Hello, my dears. Welcome to a new overview of upcoming ex-dividend dates and dividend ideas here on the TEV Blog. Like every week, I want to show you some stocks that will go ex-dividend in the next days. I’ll also review a few companies currently in the focus of investors or that have an attractive fundamental valuation. Additionally, I’ll give you some insights into my retirement portfolio and/or share my thoughts and experiences about individual companies with you.
Why yields are a simple way to screen companies
Dividends are a great thing. Even in bad stock market times, they provide a juicy cash flow per month. If you want to benefit from dividend payments as quickly as possible, you must pay attention to the ex-dividend dates. This date is the day on which shares are traded without their subsequent dividend value. Only if you owned the stocks on this day are you entitled to receive the dividend.
Usually, there are always exciting dividend companies that are worth a second look. And the dividend yield is an excellent way to get an initial overview of companies that may be worth further due diligence. To help you get started, at the end of each week, I will publish the ex-dividend dates for the coming week of individual companies here in the TEV blog.
Why I handpick and double-check the upcoming ex-dividend dates next week
I have recently noticed that many databases do not indicate the respective numbers and dates correctly. Spontaneous dividend cuts, in particular, are only partially taken into account, or in some cases, not at all. As a result, the value of such overviews dwindles enormously.
Therefore, I’ve decided to select individual companies by hand and check the dates and dividend yields on the companies’ websites, which means more work for me but increases this section’s value enormously, so it is worth it 🙂
Because I’ve been asked about it by some of the readers: I don’t decide my investments based on whether a company goes ex-dividend or not. This overview is simply a way to screen companies regularly. By double-checking the current dividend yields, I scan companies’ business development more or less once a quarter and see if anything significant has changed. In the end, however, comprehensive due diligence always decides whether I invest or not.
As always, you’ll find some handpicked exciting ex-dividend dates below.
|Company||Payment Date||Yield||In my retirement portfolio|
|Monday, October 19, 2020|
|Tuesday, October 20, 2020|
|AZZ (AZZ)||November 04, 2020||1.91%||NO|
|Lowe's Cos. Inc. (LOW)||November 04, 2020||1.38%||NO|
|Zoetis Inc. (ZTS)||December 01, 2020||0.49%||NO|
|Wednesday, October 21, 2020|
|Argan Inc. (AGX)||October 30, 2020||2.33%||NO|
|Apache Corp. (APA)||November 23, 2020||1.09%||NO|
|CVS Health Corp. (CVS)||November 02, 2020||3.42%||YES|
|HollySys Automation Technologies Ltd. (HOLI)||November 20, 2020||1.65%||NO|
|LTC Properties (LTC)||October 30, 2020||6.44%||NO|
|Solar Senior Capital Ltd. (SUNS)||October 30, 2020||9.81%||NO|
|Thursday, October 22, 2020|
|Colgate-Palmolive Co. (CL)||November 11, 2020||2.20%||NO|
|nVent Electric Plc (NVT)||November 06, 2020||3.72%||NO|
|Gladstone Capital (GLAD)||October 30, 2020||10.24%||NO|
|Procter & Gamble (PG)||November 16, 2020||2.20%||YES|
|Thor Industries (THO)||November 06, 2020||1.73%||NO|
|Williams-Sonoma Inc. (WSM)||November 27, 2020||2.03%||NO|
|Friday, October 23, 2020|
|Apogee Enterprises Inc. (APOG)||November 10, 2020||3.00%||NO|
|Caterpillar (CAT)||November 20, 2020||2.52%||YES|
|Royal Bank of Canada (RY)||November 24, 2020||4.45%||NO|
|Simulations Plus (SLP)||November 02, 2020||0.32%||NO|
What’s on the list this week?
Once again, a week has passed in which the number of people infected with corona has skyrocketed. More and more countries in Europe are reporting historic highs. We see that the numbers are rising and rising in Germany, the Czech Republic, Poland, and France. In the meantime, the tones in politics have also changed. In the summer, many politicians said that they did not expect a big second lockdown. A few weeks ago, the motto was to prevent such a second lockdown by all means. In the meantime, we are on the verge of individual regions in Europe being wholly sealed off again, as in Madrid, for example.
A second lockdown might be inevitable
I consider a second lockdown (no matter what you call it, then) almost inevitable. The effects on the economy are likely to be destructive. Smaller companies, in particular, which had already suffered heavy losses in the spring, had no chance of saving up a financial buffer over the summer. And even if governments support individual companies with loans or bailouts, the damage is immense. On the one hand, the personal stories of those individually affected suffer from the COVID-19 disease and its economic consequences. From an economic point of view, a lockdown like this means complete paralysis of innovation and progress. Maybe now home offices are becoming more critical, digitization is advancing, but still, a lockdown like this is likely to cause what it is: standstill.
The economy will resurrect as it has always done
Nevertheless, I have some hope. The economy will resurrect as it has always done, and new prosperity will be created. Companies that slim down now, save costs seek efficiency will end up more robust than before.
However, those companies that live solely on state aid but are not viable represent a threat to the entire economy. Those are zombie companies older than ten years and have an interest coverage of less than 1 for more than three consecutive years. Such zombie companies don’t necessarily look like they might already be as good as bankrupt. They still sign contracts, get loans from banks, and take part in economic life. When the truth comes out, and the companies are broke, banks and contractors remain sitting on their claims and have to make massive write-offs, which can quickly develop into a snowball system.
So when you invest, make sure that the companies are profitable, generate positive cash flow, and that their cash flow is sufficient to repay the debts in the long term. If you then invest in companies that are active in markets that will still exist in the next 10 to 20 years, then you are doing many things right in the first place.
My investments in Procter & Gamble show how I invest
Procter & Gamble is an excellent example of how I invest. The company is a consumer goods giant and it is highly likely that you’ve seen dozens of its products in the supermarket or used them in your household. These products include toothpaste, home care products, personal care products, and toilet paper and face constant demand. Since consumers buy such products even in economically challenging times, Procter & Gamble’s business model can be seen as crisis-proof.
The company will probably continue to exist in the coming decades. It is not dependent on individual brands. It can sell poorly performing brands and buy growing brands into its portfolio. The business model is so simple but so ingenious. I always keep an eye on such companies. They all go through weaker phases. Many investors then become nervous and sell. They say Procter & Gamble has no future. The management missed the trend xy. In general, consumers are no longer fixated on brands, etc. Take advantage of such vibes and then buy aggressively if the fundamental setting is right, i.e., if the company is profitable and continues to grow.
At Procter & Gamble, this was always the case in the long term, and yet the share price was sometimes below and sometimes above fair value. I bought massively when the price was below fair value. Now I am not doing anything for the time being because Procter & Gamble looks a bit too expensive (read here why I do not sell shares despite overvaluation). I am therefore enjoying the profits and am looking for other investments to which my approach also applies.
Cisco fits perfectly in my investment approach
Cisco is a company where the above is very much in evidence. The company is in a transition state and wants to move away from the isolated hardware business and combine hardware with software. Of course, this takes time, and many investors become impatient. And then they say the things they said at Procter & Gamble. The management has missed the subscription model. The products are bad (Webex), and in general, the company is a dinosaur and has no room left. Maybe they are right, but I see a growing company, that pays a stable dividend and gears its business to the future. That is solid. I can work with that.
Besides, Cisco is also heavily undervalued and, therefore, twice as interesting for me. Therefore I buy shares here from time to time and am happy about the bargain. The last time I purchased 14 shares was in September (you can read more about this in my TEV Report from September). Now I will wait again for a few months. If Cisco stays that cheap, I will buy more shares then.
Time to do your due diligence
Has a company caught your interest? Attractive dividend yields should not be the only reason to buy shares of a company. Instead, you must carry out careful due diligence before every purchase. The Internet offers you excellent opportunities in this respect.
Otherwise, I use tools like those from Dividendstocks.cash and Seeking Alpha to do further research. You can also find me and my analyses on these platforms. We also have a small but lovely group on Facebook that you can join. We share there only fundamental analyses of companies from various sources. So there is no spamming or anything like that.
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