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Recent Articles
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FedEx’s ESG Initiatives Are Refreshing Reminder of Great Companies Doing Things Right
Jan 13, 2024
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Image Source: FedEx 2023 ESG Report.
FedEx’s revenue outlook for the remainder of fiscal 2024 wasn’t great, and while the company is a key input to assessing the health of the U.S. economy, we’re not reading too much into the weakness. We find that FedEx is doing a great job with respect to its ESG initiatives across the board, and while we won’t be adding it to any newsletter portfolio at this time, the company’s efforts with respect to ESG are a refreshing reminder of the companies in our coverage universe that are doing things right.
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UnitedHealth Group Still a Free-Cash-Flow Generating Machine
Jan 12, 2024
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Image: UnitedHealth Group continues to drive strong revenue and operating earnings performance. Image Source: UnitedHealth Group.
On January 12, healthcare benefits provider UnitedHealth Group reported strong fourth-quarter 2023 results that showed revenue advancing 14% on a year-over-year basis thanks to strength at its UnitedHealthcare and Optum divisions, while earnings from operations advanced 11.6%. UnitedHealth is facing some temporary cost pressures in its business due to pent-up demand for discretionary procedures following the worst of the COVID-19 pandemic, but its net margin held up fine in the period, coming in at 5.8%, the same level a year ago. Management reaffirmed its previously-issued 2024 guidance, and we continue to like UnitedHealth Group as a key weighting in the Best Ideas Newsletter portfolio. Shares yield ~1.4% at the time of this writing.
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Dividend Increases/Decreases for the Week of January 12
Jan 12, 2024
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Let's take a look at firms raising/lowering their dividends this week.
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Dividend King Leggett & Platt’s Payout May Be Worth the Risk
Jan 11, 2024
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Image: Leggett & Platt has put together a long track record of consecutive annual dividend increases, but recent performance suggests that the dividend may be at risk in the longer run. Its 7.1% dividend yield may be worth the risk, however.
Leggett & Platt has raised its dividend for more than 50 consecutive years, putting it in the coveted category of being a Dividend King. However, the bedding, flooring and textile product maker has fallen on some difficult times. The company sports a Dividend Cushion ratio of -1.2 (negative 1.2), indicating that our future expectations of its dividend payments over the next five years coupled with its net debt position fall far below the cumulative free cash flow that we expect it to generate over the next five years. The company's 7.1% dividend yield may be worth the risk, however.
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