Visa Continues To Dominate, Announces 4 For 1 Stock Split

If you’re familiar with the writings of Peter Lynch, one of his observations that you will encounter is the notion that when companies report great earnings, the price of the stock will tend to overshoot and make the company a little bit more expensive than what it should fairly be. This happens on the way down, too—when a company reports disappointing results, the price of the stock tends to get cheaper than deserved (and becomes the interest of value investors). In reaction to this typical phenomenon, Wall Street analysts have the annoying tendency to downgrade and recommend selling stocks that deliver earnings growth that is better than anticipated.

Peter Lynch derisively called this … Read the rest of this article!

Chevron Below $100 Per Share Is Blue-Chip Value Investing

At the time I am writing, Chevron stock crossed below the $100 per share threshold (in fact, the company hit a low price of $98.88 today). The current yield of the stock is around 4.3%. That starting base is particularly exceptional when you factor into account how quickly it tends to grow. For every share of Chevron that you owned in 1998, you got to collect $1.22 in dividends. Now, you get to collect $4.29 per share.  The long-term dividend growth rate, while sporadic on a year-to-year basis, has a tendency to converge around the high single-digit rate: over the past five years, Chevron has raised its dividend at 9.5% annually. Over the … Read the rest of this article!