Never fear though, there are solid tech companies that make a lot of money, do big buybacks, and even offer dividends. They can still go higher, but they're paying pennants right now for the stock exes of their brethren. When they're done cooling off, these are going to come back.However, their future rallies will be driven by higher earnings, not higher price earnings multiples or higher price sales multiples. They have to start making a lot of money. Now, there's something good going on here.the speculato ...

Core Viewpoint - Clorox's significant stock sell-off has been excessive, presenting a potential value opportunity for contrarian investors in 2026, especially given its current dividend yield of 4.9% [1][11]. Company Challenges - Clorox has faced self-inflicted challenges alongside broader sector slowdowns, including consumer spending declines and cost pressures from inflation and tariffs [2]. - The company is undergoing a multiyear turnaround focused on maximizing brand value and enhancing internal processes to reduce costs and improve margins [3]. Transition Period - Clorox is in a transition phase as it implements a new enterprise resource planning (ERP) system, which has led to outdated operations and vulnerabilities, including a cyberattack in 2023 [4]. - The ERP transition has resulted in unusually high shipments to retail partners, leading to reduced demand at the start of fiscal 2026, with projected organic sales growth declining by 5% to 9% [5]. Market Position and Brand Strength - Clorox's brands are predominantly category leaders, with approximately 80% of its brands ranking No. 1 or No. 2 in their respective categories, which positions the company well to adapt to changing consumer preferences [10]. - The company is addressing affordability concerns by offering smaller packaging and bulk options to consumers facing financial pressures [9]. Financial Health and Dividend Policy - Clorox has a strong dividend history, having raised its quarterly dividend to $1.24 per share, marking the 48th consecutive annual increase, and is on track to become a Dividend King by 2027 [12]. - The company's earnings and free cash flow continue to exceed dividend expenses, with a manageable total net long-term debt of less than $3 billion and a debt-to-equity ratio of 0.2 [13]. Investment Outlook - Despite current lackluster growth and weak near-term expectations, Clorox presents a high-yield investment opportunity for patient investors with a long-term horizon [16]. - The company's recent strategic decisions, including the ERP transition and divestments, may position it for future growth when consumer spending rebounds [17].

Group 1 - Starboard Value, a hedge fund with $9 billion in assets, has a history of activist investing, notably with Darden Restaurants, which led to significant changes in the company's management and strategy [1][2][20] - The firm is currently targeting companies like Ken View and Corvo, aiming to improve their operational efficiency and unlock shareholder value [2][20] - Activist investing has made corporate America more responsive, with companies acting faster to improve performance due to the pressure from activist investors [19][20] Group 2 - The CEO of Starboard Value, Jeff Smith, emphasizes the importance of understanding a company's inner workings to identify areas for improvement [4][7] - The firm looks for companies with lower margins and multiples compared to peers, believing that there are no structural disadvantages preventing them from performing better [23][45] - The approach involves engaging with management teams to foster open dialogue about strategic improvements, which can lead to better business outcomes [15][49] Group 3 - The merger between Ken View and Kimberly Clark is viewed positively, as both companies have complementary organizational structures that can enhance operational efficiency [36][38] - Concerns regarding Tylenol's brand trust due to past controversies are acknowledged, but the overall business is expected to remain stable [41][42] - Starboard Value's involvement in companies like Salesforce has led to improved profit margins and operational performance, despite broader market pressures [34][35]

Market Trends & Investment Strategies - Tax loss harvesting is occurring earlier than usual due to earlier gains, particularly in the MAG 7 stocks, prompting investors to offset taxes [1][2] - Identifying opportunities through tax loss harvesting is recommended [2] - Stocks making 52-week lows are typically low for a reason, requiring careful consideration [3] Company Specific Analysis - IBM is highlighted as a potentially undervalued AI company with a forward multiple of 25 and a 2% dividend [3][5] - IBM was added to the company's position after research [3] - Companies like Proctor & Gamble, Adobe, ADP, Kimberly Clark, Craft Heinz, and Charter Communications are at 52-week lows [3] - Chevron, Amgen, Johnson & Johnson, and Coca-Cola are mentioned as Dogs of the Dow [3] Investment Considerations - Dogs of the Dow may be "dogs for a reason," but some possess quality and good dividends [4][5] - The focus is on quality companies with good dividends [5]

[Applause] Sometimes when stocks are doing badly, I get worried. Not because I want to get out, but because I wonder if I might be missing a once in a generational bottom. Those don't come around all that often, of course.And right now I'm concerned that we might be missing a bottom in a group of stocks that I haven't particularly cared for at all, especially in a long time, including in How to Make Money in Any Market, which by the way, I'm signing tomorrow night, 6:30 p. m. Barnes & Noble on Atlantic in B ...

Group 1: Diageo - Diageo is known for brands like Guinness, Captain Morgan Rum, and Crown Royal Canadian Whiskey, and it pays a semiannual dividend with a yield of 4.4% based on recent payments [1][2] - The company pays out approximately 50% of its earnings as dividends, which is standard for its industry [2] - Analysts forecast an 18% increase in the annual dividend by 2029, with the stock currently trading at a discount of over 25% to its fair value estimate of $130 per ADR share [3] Group 2: GlaxoSmithKline (GSK) - GSK has historically paid out about 70% of normalized earnings as dividends, which has limited its ability to reinvest in R&D and acquisitions [4] - Following the divestment of its consumer group in 2022, GSK lowered its dividend to a more appropriate level, which is now considered secure and likely to grow in line with earnings over the next 5 years [4] - GSK's US ADR shares provide a quarterly payout of $0.32, translating to an annual dividend rate of $1.70 and a yield of 3.7%, with the stock trading at a 20% discount to fair value [5] Group 3: Kimberly-Clark - Kimberly-Clark is a leading manufacturer in the tissue and hygiene space, recognized as both a dividend aristocrat and a dividend king, having increased its annual dividend payout for 53 consecutive years [6] - The company announced a 3.3% dividend hike for 2025, consistent with its 5-year annualized dividend growth rate of 3.4% [6] - The stock currently yields 4.3%, slightly above its 5-year average, and the long-term outlook calls for mid-single-digit annual dividend growth [7]

Core Viewpoint - Costco is expected to report strong earnings, positioning itself as a leading retailer globally due to its diverse business model and growth opportunities, particularly in store expansion [2][3]. Company Performance - Costco is anticipated to have exceptional growth, with the potential to expand its store count by 30 to 40% globally [2]. - Each Costco store is equivalent to 30 Albertson's stores, indicating its competitive advantage as rivals face closures [3]. - The company is outperforming competitors like Walmart and Sam's Club in various operational metrics, including better service and inventory management [3]. Market Positioning - Costco is benefiting from a value-driven consumer base, with a notable shift towards private label brands, particularly its Kirkland brand, which is recognized for quality and value [4][5]. - The company has stringent procurement practices, ensuring that vendors cannot unjustifiably raise prices, which enhances customer value [5][6]. Expansion Strategy - Costco is expected to announce expansion plans in regions such as the People's Republic of China, Asia-Pacific, and Central United States, capitalizing on opportunities in markets with less competition [7][8]. - The company is likely to convert vacant retail spaces from bankrupt stores into high-volume Costco locations, further solidifying its market presence [8]. Financial Outlook - Costco's stock is currently trading between $145 and $150, with a target price projected to increase by 20 to 24% within a year, indicating strong growth potential despite broader retail challenges [9]. - The company is managing tariff impacts by passing costs onto vendors rather than consumers, which may affect margins but helps maintain competitive pricing [9][16].