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Don't Sour on J.C. Penney & Enjoy Texas Instruments Dividends

Don't Change Your Mind On J.C. Penney

Summary

  • I don't believe that brick-and-mortar retail has no future.
  • One of the highlights of the earnings call last week for me was J.C.Penney's decision to add appliance showrooms in more than 500 of its locations.
  • I believe this is a good time for the company to penetrate the home appliance market. Institutional investors are taking interest in J. C. Penney.

By S. Hasan Abid

People will keep shopping at J.C. Penney stores even in the digital age.

These are heavy times for mall-based retailers as they continue to see weak consumer spending in apparel and core categories like handbags. For Q1 fiscal 2016, comp sales at Kohl's (NYSE:KSS), Nordstrom (JWM), J.C. Penney (NYSE:JCP) and Macy's (NYSE:M) fell ominously by 3.9%, 1.7%, 0.4% and 5.6%, respectively. Investors are worried this might be a sign of things to come and brick-and-mortar retailers might be put out of business by the e-commerce giant Amazon (NASDAQ:AMZN). Unsurprisingly, the stock market reflects all these sentiments. In the last 12 months, Amazon stock has gone up by a whopping 66.76%, while shares of all major companies in the department stores industry have fallen by more than 10%... CONTINUE READING



Expect Texas Instruments' Dividend To Keep Growing And Growing

Summary

  • TXN is very attractive from a dividend yield perspective.
  • I believe a year-over-year dividend growth rate of at least 20% can be sustained for many years.
  • TXN's payout ratio is currently below 50%, so there is ample room for further dividend growth.
  • TXN's outlook makes me reasonably confident about the company’s dividend capabilities.

By S. Hasan Abid

Ever since reaching a relative bottom in January this year, shares of Texas Instruments (TXN) have climbed up by ~19%. Currently, the stock price is sitting slightly above its 50-day EMA and 200-day EMA. Note that the 200-day EMA is languishing below both TXN's current price and the 50-day EMA, confirming that the stock is in an uptrend... CONTINUE READING

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