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Recent Articles
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Costco’s Shares Are Not Cheap
Oct 5, 2025
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Image Source: Costco.
In the fourth quarter of fiscal 2025, Costco’s gross margin expanded 13 basis points, while SG&A as a percentage of sales dropped 17 basis points, bolstering operating income. Net income for the fourth quarter was $2.61 billion, $5.87 per diluted share, seven cents better than expected and compared to $2.354 billion, $5.29 per diluted share in last year’s quarter. Long-term debt totaled $5.7 billion at the end of the quarter, while cash and short-term investments were $15.3 billion. Merchandise inventories fell to $18.12 billion from $18.65 billion at the end of last year’s quarter. We like the fundamental momentum at Costco and its outlook remains bright, but its valuation is quite stretched at the moment. We remain on the sidelines.
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Dividend Increases/Decreases for the Week of October 3
Oct 3, 2025
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Let's take a look at firms raising/lowering their dividends this week.
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Dividend Increases/Decreases for the Week of September 26
Sep 26, 2025
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Let's take a look at firms raising/lowering their dividends this week.
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TJX Companies Is a Standout in Retail
Sep 25, 2025
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Image Source: TradingView.
During the second quarter, TJX Companies returned ~$1 billion to shareholders through share repurchases ($515 million) and dividends ($474 million). Total inventories as of August 2, 2025, were $7.4 billion compared to $6.5 billion at the end of the second quarter of last year. Management noted that the increased inventory position reflects “excellent buying opportunities” and that the company is “very well-positioned to flow fresh assortments to its stores and online throughout the fall and holiday season.” During the second quarter, TJX Companies generated $1.8 billion in operating cash flow and ended the quarter with $4.6 billion of cash. Looking to full year fiscal 2026, the company raised its diluted earnings per share outlook to be in the range of $4.52-$4.57, an increase of 6%-7% over last year’s mark. TJX Companies is a standout in retail, but its shares are not cheap. Shares yield 1.2% at the time of this writing.
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