AutoZone Is Gobbling Up Its Own Stock (A Look At One Of The Great Buybacks Of The 21st Century)

Every now and then, you stumble across a company that does not show up on the radar of many investors, often due to its size, lack of a dividend, or decidedly unsexy business model that nevertheless ends up producing a whole lot of money for people that start a position in the stock and hold on to it for a few years. One company that falls into that category is Autozone.

What has the car part replacer done over the past ten years? Two things have happened at this business: one, they have rolled out new stores across the United States, increasing the store count from 3400 to a little over 5000. This … Read the rest of this article!

September 2019 Investment Moves

There are three stocks that have captured my attention lately. One is subject to new regulatory risk in which the P/E ratio has fallen substantially even though the profits are still growing. Once the dust settles, I believe investors will be looking at 16% annual returns over the medium term.

The second stock is a well-known, large-cap company that has a strong possibility of continuing to grow earnings per share in the 13% range. 

And finally, the last stock is a mega-cap that is still growing at a fast double-digit clip even though the P/E ratio has now come down to a reasonable range.

The full analysis can be accessed over at my Read the rest of this article!

Bed Bath & Beyond: When You Buy A Non-Dividend Stock

We’ll abandon the site’s namesake for the day and talk about times when it makes sense to buy shares of stock in a company that does not pay any dividends to shareholders. Generally speaking, the best candidates for these types of purchases are companies that offer a higher earnings per share rate than what you’d get from buying a traditional dividend stock.

After all, if you see a non-dividend paying company growing at 7-8%, why not just purchase BP and enjoy the added benefits of a high dividend that can reinvested and boost your annual income? Sometimes, you have a situation like DirecTV or AutoZone where the company is growing at a high-single … Read the rest of this article!

What If You Can Live Off Your Dividends?

I’ve spent part of my day studying General Mills (sexy, I know) because the company sells products like flour and Cheerios that are immediately recognized as indispensable. The stock never seems particularly cheap, and no one ever talks about buying it despite (1) the easy-to-understand business model, (2) an uninterrupted dividend history dating back to the 1890s, and (3) a track record of compounding at 12.5% annually over the past three decades, leaving behind in the dust almost every hedge fund that exists in America net of fees.

Someone who has steadily been committing to buying $300 shares of General Mills every month since 1983 would find himself in the interesting position of … Read the rest of this article!

Most Americans Have No Idea How Financially Savvy And Borderline Brilliant Steve Harvey Is

Sometime in the next month, I’m going to get around to completing posts on Charles Barkley and Steve Harvey, with the discussion point being that both men have very shrewd financial lives and breadth of intelligence that is significantly different from the images that they hold out of themselves in the media. You see Charles Barkley making goofy quips on TNT during basketball season, or turn on the television to see Steve Harvey going after the cheap gags and laugh lines on Family Feud, and you could superficially reach the conclusion that these men are not professionally savvy but reached their positions as a result of a quirk of luck. But if … Read the rest of this article!