Sun Life Financial Inc. Stock Analysis – Less volatile than its largest Canadian counterpart

Summary

  • Sun Life’s medium term objectives are 8 – 10% EPS growth, 12 – 14% ROE, and a 40 – 50% dividend payout ratio.
  • SLF is more of “steady as she goes” type of investment with a moderate level of potential capital appreciation.
  • I view SLF as a less volatile long-term investment than its largest publicly traded competitor (Manulife Financial).
  • This long economic expansion is now into its 9th year. Typically, expansion ends from a Fed tightening cycle. SLF could be suitable for you if you want to adopt a cautious approach.

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Hormel Foods Corporation Stock Analysis – I Have Added this Dividend King to My FFJ Portfolio

Summary

  • Hormel held its Investor Day June 15, 2017 wherein it provided a great overview of the company`s growth opportunities.
  • HRL`s long-term targets are 5% top-line growth, 10% bottom-line growth, and margins in the top quartile of its peers by 2020.
  • It is one of a few companies which have increased the annual dividend for 50+ consecutive years thus placing it in the exclusive Dividend King group of companies.
  • HRL`s stock price has retraced from a high set in August 2016. Current valuation levels are now reasonable.

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Know The Investment Risks You Are Assuming

I am constantly amazed at how so many people look for the quick and easy way to get rich without truly understanding both the RETURN and the RISK aspects of an investment opportunity. It doesn’t take long to perform a quick internet search to come up with examples of investors who overlooked the inherent risks of the investments they made because they focused on the “supposed” returns. Continue reading “Know The Investment Risks You Are Assuming”

Millionaire Wealth Building Habits

Have you ever heard the term “Money is the root of all evil”? Ever notice the people with no money, little ambition, or little desire to become financially free are those who use this term? In my opinion the term “The love of money is the root of all evil” is more appropriate.

There is nothing wrong with making and having money as one of your key priorities in your life on the condition your relationship with family/friends does not suffer at the expense of creating wealth and your morals/ethics are not messed up. Think of it, if you are a genuinely good person don’t you think you can help a whole lot more people if you have money as opposed to being in a position where you are struggling to makes ends meet?

In this regard, I am providing the following list of wealth building habits that have worked for my wife and me. Continue reading “Millionaire Wealth Building Habits”

See How Inflation Impacts You. Prepare Yourself!

Inflation really impacts you so prepare yourself!

On June 14, 2017, US Federal Reserve Chairwoman Janet Yellen and all but one of her central bank colleagues voted to raise its benchmark federal-funds rate by a quarter percentage point to between 1% and 1.25% thus representing the 3rd increase in the past year and a half. (See Federal Reserve Press Release). In addition to lifting this key U.S. interest rate, the Fed laid out a plan to shrink its massive $4.5 TRILLION balance sheet starting “this year”.

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Manulife Financial Corporation Stock Analysis – This Ranks As One of My Top 5 Worst Investments

Summary

  • This Manulife Financial Corporation stock analysis is based on Q1 2017 results.
  • Manulife is the largest life-insurance company in Canada and ranks among the top 5 globally.
  • Manulife has either been a wonderful or a terrible investment with much dependent on when you acquired shares subsequent to it being demutualized in 1999.
  • I suggest readers take a “pass” on Manulife. There are far better investment opportunities in the universe of publicly listed companies.

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The J.M. Smucker Company Stock Analysis – Welcome to My FFJ Portfolio

Summary

  • This The J.M. Smucker stock analysis is based on Q4 and FY2017 results released June 8, 2017 and its 2018 forecast.
  • I have been looking to increase my exposure in the Consumer sector and view the Non-Cyclical Consumer Goods space as one likely to experience a lower level of volatility.
  • SJM has been on my radar but I have viewed the stock as overpriced. The price has retraced to a level where I now view SJM as fairly priced.
  • It has been in business for 120 years, has several iconic brands in its portfolio, and meets my criteria for a company in which I want to invest for the long-term.
  • SJM generates strong free cash flow which will enable management to deleverage while making astute “bolt-on” acquisitions thus resulting in strong stock price appreciation over the long-term.

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