Category: Investing

Diversify Your Income Portfolio With This Sector Dividend ETF

Summary:

  • Infrastructure operations can be a great source of income by moving people, dry goods, energy liquids, and other essentials.
  • This fund provides a 5% yield from a global equity portfolio.
  • Infrastructure can provide income from the energy sector with less exposure to commodity price volatility.

When you hear the word infrastructure, building roads, bridges, and tunnels might be the first thing to come to mind. Infrastructure can be so much more, and it can be a great source of steady cash flow. Continue reading…

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A Dividend Portfolio For Transaction-Free Investing

Summary:

  • Transaction-free trading platforms can be a powerful tool for compounding dividend returns.
  • Concentrating on undervalued stocks that pay high dividend yields and growing dividends can reap high returns.
  • Straying into investments that are difficult to understand for the sake of diversification can be a drag on returns.

In the beginning of 2017, I set out to create a total return portfolio for my long-term savings. At that time, I had learned through self-study about value investing, high-yield dividend investing, and dividend growth investing. Seeking Alpha was a wonderful inspiration, as was Get Rich with Dividends by Marc Lichtenfeld and the wisdom of Warren Buffett.

What Seeking Alpha authors helped me realize is that dividend investing can be about much more than income. It is a powerful mechanism for compounding wealth. Continue reading…

Is Nike’s Stock Fairly Priced? How Much Can It Grow From Here?

My latest article for Seeking Alpha forecasts Nike, Inc.’s earnings and determines its intrinsic value.

Summary

  • Nike is a strong brand showing consistent revenue growth and excellent financial health.
  • Nike’s revenue and earnings outlook for the next 5 years shows a continued ability to generate superior growth and dominate the industry.
  • An estimated intrinsic value for shares of Nike based on best- and worst-case scenarios for the company, industry, and economy.

In analyzing stock valuations, people often use the price-to-earnings ratio as a shortcut. The problem is, it is just that a shortcut. It is the stock price divided by the trailing 12 months’ earnings per share. It is a simple measurement of past performance in a complex system that cannot be reduced to one number. P/E is a screening tool at best. It does not tell us enough about the most important factors of stock ownership: future earnings and cash flows.

Nike (NKE) has a P/E ratio of around 65, so investors are currently paying 65 times the last 12 months’ earnings per share to buy the stock. If the last 12 months’ earnings per share were to continue indefinitely, it would take 65 years to make your money back. So, initially, Nike looks extremely expensive. Thankfully, the appropriate price of a stock is based on a lot more than current EPS. Let’s conduct a more detailed assessment of Nike’s current earnings and project its future earnings to get a more accurate assessment of Nike’s intrinsic value. Continue reading…

How to Start a Retirement Fund with Almost No Money

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Photo by Skitterphoto on Pexels.com

Many people I talk to want to do a better job of saving for retirement but don’t know where to begin. Maybe their employer offers a 401(k), but they don’t feel like it’s enough, or maybe they have no 401(k) at all and desperately need to get something started.

Many people also don’t have much money to get started with. They might want to start investing as little as $20 per month. The fee structures of mutual funds and the transaction fees brokers have for purchasing securities can make investing small amounts of money at a time very impractical, but that aspect of the investment industry is changing, and there are some new opportunities for small-time investing that weren’t there only a few years ago. Continue reading “How to Start a Retirement Fund with Almost No Money”

3 Reasons Microsoft Is a Great Company

Microsoft (MSFT) is one of the leading companies in the technology sector. The media and the President may obsess over Amazon (AMZN), investors may follow Warren Buffett into Apple (AAPL), and the average Joe may spend half his day on Google (GOOG/GOOGL), Netflix (NFLX), and Facebook (FB), but Microsoft has been quietly expanding its empire far beyond its traditional PC business. It has everything from a popular video game system to a 500 million-member social network to commercial software and cloud services. Those products are generating growth and income for the company’s shareholders. Here are three reasons they are doing this so well. Continue reading “3 Reasons Microsoft Is a Great Company”

Why Facebook Will Face A Lawsuit Before This Is Over

Summary:

  • Facebook violated its own terms of service by not protecting customer data from developers.
  • This scandal will drag out through government investigations, regulatory moves, lawsuits, and the exposure of further details about Facebook’s failure to protect user data.
  • The outlook is not entirely negative. FB still has long-term earnings potential, and there may be opportunities to buy it cheaper.

In his questioning of Facebook (FB) CEO Mark Zuckerberg, Senator John Kennedy said that “there are some impurities in the Facebook punchbowl.” More bluntly, he continued, “your user agreement sucks.” Kennedy’s questioning deteriorated from there, as he did not get specific enough about the user agreement and showed a lack of understanding about how Facebook and its 3rd party apps work. However, he was absolutely correct in his starting point about Facebook’s user agreement. It sucks. Continue reading at Seeking Alpha

The Time Is Right To Buy This International Dividend ETF

Summary:

  • SDEM invests in dividend-paying companies in emerging markets.
  • The stocks in this fund have been hit hard by political instability.
  • A technical pattern presents an opportunity to start a long position.

Value investing and technical trading are very different philosophies, but the two can work together sometimes. I primarily screen for value but will occasionally take advantage of technical trading strategies to time a purchase…

Continue reading at Seeking Alpha.