalers, general sales agents, and tour operators. Carnival Corporation was incorporated in 1972 and is headquartered in Miami, Florida. (Daily Chart) (Weekly Chart)

Price $37.88
1yr Target $42.44
No. of Analysts 16
1yr Cap Gain 12.03%
Dividend $1.00
Yield 2.63%
1yr Tot Return 14.66%

P/E Ratio 27.06
PEG 1.31

EPS (ttm) $1.40
Div Payout Ratio 71.42%
EPS next year $2.36
Forward P/E Ratio 16.05
ROA % 2.70
ROE % 4.50

3yr RevGR 2.20%
3yr EarnGR -17.29%
3yr DivGR 35.30%


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Wynn Resorts, Limited (WYNN), together with its subsidiaries, develops, owns, and operates destination casino resorts. It operates in two segments, Macau Operations and Las Vegas Operations. The company operates Wynn Macau and Encore at Wynn Macau resort located in the People’s Republic of China. Its Macau resorts feature two luxury hotel towers with a total of 1,008 rooms and suites; 493 table games; 866 slot machines; a poker pit in approximately 280,000 square feet of casino gaming space; 8 restaurants; 2 spas and 1 salon; lounges; meeting facilities; 2 health clubs and spas; and approximately 57,000 square feet of retail space featuring boutiques, as well as a show in the rotunda. The company also owns and operates Wynn Las Vegas and Encore at Wynn Las Vegas resort with a total of 4,748 hotel rooms, suites, and villas; 230 table games; 1,854 slot machines; a race and sports book and poker room in approximately 186,000 square feet of casino gaming space, including a sky casino and private gaming salons; 34 food and beverage outlets; 2 spas and salons; lounges; and approximately 96,000 square feet of retail space featuring various boutiques. Its Las Vegas resorts also offer 3 nightclubs; a beach club; a Ferrari and Maserati automobile dealership; wedding chapels; an 18-hole golf course; approximately 283,000 square feet of meeting space; a theater; and an Encore theater presenting various headliner entertainment acts, as well as provides 2 showrooms and a beach club. Wynn Resorts, Limited was founded in 2002 and is based in Las Vegas, Nevada. (Daily Chart) (Weekly Chart)

Price $192.88
1yr Target $239.63
No. of Analysts 19
1yr Cap Gain 24.23%
Dividend $5.00
Yield 2.59%
1yr Tot Return 26.82%

P/E Ratio 23.78
PEG 1.53

EPS (ttm) $8.11
Div Payout Ratio 61.65%
EPS next year $9.18
Forward P/E Ratio 21.02
ROA 9.50%
ROE N/A

3yr RevGR 10.22%
3yr EarnGR 76.12%
3yr DivGR -9.65%


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Royal Caribbean Cruises, Ltd. (RCL) operates as a cruise company worldwide. It owns six cruise brands comprising Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisières de France, and TUI Cruises. The Royal Caribbean International brand provides cruise itineraries ranging from 2 to 18 nights with options for onboard dining, entertainment, and other onboard activities. The Celebrity Cruises brand offers cruise itineraries ranging from 3 to 18 nights various destinations; and operates onboard upscale ships that offer accommodations, fine dining, personalized services, and spa facilities. The Azamara Club Cruises brand offers cruise itineraries ranging from 4 to 18 nights that serve the up-market segment of the North American, the United Kingdom, and Australian markets. The Pullmantur brand provides cruise itineraries ranging from 4 to 12 nights with various cruising options and onboard activities for couples and families traveling with children. The CDF Croisières de France brand provides seasonal itineraries to the Mediterranean serving the French cruise market. The TUI Cruises brand provides onboard activities, services, shore excursions and menu offerings for the German cruise market. As of February 5, 2014, the company operated a total of 41 ships with an additional 6 under construction contracts on approximately 490 destinations on 7 continents. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida. (Daily Chart) (Weekly Chart)

Price $63.76
1yr Target $64.37
No. of Analysts 21
1yr Cap Gain 0.95%
Dividend $1.00
Yield 1.56%
1yr Tot Return 2.51%

P/E Ratio 26.35
PEG 0.99

EPS (ttm) $2.42
Div Payout Ratio 41.32%
EPS next year $4.51
Forward P/E Ratio 14.14
ROA 2.70%
ROE 6.10%

3yr RevGR 5.57%
3yr EarnGR -3.32%
3yr DivGR N/A


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    I am an Individual Investor with specific interest in long term growth and then enhancing my returns with income from dividends and derivatives. I don't recommend stocks to anyone (it's a good way to lose friends) and no one reading this should misinterpret my blog as a recommendation for any type of investment. I am writing this solely for myself and my kids.


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