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.

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

Stop Receiving Tax Refunds

Stop receiving tax refunds. Break the cycle of giving the government an interest-free loan.

If the amount of tax withheld from your pay is not reduced at source you likely receive a tax refund shortly after you submit your tax return. If this is the case, I urge you to put an end to this cycle because tax refunds represent the overpayment of taxes. When you overpay your taxes you are giving the government an interest free loan.

Think about it. Where do you think your tax refund comes from? From the taxes you overpaid.

Here are a few easy steps to follow to break the cycle. Continue reading “Stop Receiving Tax Refunds”

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.

Continue reading “Colgate-Palmolive Stock Analysis – A Little Patience”

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?”

Stock Valuations are Too High. I Would Exercise Caution.

For the last several months I have become increasingly concerned that stock valuations are too high for many publicly listed companies on North American stock exchanges. In fact, the last time I made equity investments of any significance, valuations were much, much more favorable.

I admit it has been increasingly frustrating to watch stock prices repeatedly set new highs while I sit on the sidelines. Whenever I find myself thinking “This time it is different”, however, I remind myself of Warren Buffett’s following pearl of wisdom:

“The stock market is a no-called-strike game. You don’t have to swing at everything. You can wait for your pitch.” Continue reading “Stock Valuations are Too High. I Would Exercise Caution.”

Canadian National Railway Stock Analysis – Riding the Rails

Summary

  • This Canadian National Railway stock analysis is based on Q4 and FY2016 results and outlook for 2017 reported January 24, 2017.
  • Revenue dropped but net income, operating income, and diluted EPS increased.
  • Record Free Cash Flow (FCF) of $2.520B was reported which permitted the repurchase C$2B of shares vs. C$1.75B in 2015.
  • The annual dividend has been increased 10% to C$1.65. The C$0.4125/share dividend will be paid on March 31, 2017.
  • Management has forecast mid-single-digit EPS growth in 2017 from the adjusted diluted EPS of C$4.59 recorded in 2016.

Continue reading “Canadian National Railway Stock Analysis – Riding the Rails”