Monday, September 28, 2015

You Can't Clean Up A Messy Valuation: The Clorox Company Dividend Stock Analysis

Consumer staple companies make for excellent defensive investments and dividend growth candidates due to the rather inelastic demand for their products. For those companies that have established brands and market share they can typically pass along input costs to consumers which leads to rather consistent growth over any five to ten year period. The Clorox Company (NYSE:CLX) is a fine example of an excellent company with lots of brands holding the number one or two positions in their respective categories. While the company is excellent the valuation leaves a lot to be desired. Shares of Clorox Company closed trading on Friday, September 26th at $116.24 giving a current yield of 2.65%.

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from The Clorox Company's investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates:

You'll be hard pressed to find owners of the Clorox Company that have been disappointed with their returns over the last decade. According to longrundata.com, CLX has earned investors a total return of 280.0% or 10.8% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that Clorox has delivered.

Continue reading The Clorox Company stock analysis on Seeking Alpha.

Also, check out other stock analyses at my Stock Analysis page.

Saturday, September 26, 2015

Weekly Roundup - September 26, 2015


Unfortunately I'm back to the grind of work.  Although that also means that I can get back into a routine of writing on a regular basis.  Work is always such a bittersweet time.  It's great for a few reasons namely that's how I earn my income and also because of the nature of my work I can write while on the clock.  That's a pretty enviable position.  The biggest drawback though is that my work takes me away from home and my wife.  One big advantage to where I work is that it's usually away from big cities which means that I get to see awesome sunrises and sunsets.  The picture from above was from yesterday morning and I love how you can see the orange orb near the horizon and the rays shining through the clouds.  The picture honestly doesn't do the real thing justice.

I'm seeing lots of value in the markets currently and the big question is whether there's more to come or if the markets will resume their climb higher.  I have no idea what will happen but my gut says we'll be looking at more red in the coming months.  Of course my gut isn't the most reliable information source so I'd gladly be buying shares here if I had available capital, but sadly there's none to be found.  That should get fixed over the next couple months as we get into a new normal with income and expenses once again, that's about the 20th time in the last 2 years we've had to make big adjustments, and I can't wait for some normalcy to return to our lives financially and otherwise.  While I wait for cash to build up I'll get back to compiling my watchlist and figuring out target prices so I'm ready when the cash does come in.

Thursday, September 24, 2015

Changes to my portfolio over the last couple months


Whenever I make a new purchase for my portfolio I feel it's only fair to get a post written giving all of the juicy details.  Normally I try to get the posts out as quickly as possible but there was way too much going on in my personal life over the past two months that I just didn't have the time.  So I want to update you all on some of the changes made to my portfolio.  I want to be as transparent as possible with my journey to reach financial independence through dividend growth investing. Being open about the moves I make allows for better discussion with all of you and helps spread ideas around as well as letting me create my own "investing journal" to chronicle why I purchased a company in the first place and that way I can revisit if something changes and make the decision on whether to continue owning the company or not.

Wednesday, September 23, 2015

Colgate-Palmolive Co.: Excellent Company But How's the Valuation?

When volatility in the markets increases that leads many investors to look for defensive investments that will hold up during a market downturn. Consumer staples are some of the best options when it comes to holding up in a declining market as well as offering investors compelling growth and dividend growth opportunities. Colgate-Palmolive (NYSE:CL) is an excellent company with 52 consecutive years of raising their dividend; however, that doesn't mean that we should be willing to purchase quality companies at any valuation. Colgate-Palmolive was trading around $62 per share on Tuesday, September 22nd giving a current yield of 2.46%.

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from Colgate-Palmolive Company's investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates:

Over the last decade, owners of Colgate-Palmolive have delivered excellent returns. According to longrundata.com, CL has earned investors a total return of 206.3% or 11.8% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that Colgate-Palmolive has delivered.

You can continue reading the Colgate-Palmolive Co. stock analysis on Seeking Alpha.

Also, check out other stock analyses at my stock analysis page.

Monday, September 21, 2015

Net Worth Update - August 2015


While cash flow is more important when it comes to financial independence, it's still good to look at the balance sheet too, which is why I provide these net worth updates.  Since more and more of my net worth is tied to the markets, there's a larger correlation between my net worth and the markets but in the long run as I continue to save and invest the net worth trend should be higher even though short term fluctuations can vary wildly.  As a dividend growth investor I'm not overly concerned with the short-term gyrations as long as the dividend stream remains in tact, but the markets' effect is noticeable.  Things have changed quite a bit since my last update covering June of this year.  The markets have moved lower which unfortunately means that my net worth has moved lower as well since a large portion of my net worth is tied to fate of the markets.  While my portfolio and net worth have both declined it's important to focus on what dividend growth investing is all about: dividends and the growth of them.  Dividends continue to roll into my portfolio and so far during September I've received FIVE dividend increases with two more expected to be announced.  That's how you win with dividend growth investing!  During August my net worth declined $20,275.05.

Thursday, September 17, 2015

Dividend Growth Investing at Work - Plenty of Increases to Keep Us All Happy


Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of said companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  Not making sales calls.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!  I mean who really doesn't like getting a raise for doing nothing?

Wednesday, September 16, 2015

Dividend Update - August 2015


August was a pretty rough month for my wife and I but one silver lining is that our portfolio continued to just march on without us having to pay any attention to it.  The companies we own continued to work day in and day out even though my wife and I took a break from the real world and escaped up to Colorado for about a week and a half.  Since we're now into September and I'm hopefully going to get back into a groove with work and writing it's time to finally get my dividend update out for August.  Finally it's time for my favorite monthly update: my dividend update.  These dividend updates reflect all dividends that I receive through my investing pursuits and I hope can help inspire you to take control of your own finances and invest to build a passive income stream.  What you use that stream for is up to you, whether it's to fund early retirement, just provide some FI/FU money, or even to provide for an annual vacation; the key is that it can provide options and opens up all sorts of possibilities.  You can check my dividend income or progress page to see what dedication to an investment plan can give you.