Bed Bath & Beyond soars 20% as activists prepare for fight to oust entire board

Bed Bath & Beyond rocketed about 20 percent higher Tuesday as three different activist investors prepare to replace its entire 12-person board.

Legion Partners Asset Management, Macellum Advisors and Ancora Advisors will try to leverage their collective 5 percent stake to prepare to launch a proxy fight at the big-box retailer, according to a person familiar with the situation.

The coalition believes the company has fallen behind as more customers pivot to online shopping and allowed its costs to drifted higher in recent years, the person added. It also hopes to oust Chief Executive Steven Temares, who has led Bed Bath & Beyond since 2003.

The stock was poised for its best day since April 2009; nearly 33 percent of the equity is sold short. Bed Bath & Beyond did not immediately respond to CNBC's request for comment.

The activist trio isn't pushing for a sale of the entire company, another person familiar with the situation told CNBC. Instead, they'd like to see Bed Bath & Beyond consider sales of underperforming assets such as Buy Buy Baby and decor retail chain Cost Plus World Market.

Raymond James upgraded the stock in light of the news, with analyst Bobby Griffin writing that "within the foreseeable future, Bed Bath & Beyond may either no longer be a public company or on a journey to go private."

"The arguments that have caused investor antipathy to Bed Bath & Beyond are real and center on the tired nature of its nearly 1,000 North American Bed Bath & Beyond stores," Griffin added. "Irrespective of the elevated capital investment of the past several years, management has been slow to invest in its stores."

"Meanwhile, too many of the stores we have visited in a wide variety of states over the last few months are cluttered and dirty. This will likely add credibility to any activist style campaign," Griffin told clients.

D-Street Buzz: Nifty Pharma in green led by Sun Pharma; IT stocks drag

The Indian stock market turned flat in the afternoon session on March 14 with Nifty down 5 points, trading at 11,336, and Sensex added 12 points, trading at 37,764.

Nifty IT was down over half a percent dragged by HCL Tech, Tech Mahindra, Oracle Financial Services, Tata Elxsi, TCS and Birla Soft.

FMCG stocks were also down led by Godrej Consumer that shed 2 percent followed by ITC, Proctor & Gamble, United Spirits, GSK Consumer, Dabur India and United Breweries.

From the auto space, the top losers were Hero MotoCorp, Motherson Sumi, TVS Motor, Bosch, Apollo Tyres and Ashok Leyland.

related news Reliance Infrastructure falls nearly 4% post entire stake sale in subsidiary BSE rises 4% as co says board to consider buyback on May 7 Bajaj Consumer Care rises 2% after company hires global management consultant

IndusInd Bank along with YES Bank, Axis Bank and RBL bank kept the Bank Nifty index in the green.

Nifty Realty was the outperforming sector, up over 1 percent led by Indiabulls Real Estate, DLF, Phoenix Mills, Prestige Estates, Sunteck Realty and Oberoi Realty.

From the BSE midcap space, the top gainers were NBCC, Motilal Oswal, DHFL, GRUH Finance, IIFL Holdings and NLC India while the top losers were Reliance Capital, Reliance Power, Reliance Infra, Indian Hotels, Container Corporation and Voltas.

From the smallcap space, the top gainers were Deep Industries that spiked 11 percent followed by RPP Infra, Indocount Industries and Emkay while the top losers were Shemaroo Entertainment, KDDL, Manpasand Beverages and GTL Infra among others.

The top Nifty gainers included YES Bank, IndusInd Bank, NTPC, Sun Pharma and Coal India while the top losers included UltraTech Cement, HCL Tech, Tech Mahindra, Grasim Industries and Hero MotoCorp.

The most active stocks were Reliance Industries, IndusInd Bank, Just Dial, YES Bank and HDFC.

HDFC Bank, Reliance Industries, Godfrey Phillips, Karnataka Bank, Muthoot Finance and UPL have hit 52-week high on NSE while Reliance Communications and Alkem Laboratories hit new 52-week low in the afternoon trade.

The breadth of the market favoured the declines with 712 stocks advancing and 979 declining while 387 remained unchanged. On the BSE, 1,013 stocks advanced, 1,424 declined and 151 remained unchanged.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd. First Published on Mar 14, 2019 01:09 pm

The Good News About Dividends That Will Surprise You

I run across a lot of charts and graphs daily -- it comes with the territory. Only a few of them really grab my attention. But I just found one that I had to share, particularly since it gets to the heart of our very purpose over at The Daily Paycheck.

I'll show you what I'm talking about in a moment, but I won't bury the lead...

If you're not taking advantage of dividend payers, you're missing out -- not only on the income, but serious long-term gains as well.

Don't believe me? Here's the proof...

As you can see from the chart below, share price appreciation would have turned a $10,000 investment in the S&P 500 in 1960 into $460,095 by 2017. That's a handsome 45-fold return. But add reinvested dividends to the picture, and the same investment would have blossomed to $2.57 million, more than five times as much.

 

Source: Hartford Funds Management Group

In other words, reinvested dividends have accounted for 82% of the market's total returns over the past half-century. That remarkable statistic doesn't need any embellishment -- it speaks for itself. 

I'll say it again: If you're not investing in dividend stocks, then you're missing out on the market's strongest wealth-creating opportunities.

Dividends Are Great Again
The relative contribution of dividends has varied dramatically over the years. Back in the stagnant 1970s, quarterly distributions accounted for a hefty 73% of the market's return. But in the high-growth 1990s, they represented a much smaller 16%.

I remember that period well. I was a financial advisor at the time, and dividend stocks (and funds) were a tough sell. Many of my clients considered them a quaint relic in the dawn of a new Millennium. Why get excited about a modest 3% to 4% annual income stream? Tech stocks could do that in a single day.

Instead, I got orders to buy highfliers like JDS Uniphase, which rocketed past $1,200 per share in 1999. You may know the rest of the story. Like most others, it collapsed in the dot-com crash a year later and lost 99.9% of its value before rebranding. That was a painful lesson for many investors.

But we are once again in an era where dividends account for a meaningful chunk of the market's performance. And if there's one thing better than a steady paycheck every 90 days -- it's a growing one.

Dividend Raisers Crush The Market
Obviously, dividend hikes put more cash in our pockets almost immediately. We can see and measure the impact. Take for example one of our own holdings at The Daily Paycheck, Cisco Systems (Nasdaq: CSCO), whose quarterly payout just rose to $0.33 per share from $0.29. With a stake of 212 shares, that hike boosts our annual income by 14% to $280. 

But that might not even be the strongest argument for investing in these stocks.

As I've said before, a distribution increase sends a bullish message. After all, businesses don't lift their commitments if they're expecting earnings to falter. Higher dividends typically reflect an upbeat cash flow outlook, which often precedes a rising share price. So dividend raises not only boost our income, but they can also foreshadow potent capital gains.

How potent?

Well, we also have some good data on this subject courtesy of Ned Davis Research. Between 1972 and 2017, dividend-paying stocks outpaced non-payers with average annual returns of 9.25% vs. 2.61% for the non-payers. But a deeper look beneath the surface reveals a fascinating dichotomy.

The study separated all dividend payers into distinct groups: those raising payouts over the previous twelve months, those cutting or eliminating payouts, and those maintaining payouts with no change.
No surprise, dividend-cutters performed worst, and dividend-maintainers did better. But dividend-growers delivered market-crushing gains of 10.07% annually. That's about 230 basis points ahead of the S&P 500 -- with less volatility. 

To put a real-world example on this, we're up by about 73% on Cisco in less than two years. That's partially thanks to our dividend reinvestment, a crucial part of our strategy at The Daily Paycheck. But even without reinvesting dividends, the stock has returned 63% during that time, while the S&P 500 has gained just under 14%.

Closing Thoughts
I'm probably not telling you anything you didn't already know. Dividend hikes are good for investors; that isn't exactly an Earth-shattering revelation. Still, it's reassuring to attach cold-hard numbers to long-held beliefs.

By the way, like Cisco, my most recent Daily Paycheck recommendation has also been on the move, rallying more than 50% off its 2015 lows. Yet, the yield is still well above average at nearly 3%. And with an impressive streak of 62 straight annual dividend hikes under its belt, I expect this all-weather performer to shell out even more in the year ahead. If you'd like to join us and get the name of this pick, go here to get started.

(This article originally appeared on StreetAuthority.com.)

Torchmark Co. (TMK) EVP Sells $980,040.00 in Stock

Torchmark Co. (NYSE:TMK) EVP Robert Brian Mitchell sold 12,000 shares of Torchmark stock in a transaction on Monday, March 11th. The shares were sold at an average price of $81.67, for a total value of $980,040.00. Following the completion of the transaction, the executive vice president now directly owns 51,808 shares of the company’s stock, valued at $4,231,159.36. The sale was disclosed in a legal filing with the SEC, which is available through this link.

Shares of TMK opened at $82.32 on Wednesday. Torchmark Co. has a 52-week low of $69.68 and a 52-week high of $89.62. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.09 and a current ratio of 0.09. The firm has a market capitalization of $9.05 billion, a PE ratio of 13.43, a price-to-earnings-growth ratio of 1.66 and a beta of 1.01.

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Torchmark (NYSE:TMK) last issued its quarterly earnings results on Tuesday, February 5th. The insurance provider reported $1.56 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $1.56. Torchmark had a return on equity of 12.54% and a net margin of 16.32%. The company had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.09 billion. During the same quarter last year, the company posted $1.24 EPS. The company’s revenue for the quarter was up .8% compared to the same quarter last year. Equities research analysts expect that Torchmark Co. will post 6.61 earnings per share for the current year.

Several brokerages have weighed in on TMK. Zacks Investment Research raised Torchmark from a “hold” rating to a “buy” rating and set a $86.00 price objective for the company in a report on Saturday, January 5th. Morgan Stanley lifted their price objective on Torchmark from $81.00 to $83.00 and gave the company an “underweight” rating in a report on Tuesday, November 13th. JPMorgan Chase & Co. raised Torchmark from a “neutral” rating to an “overweight” rating in a report on Wednesday, January 2nd. Finally, ValuEngine cut Torchmark from a “hold” rating to a “sell” rating in a report on Wednesday, December 12th. Two investment analysts have rated the stock with a sell rating, two have given a hold rating and three have issued a buy rating to the stock. Torchmark has an average rating of “Hold” and an average price target of $85.60.

Institutional investors and hedge funds have recently modified their holdings of the company. Fox Run Management L.L.C. bought a new position in shares of Torchmark in the 4th quarter valued at $642,000. Fjarde AP Fonden Fourth Swedish National Pension Fund increased its stake in shares of Torchmark by 55.1% in the 4th quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 59,087 shares of the insurance provider’s stock valued at $4,404,000 after purchasing an additional 21,000 shares during the last quarter. Bessemer Group Inc. increased its stake in shares of Torchmark by 2,043.5% in the 3rd quarter. Bessemer Group Inc. now owns 67,991 shares of the insurance provider’s stock valued at $5,895,000 after purchasing an additional 64,819 shares during the last quarter. Janney Montgomery Scott LLC bought a new position in shares of Torchmark in the 4th quarter valued at $1,143,000. Finally, Sumitomo Life Insurance Co. increased its stake in shares of Torchmark by 2.5% in the 4th quarter. Sumitomo Life Insurance Co. now owns 17,269 shares of the insurance provider’s stock valued at $1,287,000 after purchasing an additional 418 shares during the last quarter. Institutional investors own 73.10% of the company’s stock.

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Torchmark Company Profile

Torchmark Corporation, through its subsidiaries, provides various life and health insurance products, and annuities in the United States, Canada, and New Zealand. It operates through four segments: Life Insurance, Health Insurance, Annuity, and Investment. The company offers traditional and interest-sensitive whole life insurance, as well as term life insurance.

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That college scholarship may actually be subject to income tax

If your child is deciding between two schools based on a financial aid package, be sure to weigh the taxes that may accompany the offer.

Families depend on scholarships, assistantships and grants to help them afford higher education.

Indeed, the annual cost of tuition, fees, room and board at a public four-year college hit $19,080 for the 2018-2019 school year, according to the College Board. And it was $46,680 for private schools.

The upside of scholarships and other "free money" opportunities is that you don't have to pay them back, unlike loans. However, there is a catch: Scholarships and assistantships may be subject to income tax.

In general, scholarships that cover tuition and fees are tax-free, while money that pays for room and board is not.

Telling the difference between the two is harder than it seems.

"The problem you run into is when the school says, 'We're giving you $10,000 and calling it a scholarship,'" said Tim Steffen, CPA and director of advanced planning at Robert W. Baird & Co. in Milwaukee. "Just because the school says it's tax-free, doesn't mean it is."

Tax-free conditions Blend Images - Terry Vine | Brand X Pictures | Getty Images

Two conditions must apply in order for a scholarship or fellowship to be tax-free, according to the IRS.

1. You're a degree-candidate at an educational institution that maintains a regular faculty and curriculum. The school must have a regularly enrolled body of students in attendance.

2. The money you receive is used to pay for tuition and fees necessary for enrollment or for books, fees, supplies and equipment needed for courses.

Scholarships that cover incidental expenses, including room, board and travel are taxable.

You are also on the hook for taxes on any money you get as payment for teaching, research and other services as a condition of receiving the cash.

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You might also owe taxes on the portion of a scholarship that exceeds the total tuition, fees, books, supplies and equipment — even if the funds are earmarked for those costs, said Mark Kantrowitz, student loan expert and VP of research at Savingforcollege.com.

Students who get money for services required by the National Health Services Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program don't need to pay taxes on the amounts received.

Tuition waivers and stipends show chapters Saving for college    1:03 PM ET Tue, 6 Nov 2018 | 01:04

Fellowships and research assistantships are a little more complicated. These programs may combine a tax-free tuition waiver and a taxable living stipend.

The stated purpose of the funds and how you use the money will matter.

"Let's say that you get a partial tuition waiver and a living stipend, and you use the stipend to pay the tuition," said Kantrowitz.

"It will still be treated as taxable because it was designated for living expenses, as opposed to tuition," he said.

Reporting to the IRS Nora Carol Photography | Getty Images

If a school offers a student money that's considered taxable income — perhaps as part of a teaching assistantship or fellowship — then it must provide the student with a Form W-2, reporting taxes withheld.

Prior to tax time, your school will also report qualified tuition expenses on Form 1098-T, along with the details on the amount of scholarships, fellowships and grants received.

Hold onto your receipts for textbooks, supplies and equipment, Kantrowitz said. Form 1098-T won't have that information.

Who's ultimately responsible for reporting the tax load? For dependent students, Mom and Dad would report the scholarships on their return.

In this case, a taxable scholarship is considered "unearned income," subjecting it to the kiddie tax if the child is under 19 or is a full-time student under age 24, Steffen said.

Under the old tax code, this would've meant that unearned income exceeding $2,100 is subject to the parents' rates, and families would use Form 8615 to calculate the liability.

Under the new tax law, however, the "unearned income" will instead be subject to trust income tax rates — meaning that taxable income exceeding $12,500 will be taxed at the top rate of 37 percent.

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3 Top Biotech Stocks to Buy in March

Biotech investors are having a great start to 2019. Shares of the SPDR S&P Biotech ETF are up 19% since Jan. 1, which is a heck of a run in such a short time.

But which biotech stocks are worth a closer look during this recent rally? We asked three Motley Fool contributors to weigh in, and they picked Galapagos (NASDAQ:GLPG), Celgene (NASDAQ:CELG), and Zealand Pharma (NASDAQ:ZEAL).

Image source: Getty Images.

Big news is on deck for this clinical-stage biotech

Todd Campbell: (Galapagos): This foreign-based biotech might not be on your radar. If it isn't, it should be. The company expects data on its lead drug candidate soon, and if the data is positive, it could represent a multibillion-dollar opportunity for the company and its collaboration partner Gilead Sciences (NASDAQ:GILD).

The two companies have already reported that their rheumatoid arthritis drug filgotinib effectively improved symptoms on a common scoring method in one trial last fall. Results from two additional phase 3 trials that could support filings for approval in the U.S. and Europe are expected before the end of March. If the trials read out similarly to the first trial, then an application for approval could get filed in both markets before the end of this year, clearing the way for commercial sales sometime in 2020.

There are about 1.5 million people diagnosed with rheumatoid arthritis in the U.S. alone, and existing treatments can cost tens of thousands of dollars annually. As a result, this indication has spawned a slate of megablockbuster medications, including Humira, the world's best-selling drug with over $19 billion in sales per year. Galapagos and Gilead Sciences think filgotinib could be a more effective and safer option than existing treatments. If they're right, then filgotinib's commercial opportunity may be massive.

Success would benefit Gilead Sciences most, but it will move the needle more for Galapagos. If it is eventually approved, it will be Galapagos' first commercial drug. A win could net Galapagos up to $1.35 billion in milestones from Gilead Sciences, plus Galapagos can pocket royalties on U.S. sales ranging between 20% and 30%. In Europe, the companies will split profits equally.

Given that Galapagos' market cap is only $5 billion, positive trial results could cause its shares to rally sharply higher. However, there's no guarantee of success, so only risk-tolerant investors should consider buying it before the data is unveiled.

Heads I win, tails I win

Brian Feroldi (Celgene): Shares of Celgene skyrocketed in early January after news broke that it was being bought out by pharma giant Bristol-Myers Squibb (NYSE:BMY) for about $74 billion. The deal valued Celgene at about $102.50 per share plus the potential to earn an extra $9 if certain conditions were met. Given these figures, why are shares trading for under $86 today?

The primary reason appears to be that Wall Street doesn't think that the deal will ever happen. Between the potential pushback from regulators and a few large shareholders that have come out against the deal, there isn't a lot of faith out there that this acquisition will ever close.

That uncertainty is providing investors with an interesting opportunity right now. If the deal does go through as planned in the third quarter of this year, then shareholders who buy today would earn a double-digit return on their money in just a few months. If the deal doesn't work out, then Celgene's shares will probably drop a bit, but buyers are still getting a terrific value. 

Celgene just reported 16% revenue growth and 20% adjusted profit growth in the fourth quarter. Management guided for adjusted profits to grow another 21% in 2019 to a range of $10.60 to $10.80 per share. With shares currently trading around $85, this means that they can currently be purchased for slightly more than 8 times earnings. That's a highly attractive valuation for a stock that is still posting double-digit earnings growth.

Investors are absolutely assuming some risk by buying shares today, but I think that Celgene's stock is a great value no matter the outcome.

A potential treatment for the opposite of diabetes

Chuck Saletta (Zealand Pharma): Diabetes is an awful disease that affects over 400 million people around the world. It is frequently lifelong, with life-threatening consequences if left untreated or unmanaged. Yet despite the consequences of diabetes, there are some people for whom it beats the alternative diagnosis: a disease called congenital hyperinsulinism.

While it's a fairly rare disease, affecting around 1 in 50,000 newborns, congenital hyperinsulinism can cause permanent brain damage. As a result, many with the disease have part or all of their pancreas removed, which can ultimately lead to diabetes.

Zealand Pharma has a potential treatment for congenital hyperinsulinism, dasiglucagon, that just entered phase 3 clinical trials. If it is successful, it could prevent the need for patients to have their pancreas removed -- allowing them to live far more normal lives without developing diabetes as a "less awful" alternative. The same compound is in trials to treat other forms of hypoglycemia -- including hypoglycemia that results from mis-dosed insulin in diabetics.

That ability to treat multiple forms of hypoglycemia makes dasiglucagon a compound with a billion-dollar-a-year market potential if it passes its phase 3 trials. Zealand Pharma's current market capitalization is around half that amount, which makes it an intriguing candidate for consideration as a potential investment.

If the phase 3 tests for dasiglucagon prove successful, Zealand Pharma expects to file a new drug application by the end of this year. That gives investors a limited window to buy before a decision is made that could result in a major move in the company's stock. Note that Zealand Pharma is not currently profitable, driven by its heavy research and development budget, which means that it is a high-risk investment despite the potential reward if it's successful.

A P MOLLER-MAER/ADR (AMKBY) Upgraded to Hold at Zacks Investment Research

A P MOLLER-MAER/ADR (OTCMKTS:AMKBY) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Monday.

According to Zacks, “A.P. Moeller-Maersk A/S operates as a shipping company. It operates container vessels, tankers, supply ships, special vessels, APM terminials and oil drilling rigs. A.P. Moeller-Maersk A/S is headquartered in Copenhagen, Denmark. “

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Separately, Barclays cut shares of A P MOLLER-MAER/ADR from an “equal weight” rating to an “underweight” rating in a report on Monday, January 7th.

OTCMKTS:AMKBY opened at $6.67 on Monday. A P MOLLER-MAER/ADR has a 12 month low of $5.92 and a 12 month high of $8.55. The company has a debt-to-equity ratio of 0.45, a current ratio of 2.11 and a quick ratio of 2.00. The firm has a market cap of $13.42 billion, a PE ratio of 133.40 and a beta of 0.86.

A P MOLLER-MAER/ADR Company Profile

A.P. Møller – Mærsk A/S operates as an integrated transport and logistics company worldwide. The company's Ocean segment engages in container shipping activities, including demurrage and detention, terminal handling, documentation services, container services, and container storage, as well as transhipment services under Maersk Line, Safmarine, Sealand ? A Maersk Company, Hamburg Süd, and APM Terminal brands.

Further Reading: How to Profit and Limit Losses With Stop Orders

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For more information about research offerings from Zacks Investment Research, visit Zacks.com

Hot Value Stocks To Buy Right Now

tags:EVV,BOH,EFT,UHS,OTEX,SWZ, Investment Thesis

Open Text (NASDAQ:OTEX) is a well-established company with a strong brand name and a large list of reliable partners and clients that has continued to grow over the last couple of years. Open Text has been successful in growing their company year-over-year and has distinct plans to continue this growth moving forward. The company creates value through their strategic acquisition process - by acquiring businesses and implementing their successful business model to improve operations and increase margins. Many investors find this growth strategy unappealing because of the lack of confidence in the ability to continue to grow through this strategy. Due to this uncertainty by investors, the price has remained relatively constant and I believe this represents an opportunity for investors willing to look deeper into the company. Open Text supplements this inorganic growth with organic growth that comes in each one of their segments that are continuously expanding. The company will continue to create value through management's strategic capital allocation strategy and strong organic growth initiatives and this will continue to drive the stock price.

Hot Value Stocks To Buy Right Now: Eaton Vance Limited Duration Income Fund(EVV)

Advisors' Opinion:

• [By Logan Wallace]

  Eaton Vance Ltd Duration Income Fund (NYSEAMERICAN:EVV) was the recipient of a large increase in short interest in September. As of September 14th, there was short interest totalling 61,700 shares, an increase of 154.4% from the August 31st total of 24,249 shares. Currently, 0.1% of the company’s shares are short sold. Based on an average trading volume of 199,358 shares, the short-interest ratio is currently 0.3 days.

Hot Value Stocks To Buy Right Now: Bank of Hawaii Corporation(BOH)

Advisors' Opinion:

• [By Shane Hupp]

  Bank of Hawaii (NYSE:BOH) was upgraded by analysts at ValuEngine from a sell rating to a hold rating.

  ChemoCentryx (NASDAQ:CCXI) was upgraded by analysts at ValuEngine from a hold rating to a buy rating.

• [By Max Byerly]

  Envestnet Asset Management Inc. reduced its holdings in Bank of Hawaii Co. (NYSE:BOH) by 17.9% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,691 shares of the bank’s stock after selling 1,021 shares during the quarter. Envestnet Asset Management Inc.’s holdings in Bank of Hawaii were worth $391,000 at the end of the most recent quarter.

• [By Shane Hupp]

  Epoch Investment Partners Inc. boosted its position in shares of Bank of Hawaii Co. (NYSE:BOH) by 3.1% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 706,037 shares of the bank’s stock after purchasing an additional 20,908 shares during the period. Epoch Investment Partners Inc.’s holdings in Bank of Hawaii were worth $58,672,000 at the end of the most recent reporting period.

Hot Value Stocks To Buy Right Now: Eaton Vance Floating Rate Income Trust(EFT)

Advisors' Opinion:

• [By Shane Hupp]

  Relative Value Partners Group LLC grew its holdings in Eaton Vance Floating-Rate Income Trust (NYSE:EFT) by 11.0% in the first quarter, HoldingsChannel reports. The firm owned 799,864 shares of the investment management company’s stock after purchasing an additional 79,578 shares during the period. Relative Value Partners Group LLC’s holdings in Eaton Vance Floating-Rate Income Trust were worth $11,958,000 as of its most recent SEC filing.

Hot Value Stocks To Buy Right Now: Universal Health Services, Inc.(UHS)

Advisors' Opinion:

• [By Logan Wallace]

  Universal Health Services (NYSE:UHS) had its price objective increased by Deutsche Bank from $140.00 to $160.00 in a research report report published on Friday morning. The brokerage currently has a buy rating on the health services provider’s stock.

• [By Stephan Byrd]

  Quorum Health (NYSE: QHC) and Universal Health Services (NYSE:UHS) are both medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

• [By Shane Hupp]

  Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp lifted its stake in shares of Universal Health Services, Inc. Class B (NYSE:UHS) by 4.2% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 34,800 shares of the health services provider’s stock after acquiring an additional 1,400 shares during the quarter. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp’s holdings in Universal Health Services, Inc. Class B were worth $3,878,000 at the end of the most recent reporting period.

• [By Max Byerly]

  Parametrica Management Ltd acquired a new stake in Universal Health Services (NYSE:UHS) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 1,694 shares of the health services provider’s stock, valued at approximately $201,000.

Hot Value Stocks To Buy Right Now: Open Text Corporation(OTEX)

Advisors' Opinion:

• [By WWW.GURUFOCUS.COM]

  For the details of CDAM (UK) Ltd's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=CDAM+%28UK%29+Ltd

  These are the top 5 holdings of CDAM (UK) LtdAlphabet Inc (GOOGL) - 57,687 shares, 13.61% of the total portfolio. Shares added by 22.65%Open Text Corp (OTEX) - 1,703,053 shares, 12.52% of the total portfolio. Shares added by 57.24%EchoStar Corp (SATS) - 1,291,355 shares, 11.98% of the total portfolio. Shares added by 32.53%Athene Holding Ltd (ATH) - 1,339,253 shares, 11.64% of the total portfolio. Shares added by 22.45%Hilltop Holdings Inc (HTH) - 2,345,728
• [By Max Byerly]

  Get a free copy of the Zacks research report on Open Text (OTEX)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Joseph Griffin]

  Get a free copy of the Zacks research report on Open Text (OTEX)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

Hot Value Stocks To Buy Right Now: Swiss Helvetia Fund, Inc. (SWZ)

Advisors' Opinion:

• [By Logan Wallace]

  Swiss Helvetia Fund, Inc. Common Stock (NYSE:SWZ) declared a Semi-Annual dividend on Tuesday, June 12th, Zacks reports. Investors of record on Friday, June 22nd will be paid a dividend of 0.203 per share by the closed-end fund on Friday, June 29th. The ex-dividend date of this dividend is Thursday, June 21st.

3 Things to Consider Before Buying Apple Stock

Unless you’re the New England Patriots, staying on top is a massive challenge. The owners of Apple (NASDAQ:AAPL) stock, who spent most of the last 15 years smiling, learned this lesson the hard way. Between October of last year through early January, Apple stock tumbled badly and uncharacteristically. As a result, its latest surge has created both optimism and trepidation.

Source: Shutterstock

For over a decade, Apple’s iPhone dominated the smartphone space, naturally causing AAPL stock price to spike. At the time, no one cared that the iPhone represented the lion’s share of the company’s global revenue. As long as customers kept buying iPhones – and they did – this unbalanced allocation was an asset.

But with “peak smartphone” negatively impacting the entire industry, AAPL needed fresh ideas. However, I argued that it hasn’t been able to keep pace with its competitors. The company badly lost out in the smart-speaker battle to Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). Even “second-thought” Sony (NYSE:SNE) has started to flex its consumer-tech muscles.

That said, the year is still young, giving management the opportunity to right the ship. Since the year began, Apple stock has gained over 13%. Is this the time to buy AAPL stock or should burned investors remain cautious?

Geopolitical Tailwind for Apple Stock

I’m still very much concerned about the impact of Apple’s fundamentals on Apple stock price. Although AAPL is trying to tap other growth opportunities, its bread-and-butter remains the iPhone. Since smartphones have become commoditized, Apple needs to find a new game-changer for AAPL stock price to move decisively higher.

Nevertheless, I believe that Apple stock provides viable, nearer-term opportunity for speculative buyers and swing-traders. Early this year, Apple CEO Tim Cook essentially blamed the Trump administration for poor iPhone sales in China. Cook stated, “It’s clear that the economy began to slow there in the second half and I believe the trade tensions between the United States and China put additional pressure on their economy.””

However, that headwind will likely fade into the background. A recent thawing in U.S.-China relations may indeed result in a permanent resolution. The generally positive recent action of the U.S. stock market suggests that Wall Street is optimistic about a U.S.-China deal. Speculators can buy Apple stock ahead of a likely deal, and potentially profit handsomely from the transaction.

One of the silver linings of the Trump administration’s high-profile failure to securing a North Korean denuclearization agreement is that it’s extra-motivated to get something, anything going.

One of the most prominent, likely prizes for the administration is ceasing the painful U.S.-China trade war. Such an agreement could boost  Apple stock by a hefty amount.

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AAPL Stock Needs Another Catalyst Besides China

Earlier, I mentioned the New England Patriots as an example of sustained excellence. However, they’ve also suffered their share of blunders, both on the field and apparently off it.

Just as some of the Pats’ blunders could not have been predicted, there are often major surprises in geopolitics. So President Trump wants to negotiate after the North Korea debacle and the U.S. and China are reportedly close to a deal, which are positive developments. But despite these developments, a deal may still not get done.

Either way, Apple and Apple stock face severe challenges. Since the first quarter of 2012, China has unquestionably been the king of Apple’s growth. On a year-over-year basis, Apple’s “Greater China” sales have risen by an average of 17.4%. No region besides Japan experienced double-digit growth over that period.

Unfortunately, recent metrics indicate a complete reversal of fortune. Since the first quarter of 2017, Apple’s China revenues have increased by an annual average of less than 2%.

Moreover, data indicates that Apple’s growth in other regions is sustainable. The company’s revenue in the Americas, Europe, and Asia-Pacific excluding Japan has ticked up meaningfully relative to their respective long-term averages. And in Japan’s case, the dip in sales growth is minor.

That’s not the case in China. Therefore, even if the trade war is resolved, Apple stock still has an uphill battle ahead.

Technical Considerations

As I mentioned near the beginning of the column, the AAPL stock price is off to a solid start this year. More importantly, the momentum of Apple stock is building.

However, the longer-term picture is ambiguous. For starters, Apple stock is currently sandwiched between its 50 and 200 day moving averages. This suggests reluctance among traders to push shares one way or the other.

Also note that the current price point represents a horizontal resistance line. In May of last year, Apple stock famously broke through this resistance on its way to a trillion-dollar market capitalization. But we all know that rally didn’t last too long.

So is AAPL stock about to challenge those highs again, or will it crumble back down? I see a case for being bullish on Apple stock in the nearer-term based on a potential resolution of the trade war. At the same time, I wouldn’t hold onto Apple stock longer than necessary. As I demonstrated earlier, the company has to overcome underappreciated troubles.

As of this writing, Josh En

Boeing Up 37% This Year, Outpacing All Dow Stocks

As the fortunes of rival Airbus are shaken by the end of the most ambitious airplane program in its history, Boeing Co. (NYSE: BA) has made an unprecedented run at the record books of its own. Boeing shares are up 36% in two months, pacing well ahead of the other components of the Dow Jones industrial average, which is up just 11.6%.

Airbus believed it could build and successfully market a new generation of what the Boeing 747 was — a jumbo jet at the center of the long-haul commercial air fleet for five decades. Cancellation of the A380 by Airbus killed the future of a plane that held as many as 500 seats. Airlines found that smaller more fuel-efficient planes made them more money. Boeing has its competition at the jumbo end of the market.

Boeing had to do more than fight its way through the competition to post a strong rally. Investors have worried that a trade war with China would cut Boeing sales there. China is well along the path to becoming the world's largest commercial airplane market. The Chinese have not attacked the American airplane industry as a pawn in the trade game, so Boeing may be safe.

Boeing continues to top Airbus in deliveries. According to earlier 24/7 Wall St. reporting, “Boeing delivered 906 commercial aircraft in 2018. Airbus delivered 763. Just as important, Boeing's net orders were 894 commercial aircraft to Airbus's 747.” The future may be even better. 24/7 Wall St. reported, “The company's widely followed 20-year forecast of global commercial airplanes shows that 42,730 new jets will be needed over the period. The value of these will be $6.3 trillion.”

Boeing's strength in the defense industry puts another leg on its business stool to balance commercial aviation. 24/7 Wall St. recently wrote: “Boeing's other large business, which builds jets, helicopters and missiles, has thrived due to the increase in defense spending both in the United States and overseas. Boeing's Defence, Space and Security revenue rose 13% to $5.7 billion in the third quarter of 2018 over the same period a year ago.”

Finally, there is the strength of Boeing's numbers. According to 24/7 Wall St., Boeing's entire revenue for the period was $25.1 billion, up 4%. Boeing also bumped guidance higher: “The company's revenue guidance increased $1.0 billion to between $98.0 and $100.0 billion, driven by defense volume and services growth, inclusive of the KLX acquisition.”
24/7 Wall St.
SunTrust Has 5 Buy-Rated Energy Stocks Trading Under $10 With Huge Upside Potential

Best Performing Stocks To Buy For 2019

tags:SSBI,TI,DCM,JJSF,

On today’s episode of Free Lunch, Associate Stock Strategist Ryan McQueeney discusses Pepsi’s earnings results, Amazon’s minimum wage bump, and analyst reports for Square and Dropbox. Later, he is joined by Dave Bartosiak to discuss the news and to highlight key things to know about Stitch Fix and Nafta 2.0.

Want more video content from Zacks? Subscribe to Zacks Investment News now!

U.S. stocks shook off an early dip and trudged into the green in early afternoon trading Tuesday, but Wall Street was generally apathetic as investors wait patiently for fresh jobs data due later this week.

Shares of PepsiCo (PEP ) pulled back slightly after the beverage behemoth reported earnings before the bell. Pepsi extended its streak of outperforming earnings estimates, and revenue for the most recent quarter was also better-than-expected. However, the company warned of a stronger U.S. dollar cutting into international profits and reduced its full-year guidance by five cents.

Best Performing Stocks To Buy For 2019: Summit State Bank(SSBI)

Advisors' Opinion:

• [By Max Byerly]

  ValuEngine upgraded shares of Summit State Bank (NASDAQ:SSBI) from a hold rating to a buy rating in a research note released on Saturday.

  Separately, TheStreet raised Summit State Bank from a c+ rating to a b rating in a report on Wednesday, February 14th.

Best Performing Stocks To Buy For 2019: Telecom Italia S.P.A.(TI)

Advisors' Opinion:

• [By Ethan Ryder]

  Telecom Italia (NYSE:TI) was downgraded by analysts at Zacks Investment Research from a buy rating to a hold rating. According to Zacks, “The Telecom Italia Group is engaged principally in the communication sector that operates mainly in Europe, the Mediterranean Basin and South America. This includes telephone and data services on fixed lines (for final retail customers and wholesale providers), the development of fiber optic networks for wholesale customers, BroadBand services, Internet services, domestic and international mobile telecommunications (especially in Brazil), and the television sector using both analog and digital terrestrial technology. The Group also operates businesses in the office products sector. “

• [By Logan Wallace]

  Titan Mining (TSE:TI) received a C$1.80 target price from Scotiabank in a research report issued to clients and investors on Monday. The brokerage presently has an “outperform” rating on the stock. Scotiabank’s price target suggests a potential upside of 44.00% from the stock’s current price.

• [By Logan Wallace]

  Canaccord Genuity reissued their buy rating on shares of Telecom Italia (NYSE:TI) in a research report released on Tuesday morning. The firm currently has a $1.25 target price on the utilities provider’s stock.

• [By Stephan Byrd]

  Titan Mining Corp (TSE:TI) Director Richard William Warke purchased 13,600 shares of the firm’s stock in a transaction that occurred on Friday, June 22nd. The shares were bought at an average price of C$1.40 per share, with a total value of C$19,040.00.

• [By Ethan Ryder]

  TIM (NYSE: TI) and ORBCOMM (NASDAQ:ORBC) are both utilities companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

• [By Shane Hupp]

  Hawaiian Telcom HoldCo (NYSE: TI) and Telecom Italia (NYSE:TI) are both utilities companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Best Performing Stocks To Buy For 2019: NTT DOCOMO, Inc(DCM)

Advisors' Opinion:

• [By Shane Hupp]

  DATA Communications Management Corp (TSE:DCM) insider Michael Sifton purchased 12,500 shares of DATA Communications Management stock in a transaction that occurred on Wednesday, September 12th. The stock was bought at an average cost of C$1.52 per share, for a total transaction of C$19,000.00.

• [By Logan Wallace]

  Bank of Hawaii bought a new position in NTT Docomo Inc (NYSE:DCM) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 8,664 shares of the technology company’s stock, valued at approximately $222,000.

• [By Joseph Griffin]

  Shares of NTT Docomo Inc (NYSE:DCM) have been given an average recommendation of “Hold” by the seven research firms that are covering the company, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell rating and five have given a hold rating to the company.

Best Performing Stocks To Buy For 2019: J & J Snack Foods Corp.(JJSF)

Advisors' Opinion:

• [By Stephan Byrd]

  ValuEngine upgraded shares of J & J Snack Foods (NASDAQ:JJSF) from a hold rating to a buy rating in a research note issued to investors on Tuesday.

• [By Shane Hupp]

  Get a free copy of the Zacks research report on J & J Snack Foods (JJSF)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Joseph Griffin]

  WARNING: “JPMorgan Chase & Co. Trims Stake in J & J Snack Foods Corp (JJSF)” was first posted by Ticker Report and is owned by of Ticker Report. If you are accessing this piece on another domain, it was illegally stolen and reposted in violation of US & international copyright and trademark laws. The legal version of this piece can be read at https://www.tickerreport.com/banking-finance/4163089/jpmorgan-chase-co-trims-stake-in-j-j-snack-foods-corp-jjsf.html.

• [By Ethan Ryder]

  Get a free copy of the Zacks research report on J & J Snack Foods (JJSF)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Ethan Ryder]

  News articles about J & J Snack Foods (NASDAQ:JJSF) have been trending positive recently, according to Accern. The research firm identifies positive and negative press coverage by monitoring more than twenty million news and blog sources in real time. Accern ranks coverage of public companies on a scale of negative one to one, with scores nearest to one being the most favorable. J & J Snack Foods earned a media sentiment score of 0.35 on Accern’s scale. Accern also assigned media headlines about the company an impact score of 46.1459784958457 out of 100, meaning that recent press coverage is somewhat unlikely to have an effect on the company’s share price in the near term.

Forget Lowe's, Home Depot Is a Better Retail Stock

The two leading home improvement retailers have been good places to park some money over the years. Lowe's (NYSE:LOW) and Home Depot (NYSE:HD) have benefited from positive homeownership trends and, most recently, rising home prices, which have caused more homeowners to stay where they are and fix up their dwellings instead of moving. 

Over the last five years, both stocks have more than doubled shareholders' money. Home Depot has a slight edge, beating the return on Lowe's stock, 126% to 110%. One reason is that Lowe's has suffered from operational issues that pressured growth in revenue and profits.

Image source: Getty Images.

The numbers reveal two completely different companies

The recent operating performance shows Home Depot is a better-run company. In 2018, Lowe's revenue grew 3.9%, while Home Depot sales climbed 7.2%. In the last quarter of the year, Lowe's reported just 1.7% growth in comparable-store sales, but Home Depot's comps growth was higher at 3.2%. 

Lowe's slower growth was not based on weak traffic but several execution issues throughout the company. Management cited inefficient inventory management, poor customer service, poor merchandise assortment, and other execution issues. 

These problems are evident in the wide disparity between both companies' margins. In 2018, Lowe's reported a gross margin of 32.1% and an operating margin of 5.6% -- with both numbers down from 2017 levels.

Meanwhile, Home Depot's gross margin slightly improved to 34.3% last year, and the operating margin remained firm at 14.3%. Home Depot's higher margins are a sign of much better store execution and more efficient inventory management.

Better execution leads to better stock returns

It's eye-opening to see the discrepancy between these two home improvement stores, especially given that they serve the same market and are benefiting from the same housing trends. The difference in performance goes to show that not all companies are made the same, even ones that compete in the same industry and look identical on the surface. Before you invest in a stock, it pays to look beneath the headline numbers and see what's really going on.

Both companies grew revenue at about the same rate over the last five years. But Lowe's operating-income growth started to lag Home Depot's in 2016. A deceleration in operating-income growth is a sign of bloated operating expenses. This was the early sign that Lowe's had execution issues.

LOW Operating Income (TTM) data by YCharts.

Management at Lowe's announced during the third-quarter conference call in 2018 that it had a plan to fix the execution problems. However, one analyst with Barclays wasn't impressed and downgraded the stock anyway. The analyst said that while Lowe's may eventually narrow the gap with Home Depot, turnaround initiatives that focus on fixing labor execution tend to take awhile. In other words, Lowe's problems will likely take more than a year to fix.

Other analysts seem to have the same opinion, as the consensus analyst estimate calls for Lowe's to grow revenue 1.8% in fiscal 2020 (which ends in January), while analysts expect Home Depot to maintain its faster pace of growth at 3.4% this year. 

This isn't a good time for Lowe's to have to spend resources to fix problems that it shouldn't have at this point. Because Home Depot is humming along, it's focused on spending money in areas that expand its moat, particularly on the digital side of the business. Team Orange delivered a 23% growth rate in online sales during the fourth quarter, versus just 11% for Team Blue. 

Lowe's will eventually fix the problems, but in the meantime, shareholders should stick with the company that has delivered more consistent results, especially given that the two stocks trade for about the same forward P/E multiple of 18 based on analysts' earnings estimates.  

Global Net Lease Inc (GNL) Q4 2018 Earnings Conference Call Transcript

Image source: The Motley Fool.

Global Net Lease Inc  (NYSE:GNL)Q4 2018 Earnings Conference CallFeb. 27, 2019, 11:00 a.m. ET

Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks:

Operator

Good day and welcome to the Global Net Lease, Fourth Quarter Earnings Conference Call and Webcast. All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Louisa Quarto, Executive Vice President. Please go ahead.

Louisa Hall Quarto -- Executive Vice President

Thank you, operator. Good morning everyone and thank you for joining us for GNL's fourth quarter 2018 earnings call. This call is being webcast in the Investor Relations section of GNL's website at www.globalnetlease.com. Joining me today on the call to discuss the quarter's results are, Jim Nelson GNL's Chief Executive Officer and Chris Masterson, GNL's Chief Financial Officer.

The discussion today will include certain statements and assumptions, which are not historical facts. They are forward looking in nature and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The following discussion and analysis should be read in conjunction with the accompanying financial statements.

The following information contains forward-looking statements, which are subject to risks and uncertainties. The one or more of these risks or uncertainties materialize, actual results may differ materially from those expressed or implied by the forward-looking statements. We refer all of you to our SEC filings, including the Form 10-K filed for the year ended December 31st, 2017, filed on February 28, 2018, and all other filings with the SEC after that date for more detailed discussion of the risk factors that could cause these differences.

Also during the call, we will use the term investment grade rating, which includes both actual investment grade ratings of the tenant and implied investment grade rating. Implied investment grade can include ratings of the lease guarantor or the tenant parent, regardless of whether or not the parent has guaranteed the tenant's obligation under the lease.

Implied investment grade ratings can also include ratings determined using a proprietary Moody's analytical tool, which compares the risk metrics of the non-rated company to those of a company with an actual rating. The ratings information is as of December 31st, 2018. Any forward-looking statements provided during this conference call are only made as of the date of this call. As stated in our SEC filings, GNL disclaims any intent or obligation to update or revise these forward-looking statements except as required by law.

Also during today's call, we will discuss non-GAAP financial measures, which we believe can be useful in evaluating the Company's financial performance. These measures should not be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP. A reconciliation of these measures to the most recent directly comparable GAAP measure is available in our earnings release.

I'll now turn the call over to our CEO, Jim Nelson.

James L. Nelson -- Chief Executive Officer and President

Thank you, Louisa and thanks again to everyone for joining us on today's call. It has been a year-and-a-half since I became GNL's CEO and I'm very proud of the tremendous progress and growth we've achieved in our global real estate portfolio. It is these achievements that distinguish us in the marketplace and we will continue to build on this positive momentum in 2019 and beyond. Our team relies on six key drivers which guide management in the operation of Global Net Lease.

First, there is a focus on owning and operating a high quality mission critical diversified portfolio. At the end of 2018, GNL's portfolio has grown to over $3.5 billion, made up of 342 properties located in the U.S. and six Western European countries. This portfolio includes the 23 properties that GNL purchased in 2018, for a combined contract purchase price of $478 million. These properties provide additional quality and diversification to GNL's overall portfolio.

Second, an important part of GNL's long-term strategy is to focus on leases with long durations that are backed by investment grade and credit-worthy tenants. The Company has demonstrated its ability to source and acquire these types of properties, which provide safe and durable rental income. At the end of 2018, GNL's weighted average lease duration was 8.3 years and it's investment grade and implied investment grade tenant base represents 78.3% of the overall portfolio.

Third, GNL pursues a differentiated strategy with both U.S. and international exposure. The Company maintains a good balance of U.S. and Western European properties with a 55.7% U.S. and 44.3% Western European mix.

Fourth, we utilized proactive asset management to drive long-term portfolio value. As an example, the Company recently agreed to opportunistically sell three European assets for a gain and will generate EUR72.5 million in proceeds available for reinvestment in the U.S. and Europe.

Fifth, an experienced and robust management team. The Company's capabilities are enhanced through professionals based in London, Luxembourg, Charlotte, Newport and New York with specialists across multiple segments including acquisitions, finance, accounting, legal and property management. The Company benefits from this Group's breadth of knowledge and talent.

And Sixth, as a global Company, we believe GNL has the ability to capitalize on differences between the U.S. and European markets to deliver superior risk adjusted returns. Over this past year, GNL acquired $478 million of acquisitions with an average cap rate of 7.70% with a focus on U.S. industrial and distribution properties. The Company also closed on several different debt financing into both U.S. and Europe including the upsizing of the credit facility by $192 million and the GBP230 million UK debt refinancing at an improved interest rate. These financing demonstrate the different sources of capital GNL has access to, in order to optimally finance the Company's global portfolio.

Now, I will begin to review of the key milestones GNL achieved during 2018. Chris will then go into more detail regarding our financial performance. We anticipate settlement of the outstanding litigation with our former European service provider. In connection with this, we recorded a $7.4 million reserve, which is a one-time non-recurring expense that affects net income and FFO, but has no impact to the Company's AFFO. We are extremely pleased with the anticipated resolution.

Turning to several of GNL's key metrics. It is clear that the Company made significant progress in 2018 from 2017. Revenue increased to $282.2 million and 8.8% increase. Net income attributable to common stockholders was $1.1 million, which includes a one-time $7.4 million anticipated settlement with our former European service provider. Adjusted funds from Operations or AFFO, increased 4.7% to $147.3 million. Real estate portfolio increased to over $3.5 billion from less than $3.2 billion. Investment grade or implied investment grade tenants increased to 78.3% from 76.3% and remaining debt maturity increased to 4.2 years from 3.7 years.

Over the course of 2018, GNL continue to execute on its disciplined long-term strategy of acquiring and managing a portfolio of high quality assets net leased on a long-term basis to predominantly investment grade and credit-worthy tenants in the U.S. and in Western Europe. During the year, GNL acquired 23 properties for a combined contract purchase price of $478 million and sold two properties for gross proceeds of $25.3 million.

GNL's acquisitions are broken down as follows: 16 industrial properties acquired for $242.5 million with a weighted average lease term of 12.1 years and six distribution facilities acquired for $181.7 million with a weighted average lease term of 10.1 years and one office property acquired for $54 million with a lease term of 12 years. In their first full year within the portfolio, these 23 assets will contribute approximately $36 million in additional annualized straight-line rental revenue, based on existing in-place leases.

The properties were acquired with a combination of cash-on-hand, equity proceeds and debt financing. Additionally, GNL already has $53 million of additional acquisitions under executed LOI or PSA plus over $200 million of LOIs currently submitted for potential acquisitions. To execute on the Company's long-term growth strategy, GNL accessed the equity capital markets with two common equity offerings and issuances through the ATM program in 2018. Raising a total of $179 million in common equity capital during 2018 at an average gross price of $20.46 per share.

The company used these funds to close on $212 million in acquisitions made during the fourth quarter. As of 12/31/2018, GNL's total liquidity was $143 million and subsequent to year-end GNL raise an additional $153 million in equity capital through its ATM program at an average price of $19.69 per share.

Proceeds from the equity issuances will continue to be used to fund new acquisitions and for general corporate purposes. As part of our asset management strategy during 2018, GNL disposed of two properties for gross proceeds of $25.3 million, which is inclusive of a $3 million lease termination fee. The Company also entered into a contract to sell three additional properties located in Germany for a contract sale price of EUR135 million, which is an EUR11 million premium to the original purchase price of these assets. We expect this disposition to result in a recognized gain of approximately $40 million. Additionally, we expect the sale to generate approximately EUR72.5 million in net proceeds after debt repayment and the Company plans to redeploy those proceeds into accretive acquisitions.

Now I will discuss GNL's fourth quarter activity. During the quarter, GNL closed on six properties for approximately $212 million. These six properties were purchased at a weighted average going in cap rate of 6.67% with a weighted average cap rate of 7.23% and a weighted average remaining lease term of 12.3 years, all six of the property served a critical function for the underlying tenants and the buildings are split evenly between industrial and distribution.

GNL funded the transactions with mortgage debt and cash-on-hand, which includes proceeds from its November public offering. The Company also entered in a new 10-year $98.5 million mortgage loan with a fixed interest rate of 4.85%, which was used to pay down the credit facility. The quality of GNL's portfolio remains strong in several metrics.

GNL's investment grade or implied investment grade tenants make up 78.3% of the portfolio, up from 76% at the end of 2017. Occupancy remained strong at 99.2% at the end of the quarter. The geographic mix based on annualized straight-line rents sits at 55.7% U.S., 44.3% Europe. While GNL's property mix was at 53% Office, 39% Industrial and Distribution, and a 8% Retail.

The Company has continued to increase its exposure to the growing and robust industrial and distribution sector as GNL increased its concentration by 7% of its total portfolio in 2018. GNL's overall portfolio consists of 342 properties and provides predictable consistent cash flow through long-term net leases that include contractual rent growth.

Heading into 2019, we will continue to execute on our long-term strategy to grow GNL's global and diversified portfolio. Our demonstrated ability to underwrite transactions with an eye toward long-term value is what continues to set GNL apart in the net lease sector.

With that, I'll turn the call over to Chris to walk through the operating results in more detail and then I will follow up with some closing remarks. Chris?

Christopher Masterson -- Chief Financial Officer, Treasurer and Secretary

Thanks, Jim.

GNL saw improved financial results for both Q4 2018 annual and quarterly results in comparison to the prior year. For the 2018 year, GNL's revenue increased 8.8% to $282.2 million, with net income attributable to common stockholders of $1.1 million, which includes a one-time $7.4 million anticipated settlement with our former European service provider.

FFO decreased 0.9% to $131.4 million, FFO also includes the $7.4 million accrual. Core FFO increased 10.8% to an $149.1 million and AFFO was up 4.7% to $147.3 million. The Company paid common stock dividends to investors of $147.4 million in 2018, up from $142.7 million in 2017. Revenues increased primarily due to rental income from acquisitions and rent escalators embedded in existing leases.

As always, a reconciliation of GAAP net income to the non-GAAP measures can be found in our earnings release. In the fourth quarter, revenue increased 6.9% to $71.2 million on a year-over-year basis. FFO decreased 18% to $28.3 million, which included the one-time anticipated settlement with our European service provider and our core FFO increased 8.3% to $36.9 million.

GNL's adjusted funds from operations or AFFO, increased 5.6% to $37.1 million and during the quarter, the Company paid common stock dividends of $39.1 million. I would like to note that GNL's $212 million of acquisitions were all purchased on or after November 14th and four of the six acquisitions were purchased in the second half of December.

These acquisitions were financed in conjunction with the Company's $81 million equity raise in late November 2018. We expect a $2.5 million step up in rental income in Q1, 2019 or about $0.03 on a per share basis as the Company will benefit from the full impact of the $212 million of acquisitions acquired in Q4 2018.

On the balance sheet, GNL ended the fourth quarter with net debt, which is debt less cash and cash equivalents of $1.7 billion at a weighted average interest rate of 3.1%. GNL's weighted average maturity at the end of the fourth quarter of 2018 was 4.2 years, which is improvement from 3.7 years at the close of the 2017 fourth quarter.

The components of GNL's debt include $363.9 million on the multi-currency revolving credit facility, $282.1 million on the term loan and $1.1 billion of outstanding gross mortgage debt. This debt was approximately 79.9% fixed rate, which is inclusive of floating rate debt with in-place interest rate swaps. The Company has a robust interest coverage ratio of 3.8 times.

As of December 31st, 2018, liquidity was approximately $142.6 million, which comprises to $100.3 million of cash-on-hand and $42.2 million of availability under the credit facility. GNL's net debt to enterprise value was 53.3% with an enterprise value of $3.2 billion based on the December 31st, 2018 closing share price of $17.62 per common shares and $24.68 per Series A preferred shares.

The net debt to enterprise value would improve to 50.8% if the calculation was based on closing share prices from February 22nd of $19.67 for common shares and $25.17 for preferred shares. 2018 was an active year for our accounting and finance teams. GNL closed our new debt facilities refinanced in-place that an upsized existing facilities across three currencies an amount equal to $165 million, EUR52 million and GBP230 million.

Financing activity included, successfully closed on an eight properties CMBS loan in the amount of $33 million, closed an upsizing of its unsecured credit facility of $132 million for the multi-currency revolving credit facility portion and EUR51.8 million for the senior unsecured term loan facility portion. Also closed on a GBP230 million syndicated investment facility loan agreement, which was secured by all 43 of GNL's properties in the United Kingdom. This refinancing lowers the cost of borrowings on the UK assets from 3.4% to approximately 3.2%.

On February 6, 2019, GNL entered into a syndicated investment facility loan agreement in the amount of EUR74 million. The loan is secured by all five finished properties owned by GNL. The maturity date of the loan is February 1st, 2024, and it bears interest rate at three-month Euribor plus 1.4%. 80% of the principal amount of the loan is fixed at 1.8% by the interest rate swap agreement. This refinancing significantly lowered the borrowing costs from 2.3% to 1.7%.

As a quick update to GNL's hedging program, we have continued to use our hedging strategy as a way to offset movements in interest rates and local currencies for our European portfolio.

In regards to currency hedging, the Company employs disciplined strategy of layering hedges against the two currencies over upcoming quarters to manage some exposure to both currencies.

With that, I'll turn the call back to Jim for some closing remarks.

James L. Nelson -- Chief Executive Officer and President

Thanks Chris. GNL's portfolio is in great shape, with 273 properties in the U.S. and 69 in the UK and Western Europe representing 55.7% and 44.3% of rental revenue respectively. Overall, the portfolio was 99.2% leased and as a weighted average 8.3 years with no near-term expirations. There has been measurable improvement in 2018 across several segments and our steady execution and deliberate focus on high-quality acquisitions continues to drive strong results, including the following:

In 2017, GNL acquired 12 properties for $99 million; while in 2018, the Company acquired 23 properties for nearly $500 million at a going in CAP rate of 7.21% and an average cap rate of 7.70%. 96% of the properties acquired in 2018 include embedded, contractual with average annual rent growth of 1.6% per year based on existing in-place leases.

GNL has an attractive and stable 3.1% weighted average cost to debt at year-end 2018, along with an improved weighted-average remaining lease term of 4.2 years. Our intentional focus is on building portfolio diversification with a focus on an increased mix of industrial and distribution properties.

GNL's acquisition activity of nearly $500 million in 2018 led to an increased portfolio concentration of industrial and distribution property, as this property type now represents 39% of GNL's portfolio at the end of 2018, up from 32% at year-end, 2017. The strength of GNL's portfolio is demonstrated by its high level of leases that are leased to or guaranteed by investment grade or implied investment grade tenants.

As of December 31, 2018, that figure had increased to 78.3%, up from 72.6% at year-end 2015. The year that GNL listed on the New York Stock Exchange. GNL continues to demonstrate a proven ability to source investment opportunities by leveraging direct relationships with landlords and developers to identify off market transactions.

We believe this allows the Company to achieve better than market cap rates at more favorable terms that are generally available. This execution generates improved results for the Company and its shareholders. We will remain proactive and disciplined in our acquisition strategy to identify compelling opportunities to acquire net lease assets, with a continued near-term focus on U.S. industrial and distribution facilities. We will also remain opportunistic when it comes to selectively adding to our international footprint. My last 1.5 years have been exciting and fulfilling, and as we move forward toward the future, we will continue to drive slow and steady growth to enhance long-term value for shareholders.

With that operator, we can open the line for questions.

Questions and Answers:

Operator

(Operator Instructions) The first question today comes from Mitch Germain with JMP Securities. Please go ahead.

Mitch Germain -- JMP Securities -- Analyst

Thanks for taking question. I appreciate it. Chris, if I was to look at -- I think I saw a leverage based on 4Q annualized was 7.9 times, but does that include if I looked at the acquisitions as of day one of the quarter and if that's not, what would that leverage look like if I assume the full quarter or full-year of those acquisitions?

Christopher Masterson -- Chief Financial Officer, Treasurer and Secretary

Right. So, that leverage does not include the acquisitions as if they were on the books as of day one. The actual rental income that is reflected in that number is actually less than a third of what the total would be. So, it's actually $2.5 million more rental income, which would be flowing through, if they were in place as of the first day of the quarter. So, it would definitely drop the number from 7.9 too much lower in the 7s.

Mitch Germain -- JMP Securities -- Analyst

Got you. Got you. And I apologize, I missed some of your prepared comments. Where do we stand on liquidity now with regards to your ability to execute on further acquisitions?

Christopher Masterson -- Chief Financial Officer, Treasurer and Secretary

Sure. So, we're actually in a very strong position as of year-end, we had $100 million in cash, $42 million of availability on the credit facility. Then in January, we actually raised $153 million on our ATM. So with that, we then paid down $130 million on the revolver, which we can draw as needed. We also added some additional properties to our revolver borrowing base, which increased our capacity by about $50 million.

Mitch Germain -- JMP Securities -- Analyst

So what's -- what's the total capacity of the revolver today in terms of -- what's the total size and then what's the availability, is that a better way to say?

Christopher Masterson -- Chief Financial Officer, Treasurer and Secretary

Okay. So the total size is up to about roughly $917 million which could fluctuate fluctuate with the FX. In terms of where we are with capacity -- back of the envelop now -- we have over $250 million.

Mitch Germain -- JMP Securities -- Analyst

Great, that's very helpful. Jim, you guys had some real good success in the fourth quarter, but even the whole year, what changed. I mean, I think you're probably almost more than four times, so what you guys did an acquisition volumes in the year before that. What sort of directive -- what sort of change created the increased activity?

James L. Nelson -- Chief Executive Officer and President

Well, you know, we -- as a strategy for the Company, we are looking at growing the business, doing accretive acquisitions and building a stronger, better, bigger company. So, we've just started executing on all eight cylinders and the acquisition guys found a lot of great stuff. We were able to raise money, so all things considered, everything worked well and we are still moving ahead the way we did last year.

Mitch Germain -- JMP Securities -- Analyst

Great, last one for me. And again, I apologize if I missed it. The sale of the asset that was planned for 2019, I believe those in office building in Germany, is that still on target -- what created the delay there and where does that stand?

James L. Nelson -- Chief Executive Officer and President

We -- the way we structured the sale was to give us time to have acquisitions in our hand to replace the capital. So, we look at closing that toward the middle of the year and that will give us time to have a number of acquisitions to put the money back to work very quickly.

Mitch Germain -- JMP Securities -- Analyst

Great. And just a follow-up on that, do you guys ever disclosed the cap rate or the IRR on that investment for you guys?

James L. Nelson -- Chief Executive Officer and President

We haven't yet.

Mitch Germain -- JMP Securities -- Analyst

Thank you.

James L. Nelson -- Chief Executive Officer and President

Thanks. Good to talk to you.

Operator

Next question comes from Bryan Maher with B. Riley FBR. Please go ahead.

Bryan Maher -- B. Riley FBR -- Analyst

Yes, good morning.

James L. Nelson -- Chief Executive Officer and President

Hi Bryan.

Bryan Maher -- B. Riley FBR -- Analyst

If you answered partially, one of my questions, in your closing remarks as to where you're seeing the best opportunities, and correct me if I'm wrong, but it continues to seem to be U.S. industrial. Is that really where the focus will be in 2019?

James L. Nelson -- Chief Executive Officer and President

That will be, where quite a bit of the focus is, yes. I mean we are still looking in Europe and we underwrite a lot of different types of properties, but that is one of our primary focus, is to grow that part of our portfolio.

Bryan Maher -- B. Riley FBR -- Analyst

And I'm sorry if I missed it, but did you give any estimate as to what the acquisition size would be for 2019 in dollar terms?

James L. Nelson -- Chief Executive Officer and President

We don't usually give guidance, but I think you can take a look back at what we did in 2018, which was a very robust year and we intend to continue in that same vein.

Bryan Maher -- B. Riley FBR -- Analyst

And then just lastly from me, and I'm really interested in hearing how you think about this. When we look at your multiple on EBITDA in kind of just under the the mid-teens. And we look at office REITs in the U.S. trading in the high teens and -- U.S. industrial REITs trading in the low to mid 20s times and European office trading in the high 20s times EBITDA. Is it frustrating to you with where your stock trades? is I guess partially my question, But then you continue to issue equity in a kind of low 20s range and so I'm trying to figure out how you, you kind of rationalize that when I think a case could be made for a mid to high 20s valuation on the stock, but you issue stock in the low '20s?

James L. Nelson -- Chief Executive Officer and President

Well, that's where we issued it now because that's where the stock was trading, but certainly by having great new analysts like you covering the stock, we intend to get the story out to more people, and the more people that are aware of the Company. I think the stock should trade better, more people hear the story. So, I want to thank you for following the Company and we do agree with you.

Bryan Maher -- B. Riley FBR -- Analyst

Flattery will get you everywhere, Jim. So, thank you.

James L. Nelson -- Chief Executive Officer and President

Okay, pal.

Operator

(Operator Instructions) The next question comes from John Massocca with Ladenburg Thalmann. Please go ahead.

John Massocca -- Ladenburg Thalmann -- Analyst

Good morning.

James L. Nelson -- Chief Executive Officer and President

Hi, John.

Christopher Masterson -- Chief Financial Officer, Treasurer and Secretary

Hi John.

John Massocca -- Ladenburg Thalmann -- Analyst

Just trying to kind of -- I think you touched on a little bit. But given all of the equity issuance that happened in January in 4Q and potentially also the proceeds, you're going to get from the sale of the German asset. I mean your leverage is coming down fairly significantly versus where it was even a couple of quarters ago. I mean is this kind of a statement of intent to maybe run the Company at a lower leverage or is this just really creating kind of essentially pre-funding your potential acquisition pipeline for 2019, and that leverage should creep up as maybe some of the things you've submitted LOIs on potentially successfully closed on?

James L. Nelson -- Chief Executive Officer and President

Yes, well. As you know, we're always looking to balance the capital structure. So, we raised common when we could. The market was surprisingly robust last month for the ATM. So, we took advantage of that, but we do have a very strong pipeline and we think we can put that money to work fairly quickly.

John Massocca -- Ladenburg Thalmann -- Analyst

And -- kind of with regards to that $200 million, out of $53 million we kind of know what it is, but that $200 million, I mean what maybe the industrial office mix, is it 90:10 or something closer to 70:30. I know the primary focus has been industrial, but is there some office slipping into that $200 million number?

James L. Nelson -- Chief Executive Officer and President

As you know, last year we bought an office building for $53 million. So that indicates, we still -- if we see a great deal, a great tenant, long-term lease, investment grade quality, we can execute on it, but as we stated, our main focus is on Industrial/Distribution. We continue to execute on those and I think that you'll see a lot of that going forward.

John Massocca -- Ladenburg Thalmann -- Analyst

And then within the existing portfolio, obviously lot still up in the air, but with a lot of different indicators on Brexit. I mean, any of your existing UK tenants indicated any concerns about their operations or need for the assets they leased from you, if there is maybe a hard Brexit or Brexit is more impactful, the kind of that -- as they look to the risk curve...

James L. Nelson -- Chief Executive Officer and President

It's a great question. And if you talk to 10 different people, you will get 10 different responses on Brexit. We talked to a lot other people that we work with, and I think everybody has a wait-and-see attitude. Our assets are performing well. We are happy with the assets that we have. So, I think we'll just wait and see what happens with Brexit. There may be opportunities that open up for us, if there is a hard Brexit or -- but -- I think we'll wait and see. We'll wait and see what happens.

John Massocca -- Ladenburg Thalmann -- Analyst

And then one last one. As you may be look to kind of refinance some of the other European mortgages you have, is the potential kind of benefit you are going to get on rate that you got with the Finland's refinancing. Is that something you would expect on kind of a general basis that something you would expect with additional refinancings you do in Europe?

James L. Nelson -- Chief Executive Officer and President

In looking at the various rates in the different countries, some are lower and some are about the same. I think overall, we will benefit. If you put all of the European financings together, we will see a benefit over the previous loans, as we saw in the UK.

John Massocca -- Ladenburg Thalmann -- Analyst

In Finland, I mean is Finland maybe typical or is Finland kind of an outlier or is it just too hard to tell, so vary so much base from country to country?

James L. Nelson -- Chief Executive Officer and President

Finland was a great rate, but remember we're going from individual mortgages to say, country-specific, roughly country-specific mortgages. So, we are getting better rates combining all the properties together and dealing with the bank that way.

John Massocca -- Ladenburg Thalmann -- Analyst

Okay, that's it from me. Thank you very much.

James L. Nelson -- Chief Executive Officer and President

All right, thank you.

Operator

The next question is a follow-up from Bryan Maher with B. Riley. Please go ahead.

Bryan Maher -- B. Riley FBR -- Analyst

Hey, Jim and Chris, just two quick follow-ups. When we look at your leverage, it's kind of been hanging out in the low 50s, getting a little bit better. What is the goal? Are you comfortable with it hanging out around 50% or do you want to see it get into the mid to high 40s. What is your thought process there?

James L. Nelson -- Chief Executive Officer and President

Well -- we've -- and I think we may have even talked about this before, but we look at the quality of our tenants, the long-term leases, the investment grade -- the high investment grade percentages of our tenants and we're very comfortable with roughly 50% leverage. I think that's sort of a rule of thumb when we look at -- we look at our portfolio, we are very, very comfortable with where we are and we'll see what happens in the future.

Bryan Maher -- B. Riley FBR -- Analyst

And then my other quick question is when we look at the dividend coverage on a CAD payout ratio, it's elevated relative to a number of the other REITs that we cover not alarmingly so, it's a triple net lease situation, but where would you like to see that gravitate to as a payout ratio on CAD?

Christopher Masterson -- Chief Financial Officer, Treasurer and Secretary

Well, I think over time, it will naturally come down as we add these new accretive properties to the income stream. So, I think you'll probably see it come down overtime.

Bryan Maher -- B. Riley FBR -- Analyst

Right, thank you.

Christopher Masterson -- Chief Financial Officer, Treasurer and Secretary

Thank you everybody.

Operator

This concludes our question-and-answer session. I would now like to turn the conference back over to James Nelson, for any closing remarks.

James L. Nelson -- Chief Executive Officer and President

Yeah, just want to thank you all for joining us on today's call, there was some great questions and we look forward to this next year with GNL and reporting to you in the next quarter. So thank you all for dialing in.

Operator

This conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Duration: 36 minutes

Call participants:

Louisa Hall Quarto -- Executive Vice President

James L. Nelson -- Chief Executive Officer and President

Christopher Masterson -- Chief Financial Officer, Treasurer and Secretary

Mitch Germain -- JMP Securities -- Analyst

Bryan Maher -- B. Riley FBR -- Analyst

John Massocca -- Ladenburg Thalmann -- Analyst

More GNL analysis

Transcript powered by AlphaStreet

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

Why some advisors are moving to shield the elderly from financial fraud

The Cooneys walked into the office to hear their test results.

Matt Cooney, a 79-year-old retired television sportscaster, was informed that his financial decision-making capacity was in jeopardy. Dobe Cooney admitted that her husband had lost track of their bills a few times lately.

"We don't leave the teeth in the refrigerator or anything like that," said the 75-year-old former nurse. "But as we get older, we seem to forget a lot."

The exam had not been administered by their doctor but by their financial advisor, Carolyn McClanahan.

McClanahan, a certified financial planner and a medical doctor, is the founder of Life Planning Partners in Jacksonville, Florida. At her recommendation, Matt went to his own physician with the findings.

As it turned out, Matt indeed, had had a few silent strokes over the years.

Matt and Dobe Cooney

Such discoveries are coming to the surface in the offices of financial advisors across the country, as it becomes increasingly common for financial professionals to probe clients for signs that they are at risk of making poor decisions or turning into victims of fraud or abuse.

"Advisors tend to be very close to their [clients]," said Jim Wrona, vice president and associate general counsel at the Financial Industry Regulatory Authority, a self-funded regulator of the brokerage industry. "They're in a fairly good position to know when something is out of the ordinary."

"As we get older, we seem to forget a lot." -Dobe Cooney

Demographic shifts are one of the reasons advisors are increasingly discussing memory alongside risk tolerance. By 2035, there will be some 78 million people in the U.S. aged 65 and older.

Up to 20 percent of people over the age of 65 have some form of cognitive impairment, and more than half of people older than 85 have Alzheimer's disease or another kind of dementia.

As a result, older investors are a prime target for exploitation. Seniors lose an estimated $2.9 billion annually from fraud or financial abuse, according to the Senate Special Committee on Aging.

"Most advisors' clientele are in their 60s and 70s, and these types of issues are front in mind," said Chris Heye, the co-founder of Whealthcare Planning, a platform that helps people financially prepare for aging and tests their decision-making capacities.

Source: Carolyn McClanahan Carolyn McClanahan

A new spat of regulations is another reason advisors are keeping tabs on their clients' mental state.

Two new FINRA rules aimed at protecting older investors went into effect last year.

One of them requires that financial advisors ask their clients for a trusted contact in case they exhibit red flags, such as wanting to invest their lifetime savings in bitcoin. The other permits financial advisors to put a temporary hold on their clients' bank accounts if they suspect exploitation is occurring.

To be sure, some elderly clients may find their advisors have overreached. Last year, a woman sued Fidelity, after the company froze her assets when it became concerned about her mental state. As a result, the woman claimed, she was unable to pay her electric bill, visit the dentist or take her dogs to the veterinarian.

Still, Wrona said advisors often hear from their older clients with suspicious requests and are unsure of how to respond.

"A [client] will say, 'I won the lottery, but I need to pay the taxes upfront before I can claim the award,'" Wrona said. If the client demands the money even after the advisor has explained that it's a scam, he or she can then temporarily pause their assets and investigate further.

More than a dozen states have also passed laws that allow financial firms to pause disbursals when financial exploitation is suspected.

Congress passed a law last year called The Senior Safe Act, which encourages advisors to get trained in spotting fraud or abuse and report any such instances to law enforcement.

"Getting that training is going to stop a lot of financial exploitation," said Cristina Martin Firvida, vice president for financial security and consumer affairs at AARP.

Source: Chris Heye Chris Heye

Beyond looking out for obvious scams and threats, more advisors are proactively planning for the issues their clients could face as they climb up into their later decades.

Gary Vawter, a financial advisor for more than 30 years and the owner of Vawter Financial in Columbus, Ohio, said he quizzes nearly all of his clients over 60 on their decision making abilities. (He uses the Whealthcare Planning platform to do so).

One question on it asks, "What month is it?" There are also other math and financial literacy problems.

"It's pretty neat when the client brags that their financial advisor is having them do these tests to find out how vulnerable they are," Vawter said. "Their friends are amazed that their doctor isn't doing it."

Another reason Vawter does this: A new law in his state requires advisors to report instances of financial exploitation to the authorities.

Source: Gary Vawter Gary Vawter

After McClanahan and the Cooneys discussed their issues, they talked about how to protect themselves. Now, the couple review their bank accounts more frequently and pay their bills together.

If both of them find their financial decision-making capacity declining, McClanahan has asked their children to pitch in.

"The kids were just so relieved that we were looking out and that we had a plan in action," she said.

Many of the financial plans for older people involve their family members. Yet often it's these relatives who are the problem.

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Even in these sensitive matters, advisors can be their client's advocate, Vawter said.

He has one client whom he suspected was being taken advantage of by his daughter. The older man began to pay her thousands of dollars a month, grinding down his lifetime savings. "[It] was bankrupting the client," Vawter said.

The daughter's family, he noticed, was not exactly in need of the money. "They were buying second homes and taking trips — they were just loving the gravy train," Vawter said. "We had to step in and say, 'You can't do this. Your dad needs this money.'"

Vawter thought the conversation went well, but the daughter continued to ask her father for money. That's when Vawter cut off the payments.

"We're not adding rate of return," he said. "But we're watching out for their money."

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