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Recent Articles
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Dividend Increases/Decreases for the Week of February 2
Feb 2, 2024
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Let's take a look at firms raising/lowering their dividends this week.
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Big Cap Tech and Large Cap Growth Continue to Lead Market Higher
Feb 1, 2024
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Image Source: Marco Pakoeningrat.
We continue to like the areas of big cap tech and large cap growth as the top firms in these areas have strong cash-based sources of intrinsic value: net cash on the balance sheet and strong expected future free cash flow generation. After the close February 1, the market received the quarterly earnings reports from Meta Platforms, Amazon, and Apple, and we were pleased by the trio’s performance during the calendar fourth quarter. We maintain our long-held view that big cap tech and large cap growth will continue to lead the market higher, and we continue to overweight these areas in the newsletter portfolios.
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Alphabet, Microsoft Remain Cash-Rich, Secular Growth Powerhouses
Jan 30, 2024
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Image Source: Shawn Carpenter.
All eyes were on Alphabet and Microsoft after the bell January 30. We include both Alphabet and Microsoft in the newsletter portfolios due to their tremendous cash-based sources of intrinsic value: net cash on the balance sheet and free cash flow generation. It would take a monumental shift in the trajectory of these fantastic businesses for us to ever consider removing them from the newsletter portfolios, and we’re reiterating our favorable long-term view on both following their respective calendar fourth-quarter reports.
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Energy Transfer Making a Comeback, Shares Yield ~8.7%
Jan 28, 2024
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Image: Energy Transfer is working its way back after a long stretch of underperformance.
On January 25, Energy Transfer raised its dividend modestly, by 0.8%, to $0.315 per share on a quarterly basis, and while Energy Transfer still has a massive net debt position to the tune of ~$47.6 billion, the firm’s traditional free cash flow of the payout suggests sustainability, absent any exogenous shocks. Standard & Poor’s recently upgraded its unsecured debt rating to BBB with a Stable outlook, and the firm’s capital spending guidance for 2023 was recently lowered, further helping free cash flow. Energy Transfer is staging a comeback, and for risk-seeking income investors, its ~8.7% dividend yield is worth a look.
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