Realty Income Corporation For Dividends

Real Estate Investment Trusts (REITs) are one of the biggest hotspots for dividend investors, because they are mandated to pay out dividends. Yet, Realty Income Corporation (NYSE: O) still manages to stand out among many others for its dividend-paying exploits.

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Source: Pixabay

Realty Income is a REIT with a portfolio of over 7,000 properties. It rents these properties to commercial establishments on long-term lease agreements. The REIT, which is among the top 10 in the world, has big-name clients such as Walmart, Walgreens and Starbucks as some of its tenants.

As a REIT, Realty Income Corporation is required by law to pay dividends. The company has, however, put a nice spin on this, which has set them apart from all other REITs. Unlike many other companies that pay out dividends quarterly or biannually, Realty Income pays out every single month. The company gladly takes it as a selling point, hence dubbing itself “the monthly dividend company”.

In addition, Realty Income is one of the highly revered Dividend Aristocrats, a title reserved for companies that have been able to consistently raise their dividend yields every year for at least 25 years. This feat is tough enough for any company to achieve, but Realty Income makes it look easy by maintaining the standard, even in the generally difficult pandemic times. As I write this, Realty Income boasts of a 4.32% dividend yield, leaving S&P500 dividend yield in its wake at 1.27%. This figure makes it one of the top 25% dividend payers in the US.

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Source: Realty Income

Investors can also be rest assured that Realty Income is not struggling to keep up with its self-proclaimed “monthly dividend company”. Even after paying out shareholders, the company still has more than enough to keep its business running smoothly. In its most recent quarterly result, revenues increased by 21% to $491.9 million year-on-year. Similarly, the company’s fund from operations (FFO) was $332 million, out of which it paid $273 million to shareholders.

Technical Analysis

Three levels have proven again and again to be important in the Realty Income price action landscape since 2020:

  • $53 – $55
  • $63 – $65
  • $70 – $72

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As long as these levels continue to hold, there’s no way to tell for sure when and in what direction a breakout will happen. As such, we don’t recommend buying this stock for anything other than its dividends.

Long-term growth can’t be completely ruled out. But if the history of the stock is enough reference, long-term growth may be sluggish.

Is Electronic Arts Next In Line For Acquisitions?

The gaming industry has always been lucrative, and it doesn’t look like it’s going to stop soon. It’s one part of the entertainment industry where consumers get to determine what/who they get to be. And as such, consumers are willing to pay a lot to have the chance to forge their identities. Electronic Arts Inc (Nasdaq: EA) is one of the biggest platforms that allow this.

What Happened

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Source: EVG Kowalievska

Electronic Arts stock soared by as much as 10% in the last week. The reason, though, is only distantly related to the stock.

So what?

EA is a game developer with many popular game franchises in its books, including FIFA, The Sims, and Apex Legends.

After the acquisition of major game developers Activision Blizzard and Zynga by Microsoft and Take-Two Interactive respectively, analysts got into the game of guessing what gaming stock might announce an acquisition soon. Apparently, EA was one of these guesses, making the stock jump in anticipation.

While we’re not here to add to the endless stream of speculation whether the stock will be bought, we believe EA is doing fairly well and is worth taking a look at.

Electronic Arts was also busy in the acquisition market in 2021. It acquired Codemasters, a major car racing games developer. This acquisition exposes EA to one of the fastest-growing sports is in the world, Formula 1.

In addition to that, the company also moved to bolster its position on the mobile gaming landscape with the acquisition of Glu. You could argue that Glu would not be on the top of your list to buy if you were EA. But mobile gaming is one of the fastest-growing segments in video gaming, and EA is bound to be able to take advantage of it. Which makes this a decent acquisition.

What now?

Perhaps the question on the minds of potential investors is whether to buy EA. The simple and straightforward answer is this:

You can, as long as you’re not expecting huge returns from the stock short term. As you’ll soon see in the technical analysis section, the stock has had no resultant bullish or bearish movement since 2020.

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Source: EA

In its balance sheet, however, the game maker has looked strong. It recorded its strongest Q2 in history in the fiscal year 2022. Net revenue racked up to $1.83 billion, beating its guidance of $1.78 billion. Its live services also grew to $1.12 billion.

Technical Analysis

For as far back as 18 months, EA has bounced up and down between the $122.5 – $125 support level and the $148 – $151.5 resistance level. A false breakout occurred below the support level in November 2020, but the price quickly returned within its support and resistance walls.

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Going forward, our guess is as good as any about when the next breakout is going to be. We do know, however, that ranges like this are often opportunities for investors to add to their positions.

We did a review of another gaming stock if you need more options to pick from.

This Could Be Your High-flying Stock Of 2022

As databases and the cloud are becoming more and more interwoven, some companies, such as MongoDB, Inc. (Nasdaq: MDB), are beginning to establish themselves in that sweet spot of intersection between these two technologies.

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Source: Rawpixel.com

MongoDB is a peculiar database company that stands out with its innovative database management solutions.

Every website or online platform has a database where pieces of information are kept and organized in rows and columns. However, the kind of files we deal with in this tech age aren’t those that would naturally fit into rows and columns. This is where MongoDB shines.

MongoDB offers an efficient solution to the storing and management of such files in databases made of code rather than rows and columns. The result is a wide embrace from software developers and an eruption in stock values as well as revenue generation for Mongo DB.

In the most recent quarterly report, Q3 FY 2022, MongoDB saw a 50% rise in revenue to $226.89 million year-on-year. The majority of this income came from subscriptions, which increased by 51% year-on-year to take up 96% of the total revenue at $217.87 million. This result means the company has gained more customers and/or has gotten its existing customers to spend more. The company estimates that Q4 FY 2022 is going to be even better with its guidance of $239 million – $242 million.

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Source: MongoDB

MongoDB finds itself in a market that the IDC has estimated to be worth $121 billion by 2025. To add some context here, MongoDB is only a company that started in 2018, now has a market cap of $25 billion, and has fair growth potential.

The one thing that can’t be ignored is that MongoDB is in the same database management market as giants Microsoft and Oracle. Although the company has shown it can retain customers and even steal new ones from under the noses of the giants, it will be interesting to see how the company holds out long term.

Technical Analysis

MDB stock is headed down after tearing the $423 – $444 support level apart. But one could argue that the stock was long overdue for a correction, having steadily crept by almost 2000% to an all-time high of $592. It has now shed 37% off of that all-time high level and desperately seeks a support level on which to settle. The $247 – $270 support level might just provide that.

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If the Heads and Shoulders pattern that appeared at the stock’s peak is anything to go by, then MDB still has another 37% dip to go. And as it would be, this level coincides with the $247 – $270 support level. If the price does make it to the support level, it would place the stock at a more attractive entry area for potential investors.

Planet 13 and Its Game-Changing Superstores

More states in the United States are legalizing the use of marijuana for adults and medicinal purposes. This officially makes the cannabis industry a new one, and investors are lining up stocks in this industry to pick from. And for most investors, Planet 13 Holdings Inc. (OTC: PLNHF) might be worth considering.

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Source: Michael Fischer

Planet 13 has outperformed many of its peers in revenue, thanks to its game-changing superstore concept. This concept has helped the cannabis retailer effectively make cannabis a retail product as well as a tourist attraction. Planet 13 first established this concept in Nevada, Las Vegas, where it took off like a charm.

You may ask what’s so special about a cannabis superstore? Well, with its superstore Planet 13 has made the purchase of cannabis more than an monetary/product exchange, as you would experience in most other cannabis retail stores. Instead they have completely transformed the experience, where the buyer feels like they are on a different planet. What it means is that you can visit the store just to have fun and experience something new.

The strategic geographical location of the superstore (close to the Las Vegas strip) makes it a tourist hotspot right in the heart of Nevada. In addition to the superstore, it also has the Medizin dispensary and 3 cultivation and production facilities in Nevada, and one retail location in California.

When it comes to enlarging its presence, Planet 13 is not slacking off. It has acquired licenses to operate in Chicago and Florida, bringing its presence to a total of 4 states.

For potential investors, there are some risks to be wary of though. One of them is that marijuana is still a federally illegal substance. As such, it has not been absorbed by major stock exchanges like Nasdaq and NYSE. Also, states are taking their time to legalize use of cannabis, so the market has yet to stabilize. These risks notwithstanding, Planet 13 looks like a good buy.

Technical Analysis

PLNHF enjoyed a bullish run from April 2020 that peaked at February 2021. Since then, the stock has sunk like an anchor.

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The stock recently bounced off the $2.5 – $2.8 support level, which merely reduces the dip to 61%. There’s no way to know if this support level is going to hold, though. If it does hold, the bulls might orchestrate a bullish run from this level. But if the bears refuse to hand over the control of the stock to the bulls, the support level could be torn apart, driving the price to the lower $0.5 – $0.9 support level.

Irrespective of what happens, Planet 13 looks like a ripe buy at the moment. Having dipped by over 61%, it is grossly undervalued, which is a good thing for value investors. And with the exciting growth potential of the stock, there looks to be no better time to buy for growth investors.

Is Fiserv Worth Adding to Your Watchlist?

The fintech industry has evolved massively, with companies on a constant search for new innovative ways to facilitate financial transactions. But companies in this space are so many that merely staying afloat is enough achievement for many of them. Even the leaders have to fight to hold on to their current customers. On our radar today is Fiserv Inc. (Nasdaq: FISV), one of the leading fintech companies in the US. The question is if Fiserv is worth keeping an eye on.

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Source: Pixabay

Fiserv has strategically positioned itself in the fintech market with its three major segments. The first two serve institutions, such as banks and credit unions. The last, and its biggest, serves merchants through what the company calls Clover. Through Clover, Fiserv offers hardware solutions to merchants, facilitating credit card payments for these merchants in their physical stores. Thanks to all three segments, Fiserv has over $1.4 billion customer accounts registered, processing over 12,000 financial transactions every second.

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Source: Fiserv

In the quarterly result released for Q3 FY21, Fiserv increased its adjusted revenue year-on-year by 10% to $3.9 billion. Adjusted earnings per share also rose by 23% to $1.47 year-on-year. Sales also grew by 19% in the same quarter. These are fair figures for a company with a $72 billion market cap.

Growth investors like to know what the future might look like for their stock. They’ll be glad to know that Fiserv’s looks exciting. Perhaps, the fintech company’s most exciting innovation is that it allows banks, other fintech establishments, and credit unions to add cryptocurrencies to their services. This way, banks can offer their clients exposure to the booming cryptocurrency market, while also exposing company shareholders to the cryptocurrency industry.

The potential downside to FISV is that the company is in a debt worth about $20 billion as at the end of its latest quarterly result. This may not affect the operations of the company short term, though, as the company had $2.3 billion in free cash YTD as at the end of Q3 FY 2021.

Technical Analysis

FISV has mostly ranged on the weekly timeframe, penduluming between the $90 – $94 support level and the $124 – $128 resistance level. There’s a minor level in between those two levels at $107 – $111, though.

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No genuine hope of bullish growth can be nurtured for the stock until it breaks out of the $124 – $128 resistance level, though. Only then can we be sure that the stock is out of the woods of consolidation. Until then, the price may continue to range within the boundaries of the levels.

For potential investors, however, now may be the best time to get in on the stock. Growth investors may hold on to the stock for its growth opportunities, while value investors can smile at the thought that many analysts believe FISV is currently undervalued.

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Is Metlife Still A Good Value Stock?

By definition, value stocks are those that are believed to be trading below their supposed value. In other words, you believe they’re undervalued. For a while now, Metlife, Inc (NYSE: MET) has been regarded as a strong value stock. But with the stock at its highest price ever, is it still a value stock?

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Source: Andrea Piacquadio

Metlife is a financial service company that provides services, such as insurance, employee benefits, annuities, and more. Although the company has a presence in over 40 markets, most its revenue comes from its insurance market in the U.S.

If you would judge by the technical analysis alone, you could argue that Metlife is not undervalued. It currently trades at $68.37, which is its highest price ever. More on that below.

But if we’re factoring other things, such as price to earnings ratio, into the equation, the story becomes different. Metlife has a price-to-earnings ratio of 10.88, which is below that of its industry (11.4) and that of the general US market (17.4). This is a positive for value investors.

Earnings, though, may drop in FY 2022. The company puts a majority of the blame on the effects of the pandemic.

So, which is it? Value or not?

Irrespective of if Metlife is a good value stock or not, something you might not really be considering is that Metlife may makes a reasonably good dividend stock with a dividend yield of 2.81%, 0.8% above the current market average.

The company has also recorded a consistently above 3% dividend yield for about seven years now. But long term, this value could go back above 3% going forward.

Technical Analysis

While trading at its all-time high, MET is still within the resistance zone of $67 – $69, and what it does from here could help us determine if the stock can be a value stock once again.

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Should the resistance level be strong enough to repel MET, the price could find itself at the next level, which is the $55 – $57 support level. However, the price may well breakout of the resistance level and coast in uncharted territory (as long as it isn’t a false breakout).

While you could argue about the value stock status of Metlife, we believe the dividend status of the stock is surer. And we can’t completely shake off the potential for the future growth of one of the biggest financial services providers in the world, no matter how slow.

Is It Time To Buy Chegg After It Dipped By About 80%?

What do you think drives stock prices the most? Basic stock fundamentals or investor’s sentiment? Investors of the Chegg, Inc.(NYSE: CHGG) stock would most likely tell you it is the latter, as the stock is currently suffering from heavy bearish sentiments, despite fair fundamentals. The question now is if the stock has finally reached its bottom.

What Has Happened?

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Source: Pixabay

That Chegg stock has been through rough times is an understatement. What looked like a mere correction turned into a full-blown dip that escorted the price down by over 70%. Despite fairly strong quarterly figures in the past, the stock responded more to investors sentiment rather than the figures. By the way, Chegg is an educational technology platform that offers various digital services for students.

So What?

In November 2021 when the company released its third quarterly result, the company CEO mentioned how Covid-related issues have lowered the demand for the company’s services, which would, in turn, impact the next quarter. The company then estimated its sales revenue to come at $194 million to $196 million. The stock responded by dipping by 50% on that same day.

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Source: Chegg

In that same quarter, however, the company had made $171.9 million in revenue, 12% up from what it made around the same time the previous year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 45% to $46.4 million. These figures were not as high as what Chegg investors were used to seeing, though.

What Next?

All hope is not yet lost, at least for the management of educational technology company. It believes “Chegg is in an excellent position to come out of this temporary slowdown stronger than ever.”

Finally, the company estimates its market opportunity to be 102 million. To put this figure into context, Chegg only has 6.6 million services subscribers as we speak.

Technical Analysis

The question on the minds of many investors would be if the CHGG stock has finally bottomed out after the scary dip. CHGG, though, looks to have settled at the $22 – $26 support level. Falling below this level would bring the stock to its lowest price level since 2018.

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If CHGG is going to rise, however, this support level seems to be the best place to start. The support level coincides with the downside level the heads-and-shoulders pattern which appeared in previous weeks sentenced the stock to. This same support level has been tested multiple times in the past.

Since there’s no way to tell if there’s more downside to this stock? We advise potential investors to hold for now. And if there’s any bullish challenge, we expect the price to break out of the $44 – $47 resistance level before we pay any serious attention to it again.

Down 24% This Year. Over 60% From ATH. Is It Time To Buy Roku?

One look at the chart of the Roku, Inc. (Nasdaq: ROKU) stock and you may be concerned about it. But when you inspect the fundamentals, you wonder why the chart is saying something entirely different. So which should you pay attention to? The fundamental or the technical?

What Has Happened?

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Source: August de Richelieu

The year has barely begun but ROKU is already down by 25%. This fall brings the total dip from the stock’s all-time high of $490 to over 60%.

The general pullback that has affected most growth stocks can be blamed for a portion of the dip. But the rest of the blame can be attributed to a lower number of active accounts in FY ‘21, Q3 revenues falling below expectations and Q4 guidance being far from ambitious.

What Now?

Realistically, this was bound to happen. The entire world had to stay at home at the height of the pandemic in 2020, and people needed ways to entertain themselves. Enter Roku, a TV streaming platform. More people used Roku at that time than ever before, and the stock soared by over 700%. So, whatever revenues the company reported post-pandemic, with more people back at work, was bound to be comparatively less exciting.

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Source: Roku

Do not be deceived by this dip, however. Roku is not doing badly at all. In that same 2021, while the stock dipped, the top-selling smart TV Operating System in the United States was Roku OS. A feat it achieved the previous year. Roku also maintains a substantial TV streaming market share in all of North America. And if you think Roku’s concentration is focused on North America, Roku is trying to break international barriers by expanding its services in South America and Europe

The dip in the stock doesn’t tell the full story of ROKU’s strong financial reports. Total revenue saw an increase of 51% to $680 million YoY, gross profit jumped by 69% to $364 million YoY, while platform revenue didn’t stop until it climbed by 89% to 583 million YoY. Both active accounts and streaming hours also increased from what they were in the previous quarter.

What Next?

What continues to excite investors and attract people to the stock is its long-term prospects. Since its brief pandemic-induced dip of 2020, the ROKU went climbed by over 700% to its all-time high. This is a testament to how far the stock can grow in the future.

Technical Analysis

A great fall is what best describes what Roku has endured since it reached its all-time high of $490. It tore through the $287 – $304 support level like a finger tears through a wet tissue paper. Already, it is mounting strong pressure on the $173 – $190 support level, with a strong weekly bearish candlestick that represents the first week of 2022.

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Whether the support level survives this assault is yet to be determined. But if it holds true, it may make a good level for the price to settle before mounting a bullish challenge. And investors would hope this happens or they may begin to lose hope in the stock. The next support level is 55% below the current support level.

All things considered, a dip is always a good thing for new investors on growth stocks with the strong resume that Roku has. And this is why many investors may be looking to take advantage of this pullback.

The Consistent Dividend Stock For Income Investors

There are those stocks that won’t yield you 100% returns at the end of the year, but are good for their dividends. Such is the stock we have for you today. We’re talking about Walmart Inc. (NYSE: WMT), a stock that has proven to be a master at weathering the storm of any market condition or pandemic.

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Source: Pixabay

During the pandemic, Walmart stock, just like many other stocks, dipped. But unlike those other stocks, Walmart’s dip was minimal. You may not even be able to tell the pandemic-induced dip from other dips on the stock, which is not something other stocks can boast of.

Walmart is not one to boast of exciting revenue growths. Total revenue grew by 4% to $140 billion, and net sales did the same percentage to $139 billion. But if you think those growth rates is meager, wait until you see the operating income. That one staggered by a 0.2% to $5.8 billion. These percentages are growth rates when you compare the most recent Q3 FY ‘22 to Q3 FY’ 21.

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Source: Walmart

One thing that is attractive, however, is it’s dividend growth. Walmart has increased its dividend every consecutive year for 48 years. With a payout ratio of 77% and a dividend yield of 1.52%, investors can have some peace of mind with WMT.

A high payout ratio like Walmart’s may be a source of concern to investors because there is less money to reinvest into the company. But the company has proven to always have enough left to maintain stability. And this is why dividend investors love Walmart.

Technical Analysis

WMT stock as we speak has no resultant upward or downward movement. It stepped into a range in August 2021. However, investors won’t have too much to complain about because the range is coming after the stock crawled to an all-time high by over 150%. A move that was initiated 7 years ago.

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The stock currently hovers in between the $133 – $135 support and  $151 – $154 resistance level, and there’s no way to tell where it could go from here. The $117 – $119 support level lies beneath the most immediate support level. This may serve as a probable support level should the price break down below its current support level.

And if the opposite were to happen and a breakout of the resistance occurs, new ATHs will be created and holders might have more to celebrate in addition to the consistent dividend payouts.

Long term, though, we hold a bullish sentiment for Walmart stock. And if you need another dividend stock to bolster your income, be sure to read this previous article we wrote.

Do You Have This Biotech Stock In Your Portfolio?

The biotech industry is one that’ll continue to be profitable for as long as sickness and diseases exist. Sad, but true. But not all biotech companies are worth observing. Seagen Inc. (Nasdaq: SGEN) isn’t one of them.

Seagen is a biotech company that is known for the research and development, manufacturing, and commercialization of transformative oncology medicines. The company has had Adcetris, Hodgkin lymphoma medicine on the market for a while, and it generates most of its revenue from this drug. Other drugs the biotech company took to market from 2019 till date include Padcev (for bladder cancer), Tukysa (for breast cancer), and Tivdak (for metastatic cervical cancer), and they’re all beginning to pull their weights.

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Source: Anna Shvets

With these drugs on the market, Seagen could generate upwards of $1 billion in revenue from the beginning of FY ‘21 to the third quarter of the same FY year.. While Adcetris saw a 13% year-on-year increase by the end of Q3 FY 2021 to $184.8 million, Padcev and Tukysa contributed massive 54% and 106% respective growths in revenues. Total revenues for the quarter were up by 37% to $366 million.

But when looking to invest in a company, revenue figures alone are not enough to help you arrive at a decision. You need markers of potential future growth, and you would find Seagen’s in its pipeline drugs. Tisotumab vedotin and Ladiratuzumab vedotin are two pipeline medicines closest to the market, pending FDA approval. Tisotumab vedotin is aimed at recurrent cervical cancer while Ladiratuzumab vedotin is undergoing trials in the treatment of solid tumors. And if Ladiratuzumab vedotin makes it to the market, it may become a revenue magnet for the company, as it could be used to treat various cancers.

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Source: Seagen

Profitability is yet a problem for Seagen, however. The biotech company lost $293.8 million in its most recent quarter, over three times what it lost the previous quarter. Seagen pins this huge increase in loss on R&D expenses. But on the positive, the company still has $2.4 billion in cash (without debt), so it has a wealth of cash to burn to support R&D expenses.

Technical Analysis

Seagen has not known a substantial upward or downward movement since 2020. Rather, it has been moving in a range between the $130 – $140 support level and the $199 – $208 resistance level.

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As we speak, it is closer to the support level than it is to the resistance level, which could cause the stock to see an upside of about 30% if the bounce between these levels persists. However, we don’t expect the stock to consolidate forever. At some point, it’s going to force a breakout. And from where we stand, this potential breakout favors the bulls as the fundamentals of the stock are solid and long-term prospects look solid.

Although Seagen is not without its risks, many of which may anchor the price to lower price levels short term, we believe the prospects of the stock long-term are more promising. A sentiment we share for this biotech stock.