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David Alton Clark

 
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  • Kinder Morgan: Best Dividend Growth Buy For The Next 5 Years?
    Yesterday, 2:01 AM KMI 72 Comments

    Summary

    • Kinder Morgan may offer dividend growth investors the lowest risk highest reward dividend growth investment opportunity for 2015.
    • The company has a fortress balance sheet, strong free cash flow, and has a high level of visibility related to dividend growth projections for 2015.
    • The company stated the dividend will increase by 16% in 2015 and by 10% each year until 2020. Furthermore, the stock appears undervalued when compared to its peers.
    • Moreover, Kinder Morgan has several positive catalysts on the horizon for 2015. This bodes well for capital appreciation on top of dividend growth.
  • Exxon Mobil: The Good, The Bad And The Ugly Truth
    Fri, Dec. 19 XOM 20 Comments

    Summary

    • The relentless drop in oil prices continued Thursday after a brief respite.
    • For an untold number of reasons I believe we are nowhere near the bottom in oil presently. Yet, there is light at the end of the tunnel.
    • A flight to safety of oil and gas dividend growth investment dollars may begin to occur as the price of oil continues to plummet.
    • Exxon Mobil should be the beneficiary of this potentially massive shift.
  • General Electric: You Ain't Seen Nothing Yet
    Thu, Dec. 18 GE 52 Comments

    Summary

    • General Electric just held the company’s Annual Outlook Meeting.
    • General Electric is a massive global conglomerate and bellwether stock for the health of global industrial growth.
    • The following are the highlights from the meeting as I see them.
  • Verizon: A Golden Dividend Growth Opportunity Reveals Itself
    Wed, Dec. 17 VZ 22 Comments

    Summary

    • Verizon shares have plummeted over 11% in the past month.
    • This has driven the yield on the shares up significantly in short order.
    • Verizon appears to be in the right place at the right time. The company is making all the right moves to create value for investors.
    • The company is focused on return of capital to shareholders with a robust dividend. Verizon appears to be an excellent dividend growth opportunity presently.
  • Kinder Morgan And The Good, The Bad And The Ugly Truth Regarding Falling Oil Prices
    Editors' Pick • Tue, Dec. 16 KMI 131 Comments

    Summary

    • The relentless drop in oil prices continued Monday with no end in sight.
    • For a myriad of reasons I believe we are nowhere near the bottom presently.
    • A flight to safety of oil and gas dividend growth investment dollars may occur as the price of oil continues to plummet.
    • Kinder Morgan should be the beneficiary of this potentially massive shift.
  • An Unprecedented Dividend Growth Buying Opportunity Materializes
    Sun, Dec. 14 GE 73 Comments

    Summary

    • In my last piece regarding General Electric I listed my top concerns for the company.
    • I like to throw all the potential negatives against the wall and see what sticks when major market shifts occur.
    • I received a tremendous response to the article regarding the veracity of the ‘so-called’ negatives. The value of the feedback from comments section was incredible.
    • In this article I will detail the mitigating factors regarding the potential headwinds. Furthermore, I will make the case General Electric offers an unprecedented buying opportunity.
  • AT&T: You Must Strike While The Iron Is Hot
    Fri, Dec. 12 T 43 Comments

    Summary

    • AT&T’s stock has taken a beating along with the rest of the telecom sector in recent days.
    • AT&T’s CFO recently stated the company may have a considerably wider churn rate year-over-year. Even so, the company still expects to add customers.
    • AT&T now expects full-year revenue to grow 3% to 4% year-over-year, down from prior guidance of 5%.
    • The recent sell-off has unwittingly increased the yield to 5.66%, thereby creating a buying opportunity in the stock for dividend investors.
  • Kinder Morgan: Buy The Dip, It Will Not Last
    Thu, Dec. 11 KMI, KMP 74 Comments

    Summary

    • Oil has fallen to a new five-year low. WTI has fallen nearly 5% after the Energy Information Administration reported U.S. commercial crude inventories unexpectedly rose by 1.5 million barrels.
    • Kinder Morgan is selling off with the rest of the industry on the news. 60% of S&P 500 energy stocks are down more than 30% in six months.
    • I believe the current selloff in Kinder Morgan will be seen as the dividend growth opportunity of the decade when market participants look back at this point in time.
    • Kinder Morgan already offers dividend growth investors a healthy yield of 4.33 with a 10% growth rate over the next five years. Furthermore, there is substantial opportunity for capital gains.
    • Kinder Morgan has a fortress balance sheet, tremendous backlog, and a strong track record of returning capital to shareholders. A significant buying opportunity presents itself.
  • General Electric: What Worries Me The Most
    Wed, Dec. 10 GE 47 Comments

    Summary

    • I have been writing positive articles regarding General Electric’s prospects for growth for several months now.
    • As of Tuesday December 9th the stock is up a mere 5% since my first recommendation to buy in April.
    • In this article I’ve decided to focus on what many have touted as the potential negatives for the company going forward. Hopefully, this article will inspire a tremendous debate on.
    • I will publish a follow up article in a few days detailing all the valuable feedback and insights brought forth in this article.
  • Kinder Morgan's Plan To Take The Oil And Gas Industry By Storm Materializes
    Sun, Dec. 7 KMI, KMP 253 Comments

    Summary

    • In my last piece regarding Kinder Morgan I listed my top concerns for the company based on the massive decline in oil prices.
    • I like to throw all the potential negatives against the wall and see what sticks when major market shifts occur.
    • I received a tremendous response to the article regarding the veracity of the ‘so-called’ negatives. The value of the feedback from comments section was incredible.
    • In this article I will detail the mitigating factors regarding the potential headwinds. Furthermore, I will make the case Kinder Morgan offers an unprecedented buying opportunity.
  • Bank Of America: A Perfect Storm Of Profits Lies Ahead
    Sun, Dec. 7 BAC 22 Comments

    Summary

    • The entire banking sector rose after a strong jobs number was reported Friday morning. Bank of America’s stock was up nearly 3% on the day.
    • The strong jobs growth coupled with several other positive catalysts on the horizon could make 2015 a very exciting year for the bank.
    • Nevertheless, there are always risks to any investment thesis. In the following article we will separate the wheat from the chaff and make a determination.
  • Exxon Mobil: A Massive Buying Opportunity? Don't Drink The Kool-Aid
    Fri, Dec. 5 XOM 50 Comments

    Summary

    • There has been a tectonic shift in the oil patch as of late.
    • The price of oil has sunk to multi-year lows on the back of news OPEC will not cut production and the incredible success of North American oil and gas production.
    • Consequently, Exxon Mobil’s stock has taken a hit as of late. Several analysts have come out touting this is an excellent buying opportunity.
    • I say not so fast. In the following article we will attempt to determine the truth regarding the opportunity Exxon Mobil offers dividend growth investors.
  • General Electric: The Opportunity Of The Coming Decade Materializes
    Thu, Dec. 4 GE 46 Comments

    Summary

    • The General Electric Power Generation Products President and CEO Vic Abate presented at the Credit Suisse Global Industrials Conference recently.
    • Mr. Abate had some interesting information regarding General Electric’s Power Generation Products division’s prospects for growth over the next 10 years.
    • In this article, I will cover the major highlights as I see them from the presentation and attempt to separate the wheat from the chaff for dividend growth investors.
  • Kinder Morgan: What Worries Me The Most
    Wed, Dec. 3 KMI, KMP 243 Comments

    Summary

    • The merger of the Kinder Morgan family of companies has been overwhelmingly approved.
    • The timing of the merger couldn't have been better. The good news from the merger offset the bad news of falling oil prices to some degree I suspect.
    • Although Kinder Morgan’s revenues are not direct correlated to the price of oil, I believe the company may have a bit more exposure than many perceive.
    • In this article I will lay out what I see as the potential negatives for the company going forward related to a sustained drop in oil prices and other exposures.
  • General Electric: Don't Be Fooled, The Sky Is Not Falling
    Sun, Nov. 30 GE 30 Comments

    Summary

    • News broke recently that the Fed plans to regulate General Electric’s finance arm as a major bank.
    • Some have suggested this is very bad news for General Electric. I beg to differ.
    • This may be the first some have heard about this development, yet General Electric has been preparing for this since 2008.
    • The plan to minimize the impact of the financial segment has been underway for years. In this article we will analyze the situation and separate the wheat from the chaff.
  • General Electric: Hold On Tight, A Perfect Storm Of Profits Lies Ahead
    Wed, Nov. 26 GE 62 Comments

    Summary

    • General Electric is constantly looking for ways to expand into new areas to create opportunities for future growth.
    • The latest initiative is General Electric’s wind-power business. General Electric plans to expand its wind-power business globally while providing services such as data analytics to improve turbine performance as well.
    • General Electric plans to have a wind turbine business presence in 35 or more countries next year, up from merely eight in 2003.
    • Considering the amount of positive news out recently, 2015 could be the year shareholders are justly rewarded. Nevertheless, there are downside risks.
  • Kinder Morgan: Is There A Multi-Billion Dollar Elephant In The Room?
    Tue, Nov. 25 KMI, KMP 65 Comments

    Summary

    • The Kinder Morgan merger transaction has been approved.
    • There has been much written about the positive synergies of the merger.
    • Nonetheless, the conceivably largest benefit from the merger has gone mostly unheralded. Furthermore, I believe this benefit is not currently priced in to the stock.
    • I submit this one major attribute of the merger is the primary driver behind Kinder's 10% dividend growth projections over the next 5 years.
  • Kinder Morgan: The Calm Before The Storm?
    Sun, Nov. 23 KMI 203 Comments

    Summary

    • Kinder Morgan shareholders and unitholders voted overwhelmingly to approve a merger of the Kinder Morgan family of companies.
    • Upon announcement of the news the company actually immediately sold off 3% rather than rallying.
    • This may be due to several issues regarding potential negative impacts such as MLP ETF and Fund rebalancing, merger arbitrage plays, and tax related sales due to the merger.
    • In this article we will identify these issues and determine if they are truly headwinds or not. We will also consider several positives that may not be priced in.
  • Kinder Morgan: Stock Nosedives, Time To Sell Out Or Buy With Both Hands?
    Thu, Nov. 20 KMI, KMP 165 Comments

    Summary

    • The Kinder Morgan merger was overwhelmingly approved by shareholders and unitholders alike.
    • Even so, the stock took a nose dive as soon as the news was announced. What gives?
    • In the following article we will attempt to make sense of the stock’s sell-off on the merger approval news and decide if this is actually a buying opportunity.
  • Bank Of America Has An Ace Up Its Sleeve
    Thu, Nov. 20 BAC 30 Comments

    Summary

    • Bank of America is well positioned to for considerable upside in 2015.
    • The bank seems to have finally put its litigation risk behind it. This has been well documented over the past month.
    • Even so, I believe Bank of America has another major catalyst on the horizon I haven’t seen covered in recent articles.
    • This “ace up its sleeve”, so to speak, could mean billions to the bottom line next year for Bank of America. The great news is the ace must be played.
  • Kinder Morgan: Is The Merger Actually Bad News For KMP Unitholders?
    Wed, Nov. 19 KMI, KMP 215 Comments

    Summary

    • Kinder Morgan is a day away from the announcement of one of the most important proxy votes in the company’s history.
    • November 20, 2014 is the deadline for shareholders and unitholders to vote on merging the Kinder family of companies.
    • The question remains - Is the merger really a good deal for KMP unitholders considering the tax consequences? Some say it is not.
  • General Electric: A Golden Total Return Opportunity Is Never Offered Twice
    Tue, Nov. 18 GE 33 Comments

    Summary

    • General Electric currently offers income investors a safe long-term investment. The company has a fortress balance sheet and strong cash flow.
    • The planned transformation of the company into an industrial powerhouse is expected to reward investors with capital gains and dividend growth. This makes the stock an excellent total return investment.
    • Furthermore, the stock appears undervalued on a relative basis and has several positive catalysts on the horizon. In the following article I will lay out my case.
  • Kinder Morgan: Another Domino Falls Into Place
    Sun, Nov. 16 KMI 88 Comments

    Summary

    • Kinder Morgan shares rallied Friday on positive developments reported.
    • As the company nears the all-important merger vote, positive momentum appears to be building.
    • The latest domino to fall into place was an important legal victory for the company. This is extremely important news for dividend investors with interest in Kinder Morgan.
  • Bank Of America: Is A Return To Glory In 2015 In The Cards?
    Sun, Nov. 16 BAC 41 Comments

    Summary

    • Bank of America has been clawing its way back from the brink since the 2008 crash.
    • The company cut the dividend drastically down from $0.64 in the 3rd quarter of 2008 to $0.01 by the 1st quarter of 2009.
    • With the bank apparently putting its legacy mortgage woes behind it and EPS expected to rise substantially in 2015, could Bank of America return to glory in 2015?
  • Kinder Morgan: The Stars Align As Merger Vote Looms
    Thu, Nov. 13 KMI, KMR 36 Comments

    Summary

    • Kinder Morgan had another huge coup related to the upcoming vote to merge the companies.
    • The merger vote is arguably the most important event in the company’s history. Kinder gave an update regarding the transaction at the Jeffries 2014 Energy Conference Wednesday.
    • The recent recommendation by two major advisory firms in favor of the merger is very positive news for shareholders. In the following article I will lay out my bull case.
  • Ford: A Dividend Growth Buying Opportunity Presents Itself
    Wed, Nov. 12 F 122 Comments

    Summary

    • Ford’s stock has tanked 17% over the last quarter, yet is up 2.47% for the month.
    • The stock appears to have found support at the $14 level. Furthermore, free cash flow over $3.8 billion and rising.
    • The sell off in the stock may have created an excellent dividend growth investment opportunity by driving the yield to over 3.5%.
  • Kinder Morgan: The Storm Before The Calm
    Tue, Nov. 11 KMI 17 Comments

    Summary

    • The company’s plan to expand the Trans Mountain pipeline has been hit with protests as of late. This is only the last in a long list of negative headlines.
    • The expansion is a $5.4 billion plan to increase capacity of the Northwestern oil pipeline to 890,000 barrels per day throughput.
    • Nonetheless, I expect the opposition to reach a fever pitch as the National Energy Board hearing draws near.
    • The following article provides a current status update on the Trans Mountain Expansion Project.
  • Bank Of America: Fasten Your Seat Belt And Prepare For Takeoff
    Tue, Nov. 11 BAC 15 Comments

    Summary

    • Bank Of America has panoply of positive catalysts on the horizon.
    • These catalysts combined with the bank putting its mortgage litigation woes behind it should spur the stock higher.
    • Even so, headwinds remain. Nevertheless, with the Republicans taking control of the Senate, is the worm finally about to turn?
  • Kinder Morgan: Just Cleared Major Hurdle On Way To Merger Vote
    Thu, Nov. 6 KMI 49 Comments

    Summary

    • A Delaware court has denied a preliminary injunction sought by plaintiffs who wanted to block the Nov. 20, 2014, vote on the proposals related to the merger of the companies.
    • This is great news for shareholders in my book due to the synergistic nature of the merger.
    • Although nothing is set in stone just yet, I see blue skies ahead for Kinder Morgan shareholders.
  • Nike: The 800-Pound Gorilla Just Broke Out
    Thu, Nov. 6 NKE 2 Comments

    Summary

    • Nike's stock has been on a tear over the past year, and just broke above the current trading range.
    • I see no reason for the rally halting anytime soon.
    • Constant product innovation and the ability to execute effectively has led to several positive fundamental results. The stock is a buy here.
  • Kinder Morgan: A Golden Dividend Growth Opportunity Is Never Offered Twice
    Thu, Nov. 6 KMI, KMP 57 Comments

    Summary

    • Kinder Morgan currently offers dividend investors a safe investment opportunity. The company has a fortress balance sheet and strong cash flow.
    • The planned consolidation of the companies is expected to reward investors with 8% dividend growth per share for the next five years.
    • Furthermore, the stock appears undervalued with several positive catalysts on the horizon. This bodes well for capital appreciation making it an excellent total return play.
  • General Electric: 2015 Industrial Internet Opportunity Looms Large
    Wed, Nov. 5 GE 15 Comments

    Summary

    • General Electric’s Industrial Internet program added $1 billion in incremental revenue in 2014.
    • General Electric believes the combination of networks and machines could add $10 to $15 trillion to Global GDP over the next 20 years.
    • The size of this opportunity is staggering for General Electric based on the size of its services business.
    • The news outlining this opportunity fell on deaf ears recently. This has created a major buying opportunity for dividend investors.