Visa (V)
Founded in 1958 as BankAmericard, Visa (V) helped pioneer modern credit. The company was the first to offer credit cards to consumers and also introduced the debit card in 1975, for example. Today Visa has become the world's second largest payment process network operator (second only to China's UnionPay). Its payment network stretches the globe and connects businesses, corporations, banks, and consumers in over 200 countries and territories. Source: Visa Annual Report There are over 3.2 billion Visa cards (credit/debit/prepaid) in use, and the company's network processed 111 billion transactions worth $10.2 trillion in 2017. Importantly, Visa is not a bank and does not issue cards, extend credit, or set rates for account holders on Visa [...]
OGE Energy (OGE)
Founded in 1902, OGE Energy (OGE) is a regulated electric utility that generates and distributes power in Oklahoma (91% of electric revenue) and western Arkansas. Its coal-fired and natural gas-fired power plants, wind farms, and solar panels serve 842,000 customers in 267 mostly rural and suburban communities. The company has a total of seven power plants and four renewable energy sites with a capacity of 6.3 GW, 346 substations (for distribution), and over 52,000 miles of overhead and underground transmission lines across its areas of operation. Source: OGE Fact Sheet OGE Energy has two business segments: Electric Utility (Oklahoma Gas & Electric): 75% of projected 2018 earnings. Natural Gas Midstream Operations (25% of projected 2018 earnings): owns [...]
Ford (F)
Founded in 1903 in Dearborn, Michigan, Ford (F) is the third largest automaker by revenue with approximately 7% global market share. In 2017 the company sold more than 6.6 million cars, SUVs, and trucks under the Ford and Lincoln brands in North America, South America, Europe, the Middle East, Africa, and Asia. While Ford is a global company, the vast majority of its sales (over 60%) and profits (approximately 100%) are derived from its North American business, where its market share is by far the greatest: North America: 13.9% market share South America: 8.9% Europe: 7.5% Middle East & Africa: 3.9% Asia Pacific: 3.4% Ford Financial Services is the company’s financing arm, designed to help customers finance the purchase [...]
Buckeye Partners, L.P. (BPL)
Buckeye Partners (BPL) traces its roots back to 1886 as the Buckeye Pipe Line Company, part of John D. Rockefeller's Standard Oil empire. Over 30 years ago the business changed its corporate structure to that of a master limited partnership (MLP). Today Buckeye Partners operates a global portfolio of petroleum and petroleum product pipelines and storage terminals. The partnership organizes its operations into three business segments: Domestic Pipelines & Terminals (51% of 2017 Adjusted EBITDA):6,000 miles of petroleum products pipelines and 115 product storage terminals with 57 million barrels of capacity. Global Marine Terminals (46% of 2017 Adjusted EBITDA): 22 storage and import terminals, with 120 million barrels of storage capacity. These terminals are designed for oil import/export and [...]
United Postal Service (UPS)
Founded in 1907 by two teenagers making retail deliveries, United Parcel Service (UPS) is now the world’s largest package delivery company, serving more than 220 countries and territories. Thanks to a global fleet of more than 110,000 vehicles and over 550 aircraft, UPS delivers 20 million packages and documents each day for 1.5 million shipping customers to 9 million delivery customers. UPS’s business is organized into three segments: Domestic Package (62% of revenue, 59% of operating profit): UPS is a leader in time-sensitive, small package delivery services in the U.S., offering a full spectrum of domestic guaranteed ground and air package transportation services. UPS delivers more ground packages in the U.S. than any other carrier, with average daily package [...]
Union Pacific (UNP)
Founded in 1862, Union Pacific (UNP) owns and operates over 32,000 miles of railroads linking 23 states in the western two-thirds of the United States. The company also has about 8,600 locomotives and more than 64,000 rail cars. The company's railways connect with all of the major ports on the West Coast and Gulf Coast and serve many of the fastest-growing cities in the country. Union Pacific’s rail network also connects with some of Canada’s railways and all six of Mexico’s major gateways (the only U.S. rail network to do so). Source: Union Pacific The company serves approximately 10,000 customers across a variety of industries, including agriculture, automotive, chemicals, coal, industrial, and intermodal (shipping containers). Source: [...]
United Technologies (UTX)
Founded in 1934, United Technologies (UTX) is a global industrial conglomerate that provides technology products and services to building systems and aerospace industries worldwide. The company operates four main segments, some of which have existed for as long as 90 years (Pratt & Whitney) and 165 years (Otis elevators). Climate, Controls & Security (29% of sales, 36% of profit): builds heating, ventilating, air conditioning, and refrigeration solutions for residential, commercial, industrial clients. This segment also designs electronic security products, including: intruder alarms, access control systems, video surveillance systems, and fire safety products. Pratt & Whitney (27% of sales, 16% of profit): supplies, maintains, and services aircraft engines for commercial, military, business jet, and general aviation markets. Aerospace Systems (24% [...]
Chatham Lodging Trust (CLDT)
Chatham Lodging Trust (CLDT) is a hotel REIT that went public in 2009. The company focuses on upscale, extended-stay hotels and premium-branded, select-service hotels. The company works with well-known and trusted brands such as Marriott, Hampton Inn, Hyatt, and Hilton. Source: Chatham Investor Presentation The company owns interests in 135 hotels totaling over 18,000 rooms and suites. Chatham Lodging wholly owns 40 of these properties with an aggregate of approximately 6,000 rooms and suites and has minority investments in two joint ventures that own 95 hotels with an aggregate of around 12,500 rooms and suites. Most of its properties are located in major cities on both coasts, as well as fast-growing states such as Texas, Florida, [...]
JPMorgan Chase & Co. (JPM)
JPMorgan Chase (JPM) is one of the world's oldest banking institutions, tracing its roots back to 1799. Today it's the largest bank in the U.S., with over 5,100 branches, 16,000 ATMs, and $2.5 trillion in assets. This includes more than $900 billion in loans and $1.4 trillion in deposits, 27% of which are in non-interest bearing accounts. JPMorgan operates in over 100 countries, although about 80% of revenues are generated in the U.S. Source: JPMorgan Investor Presentation The bank has four major business segments: Consumer & Community Banking (45% of revenue and 39% of earnings): traditional consumer and small business banking services including: checking and savings accounts, small business loans, home mortgages, credit cards, auto loans, home [...]
New Sector Classifications on the Website
Knowing which sector a company is in can help you maintain a well-diversified income portfolio. Today we rolled out new and improved sector classifications from Standard & Poor's (S&P). There are 11 standardized sectors that all companies fall under. Your portfolio's sector mix report has been updated with these sectors as well. Here's the diversification of our Conservative Retirees portfolio using the new sector classifications, for example. I hope you will find the new classifications to be much more familiar and easier to use for analysis of your portfolio as well. Let us know if you have any questions or comments below.