Erick Mokaya's avatar
$102.4m follower assets
Josh Kohn-Lindquist's avatar
$24.5m follower assets
10/10/10 Screener
I ran a screener for fun on my Dividends 500 portfolio, trying to find "undeniable" types of stocks for fighting the market's weirdness right now.

A stock needs to have three things to make it into Dividends 500:
  • be an S&P 500 member (mainly to keep the size of the portfolio under control for me)
  • an increasing dividend YoY
  • a payout ratio below 50%

Using this group of roughly 200 stocks, I added another filter for the following:
  • 10%+ revenue growth YoY -- both forward and trailing
  • 10%+ net income and free cash flow (FCF) margin
  • 10%+ return on equity (ROE) and return on invested capital (ROIC)

I chose to use net income margin and FCF margin to avoid getting pencil whipped by stocks boosting FCF through stock-based compensation. If a company's ROE was negative from share buybacks, I looked to ROIC to see if they qualified.

Here is the list of what remained:

It increased my interest in Hershey and Waste Management as steady-Eddie picks as they might be the safest on this list. I also lined up KLAC, ACN, MPWR, MSCI, and FDS for more research, as it feels like I keep seeing their names everywhere.

Did any of these stocks surprise you or stand out in any way?
Would a basket of these 10/10/10 stocks beat the S&P 500 over the next decade?
13 VotesPoll ends on: 09/27/22
Samuel Meciar's avatar
$24m follower assets
Remember when $META overpaid for Instagram and WhatsApp?

Remember when $GOOGL overpaid for Android and YouTube?

Remember when $MSFT overpaid for LinkedIn?

Well, $ADBE now overpaid for Figma :/ :/ :/

It's the same all over again. Bad acquisitions all over the place :( :(
On one hand so many were saying what an excellent management team Adobe has, right before poo-pooing their decision to pay so much for this acquisition. I’ll continue trusting management. They obviously know more than I do about the fit, competition, and goals 5-10 years down the road. Added with glee like I usually do.
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Luka 🦉's avatar
$103.6m follower assets
Microsoft 💸 $0.68/share (+10% increase)
The long-awaited dividend increase happened, and $MSFT confirmed to maintain approximately the annualized growth ratio of the past ten years. Dividend investors love predictability, so we love Microsoft ❤️
Yield 1.02%
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Apple's Achilles Heel
The majority of Apple's suppliers are in mainland China or Taiwan. 90% of Apple's products are made in China through contractors. The chips that Apple designs and the chips that Apple outsources from other fabless companies are all made in Taiwan via TSMC.

With a high possibility of war between China and Taiwan sometime soon, the ramifications of that war are much bigger for $AAPL than for $NFLX $META $GOOGL $AMZN, and $MSFT.

Sure, Apple has tried to diversify its manufacturing network to countries like Vietnam, India, the Philippines, Thailand, etc. but those developments are small and will need time to develop and scale. These manufacturing facilities in these countries can't just replace the capacity that Apple has in China because they're too small.

If China were to invade Taiwan, over 90% of the advanced chip production will go offline. The wave of sanctions that China will face as punishment for its invasion of Taiwan will most likely lockout corporations from accessing their factories in China and prevent companies from receiving parts that they source from China.

This looming geopolitical crisis will make will turn Apple's immense reliance on China from a good thing (because it cost less to build an iPhone in China than in America) to a bad thing because of the sanctions that could be imposed on China if China were to invade Taiwan. Apple will have to build most of its manufacturing network from scratch as a result of this.

For all the Apple investors out there, pay attention to the brewing tensions between China and Taiwan. Based on how things are going, there's a high chance that a war could start soon.
Long HashiCorp $HCP if you're bullish on the multi-cloud trend
HashiCorp is a software company that helps companies use different cloud computing platforms (like AWS and Azure all at once).

Why would a firm want to be on multiple cloud computing platforms?

It's because it reduces the operational risks that come with encountering sever outages from a platform and it helps firms negotiate more on cloud computing pricing.

Rather than having an AWS outage cripple your operations, having a multi-cloud operation will allow a firm to keep operating by relying more on their other cloud service provider in the event that one of your cloud service providers has an outage.

$SNOW is a notable multi-cloud company where users can access their company's data across Azure, AWS, and GCP all at once.

As the multi-cloud gains more adoption, it's possible that the smaller cloud computing players like $ORCL and $IBM could see themselves gaining a bigger piece of the cloud computing spending pie. Meanwhile, $AMZN $MSFT, and $GOOGL will see their pricing power decline as they'll have to face more competition as they start losing power and influence over their clients.

In sum, check out Hashicorp!
Podcast episode: Xbox
Today we released a podcast episode on Xbox, $MSFT's gaming division

This was a fascinating company to cover. I wish it was its own publicly traded stock. There are tons of long-term tailwinds it is going after operating as a duopoly with Sony in the console market



To listen to today's episode and all of our other CCM+ episodes, subscribe for $5 a month on Spotify, Apple, or directly through this link: https://anchor.fm/chitchatmoney/subscribe
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