In part 1 of this five-part series, I covered what I considered the 6 most expensive stocks in the Dow Jones Industrial Average Index of 30 stocks. With this part 2, I’m going to cover 6 additional Dow stocks that I consider overvalued currently. So far, these two articles represent approximately 40% of the stocks in the Dow Jones that appear overvalued.
When the Dow Jones Industrial Average first hit 20,000 in January of this year it generated quite a buzz within the financial community. Since January the Dow Jones Index has continued to rise and currently is over 22,700. However, the Dow Jones is not the only market index that is currently sitting at or near all-time highs. The broader S&P 500 index is also at a historic peak.
Just as it always does, Apple’s (AAPL) Keynote event generated quite a buzz. In addition to announcing several new products and upgrades, this year’s event inaugurated the Steve Jobs Theater at Apple Park. And as usual, reactions to the presentation have been quite strong.
Over my lifetime I have invested in many different things. In the process of doing that, I have learned that there are really only two types of investors. As an investor, you are either active or passive. Being active implies directly managing or being in control of your investment.
The J.M. Smucker Company (SJM) is a “Dividend Contender” that has increased its dividend for 20 consecutive years. After being overvalued for most of fiscal year 2017 (fiscal year ends in April) the company has since fallen into attractive valuation territory.
This is the fourth in a series of articles where I will cover popular and/or high profile stocks. The primary objective of this series will be to put a spotlight on the importance of forecasting future growth prior to making an investment decision.
This is the third in a series of articles where I will cover popular and/or high profile stocks. The primary objective of this series will be to put a spotlight on the importance of forecasting future growth prior to making an investment decision.
This is the second in a series of articles where I will cover popular and/or high profile stocks. The primary objective of this series will be to put a spotlight on the importance of forecasting future growth prior to making an investment decision.
This will be the first in a series of articles where I will cover popular and/or high profile stocks. The primary objective of this series will be to put a spotlight on the importance of forecasting future growth prior to making an investment decision.
I believe, and there is plenty of evidence to back my belief, that current market conditions are at an extreme. Although rare, it’s not unusual for aberrant market action to occur. Warren Buffett once said: “The fact that people will be full of greed, fear or folly is predictable. The sequence is not predictable.”
Warren Buffett has long been considered the consummate value investor. His penchant for value investing is generally attributed to his relationship with the renowned father of value investing Ben Graham. However, what is often overlooked is the influence that partner Charlie Munger brought to Warren Buffett’s investing philosophy.
Much of my dividend growth investing is currently focused on looking for high quality dividend growth stocks that are yielding 3% or better. The reason is quite simple. I am managing dividend growth portfolios for clients that are retired and require at least a yield of 3% or better in order to live on.
I have had several readers request that I do an article on AT&T (T). Since the company has just reported earnings, which have thus far received a strong and positive reaction from Wall Street, I thought now would be a good time.
Most investors suffer from what I believe is an unhealthy (unprofitable) obsession with the stock market. Financial writers and professional investors never tire about offering up their opinion on what the market will do next – especially short term. Individual investors also are deeply concerned with how the markets are doing on a daily basis. To me this only makes sense if you actually own the “stock market” i.e., an index fund.
Amazon: the Valuation Dark Side It is no secret that Amazon (AMZN) has been a disruptive force, especially relating to the retail sector. On the other hand, the company is also an enigma to the value focused fundamental investor such as yours truly.
One of the most hotly contested debates in finance is the argument over which is better – active or passive investing. Moreover, this debate has spurred numerous academic studies that claim to identify whether passive outperforms active investing or vice versa.
My investing career officially started in 1970. However, for several years prior to that time I was an avid and interested student of common stock investing. My initial lessons were taught by studying the behavior and practices of the most renowned stock investors.
Introduction Finding attractive investments in the dividend growth space has become a real challenge in today’s overheated market. This is especially true if you limit yourself to looking in the obvious places. Simply stated, you won’t find any bargains today in the Procter & Gambles, Johnson & Johnsons and Coca-Colas.
United Parcel Service Inc. (UPS) currently offers a dividend yield in excess of 3%. Moreover, it is also available at a valuation that is slightly below historical norms. The company has provided a stable and growing dividend since it went public in 1999.
The threat of rising interest rates is all the rage in financial circles today. However, the seminal question is: How real is the threat, and how much impact will rising rates have on stock prices and investor performance?
Introduction According to an article in Quartz today, March 9, 2017, marks the 8th birthday of the US bull market which started on March 9, 2009. According to the article, this is the 2nd longest and 4th strongest bull market in history for the S&P 500.
j2 Global (JCOM) was founded in 1995 and went public in 1999. During their first few years as a public company, j2 Global generated operating losses; however, since 2002 the company has strung together an impressive record of rapid growth.
The 5 MLPs covered in this article offer yields ranging from 5.7% to 10.7%. Additionally, each of these MLPs appears reasonably valued given their high yields and prospects for growth. However, two of these MLPs are currently in the process of merging.
When investing for dividend growth there are several key attributes that I consider crucial for long-term success.
This article is presented as an update to an article I published on Flowers Foods (FLO) on September 22, 2016. Later in this article I will provide a direct link to the original.
Over the last several weeks stock price volatility has increased significantly above norms. All of a sudden it is not uncommon to see stock prices moving 5%, 10% or more in a single trading day.
Financial metrics such as P/E ratios, price to cash flow ratios, PEG ratios, price to sales ratios, price to book value, and many others, should be thought of as tools in the investor’s toolbox.
Recently, I have been engaged in rather intense discussions regarding the validity of P/E ratios versus PEG ratios as proper or appropriate valuation metrics. I generally find these types of debates befuddling for a couple of reasons.
Investing in great companies sits at the core of my investment philosophy. In this regard, I reject the idea that I invest in the stock market. To me, the stock market is simply the store I shop in to purchase interests in fine businesses.
I never invest in a common stock without a clear expectation of the future returns that it can generate for me. Consequently, I consider this one of the most important steps in my research and due diligence process.
