Industry representatives say that steadiness of FFO is more reflective of a REIT’s health. For the purposes of determining the future direction of the stock price, we prefer the wide variability of the net income figure. (data source)
see also:
Industry representatives say that steadiness of FFO is more reflective of a REIT’s health. For the purposes of determining the future direction of the stock price, we prefer the wide variability of the net income figure. (data source)
see also:
Below are the price targets for Maruti Suzuki India Limited over the next 10 years. Continue reading
Posted in 10-year Targets, Altimeter, Maruti
Below are the Nasdaq 100 Watch List stocks for September 2020.
Below is a chart of ITC Limited (ITC.BO) from 1992 to 2020 reflecting the year-over-year (YoY) percentage change. This assessment reviews the probability of performance in the coming year(s).
We begin by reviewing the performance of last year’s list. The table below highlight various fundamental strategies and their performance using the top 5 companies.
Focusing on the worse performing group, high yield, we see that 5 highest yielding companies lost nearly half of their value. The largest drop of 78% was Alliance Resource Partners (ARLP). At the time of write up, Alliance was trading at $15.47 with dividend yield 14%, figure that appears too good to be true. The stock is now trading around $3.50.
Invesco (IVZ) was trading at $24.10 in 2018 and $15.70 in 2019. Dividend yield in 2019 was at 7.9%, however, that yield didn’t last as Invesco cut its dividend by half. Now the stock is around $10.75 and dipped as low as $6.38 in March of this year. The observation (and perhaps lesson) is to not chase the highest yield as that could be very costly to your portfolio.
On the opposite end of this strategy are low yielding stocks which gained 16.6% for the year. Leading the way for this strategy was Rollins (ROL) with yield of 1.3% at the time of publication. This yield isn’t anything to get excited about but a gain of 68% in one year certainly is.
Second on the performance list is Quaker Chemical (KWR) with yield of 0.9% last year. The stock gained 23% in one year.
If this appears to be counter intuitive to you, then it should. As value investors, we're taught to focus on low P/E, low P/B, or high yield. Our data indicate the opposite might be worth considering.
U.S. Dividend Watch List: August 28, 2020
The market, S&P 500, broke out to all-time high, leaving us a little excitement. There are a handful of companies on our dividend watch list this week. Continue reading
It was announced that Warren Buffett has accumulated shares of Japanese brokerages.
As we’ve long stated, the secular trend in rates is up:
“A single rate increase by the Federal Reserve in no way makes for a trend. However, markets often lead the way and what initially seems “bizarre” is only a natural change in regime, a change that we haven’t seen since the early 1940’s (December 16, 2015.).”
“We’ve only included the point in the interest rate cycle that corresponds to the phase that we are entering, coming from an all-time low to an eventual all-time high (November 15, 2015.).”
“Investors anticipating a general rise in interest rates should feel some comfort in knowing that most manager(s) in the utility sector are ready for what is to come. Rising interest rates are not an automatic death sentence for utility stock prices or earnings. In fact, the early stages of rising interest rates may see utility stocks match or exceed the returns of non-interest rate sensitive stocks, on a total return basis. Only when the outlook is cloudy will it become difficult to offer projections that are in line with prior expectations (September 4, 2014.).”
We’ve also said that Japan outperforms under such conditions.
With this is mind, maybe this is what Buffett & Co. are seeing for the future of the secular trend and beyond.
Posted in inflation, interest rates, Warren Buffett
Below are the price targets for Hindustan Unilever Limited (HINDUNILVR.BO) over the next 10 years. Continue reading
Posted in 10-year Targets, Altimeter, Hindustan Unilever, India
Below are the price targets for ITC Limited (ITC.BO) over the next 10 years. Continue reading
Posted in 10-year Targets, Altimeter, India, ITC.BO
Below are the price targets for Reliance Industries Limited (RELIANCE.BO) over the next 10 years. Continue reading
Posted in 10-year Targets, Altimeter, Reliance Industries
Below are the S&P 500 Additions and Deletions from 2003 to 2016. Continue reading
On August 21, 2020, we outlined the Dow Doubling Rate from 1900-2020. The data highlights a fundamental issue about how the doubling rate works. Continue reading
Below is a list of stock buybacks in Forbes in the April 15, 1973 issue. Worth noting is the quantity of shares being bought relative to shares outstanding.
Below we have sorted the same list above with the percentage of shares outstanding that were purchased from largest to smallest.
See also:
Posted in Uncategorized
Below is a chart of investment returns for various instruments as published by ZeroHedge.com. This list differs in that it includes the change in Bitcoin and our own Dogs of the Toronto Stock Exchange 60 (TSX 60).
see also:
Posted in Bitcoin, Dogs of the TSX
In a August 18, 2020 MarketWatch.com article written by Brett Arends titled “Uh-oh: Investors predict ‘Dow 50,000’ — in just five years”, it states:
“…a sample of 1,500 people here in the U.S. who manage their portfolios, the average person expected the stock market to generate sky-high returns of 15.4% a year over the next five years.
“After accounting for dividends, that would mean stock prices would nearly double by 2025…”
The conclusion of the article:
“It is, ominously, generally near market peaks when investors are most bullish. Whether we’ll have a crash or a bear market is another matter.
“Yes, 15% could technically happen. But I wouldn’t bet on it.”
One element that is missing is the actual doubling rate data of the Dow Jones Industrial Average. Below is Doubling Rate of the Dow starting when the Dow Jones Industrial Average was at 55 on July 2, 1900 until 2020.
The actual doubling rate data suggests that the conclusions arrived by Mr. Arends are incorrect.
Our next article on this topic will break down the key elements to understand about the data presented which will make it clear that, doubling from the current level might be a modest proposal.
Posted in Charles H. Dow, Doubling Rate, Dow Industrials