Low or No Dividend Yield Companies Belong in Your Portfolio
The purpose of this post is to explain why I think low or no dividend yield companies belong in your portfolio. [...]
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Invest In Fuel Generators And Not Fuel Suckers
The world of equities consists of fuel generators and fuel suckers. I use this terminology to describe the types of companies that either fuel or hamper wealth creation. Both categories include companies that: distribute no dividend, or that have unimpressive dividend metrics; and have alluring dividend metrics. This is why it is so important to [...]
Why BlackRock Might Be Overvalued Right Now
With ~$11.6T in assets under management (AUM) following a record $641B of full year net inflows, including $281B in Q4 2024, I view BlackRock (BLK) as a great long-term investment. What I need to determine is whether BLK's valuation is sufficiently attractive to increase my exposure. I last reviewed BLK in my October 17, 2024 [...]
Dividends Have Drawbacks
Dividends can be a great way to return value to shareholders. They do, however, have drawbacks. Do NOT fixate on dividend metrics. Instead, analyze how companies allocate their capital. They can: reinvest in the business; debt reduction; merge or acquire other businesses; distribute dividends; and/or repurchase shares. Typically, companies employ one or more of the [...]
FFJ Portfolio – November 2024
Another month has flown by thus triggering this FFJ Portfolio - November 2024 report; all monthly reports are accessible here. I deployed only ~$94,793 USD during the month and reinvested minimal dividend income. The value of the FFJ Portfolio, however, increased ~$ 35,427 CDN and ~$ 440,440 USD in one month. None of my existing [...]
Zoom Communications – Stock Based Compensation Distorts Free Cash Flow
The company has been renamed to Zoom Communications, Inc. from Zoom Video Communications, Inc. effective November 25, 2024. Valuing a company based on GAAP and non-GAAP EPS can sometimes lead to poor investment decisions. It is for this reason that I like to look at a company's valuation based on Free Cash Flow (FCF). [...]
Emerson Electric Is A Trapped Dividend King
Companies with an investor base that expects annual dividend increases are, in my opinion, trapped and should be avoided. Emerson Electric (EMR), a Dividend King because it has consistently increased its annual dividend for at least 50 consecutive years, is a good example. I suspect many of us have investment holdings we rarely/never look at. [...]
Paycom Is Almost Fairly Valued Following Share Price Surge
In my May 2 2024 post, I disclosed that Paycom's (PAYC) attractive valuation prompted me to acquire additional shares @ ~$163 thus bringing my exposure to 700 shares in a 'Core' account within the FFJ Portfolio. At the time of that post, the most currently available financial information was for Q1 2024 and the Q2 [...]
Low-Risk Paychex Is Too Richly Valued
When I last reviewed Paychex (PAYX) in this April 3, 2024 post, the most current financial information was for Q3 and YTD2024. In that post, I disclosed the purchase of additional shares @ ~$117.55. Fast forward to October 1. We now have Q1 2025 results and shares are trading @ ~$140.80 as I compose [...]
How Stock Based Compensation Distorts Free Cash Flow
Lately, I have been giving more thought to how stock-based compensation (SBC) distorts Free Cash Flow (FCF). What If Employee Compensation Was 100% SBC? I have no objection to the use of SBC to reward employees. My concern is when it goes overboard. As a shareholder, I want the weighted average number of diluted outstanding [...]