It's a few years old but Reinvesting Dividends vs. Not Reinvesting Dividends: A 50-Year Case Study of Coca-Cola Stock is still a great piece on the power of reinvesting dividends. Dividend Reinvestment vs. Spending Your Dividends The short version, for the casual readers of the site: Imagine you had two identical investors, James and Thomas, [...]
In the 11th issue of the AMM Dividend Letter we highlighted the buying of Visa Europe as a potential catalysts for further price appreciation and dividend growth for Visa (V). Visa Europe would provide further transaction volume growth and Visa could greatly enhance Visa Europe's profitability. Integrating the two systems and transferring Visa Europe users [...]
This is from the AMM Dividend Letter released May 7, 2015. If you want to see the latest "Dividend Stock in Focus" as soon as it's released then join our mailing list here. The chart below, from Richard Bernstein Advisors via Business Insider, shows the 20 year annualized returns for major asset classes. The little [...]
Activist hedge fund JANA partners is targeting Qualcomm (QCOM). We do not agree that Qualcomm should be split up but we do agree that Qualcomm is undervalued. He then went on to explain how the chip-making arm, QCT, is undervalued relative to the licensing part, QTL, You look at valuation here. This company’s multiple has [...]
This is from the AMM Dividend Letter released April 2, 2015. If you want to see the latest "Dividend Stock in Focus" as soon as it's released then join our mailing list here. The "standard" retirement age of 65 in the U.S. is becoming more difficult for many to achieve as life spans increase and [...]
Reports are coming in that the FTC will make a decision on the Reynolds American (RAI) and Lorillard (LO) merger next week. A rumor is circulating that a Federal Trade Commission Staff member has recommended that the FTC block the merger with a lawsuit. I have to imagine one of the concerns is an extremely [...]
In Glenview Capital Management's 4th quarter letter they break down their investment thesis in McDonald's (MCD) and the steps they think the company can take to reach a value of $169 per share. 1) Operational turnaround. While the broader category continued to generate positive same store sales in 2013 and 2014, McDonald's same store sales [...]
Sometimes we forget just how big Standard Oil was. The three major U.S. oil companies: ExxonMobil (XOM), Chevron (CVX), ConocoPhilips (COP), all used to be a part of Standard Oil.