I am straight flexin' in today's #dividend #stock video! I'm celebrating the success of two dividend stocks that are making investors #rich. I'm talking about two stocks that the media hates! One of them is yet another stock that is ridiculously undervalued. (I'm also excited to answer a subscriber question in today's very long, detailed video.)
1:00 Thug Life
2:00 TOPIC 1: Philip Morris (PM) stock beats analyst expectations.
3:55 PM is growing! The company is growing revenue and earnings. (They are not shrinking.)
5:16 The media is wrong about the entire sin stock industry.
7:30 IQOS (the heated product) is thriving! Sales are up 37%.
8:31 Key Takeaway: Be careful when you listen to the media!
12:15 This is what it means to be a contrarian investor, a value investor.
13:16 TOPIC 2: IBM (big blue) is doing great! I believe it's a ridiculous value.
14:49 The PE (2019 forward) for IBM is 10.8.
15:16 Ian, why do you look at forward PE ratio?
21:45 TOPIC 3: Auto industry investing (F, GM, TM)
27:35 If I were to buy an auto stock, this is generally not a good time in the economic cycle.
33:30 Be very careful with Ford and GM consumer lending divisions.
Make sure to connect with me on Twitter for real time stock market insights: https://twitter.com/ianlopuch
Here's my complete sin stock guide: https://www.youtube.com/watch?v=q8eoj-r51uk
Here's when I last discussed Altria (MO) as a deep discount stock: https://www.youtube.com/watch?v=o-WY9v_4Z9Q
You can download my complete dividend stock portfolio here: https://www.youtube.com/watch?v=hx6pMUZZb9U
I love investing in IBM. Here's my video analysis of IBM: https://www.youtube.com/watch?v=R8oaAc72xzI
TOPIC 1: Philip Morris Stock (PM)
* Up 9%
* PPS $88.22
* $1.14 dividend/quarter
* $4.56 dividend/year
* 5.2% dividend yield
* 4% 5-year div CAGR
* Adjusted EPS of 1.46 (+11% above analyst expectation)
* Revenue of 7.70 billion (4.3% above analyst expectation)
* Raised adjusted 2019 EPS guidance to 5.14 from 5.09.
* Forward PE of 17 (fair valuation, not discount)
* Revenue is up 5.4% YOY (taking currency fluctuation out)
* EPS up 3.5% YOY
* Operating margin up from 40% to 41.7%
* Traditional product down 3.6%
* Heated product us up 37% YOY - YES!
TOPIC 2: IBM Stock
* $150.13 PPS
* $1.62 dividend/quarter
* $6.48 dividend/year
* 4.3% dividend yield
* 13.9 average analyst estimate for 2019
* PE of 10.8!!!
* Payout ratio of 45%
* Q2 EPS $3.17 (+3.3% beat analyst expectations)
* $3.08 EPS last year in Q2
* Beaten EPS every quarter last 2 years!
* $19.2 billion rev
* 4.2% lower than Q2 of 2018's $20 billion
* Fourth quarter of declining rev
* Cloud and cognitive services sales up
* Systems down big (product cycle)
* July 9 completed Red Hat acquisition
* Debt $73 billion
* Global financing of $25 billion
DISCLOSURE: I am long 3M (MMM), Apple (AAPL), Caterpillar (CAT), Philip Morris (PM), BTI (BTI), Altria (MO), and IBM (IBM). I own these stocks in my stock portfolio.
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