Paylocity (PCTY) has negative net income, and a forward price-to-earnings ratio (91.4x) that would make most value investors shriek! However, it has also been experiencing “hyper” revenue growth that is hard to ignore. This article reviews Paylocity’s hyper-growth in five charts, and then provides our views on whether this Arlington-Heights-Illinois-based, zero-dividend-paying company, is worth considering...
Our 29 Favorite Stocks: Performance Review & Outlook
This week's Weekly provides a brief update on each holding in our three Blue Harbinger strategies: Income Equity, Disciplined Growth, and Smart Beta. On average, our holdings continue to significantly beat the S&P 500 since the November 8th US elections, adding to our growing track record of outperformance. We believe the portfolios are well-positioned for continued outperformance in the future. Without further ado, here are the updates...
Post-Election Dow 30: Ranking the Best and Worst
Following the results of the US elections on November 8th, there have been some clear market winners and losers. In this third installment of “Ranking the Best and Worst” (the previous two covered Big Dividend BDCs and Big Dividend REITs), we rank the post-election performance of the thirty Dow Jones stocks, offer explanations for those that have diverged, and conclude with our views on the top Dow Jones stocks worth considering.
Johnson & Johnson: Dividend Powerhouse, New ACA Risks
JNJ is an absolute dividend powerhouse having increased its dividend for more than 50 years straight. However, the company faces new and increased uncertainty risk in light of a Republican House, Senate and President-elect that seem determined to repeal the Affordable Care Act (ACA). In addition to its attractive growing dividend payment, significant long-term capital appreciation potential, and reduced risk via its large and diverse revenue base, we believe JNJ could eventually benefit from reduced regulatory burden under a modified ACA, but is now the right time to buy?
Post-Election Investment Opportunities
Following Tuesday’s election results, the market reacted significantly. The “Blue Chip” Dow Jones Industrials Average had its best week in 5-years (+5.4%) as investors bought industrials and banks assuming they’ll benefit from more spending, less regulations, and increased inflation under Trump. In this week’s Weekly, we provide some age-old “boring” yet sage advice on how to prepare for the next market shock, as well as three specific investment ideas that we consider attractive right now.
IBM: Has Big Blue Lost Its Way? Or Not?
IBM offers an attractive (3.5%) dividend yield, but the dividend alone is not enough if the stock can’t provide some long-term capital appreciation. In this article, we review IBM’s shrinking legacy business, its attempt at growth via “strategic imperatives,” its dividend, share buybacks, valuation, and risks. And we also provide our strong views on whether it’s time to buy or sell Big Blue.
Our Two Favorite Big-Dividend BDCs
This week’s Weekly covers our two favorite big-dividend Business Development Companies (BDCs). They yield 13% and 10%, respectively. And we own both of them in our Blue Harbinger Income Equity portfolio. They’ve both sold off modestly over the last two months as higher yielding equities in general have sold off, thereby creating a more attractive entry point for long-term income-hungry investors.