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Recent Articles
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Enterprise Products Partners DCF Coverage of Its Distribution Remains Solid
Apr 30, 2025
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Image: Enterprise Products Partners' units have done well of late.
In the first quarter of 2025, Enterprise Products Partners repurchased $60 million of its common units, with the partnership having utilized about 60% of its authorized $2 billion buyback program. Adjusted cash flow from operations was $2.1 billion for both the first quarter of 2025 and 2024. Total capital expenditures were $1.1 billion in the first quarter of 2025, consisting of $960 million in growth capital and $102 million in sustaining capital expenditures. Total debt outstanding was $31.9 billion, and Enterprise had total liquidity of $3.6 billion. We continue to like Enterprise’s DCF coverage of the distribution, and the company remains an idea in the High Yield Dividend Newsletter portfolio
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Altria Continues to Expect Adjusted Earnings Per Share Expansion
Apr 30, 2025
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Image: Altria’s shares have recovered nicely since the beginning of 2024.
In the first quarter, Altria bought back 5.7 million shares at an average price of $56.97, for a total cost of $326 million. The company still has $674 million remaining under its share repurchase program, which it expects to complete by the end of the year. Altria paid $1.7 billion in dividends in the quarter, and the firm maintained its current outlook. Management continues to expect to deliver a full-year 2025 adjusted diluted earnings per share growth rate of 2%-5% versus 2024. The growth rate represents adjusted diluted earnings per share in the range of $5.30-$5.45 from a base of $5.19 in 2014. We continue to like Altria as an idea in the High Yield Dividend Newsletter portfolio.
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Visa’s Free Cash Flow Generation Remains Phenomenal
Apr 30, 2025
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Image: Visa continues to translate a high percentage of revenue into free cash flow generation.
Visa’s payments volume increased 8% in the fiscal second quarter, while cross border volume increased 13%. Processed transactions increased 9% from the same period a year ago. For the six months ended March 31, net cash provided by operating activities came in at $10.1 billion, up from $8.2 billion over the same period last year. Capital expenditures were $672 million over the six month period, up from $548 million in the year-ago period. Free cash flow for the six months ended March 31 was $9.4 billion, or 49.3% of total revenue. We continue to be fans of Visa’s business model and strong free cash flow generation.
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Republic Services Continues to Price Ahead of Inflation
Apr 30, 2025
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Image: Republic Services’ shares have done quite well the past few years.
Republic Services reported net income of $1.58 per diluted share in the first quarter, up from $1.44 per share in last year’s quarter. Adjusted EBITDA came in at $1.27 billion, while its adjusted EBITDA margin expanded 140 basis points from the prior year. The garbage hauler generated cash flow from operations of $1.025 billion and adjusted free cash flow of $727 million. In the quarter, cash returned to shareholders was $226 million, which included $45 million of share repurchases and $181 million of dividends paid. We continue to like Republic Services in the newsletter portfolios.
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