Sure Dividend

Thanks for mentioning our website, @Dale Roberts !

Agreed, this industry looks significantly undervalued.

Phenomenal article, this was very interesting research.

The company's 10-K was filed today!

Thanks for mentioning our resources, @Dale Roberts!

Thanks for the mention!

Your article on T's debt was fantastic: seekingalpha.com/...

Agreed, it's more about the future of the business than debt at this point. This was a good quarter, I'm surprised to see such a steep decline. It looks like a buying opportunity to me. Long T.

I'm holding my shares. I think it's a little overvalued right now relative to its historical averages, but the future looks very bright. ABBV makes a great long-term hold. Looking forward to years of rising dividends.

Thanks Dale!

Great article backed up by research! Thanks for mentioning Sure Dividend.

Following value or performance (momentum) depends on your time period. If you're looking to hold for the long-run, value works well. If you're looking to hold for 1 month, momentum works well.

Agreed. No one eats at MCD because it's the best restaurant around. It's predictable, cheap, and fast, and that appeals to a lot of people at least some of the time.

If the company's recent results are any indication, McDonald's is finding ways to appeal to its customer base.

I agree, there's plenty of good free info out there. I think you will find that Undervalued Aristocrats provides a great deal of value, and easily justifies the cost.

At the end of the day, what matters most in discount retail is price. Wal-Mart tends to be as cheap or cheaper than Amazon: https://bit.ly/2vFVEDp

The difference is that Wal-Mart has significantly higher margins. This means Wal-Mart hast he more efficient system. In a war between the two, Wal-Mart could undercut Amazon (and hurt its business in doing so as profits would plummet). Instead, Wal-Mart is basically matching Amazon on price and raking in billions of dollars in profit.

In the past, that profit was used to expand stores for Wal-Mart. Now the company is investing in their employees and e-commerce operations.

Amazon is fortunate in that it can sell overpriced shares if it needs money. Wal-Mart can fund itself through its profits. If Amazon's price were ever to fall significantly (is that possible), it would have less favorable financing operations and could see its growth rate stall.

Because of this, I believe Wal-Mart to be a significantly safer investment.

CEO Steve Easterbrook has been phenomenal. The share price is up more than 50% since he took over in March of 2015. The company has completely turned around; tremendous value creation for shareholders.

The only negative right now is continued share repurchases at relatively high P/E ratios versus MCD's historical average. I'd prefer they do something else with excess cash (special dividend, pay down debt, faster expansion, or just hold it for a rainy day) rather than buy back shares that look a little overvalued.

With that said, I'm long MCD and plan on being for a long time.

I did not recommend the company as a buy. Perhaps I was too optimistic in the article.

Nice article, and thanks for mentioning Sure Dividend!

I didn't pick an arbitrary date. I started my study in 1971, right around the time the US was abandoning the gold standard. From 1971 through 2015 isn't a small period, and the correlation is very high.

Low interest rates DO line up with high P/Es. I don't think that's a coincidence. I completely agree the market is overvalued from a historical perspective (not considering interest rates).

That's an excellent point.

The point was you should invest to meet your goals not to beat an arbitrary index or other people you know.

Thanks Grandstand, glad you found the article useful.