When looking for investments you may want to look to the S&P 500’s dividend aristocrat list. Companies merit a spot on the list when they boost dividends for at least a couple of decades. Of course, it would be unwise to invest in a company based solely on its inclusion on a list. Looking into whether a company sells a needed product, barriers to entry for competitors, and more »
Retailers RadioShack (NYSE: RSH), J.C. Penney (NYSE: JCP), and Sears Holding Company (NASDAQ: SHLD) all experienced headwinds in recent years stemming from lower product demand, online competition, and botched turnaround strategies. Management turnover and lower shareholder wealth ensued. Share prices (including dividends) for RadioShack, J.C. Penney, and Sears declined 82%, 61%, and 50% respectively over the past five years (chart below). Here’s what happened.
As part owner of a publicly traded business you should want to own shares in a company that possesses an edge over competitors. The organic food and natural products provided by Whole Foods Market (NASDAQ: WFM) gives this business an edge in the commoditized grocery store arena. Whole Foods Market represents a good investment for the following six reasons.
Whole Foods Market caters to a growing niche where more »
Food manufacturers provide products needed during good times and bad. However, an investor who takes an ownership stake in a company without doing some research certainly represents a fool’s errand (note lowercase "F"). The three companies below represent some good ideas for your Motley Fool Watch List.
On July 16, beverage giant Coca-Cola (NYSE: KO) turned in some pretty disappointing numbers. Revenue declined 3% while free cash flow crept up a mere 48 basis points. Management blamed global economic conditions, weather, and environmental conditions for its plight. Probably, the question on your mind: “Is Coca-Cola still a viable long-term investment?” The answer is yes and here’s why.
While Coca-Cola’s sparkling volume remained flat more »
With interest rates on the rise, the fundamental risks of companies relying on a great deal of debt for their operations increases significantly. You should want your publicly traded businesses to minimize or eliminate debt altogether under these conditions. The three companies below possess zero debt on their balance sheets, and subsequently, lower fundamental risk.
Investment research anyone?
When investing in a publicly traded business you want that company to maintain its ability to generate and grow free cash flow over the long term. Western railroader Union Pacific (NYSE: UNP) possesses the qualities to make that happen.
Barriers to entry
If new competitors want to enter the railroad arena they would need to spend billions of dollars to build infrastructure such as rail bridges and tunnels, not to more »
Sometimes, you can find good investment ideas by looking at the myriad of restaurants in your neighborhood. They may not all rank with huge global restaurant chains such as McDonald’s; however, they may still be worth some of your research time. The three restaurant chains below reside in a turnaround situation that can profit the long-term shareholder.
From pancakes and steaks
Looking at dividend paying companies from the S&P 500’s list of Dividend Aristocrats represents a good starting point for investors looking for stocks that provide income. Companies that increased dividends for more than 25 consecutive years qualify for inclusion on this list.
Of course, investing in companies based solely on their inclusion on a list never stands as a good idea. You need to perform research and judge more »
Investing in companies that make consumer based products represent an optimal strategy due to five qualities:
1. Produce needed products integral to modern clean living
2. Immune to obsolescence unlike technology companies
3. Generate repeat business which means consumers use the products up in short order and need to buy more repeatedly.
4. If needed, minor price adjustments can make up for volume losses
5. Simple to understand and interpret more »
In the financial media, you always hear about how the best companies think over the long-term. Online auction house, payment processor, and e-commerce platform eBay (NASDAQ: EBAY) decided to take things a step further in terms of “light year thinking.” With consumers centering the way they work, consume, and entertain themselves on the web, it pays to look toward the stars in an effort to gain a competitive edge.
PayPal more »
Its earnings season! This is a time of the quarter when companies report and Wall Street gives thumbs up or thumbs down based on whether the companies meet or disappoint their expectations (emphasis mine). Sometimes when a company disappoints Wall Street the subsequent decline can give you a better entry point to purchase shares. However, it always pays to do your research to see if a particular company is deserving more »
On July 11, Microsoft (NASDAQ: MSFT) announced a realignment of its company along the lines of function instead of product line. Microsoft hopes that these functional teams can collaborate on developing products that can compete with the likes of the Apple’s (NASDAQ: AAPL) iPad and iPhone, as wells as the Google (NASDAQ: GOOG) Nexus tablet and Android smartphone. Unfortunately, it seems that Microsoft may be waking up too late more »
When you evaluate a publicly traded business it’s always important to look at the risk factors section of the company’s Form 10-K. Weighing the risks of a particular company can help you determine its investment worthiness. Looking at the risk factors section in the form 10-K of pizza chain Domino’s Pizza (NYSE: DPZ), three risks stand out as the most worrisome for the company and its investors more »
Companies that grow their top and bottom lines can vastly reward you. They typically sport high valuations; however, as long as the company keeps growing its profits at a high rate then share prices typically follow. Be warned these companies can correct in a major way during a market downturn, in which case you can take advantage of the cheaper share prices. Fast growing companies typically capitalize on underlying business more »
Over the past five years organic grocer, Whole Foods Market (NASDAQ: WFM) grew trailing revenue and free cash flow 57% and 1600% respectively (see charts below). This translated into a market beating total return of 438%. You can expect this trend to continue due to the three reasons listed below.
People want to eat healthier
The extra more »
If you’re a potential investor in telecommunications company Frontier Communications (NASDAQ: FTR) you may find the allure of a 10% dividend yield drawing you in. However, if you look at the risk section of the company’s form 10-K you will find five risks that may give you pause in your consideration for investment.
Market shift away from landline service
The very first risk listed in Frontier’s risk more »
When investing for income, a high dividend yield may look tempting. However, the dividend yield may reside in the stratosphere for a reason. The stock price could have taken a beating due to fundamental degradation. A dividend cut may simply lag due to the fact that the board doesn’t want to send such an obvious negative signal to markets highlighting its troubles.
The double digit dividend yield
Telecommunications company more »
On July 9, online conglomerate Amazon (NASDAQ: AMZN) launched its very own comic book company called Jet City Comics. The question that should be on the minds of shareholders of entertainment conglomerate Walt Disney (NYSE: DIS) should be along the lines of "Will Jet City Comics become a new pipeline of iconic characters on which new blockbuster films can be made?"
Walt Disney already faces intensifying competition in more »
On June 28, restaurant chain Noodles & Company (NASDAQ: NDLS) went public at $18 per share meeting with much enthusiasm from investors as its stock price shot up to its current price of $40.06 per share, as of this writing, increasing a full 123% in little over a week. The question for you, the investor, is: Should you jump in now? I perused the prospectus form 424B4 and found five more »
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