Domino’s is a high-quality asset lite business which has delivered solid results historically for shareholders By Blue Chip Portfolios Summary Domino’s has significantly outperformed the S&P 500 over long-term holdings periods The company operates a high-quality asset lite business model which allows it to generate very high returns on invested capital Warren Buffett’s Berkshire Hathaway recently initiated a position in the stock I view Domino’s shares as reasonable valued at current levels and an attractive investment opportunity Shares of Domino’s Pizza (DPZ, Financial) have proved an excellent long-term investment historically. Over the past 10 years, Domino’s shares have delivered a…

Merry Christmas, my fellow contrarian! Did Santa bring you tax-free dividends this morning? The municipal bonds funding the Las Vegas Valley Nevada Water District would have made a great stocking stuffer. They yield 5% and get a tax hall pass from Uncle Sam. Which means on a tax equivalent basis they actually pay 6% or 7% or more, depending on your income tax bracket. Vegas is booming. And the town is in the middle of a hot desert that is increasingly arid, so this muni is rock solid. Five percent, tax free. Why’d you forget this, Santa? Well fear not,…

The stock market is likely to continue to rally into January. There may be some weakness from February into March, but 2025 is due to close on the upside. The relative strength screen of the S&P 500 stocks shows three airline stocks in the top fifteen. S&P 500 Relative Strength Screen Applying the same analysis to the S&P groups, the airline group is ranked number three. S&P 500 Group Relative Strength Screen The monthly price cycle projection of the industry group points to higher prices in 2025 as we see below. Airline Group Monthly Cycle Of the three top-ranked stocks,…

I think it’s clear by now that Trump 2.0 is going to look different from Trump 1.0. Some areas, like tariffs, look similar to the first time around (though we expect more of them in the second term). Others are totally different. (Hands up if you had a potential crackdown on processed food by an RFK Jr.-led HHS on your bingo card.) “Big Food” to Take a Hit, Fertilizer Stocks a Smart Buy in Trump 2.0 Let’s start with food stocks, which, as mentioned, are now a target for RFK Jr., should he be confirmed as HHS secretary. To be…

Not many people know this, but if you really want to diversify—deftly balancing and rebalancing to maximize (and protect) your gains, you need to invest in closed-end funds (CEFs). Doing this with CEFs, which yield around 8% on average, gives you two key advantages: First, you get a much bigger income stream. That’s great on its own. But if you’re reinvesting your income, you get an even bigger edge because you can easily redirect your dividends from one CEF to another in a different sector. You just can’t do this with an index fund. Let’s dig into how that works…

Key News Asian equities were largely higher on light volumes and little news as Hong Kong and Mainland China outperformed. Australia and the Philippines were closed for Christmas, while Hong Kong and Singapore had half days. Reuters reported that China will issue RMB 3 trillion of special purpose bonds versus expectations of RMB 1 trillion. The article further states, “The proceeds will be targeted at boosting consumption via subsidy programs…” The news from “sources” finally gives foreign investors what they want: consumption stimulus! It is important to note that the article was published after Hong Kong closed! What drove the…

Aiming to channel MicroStrategy money into buying more Bitcoin, Michael Saylor and MicroStrategy (MSTR) has revealed ambitious financial ambitions to raise its share count by an eye-watering $10 Billion shares. This is an exponential increase rather than a simple change; the suggested shares exceed the current float by more than thirty times. The stakes are great and bring major risk and dilution into the picture. MicroStrategy’s future rests on the erratic Bitcoin market, hence the result mostly depends on the performance of Bitcoin possibly launching the business to unheard-of heights or sending it into disaster. Saylors Bitcoin gamble at Microstratgy…

2024 by any measure has been an extremely rewarding year for U.S. stock investors. Also, it has been a year dominated with big investment themes including Artificial Intelligence (AI), the growing demand for electrical power in the U.S., the reassertion of Bitcoin and Crypto, the increasing usage of GLP-1 drugs and the rebuilding of U.S. infrastructure. As the year comes to an end, we want to look ahead to some of the possible major investment themes for 2025. These themes are from the research work by William O’Neil + Co.’s experienced equity analysts. Some of the themes are new and…

In trading on Monday, shares of Western Union were yielding above the 9% mark based on its quarterly dividend (annualized to $0.94), with the stock changing hands as low as $10.39 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market’s total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2012 and each share was worth $77.79 on that date, a loss of $0.48…

When the growth stock mania has ended and investors begin avoiding the large cap tech and social media names like Nvidia, Tesla and Palantir, some of that money may find its way back into value stocks. From a strict contrarian standpoint, it’s probably a good idea to begin thinking now about the eventual likelihood of that scenario. Low price-earnings ratios are the first, best indicators for selection of value. Other significant factors include the ability to pay a dividend and the lack of debt. A lower than book value price is nice but not always present, especially given the basic…