Shows the owner's earnings yield of each company in your portfolio this year (LTM = last twelve months). This is calculated by dividing the owners earnings produced per share by the price you paid for that share.
| Name | Earnings (LTM) | vs Expected | Last 5yr Avg | Next Year Expected |
|---|---|---|---|---|
| Apple | 10.2% | +1.3% | 10.1% | 11.9% |
| Amgen | 7.5% | -1.8% | 5.3% | 9.2% |
| Johnson & Johnson | 5.2% | -0.8% | 4.7% | 7.4% |
| J.P. Morgan | 12.2% | +3.4% | 10.1% | 11.9% |
| United Healthcare | 8.8% | +1.9% | 12.1% | 13.7% |
| Portfolio | 9.8% | +0.8% | 7.2% | 11.3% |
You've had a 9.8% return on your investment. Congratulations!
Shows what each companies did with the your earnings. Each dollar can be paid out (via buybacks or dividends), held for later (excess cash), used to acquire other companies (acquisitions), or invested back in the business (reinvestment). Each number is a percentage of the total owners earnings.
The last column shows the historical return on reinvested earnings (ROIC) over the last five years. Numbers in green are above the cost of capital and, hence, create value, while those in red are below it and destroy value. Black numbers are roughly value neutral.
| Name | Dividends | Buybacks | Excess Cash | Acquisitions | Reinvestment | ROIC |
|---|---|---|---|---|---|---|
| Apple | 12% | 13% | 20% | 7% | 48% | 35.1% |
| Amgen | 14% | 18% | 23% | 32% | 13% | 7.9% |
| Johnson & Johnson | 37% | 18% | 11% | 15% | 19% | 8.5% |
| J.P. Morgan | 43% | 27% | 12% | 0% | 18% | 5.9% |
| United Healthcare | 42% | 27% | 8% | 16% | 7% | 14.8% |
| Portfolio | 28% | 21% | 18% | 13% | 20% | 12.6% |
Earnings conference call on 12/13 (audio and transcript) “Today, we're announcing that the iPhone 13 will have 4 cameras and a revolutionary aloe strip.” — Tim Cook
Two analyst upgrades move the expected owners earnings next year to 11.9% (from 11.3%).
UNH to Acquire Dial-A-Doc (Barron's) United Healthcare enters the telamedicine industry by acquiring Dial-A-Doc, a Silicon Valley startup, founded in 2016.
While the focus should be on the owner's earnings produced by the companies you own, there are extra opportunities available to you when market prices are extremely disconnected from those earnings. We highlight examples in your portfolio below.
Apple's current price implies an expected, 5-year annualized earnings yield of 15%. Consider adding to your position.
Amgen's current price implies an expected, 5-year annualized earnings yield of only 6%. While the expected yield, with the price you paid, is around 9%, you can likely find another high quality stock with a 9% earnings yield today (see here for ideas). By selling this stock and buying that one, you can retain a 9% expected earnings yield in the future but also pocket the 50% increase in the price of Amgen's stock since your purchase.
The current prices of the following companies are in the normal range (i.e, fair to a bit expensive):
Johnson & Johnson
J.P. Morgan
United Healthcare
If you'd like to increase your position in one of these, consider writing PUTs options to buy at a lower price. (See here for details.)