Kinder Morgan (NYSE: KMI) is back. Publicly, the energy pipeline master limited partnership (MLP) issued guidance calling for distributable cash flow (DCF) of $4.6 billion in 2018 or $2.05 per share. Quietly, it has been telling stockholders that the numbers were tracking ahead of expectations.  Well, the official count is now in. The company indeed beat the mark, generating $4.73 billion in DCF or $2.12 per share. That’s within two cents of the record high of $2.14 set in 2015. So for all intents and purposes, it has made a full recovery. Yet back then, KMI shares commanded a price… Read More

Kinder Morgan (NYSE: KMI) is back. Publicly, the energy pipeline master limited partnership (MLP) issued guidance calling for distributable cash flow (DCF) of $4.6 billion in 2018 or $2.05 per share. Quietly, it has been telling stockholders that the numbers were tracking ahead of expectations.  Well, the official count is now in. The company indeed beat the mark, generating $4.73 billion in DCF or $2.12 per share. That’s within two cents of the record high of $2.14 set in 2015. So for all intents and purposes, it has made a full recovery. Yet back then, KMI shares commanded a price north of $40. Today, they are still well below $20. That’s difficult to reconcile. Clearly, many investors haven’t forgiven Kinder Morgan for its forced dividend cut in late 2015 as the bottom fell out of the oil market and many midstream partnerships suffered a liquidity crunch. But those days are long gone — distributions were hiked 60% last year, and management is aiming for a 25% encore both this year and next. If you prefer to look at standard earnings rather than cash flow, Kinder Morgan reported net income of $1.481 billion ($0.66 per share) in 2018, versus $27 million… Read More

It’s one of the few holdings in my Daily Paycheck portfolio that has lost ground in 2019… But there’s a good reason. On January 3, Bristol Myers Squibb (NYSE: BMY) unveiled plans to buy Celgene (Nasdaq: CELG) in a blockbuster $74 billion transaction.  Acquirers typically fall when these mega-deals are announced, while shares of the target bolt higher. True to form, BMY slid 14% on the news, while CELG jumped 25%.  Despite the drop, my subscribers and I are still in the black on this one. But is this a good deal? And is BMY worth owning today?  First, let’s… Read More

It’s one of the few holdings in my Daily Paycheck portfolio that has lost ground in 2019… But there’s a good reason. On January 3, Bristol Myers Squibb (NYSE: BMY) unveiled plans to buy Celgene (Nasdaq: CELG) in a blockbuster $74 billion transaction.  Acquirers typically fall when these mega-deals are announced, while shares of the target bolt higher. True to form, BMY slid 14% on the news, while CELG jumped 25%.  Despite the drop, my subscribers and I are still in the black on this one. But is this a good deal? And is BMY worth owning today?  First, let’s get some of the specifics out of the way. Bristol Myers is offering one share of BMY and $50 cash for each share of CELG. There is also the possibility of additional cash remuneration for Celgene investors later down the line (known as a contingent value right, or CVR) if three drugs in the firm’s pipeline eventually gain regulatory approval.  Based on BMY’s share price at the time of the announcement, the bid (excluding CVRs) works out to a little more than $102 per share. That’s a healthy premium of 53% above where CELG closed the day before the announcement. … Read More

Back in December, I wrote about why the major cruise lines are compelling investment candidates right now. One of our loyal readers, Jim C., wrote in to point out that anyone who owns at least 100 shares of Carnival Cruise Lines (NYSE: CCL) is entitled to a unique fringe benefit — up to $250 in complimentary onboard spending credits per cruise.  This isn’t one of those promotional offers you see advertised to the general public. It’s a special perk reserved strictly for Carnival shareholders. Put another way, this $250 offer is equivalent to $2.50 per share for an investor who holds 100 shares. Read More

Back in December, I wrote about why the major cruise lines are compelling investment candidates right now. One of our loyal readers, Jim C., wrote in to point out that anyone who owns at least 100 shares of Carnival Cruise Lines (NYSE: CCL) is entitled to a unique fringe benefit — up to $250 in complimentary onboard spending credits per cruise.  This isn’t one of those promotional offers you see advertised to the general public. It’s a special perk reserved strictly for Carnival shareholders. Put another way, this $250 offer is equivalent to $2.50 per share for an investor who holds 100 shares. That represents a bonus payout of 5.1% on the $48 stock — on top of the 4.3% dividend yield. Double that if you happen to book two cruises. After Jim wrote in to us, my staff and I got to talking… And after doing a little research, it turns out a whole host of companies offers little-known “perks” like this. So I thought it would be fun to take a break from our regular format and focus on four companies that offer special shareholder benefits.  Of course, these enticements alone aren’t necessarily reasons to invest. But since these are all… Read More

As investors, one of our first tasks when evaluating a prospective new portfolio candidate is to ascertain where the company’s sales are headed. There are plenty of other considerations, of course. But first, we need to make some educated assumptions about how many widgets will be going out the door.  Fortunately, we have plenty of tools at our disposal.  We can track inventory turnover rates and tune into conference calls discussing new product development. Sometimes analysts go a step further and conduct channel checks, a fancy way of saying they talk to the company’s suppliers to find out if they… Read More

As investors, one of our first tasks when evaluating a prospective new portfolio candidate is to ascertain where the company’s sales are headed. There are plenty of other considerations, of course. But first, we need to make some educated assumptions about how many widgets will be going out the door.  Fortunately, we have plenty of tools at our disposal.  We can track inventory turnover rates and tune into conference calls discussing new product development. Sometimes analysts go a step further and conduct channel checks, a fancy way of saying they talk to the company’s suppliers to find out if they are ordering more (or fewer) raw materials and components. They might also query customers to see how fast certain products are moving. By collecting information from the supply chain and distribution channels, it’s possible to gain valuable insights on volume and pricing trends.  #-ad_banner-#There’s nothing wrong with any of that.  But sometimes, the most obvious solution is right in front of us. When companies are struggling, they often reduce their workforce. Conversely, when business is picking up, they expand and bring in new employees to meet the increased workload. So, you can gauge demand just by examining hiring trends —… Read More

I’ve never shopped at Macy’s (NYSE: M), nor have I followed it closely as an investment candidate. Like many, I know the iconic department store best from its prominent role in the classic Christmas film, Miracle on 34th Street. But Macy’s investors may remember January 10 as the Massacre on 34th Street. The stock fell off a cliff that day, tumbling nearly 19%, the sharpest decline in its storied history. It was a bad day for many retailers. JC Penney (NYSE: JCP) dropped 4.4%. Kohl’s tumbled more than 10% at one point. But the harshest punishment was reserved for Macy’s,… Read More

I’ve never shopped at Macy’s (NYSE: M), nor have I followed it closely as an investment candidate. Like many, I know the iconic department store best from its prominent role in the classic Christmas film, Miracle on 34th Street. But Macy’s investors may remember January 10 as the Massacre on 34th Street. The stock fell off a cliff that day, tumbling nearly 19%, the sharpest decline in its storied history. It was a bad day for many retailers. JC Penney (NYSE: JCP) dropped 4.4%. Kohl’s tumbled more than 10% at one point. But the harshest punishment was reserved for Macy’s, which lost $1.8 billion in market value in a single session. —Recommended Link— 9 Investment Revelations For 2019 From toppling the titans of Monday night entertainment to robotic heart surgery… 2019 will be a very interesting year for investors. Want to know where the smart money will be in 2019? Click here to discover the tickers now. So what terrible transgression did the company commit to bring down this wrath? Well, management said that revenues would be flat in 2018. Let’s be honest — nobody expected Macy’s to deliver sizzling growth. The prior outlook called for sales to inch… Read More

As my High-Yield Investing premium subscribers know, I make it a point to keep readers abreast of potential dividend increases on the horizon in the coming weeks. Considering many stocks pop on a dividend hike, I prefer to give my readers actionable ideas before the announcement, not after. (Although if there is a noteworthy increase that has already just been confirmed, I sometimes share those as well.) February brings a fresh batch of prospects. When narrowing down the field, I look for several traits such as superior dividend growth and proven longevity. By those measures, we’ve got a good group… Read More

As my High-Yield Investing premium subscribers know, I make it a point to keep readers abreast of potential dividend increases on the horizon in the coming weeks. Considering many stocks pop on a dividend hike, I prefer to give my readers actionable ideas before the announcement, not after. (Although if there is a noteworthy increase that has already just been confirmed, I sometimes share those as well.) February brings a fresh batch of prospects. When narrowing down the field, I look for several traits such as superior dividend growth and proven longevity. By those measures, we’ve got a good group this month. 1. Coca Cola (NYSE: KO) — Some investors think of Coca-Cola as a one-trick pony, but that couldn’t be further from the truth. Yes, the flagship product is still one of the world’s most popular and widely-distributed beverages, sold in 200 countries around the globe. But it’s just one of a growing portfolio of 21 billion-dollar brands, including Dasani water, Powerade sports drinks, Gold Peak sweet tea, and Simply Orange fruit juice. The company has also just made a leap into the hot beverage market with the $5 billion acquisition of Costa, the top coffee brand in the… Read More

By all accounts, it was a productive holiday season for retailers across the country. Mastercard (NYSE: MA), which is uniquely qualified to monitor spending habits, estimates U.S. holiday spending rose 5.1% this year. That represents the sharpest annual increase in six years. —Recommended Link— Is the Next “Millionaire Maker” In YOUR Portfolio? We’ve uncovered one company that is rapidly changing the way we view medicine forever (and add a few extra zeroes to your bank account in the process). Details here. If prognostications from research firm eMarketer are accurate, brick-and-mortar stores rang up 4.4% more sales during the pivotal… Read More

By all accounts, it was a productive holiday season for retailers across the country. Mastercard (NYSE: MA), which is uniquely qualified to monitor spending habits, estimates U.S. holiday spending rose 5.1% this year. That represents the sharpest annual increase in six years. —Recommended Link— Is the Next “Millionaire Maker” In YOUR Portfolio? We’ve uncovered one company that is rapidly changing the way we view medicine forever (and add a few extra zeroes to your bank account in the process). Details here. If prognostications from research firm eMarketer are accurate, brick-and-mortar stores rang up 4.4% more sales during the pivotal holiday season than in 2017, while eCommerce sales jumped 16%. Combined, shoppers dropped more than $1 trillion for the first time ever. #-ad_banner-#Even when Halloween decorations were still on the shelf, there were already upbeat signs for retailers. Wal-Mart (NYSE: WMT) reported strong third-quarter comparable sales, led by a powerful 44% increase in online revenues, encouraging management to lift its full-year financial targets. That jives with a report from the Bureau of Economic Analysis showing that consumer spending rose nearly 4% in the third quarter and is now running at an annualized pace of $14.1 trillion. The personal consumption expenditures… Read More