March 6th, 2012
Written by Mark Bern, CPA CFA
This last week I was torn away from my work by family matters, both of the pleasant and not so pleasant sort, so I only have two articles published. I tend to write more about dividend-paying companies but occasionally drift over to a company with growth potential. This week I featured one of each.
Follow up:Rock-Tenn (RKT) is a packaging and container industry giant with earnings growth potential from multiple areas: new sales in emerging markets, synergies and buying power attained from its recent acquisition of Smurfit-Stone Container, and from cost savings through plant closing, consolidations, and efficiency improvements. I don’t expect earnings to move much higher in 2012, but once the efficiencies and cost savings begin to kick in I expect the company to perform well over the longer term. Check out the full analysis.
The other article was also about another packaging industry company, MeadWesvaco (MWV). This is the dividend play between the two at a 3.3% yield. As the industry grows along with the global economy, MWV is well-positioned to take advantage with 32% of revenue derived from outside the U.S. I also link to another article within mine that proposes an alternative view of the company, in the spirit of giving readers more than just one point of view to consider. A better informed investor usually makes better investment decisions, in my humble opinion. Read the full story.
Finally, I want to make readers aware of my ongoing series entitled, “My Long-Term, Enhanced Investing-for-Income Strategy.” It begins with a detailed explanation of using puts and calls for managing your portfolio. Think of selling a put as a means of placing a limit order and getting paid for placing it. I think that you will agree that creating a return of 8% - 10% on your cash while you wait patiently to buy at bargain prices is preferable to placing orders below the market in hopes of getting a bargain and earning nothing on your cash while you wait. That is just one aspect of the strategy and you can find the original article on selling puts here. If you are wondering how the strategy is working so far, you can find the results in the latest summary article.
If you are an investor who prefers rising dividends you may access a list of links of articles I have written about companies with consistently rising dividends.
Investing articles by Mark Bern
Other Investing articles about dividends