MasterCard Stock Analysis – This and VISA are 2 Stocks I Will Never Sell

Summary

  • This MasterCard stock analysis is based on Q2 2017 results released July 27, 2017.
  • MA’s projected EPS for FY 2017 and FY 2018 from multiple analysts have been revised upward subsequent to my February 1, 2017 post.
  • MA recently received a favorable ruling from the Competition Appeal Tribunal (CAT) and no longer faces the $18B British Class Action Suit filed against it.
  • While MA’s dividend yield is currently sub 1% I expect dividend income and capital gains will yield a high single digit or a low double digit return over the long-term.
  • MA and VISA are two stocks I will never sell.

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Genuine Parts Company Stock Analysis – This Company Suits My Investor Profile

Summary

  • This Genuine Parts Company stock analysis is based on its Q2 2017 results which were reported July 20, 2017.
  • Total sales were up 5% to a record setting $4.1B, net income was $0.19B, and EPS increased 1% to $1.29 versus Q2 2016.
  • YTD FY2017, businesses with approximately $0.18B in annual revenues have been acquired. GPC has also made a minority investment in a market leading industrial distributor in Australia.
  • Management is of the opinion the long-term fundamental drivers for its U.S. automotive aftermarket business remains sound.
  • With a track record of 61 consecutive years of dividend increases, GPC is a member of the exclusive Dividend King group of companies (50 consecutive years of dividend increases).

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FFJ Portfolio – June 2017 Dividend Income Report

Given the recent events for which I have provided a high level overview in my Financial Plans Should Account for Potential Major Mental Health Issues post, I have totally neglected this website. Now that matters have improved slightly I will endeavor to resume regular posts. In this regard, I provide an overview of the dividend income generated in the FFJ Portfolio during the month of June 2017. While this portfolio only represents a small component of our overall holdings, I think it is sufficient to demonstrate that a passive dividend income portfolio is:

Financial Plans Should Account for Potential Major Mental Health Issues

Typically, my posts will consist of a company analysis, whether I view the company as a worthwhile investment, and what I deem to be a reasonable valuation. The purpose of today’s post, however, is entirely different. What I hope to impart in this post is:

  • the importance of being debt free
  • the reason dividend income should be a very important component of any financial planning strategy
  • that Powers of Attorney over Health and Wealth can sometimes not be worth the paper they are written on
  • the need to craft Wills that take into consideration future potential mental health issues
  • the ongoing administration of assets

In essence, every proper financial plan should have a contingency plan in the event one or more family member were to experience major mental health issues.

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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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