Coronavirus (COVID19) has been in the news daily. The World Health Organization officially declared COVID19 a pandemic. The infected with the virus include start athletes, movie stars, an dpoliticians. The number of people infected with the virus continues to increase. Thus far, a myriad of nations have suspended travel. The world bank has placed the world’s first “pandemic” bonds and derivatives to support developing countries in the event of an outbreak of infectious diseases.
As fears of the continued global spread of the Coronavirus (COVID-19) continue to drive financial markets to new lows, savvy investors should take note of the excellent opportunities that this massive global sell-off is creating.
The World Health Organization on Coronaviruses:
“Coronaviruses (CoV) are a large family of viruses that cause illness ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS-CoV) and Severe Acute Respiratory Syndrome (SARS-CoV).
Coronaviruses are zoonotic, meaning they are transmitted between animals and people. Common signs of infection include respiratory symptoms, fever, cough, shortness of breath and breathing difficulties. In more severe cases, infection can cause pneumonia, severe acute respiratory syndrome, kidney failure and even death. A novel coronavirus (nCoV) is a new strain that has not been previously identified in humans.”
In this bond review, Durig takes a look at a company which serves banks and retailers alike around the globe. Diebold Nixdorf (NYSE:DBD) has a full service suite of back office services, including software and hardware solutions for both banking and retail industries. With the release of its fourth quarter results, it appears as if the company is making progress towards its goals. A few highlights include:
Relationships Founded in Trust for Global Investors
A Registered Financial Advisor such as Durig is a fiduciary and have the duty to always act in the best interests of their clients. Because of this duty, the incentive / fee structure is built into the relationship to ensure that advisors compensation is tied directly to the clients’ success.
The nature of the relationship between a client and a registered investment advisor is a bit different than other financial professionals, especially around the globe.
A year-end performance review of Durig’s Portfolio Solutions, designed to help you earn income, covering some of the key benefits that each can provide. The following portfolios will be reviewed in this article:
- Fixed Income 2 (FX2) Managed Income Portfolio
- Dividend Aristocrats – High Dividends & Growth Over Time
- Income Aristocrats – Multi-Asset Income Portfolio
- Dogs of the Dow – High Blue Chip Dividends
- Dogs of the S&P 500 – Blue Chip Dividends
Fixed Income 2 (FX2) Managed Income Portfolio
For this week’s bond review, Durig looks at an issuer that provides services to banks and retailers around the world. Diebold Nixdorf (NYSE:DBD) provides end-to-end services, software and hardware for the banking and retail industries. Diebold has spent all of 2019 implementing its DN Now program, designed to increase efficiencies, decrease costs, and improve margins. With the release of its third quarter results, it appears as if the company is making progress towards these goals (see bullets above).
In this review, Durig examines the ways in which holding a diverse portfolio of dividend paying, high quality blue chip stocks can help to provide investors some much needed stability.
- Lifetime Return of 14.06%
- Average Dividend Yield of 3.34%
Quality Investments That Deliver
As trade tensions between the US and China continue to plague financial markets, investors are looking for high quality investments that can still deliver.
Durig has found the solution; blue chip dividend stocks.
This week, Durig takes another look at the number two grocer in the United States. Albertsons has made a significant turnaround in the past few years after its purchase of Safeway stores in early 2015. With its most recent quarterly results, the company has now logged seven consecutive quarters of identical store sales growth. In addition, the company’s online grocery sales grew by 40% year-over-year, a massive win for this traditional brick and mortar retailer. (Other results from its Q2 results, see bullets above)
What is a Fiduciary?
Registered Financial Advisors are fiduciaries, and are held to a much higher and completely different standard of care for their clients than other types of financial professionals. A fiduciary must always act in their clients best interests.
This week, Durig looks at an energy company that is making the transition from its historical focus on natural gas to be more focused on oil production. Chesapeake Energy (NYSE:CHK) has been making strides this year to transition towards a more oil focused production portfolio. Chesapeake has already increased oil in its production portfolio from 17% in 2018, to 24% as of the end of the second quarter. The company estimates it will exit 2019 with oil representing 26% of its production. Oil is a higher margin product, so Chesapeake is already seeing the fruit of its decision (see bullet points above).
The year was 1492 when Christopher Columbus not only discovered a New World but a pleasurable new enjoyment that is delighting connoisseurs throughout the entire world to this day: premium tobacco. From this plant came the cigar, which spread in popularity throughout the world, attracting presidents, kings, generals, gentlemen, and even women. It is estimated that in the last century almost 80% of men in the US were cigar smokers, 20% smoking luxurious brands paired with premium drinks.
This week, Durig Capital provides a brief update on 99 Cents Only Stores LLC, a deep discount retailer whose bonds we have reviewed in the past for our Fixed Income 2 (FX2) High Yield Managed Income Portfolio. 99 Cents Only Stores has recently been challenged by its outstanding debt obligations. Here are some of the highlights:
Deep discount retailer 99 Cents Only Stores recently completed an arrangement with creditors which would eliminate many of their short term debt obligations.
Debt to equity swaps are a common method companies use to improve liquidity.
Under the newly agreed upon terms, 99 Cents Only Stores will issue common and preferred stock for some of its outstanding debt.
Recent Financial Statements