Sysco Corporation (SYY): Ready, Set, Goals!

A company that sets and achieves goals is a company for me.

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SYY (Sysco Corporation, $72.83) is one of America’s leading foodservice distributor. Found in the “Consumer Defensive” sector on the NYSE, this powerhouse controls more than 17%, approx. $300 billion in its market. From servicing educational facilities to hospitals, the company stays on top by staying committed to one of the things they see most important, goals.

(Even Jim Cramer has his own humble opinion on SYY)

SYY has consistently created and completed their goals and keep a 3-year plan to hold themselves accountable to. This year they have a plan to finish strong with only three goals in mind:

  • “Enriching the Customer Experience,”
  • “Delivering Operational Excellence,”
  • “Optimizing the Business and Activating the Power of Our People.”

Improving the company from the inside out, the company also set strong goals for the year 2020:

  1. Sales growth of increased 4% or 4.5%.
  2. Adjusted income growth of 9%.
  3. Adjusted net earnings of 9%.
  4. Adjusted diluted earnings per share in the range of $3.40 to $3.50, and an increase of approximately 12%.
  5. Reaching $600 million to $700 million of adjusted operating expenses.
  6. Achieving 16% in adjusted return on invested capital for existing businesses.

SYY is prepared to carry through with the action of accelerating locally managed customer case growth and driving leverage between the growth of gross profit and expense growth.

So Far…

SYY’s achieved $0.94 quarterly earnings (pers hare) from analysts estimates of $0.72 per share last year. Revenue growth grew to $15.32 billion for the quarter ending in July of 2018 and sales increased by 6.1%. The company has now passed consensus EPS estimates three times, great stuff SYY.

Related: Alibaba Group Holdings LTD: Ther International Powerhouse

Many investors compare SYY to other stocks such as KR (The Kroger Corp.), UNFI (United Natural Foods Inc.), CORE (Core-Mark Holding Co., Inc), or SVU (SUPERVALU Inc.). However, investors enjoy investing in SYY for their history of consistent dividends cash payments- recent cash payment amount was $0.36 cents, effective date 10/4/2018)

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

Nasdaq.com,SEC.gov,MSN.com/Money,Zach’s Equity Research

Know Your CEOs: Who is Adena Friedman?

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Snapshots

Hazardous Habits For Stock Investors

These habits could be keeping you from building wealth.

Perhaps your portfolio was going great until you noticed you have been losing more money more than keeping it. Do you find yourself selling more than you need to? here a few bad habits every investor needs to recognize and how you can avoid them if you pick them up again.

Save More, Withdraw Less

Money Here, There and Everywhere

There are a lot of stock investors in chat groups who like to boast about how much money they took out from their growing stock accounts, but why are your harvesting your crops early? Unless your investing as a hobby, save more and withdraw less. You’ll make money in the long-term if you leave your account alone.

Panic Selling

This is the most common disease to an investor, but we are human after all. It’s hard to notice when your favorite stock goes down 15% and you know the only simple thing you have to do is sell. However, have a plan. Set a “stop loss” or have a written rule as to when you need to sell. Most of the time the stock goes back up and you’ll then regret that you had sold your shares in the first place (ouch). Keep in mind that whenever you sell, you always invite the “taxman” to your party.

Fast Analysis: Bed, Bath & Beyond: Only Time Will Tell

Financial News

It’s important for every investor to keep up with financial news, but these articles can destroy your portfolio if you listen to their every move. Be relieved and know that you don’t have to react to the financial news, they don’t your portfolio (necessarily), you do.

Unlike going to a job work for money, investing lets your dollars go to work for you. If you find a good investment strategy, be committed and stick to it. Continue to stash money into your account and sell when its necessary.

Please See About Me & Disclaimer for additional information about Black Tea.

Facebook: 20% Discount!

Will Facebook be able to make a comeback from their historic fall? Don’t Miss out!

  • Facebook didn’t beat earnings this quarter and had their biggest drop in market value ever.

  • What’s the excuse?

  • Can they rebound from public humiliation?


FB (Facebook, $174.00) I have one word for you…ouch.

F.A.A.N.G lovers are not happy with FB missing estimates and the company is still expecting a decrease in revenue in the next quarter. After the earnings call, their stock fell a whopping 23% in after-hours trading. Yet, what kept FB for beating earnings?

(Image from Yahoo!Finance. After-hours trading plummets from the Q2 call)

Related: Earning Week: What To Look For In The Next Earnings Report

GDPR (General Data Protection Regulation)

FB is still fighting with issues associated with GDPR. And due to the sole fact that it’s not yet completed, their ads aren’t all up and running it’s interfering with their revenue.

Facebook Stories

FB is concentrating on adding more value to their FB stories feature on their website. Though they have updated their feature multiple times this year, this doesn’t satisfy their shareholder’s feelings for missing over $100 million in revenue. This focus led them to less monetization.

Just before the earnings call, FB hit an all-time high of $218.63 in stock price. FB also announced at the beginning of their earnings call that at least 1/3 of the world’s population now use at least one of FB’s products each month.

Though this was a tough pill to swallow, will the stock be able to rebound a few days after this disaster?

Investors are already seeing FB on a 20% discount, yet others are banishing them from their portfolios. But does this make FB a bad company? This is a historic fall from their early years in 2012 from a drop of only 12%. Many agree FB will eventually recover from their loss, but investors have very high expectations.

But before they move forward, FB has to clear the GDPR issues with Europe. The company has already told their shareholders that the next quarter will not be appealing to them either. We hope FB can quickly solve these issues before they are run down again by more rumors. I think they have felt with enough this year.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

CNBC.com, Yahoo!Finance.com

Stock Investing 101: What Are Dividends?

Find out what dividends are and how you can use them to make you wealthy!

Stock analysts talk about them often and investors love them, yet what exactly are they? Let’s have a crash course on what dividends are and how they can help you and your stock portfolio.

A dividend is a specific amount of money paid to you on an annual or quarterly basis from the company’s profits. Think of it as…well, sharing the wealth.

Types

Though there are several types of dividends, the two most common uses in the stock market are cash dividends and stock dividends.


Cash Dividends

  • A cash dividend is when the company pays their shareholders in the form of cash payments (most common).

Stock Dividends

  • A stock dividend is given to the shareholder by the company increasing the current amount of shares by percentage.

Find more details about cash and stock dividends here.


Dividends are paid to investors on a quarterly basis (four times a year). Yet, depending on the company’s board of directors they can be scheduled to be paid once a month, semi-annually (twice a year), or annually (once a year). There are also times when a company may choose to not set a particular schedule and may randomly, this is also known as “irregular dividends”.

But Wait…There’s More

Dividends within a company are managed at the discretion of the board of directors and may be increased, decreased or eliminated at a time of their choosing. Dividends are also taxed at long-term capital gain rates.

Please see a certified tax consultant for additional information on taxes and if your dividends are “qualified or “non-qualified”. View more tax information here.

Dividends to some investors are a sign of “financial health” for a company. Investors can create a customized dividend schedule or algorithm to support their current income or support their income for retirement. This schedule is customized to receive dividend payments from companies in a systematic fashion (payments made daily).

If you want to buy a stock in time to catch their dividend payment, you must buy before the company’s ex-dividend date. Find more information here.

Related: 5 High-Yield Dividend Stocks You Might Love

Not For Everyone

Though most investors enjoy dividends, not every investor concentrates on having a dividend portfolio. It’s also not common for startups and higher-growth companies to have dividends. Startup companies are in their “new years” and revenue will fluctuate from quarter-to-quarter. This may be a time when these new businesses need to keep their profits to reinvest. And higher-growth companies (big corporations) may not use dividends so they can reinvest and use the extra cash flow to fund new projects.

Dividends are a wonderful tool and when used responsibly, they can make you very wealthy. Be wise about all of your investments and enjoy the wealth.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attainted:

Dividend.com, Investopedia.com, USANews.com, Intuit.com

5 High-Yield Dividend Stocks You Might Love

Some of the top 5 high-yield dividends on the market.

If you enjoy dividends, you may enjoy some of these stocks listed below.

CTL (Century Link, $18.66), a telecommunications corporation, currently has a yield of 11.51%. This company holds a consistent dividend history and at this time pays $0.54 cents on a quarterly basis. Last effective date 6/4/18.

T (AT&T, $30.94), another large telecommunications company, has a dividend yield of 6.43%. Analyst currently recommends this stock as a Buy for investors who enjoy long-term dividend investments. T has a cash payout about of $0.50 cents paid quarterly. Last effective date 6/1/18.

KDP (Keurig, Dr.Pepper Inc., $24.47) at this time has a dividend yield of 9.44%. KDP has an annual dividend payout and pays over 50% or their earnings out to shareholder dividends. Many investors don’t like their decision, yet dividend investors may benefit from this dividend to increase their dividend profits. KDP is paying a hefty dividend of $103.75 to their shareholders from the recent acquisition of Keurig. Last effective date 7/10/18.

Related: Warren Buffett’s Favorite Stocks and Why

IEP (Icahn Enterprises LP, $76.68), a holding in consumer goods and automotive parts, has a dividend yield of 11.1% dividend yield with a payout of $1.75 paid quarterly. Last effective date 5/11/18.

VEDL (Vedanta Ltd, $12.53), a natural resource company, currently has a dividend yield of a whopping 21.61%. VEDL has a cash payout amount of $1.24 paid annually. Last effective date 7/10/18.

While many enjoy dividend investing, it requires study and understanding the total value of the business. Corporations may have hefty dividends, however, investors are always taking a look for progress in the corporation’s financials. If you are not familiar with the dividends, please consult with a professional stock advisor before doing so. Be responsible and invest at your own risk.

Please see About Me & Disclaimer for additional information about Black Tea.

Earnings Week: What To Look For In The Next Earnings Report

This is a big week in the stock market. Find out what to look for in the next in your company’s earnings report.

This week we are having some of the market’s biggest companies presenting their quarterly earnings reports. These billion dollar empires hold up most of the market’s value and investors have high expectations. Here are a few tips to remind you of what to look out for in your company’s report.

Consistency

We all want rapid growth, but the companies that stand the longest have mastered discipline and consistency in every aspect of their corporation. Listen and look for consistent growth in production, financials, or even a decrease in liabilities.

Don’t let one bad quarter determine the value of a great company.

Read: Why You Need To Keep Read SEC Filings

Growth

Along with consistency, investors tend to look for stable growth. Whether you are looking for an increase in gross profit or an increase in production, listen and look for consistent growth from quarter-to-quarter. Yet, depending on the company’s competitive advantage, the company may have slower growth in this quarter from their recent quarters. Don’t let one bad quarter determine the value of a great company.Wheather you should continue to hold, sell, or buy more shares depends entirely on the individual investor.

Minor Details

Perhaps the company you love seems perfect! Too good to be true? Look in their filings to see if they have any unpaid taxes or read if the corporation has any pending lawsuits. Always pay attention to the minor details on the earnings reports (or calls). It’s typical for CEOs to say the wrong thing at the right time and drive down stock prices within minutes.

Earnings reports can be a pivotal moment for your investing journey. Contrast and compare from similar corporations. And if need be, refine your investing strategy. Buy low, sell high, and take your profits.

Please see About Me & Disclaimer for additional information about Black Tea.

Johnson & Johnson: Damaged Goods?

  • Second time this year in 2018, JNJ (Johnson&Johnson) has been targeted for it’s knowledge of asbestos in its world-famous talc baby powder.
  • Will thse issue conintue to occur? Should investors be concerned for the company’s reputation?

JNJ ( Johnson & Johnson, $133.10) stocks tumbled down 10% Friday 14th, 2018 as the company has been handling their pressures of the public knowing of asbestos in it’s baby powder. Some investors are concerned for how the issue is going to be managed and if this will effect their next earnings report. Yet, other investros aren’t concerned sicn the company is vastly know for their award-winnning products and their loyalty to their customers. However, this is not the first time JNJ has been hit with public shame for asbestos this year.

July 12th, 2018, JNJ (Johnson & Johnson, $125.89), is hot on the news for their case of being sued by 22 women for receiving cancer and /or poisoning for asbestos found in their famous talc baby powder. But should JNJ be shamed for this? Does this make JNJ a bad company?

According to mesothelioma.com, Trelomite, also known as amphibole asbestos, is created in the same nature as talc. Tremolite is often found in the same mines as talc and without special quality testing, it can contaminate the talc. However, talc can not only be used in baby powder but chewing gum, oils, makeup cosmetics, hair products, and more.

Read: Tariffs: What Are They? How Are They Affecting My Portfolio?

JNJ’s lead attorney, Bart Williams had more to say today on the issue,

Johnson & Johnson doesn’t believe it should be intimidated into removing a product that’s been out over 100 years, that has diapered hundreds of millions of babies around the world, simply because plaintiff lawyers have put a target on the back of Johnson & Johnson.We believe in the product. The product works. The product is beloved. The best scientists in America have reviewed it again and again.



Does this event make JNJ a bad company? Investors and customers still believe in the company and await its next press release.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attained:

CNBC.com, Mesothelioma.com, Factsabouttalc.com

Tariffs: What Are They? How Are They Affecting My Portfolio?

What are tariffs? How do they affect the stock market and investors?

It’s important to get a simple understanding of how tariffs are affecting the stock market and our economy. Tariffs are hurting many stock investors and it’s important to get an understanding of what they are doing.

A Tariff is a tax or duty to be paid on a particular class of imports or exports.

Simply put, a tariff is a tax on an import/export. When the money is collected they are known as duties or levies. Tariffs are usually charged as a percentage of a “transaction price”. These percentages vary from country to country. Analysis done by Greg Daco of Oxford University, discovered U.S., Japan, Europe and Canada charge a tariff percentage of 3.1% and below whereas Mexico and China reach to 4%.

Read: How Entrepreneurs Can stay Ahead Of A Slow Growing Economy.

Tariffs raise our government revenue and decrease pressure on our competitors. However, U.S. and China are two of world’s two largest economies and economists are declaring that China can stand to “hold their breath longer” in the trade-off than America.

The biggest concern lies with our fragile economy and corporate businesses. The “tax war” is effecting some of America’s most important businesses; soybeans farms, automobile manufacturers, steel and aluminum shipments, etc.

Rod Sides of Deloitte (U.S.) recently stated,

Consumers are feeling good, but if they see prices start going up, there could be a backlash. The average consumer hasn’t yet internalized what the tariffs mean to them and haven’t seen the prices rise.

Read: Bearish Behavior: How To React When Your Portfolio Is Plunging.

The tariffs can contribute to price changes of imports/exports which may contribute to the delay of corporate investments and new projects. This has investors concerned for price changes on the stock markets and America’s wealth. The tariffs don’t only effect our portfolios as investors, but this also affects the global economy. The world is watching every move President Trump makes and how he responds to China. The pressure is on.

Please see About Me and Disclaimer for additional information about Black Tea.

Information Attained:

Finance.Yahoo.com, InvestingAnswers.com, CBSNews.com

Why You Need To Keep Reading SEC Filings

SEC stands for Security Exchange Commission, it’s a place where most businesses submit company reports; 10-Ks, 8-Ks, S-1 forums, and etc. It’s often you will find companies praising about the revenue they made in their recent quarter or profits gained from a particular project, but it’s crucial to know the companies overall progress on their balance sheet.

Is the company showing consistency? Are they keeping profits high and production costs low? Are they truthful about their paid taxes? You can find all of this information on the SEC.gov.

Though earnings calls have their own matter of importance, viewing reports on the SEC will give you accurate information you can copy and save for later. You may also find additional background information on the CEO of the company (criminal record or education) on the Schedule 13D forum. Catch up and read our recent post about Investing Secrets here.

 

Investors also visit SEC.gov to view S-1 forums for additional information on IPOs. Don’t invest based on what your friends told you, visit the main source and find out for yourself. Though companies hold their own annual/quarterly statements, these reports can be very “colorful” and have a picture perfect outlook on in future they are expecting. It’s important to read the SEC filings because it will keep you knowledgeable about your investments and the long-term potential the company holds.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Obtained: Investopedia.com, SEC.gov, Fool.com