NEW LOW OBSERVER

The S&P 500 appears to be consolidating between 2,350 and 2,400. We will be looking to see if the bull can push above 2,400 level this week.

Although the stock market is virtually at its all-time high, the market fundamentals are comparable to last year. We observed the market multiple of 24x in September 2016 which is the same multiple we are seeing now.  One thing to note is rising interest rates during the same time frame.  The 10-year notes rose to 2.50% from 1.60%, a staggering +56% increase in rate. However, at the same time the stock market is up more than +10%.

As the saying goes, a rising tide lifts all boats.  A bull market lifts all companies and there are only 20 companies on our watch list this week. Continue reading →

Top Five Watch List Performance Review

In our ongoing review of the NLO Dividend Watch List, we have taken the top five stocks on our list from March 4, 2017 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

We highlighted the top two companies last year. Needless to say, they've done well. However, our assessment of Monsanto (MON) was not accurate as we suggested our reader to be more careful of the projected valuation. Valueline estimated shares to be undervalued by 40% at the time and shares have risen 33% since last year. As for AIG (AIG), shares were trading 30% below book value last year. Since then, shares have climbed 22%.

U.S. Dividend Watch List: March 3, 2017

Another week, another record high which lead to potential rate hike by the Fed. We'll have an update to the Coppock Curve mid week. Until then, please review the list below for dividend paying company trading at or near the low.

Continue reading →

Previous Year Performance Review

In our on going review of the NLO Dividend Watch List, we have taken the top five stocks on our list from February 19, 2016 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

The top five companies on our watch list had an average gain of 19.7% which trailed the average 6%. One of the factor contributing to our underperformance, if you consider 19.7% as such, came from Sigma-Aldrich (SIAL) which didn't trade up or down due to the acquisition. Shares remained flat for the entire year. Although we spoke little about the list, we were lucky enough to highlight two companies with exceptional performance. Stanley Black & Decker (SWK) and Cintas (CTAS) were the two companies our team eluded to. Cintas rose 42% and Stanley Black & Decker rose 37%. Our justification for their consideration was because they were part of an elite group called Dividend Aristocrat.

U.S. Dividend Watch List: January 17, 2017

Another week, another record for the market. The bull continued to push the market higher but in contrary, the number of company approaching the low has not decline much. Below are 22 companies on our watch list. Continue reading →