AN INVESTMENT IN KNOWLEDGE PAYS THE BEST INTEREST ~ Benjamin Franklin
Cisco: Repositioning Success Yields Huge FCF
• 3.2% Dividend Yield.
• High cash flow generation with a good cash position. Targeting 50% Free Cash Flow (FCF) return to shareholders.
• Leverage existing customer relationships to grow its subscription and cybersecurity model.
• Fulfillment constraints subsiding as parts shortages decline.
• Earnings per Share (EPS) growth accelerating towards 7%.
BIDU: Expanding Reach to Drive Growth
• BIDU stock has pulled back from its high of $283 in February 2021.
• Repositioning away from traditional advertising toward SaaS.
• Autonomous driving paving the way for the next decade in addressable market growth.
• First of-its-kind Robo-taxi service which has already delivered 280k autonomous fare-rides in China’s largest cities.
• Strong balance sheet and high cash flow coupled with a low valuation.
• Biden-Xi talks indicated a thaw in China-US relations after the countries agreed to more open dialogue.
Recent Sale: Leggett & Platt
We have sold Leggett & Platt (LEG) based on macroeconomic slowdown. As we enter an economic downturn, consumers will be spending less money on furniture and bedding, and auto manufacturers will sell less vehicles. This means that LEG will enter a more difficult operating environment and will see contraction on its earnings and cashflow
ON Semi: Driving the Future of Automotive Automation
• Backlog grows $5.3 billion in 3Q22 to hit over $14 billion.
• Repositioning initiative to focus on free cash flow and margin growth, exiting inefficient product lines and focusing on long-term supply agreements with OEMs.
• Quickly growing total addressable market, particularly in automotive, where ON has swelled total value per vehicle to $715
• 50% of FCF targeted at share repurchases, strong customer base and strong long-term outlook despite shorter-term softness.
8.5% Dividend for Hanes Brands Is Compelling
• 8.5% forward dividend yield, with a 37% payout ratio.
• Dividend yield is highest amongst its peers.
• Valuation, as measured by, price to earnings remains better than sector.
• Consolidation of operations, offloading unprofitable brands and moving distribution to a more centralized model.
• Increasing inventory and repositioning with recession resistant SKUs.
Big 10% Dividend – Inflation Growth Kicker – Medical Properties Trust
• Big Dividend of 10% that grows with inflation.
• Estimated fair value of $14.50.
• Stock down over 50% from its high of $24.13
• One of the largest hospitals owners with 45,000 beds across 10 countries.
• Rent increases based on inflation are permanent even once inflation returns to normal.
• Managed COVID crises without cutting dividend.
• Improving balance sheet with selective sales.
• Improving tenant cashflows makes cashflows less risky
Big 10% Dividend with Inflation Growth Kicker – Medical Properties Trust – MPW
Medical Properties Trust (MPW) is a global REIT focused on investment in hospital real estate with 434 properties across 10 countries, with a footprint across 4 continents. MPW is one of the largest non-government owners of hospitals in the world, with a portfolio of roughly 45,000 beds and just over $19 billion in assets.
Video: 8 Dividend Stocks That Look Compelling Today
High Dividend stocks that look to be compelling from both a dividend and valuation standpoint are worth investigating even in this volatile market. While I believe in keeping larger than normal cash positions and am doing so myself, here are some stocks that we own and are compellingly valued:
Everest RE Premiums and Margins Climb
• 2.4% Dividend with 9% expected dividend growth.
• Well-managed reinsurer, consistently growing portfolio without substantially changing the risk profile.
• Improving loss ratio combined with increasing premium revenues expanding margins and profits.
• Investment income bolstered by rising interest rates.
• Expanding into European markets.
• Experienced management targeting over 13% shareholder returns.
Recent Sale: PayPal’s Hostile Change in User Policy
PayPal has been sold as its policy to confiscate users’ money for breaching its “Acceptable Use Policy” (AUP) is a breach of fiduciary responsibilities and trust. A payment network cannot hope to maintain acceptance and grow if it is claiming the ability to seize users’ funds. While PayPal has modified the policy slightly, they still have the ability to confiscate $2,500 for AUP violations. Even if this is reversed, the damage to PayPal’s reputation is irreversible in the near term and merchants will look for more trustworthy payment systems.
Proven Portfolio Manager shares his own personal stock investments to build retirement income and build a family legacy
Benjamin C. Halliburton is faced with the same challenge as you, investing for retirement and building generational wealth. However, he is a professional investor and is going to share his portfolio and trades with you. He is going to help you navigate this investment challenge as he invests in stocks of quality businesses and guides you through the investment process.
Timely Updates and Research
Ben details stocks to own and when to buy them. The ideas here are based on his own portfolio. Ben will update you every time he buys or sells and provide you with the rationale of these moves. We keep you informed on changes in the portfolio as Ben’s research interacts with market opportunities. We will be completely transparent, and you can determine which of Ben’s investment ideas make sense for you. You will learn how a successful equity portfolio manager thinks about companies and investments, and when he buys but as importantly when and why he has decided to sell. We detail our investment philosophy here. Stock Picks to Build Income and Wealth.
Learn Before You Earn
Learn in real time and choose which ideas work for you. This is a great place to build the core of your portfolio. We provide vision among the confusion of the internet and media. Learn about companies before you invest your Benjamins. Learn before you earn.