Dividend Investing Ideas Center
Have you ever wished for the safety of bonds, but the return potential...
Dividend.com analyzed traffic to all its ticker pages to identify investor behaviour and to find out a rationale as to why specific ticker pages trend post specific events. Dividend Search Trends is your look into the future based upon 100’s of 1000’s of anonymous search queries on Dividend.com. These search trends offer insight into what other investors are thinking about. We are not looking at what YOU – Joe Smith or Jane Smith – is searching. We look at organic clicks and queries and analyze their numbers on a week on week growth, as well as absolute traffic volume growth, again on a weekly basis.
Dividend.com’s Best Aerospace-Defense Products & Services Dividend Stocks witnessed a dramatic rise in traffic post the Paris Terrorist attacks. If you were to take a look at Defense Stocks – also called “War Stocks” – post a major terrorist attack, they have historically risen, as the sentiment turns positive on these companies.
Following are returns of top Defense Stocks post the Paris Attacks:
|(LMT )||Lockheed Martin||6%|
|Liquid error: internal||Boeing||5%|
|(NOC )||Northrop Gruman||5%|
|Liquid error: internal||Raytheon||7.70%|
*Percentage Returns are approximate from November 13th 2015 to November 25th 2015
As Advisors’ of dividend investing, we take our role seriously and have to watch out for all geopolitical events—be it terrorist attacks or a political upheaval. The above observation is only on how business and money react to major Black Swan Events like the Paris Terrorist Attack, so that in the future investors can take informed decisions.
The theme of Aerospace Defense Products & Services was narrowed down by Dividend.com users to Boeing, as it got a 17% rise in its ticker page since the attacks. As mentioned above Boeing was a top performer post the attacks. The Company operates through five segments: Commercial Airplanes, Boeing Military Aircraft (BMA), Network & Space Systems (N&SS), Global Services & Support (GS&S) and Boeing Capital (BCC).
Catalysts for Boeing
1. Refocused business strategy. Boeing is scaling back on exposure to global defense budgets—a wise strategy in an environment of declining national defense spending. (Exceptions are from Asia which increased its defense spending in 2015, China-10%, India- 11%.)
2. Boeing generates two-thirds of its revenue from the commercial markets. This is a strong tailwind, as the commercial airline order backlog for planes is at a record high. Deliveries of commercial aircraft rose 3% last year, representing the fourth consecutive record year.
3. Huge backlog of growth opportunities. Boeing ended last quarter with a $485 billion backlog for nearly 5,700 commercial airplane orders.
Concern’s for Boeing
1. Boeing currently has more than $24 billion in long-term liabilities on its balance sheet as a result of accrued retiree health care and accrued pension plan liabilities.
2. Geopolitical concerns. Boeing caters heavily to the commercial markets. Growth in commercial aircraft is reliant on higher demand in the emerging markets, particularly in Asia and the Middle East. An Increased geopolitical risk could curtail Boeing’s growth.
Pfizer, also one of our Best Dividend Stocks initiated the world’s largest Corporate tax inversion, where the US company reorganizes in a country with a lower tax rate. An analysis of the inversion can be found in our premium section: The New Irish Pfizer and Dividends.
Some of the most recent well-known tax Inversions:
Nike Increased its dividend last week which resulted in a surge of traffic to its ticker page. E-Commerce and its Women’s Apparel Business are the biggest contributors to its Topline. A detailed analysis of the dividend increase can be found here.
On Monday ARP lost a third of its value due to significant leverage and debt related announcements. This drop brings it to a mind-boggling yield of 83%. Dividend.com hasn’t really tracked ARP in much detail, but prima facie this looks like an accidental high yielder. If you have anything to say about it then give us a shout and we’ll feature your analysis in our podcast!
You can catch investment philosophies from the man who brought to you “The Hobbit” in our last episode, The Fed Loves us, The Fed Loves us Not.
A little window into your dividend investor’s colleagues mind—query volumes offer fascinating insight on the thought process that goes on the minds of investors/traders before they make a decision. Markets don’t move by themselves, they assimilate a “news event” and then adjust themselves towards rationality or irrationality. Anonymous search queries on Dividend.com gives an insight towards how investors channelise their search for information post a major “news event”.