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Dividend Growth Investing Market Recap – August 4th, 2014

Not everyone is a visual learner who can read through dense material and quickly grasp the take away. In fact, that can sometimes be counterproductive. Having realized that, I’ve decided to start creating dividend growth investing market recap videos for easier consumption.

I’ll be releasing frequent, but short, videos that will aim to quickly highlight some of the things going on around the market and the world of dividend investing. These videos are not meant to provide an in-depth analysis. Instead, they should be used as a jumping off point from which you can perform your own research.

This is my first video, so bear with me. Feedback is always welcome and appreciated 🙂

 

Companies covered and key takeaways

Bank of America Corp (BAC)

  • Total revenue of $21.7 Billion, down 4.4% YOY
  • But, expenses down as well 6.4% YOY
  • Low dividend yield of $0.01 or .27%
  • Long term capital appreciation play + dividend increase  following decrease in litigation costs and paired with recovering economy

Intel Corp (INTC)

  • $0.22 quarterly dividend at a yield of 2.64%
  • No dividend increase this quarter as management was focused on increase buybacks.
  • Intel is still far from managements goal of 40% free cash flow payout target.
  • Pro’s: Wide moat, high cash flow, industry leader and strong dividend yielf
  • Con’s: Potential no dividend increase until  2015

General Electric (GE)

  • Spin off of investment arm and consumer arm for increased focus on industrial sector.
  • $0.22 quarterly dividend at a 3.45% yield
  • Pro’s: Dividend champion, high cash flow, consistent dividend increase
  • Con’s: Shifting business priorities and focus

Proctor and Gamble (PG)

  • Recent spin off of 100 brands
  • Good buying opportunity with recent down trend
  • Solid Q4 earnings

Chevron (CVX)

  • $2.98 earnings per share up from $2.77/share YOY
  • Beat analyst expectations of $2.68 earnings per share
  • Pro’s Industry leader, dividend champion, high cash flow, investing in future production facilities.

 

 

Long: GE, CVX

 

 

 

 

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