VISA Stock Analysis – Still Humming Along

Summary

  • This VISA stock analysis is based on Q1 results and outlook for the remainder of fiscal 2017 which were released February 2, 2017.
  • Visa reported reasonably solid results for Q1 2017 on February 2, 2017.
  • While I would be prepared to buy shares at $82, we already have a full position. I will, therefore, patiently wait until V drops to $75.
  • The use of options could provide you with an opportunity to earn some premium while you wait for V to reach a more attractive level.

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Automatic Data Processing Stock Analysis – Too Expensive

Summary

  • This Automatic Data Processing stock analysis is based on Q2 2017 results and outlook for the remainder of fiscal 2017 which were released February 1, 2017.
  • Revenues increased 6% to $3.0B, 7% on a constant dollar basis.
  • Adjusted diluted EPS from continuing operations increased 20% to $0.87, 19% on a constant dollar basis.
  • Fiscal 2017 share repurchases of $1.2B – $1.4B to be funded by existing balance sheet cash vs. prior forecast of $1.0B – to $1.4B.
  • ADP’s stock price is still too rich for my liking. I will wait for ADP to drop to $92ish.

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CDK Global Stock Analysis – Too Expensive Now. Put it on your Radar.

Summary

  • This CDK Global stock analysis is based on Q2 2017 results and its outlook for the remainder of fiscal 2017.
  • CDK’s stock price has doubled to almost $64 since it was spun-off from ADP in 2014.
  • CDK’s sub 1% dividend yield will not appeal to investors seeking income from their investments.
  • CDK is expensive and I am of the opinion a $17 drop in price to approximately $46 – $47 is required before I purchase more shares.

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MasterCard Stock Analysis – Expensive But Worth The Price

Summary

  • This MasterCard (NYSE: MA) stock analysis is based on Q4 and FY 2016 results reported January 31, 2017.
  • MA continues to perform well but lofty expectations resulted in a small pullback in the stock price.
  • While MA’s PE is just shy of 30, I am willing to pay up for high growth and will acquire additional shares.
  • Should MA’s stock price experience a significant correction at a later date (not due to the deterioration of the business), I would buy more shares to lower my average cost.

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United Parcel Service Stock Analysis – It is now in my “Buy Zone”

Summary

  • This United Parcel Service stock analysis is based on Q4 and FY2016 results reported on January 31, 2017.
  • UPS reported its results and the stock dropped roughly 8%.
  • Results were impacted by a Mark-to-Market Pension Charge which resulted in EPS falling short of expectations.
  • UPS continues to grow its business and FCF is still strong.
  • UPS’ shares are now at the upper end of my “buy zone” and I acquired more shares on January 31, 2017.

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Colgate-Palmolive Stock Analysis – A Little Patience

Summary

  • This Colgate-Palmolive stock analysis is based on Q4 and FY2016 results and outlook for fiscal 2017 reported on January 27, 2017.
  • Colgate reported its third year in a row of declining global sales.
  • Diluted EPS, FCF, and NI increased relative to FY2015. Positive results are attributed to company initiatives and because FY2015 results were negatively impacted by the write-off of Venezuelan operations.
  • Colgate is a Dividend King. I anticipate a $0.01/quarter dividend increase to be announced within 2 months to keep this string of increases intact.

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Which is Better? Automatic Dividend Reinvestment or Cash?

Over the years I have read articles which ask “Which is better? Automatic dividend reinvestment or cash?”

I think both stategies are dependent on your personal preference and financial requirements. What might be an appropriate course of action for one investor may not be wise for another. Furthermore, one strategy may be appropriate during one stage of your life but not in another. Continue reading “Which is Better? Automatic Dividend Reinvestment or Cash?”