Valuentum Exclusive Analysis for the Discerning Investor

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May 24, 2022

Dividend Growth Idea Honeywell Capitalizing on Recovering Aerospace Industry
Image Shown: Dividend growth idea Honeywell International Inc increased its full-year guidance for 2022 during its first quarter earnings update. We continue to be big fans of the name as the aerospace industry steadily rebounds. Image Source: Honeywell International Inc – First Quarter of 2022 IR Earnings Presentation. On April 29, Honeywell International reported first quarter 2022 earnings that beat both consensus top- and bottom-line estimates as its business continues to rebound from the worst of the coronavirus (‘COVID-19’) pandemic. Due to its strong performance, management raised the company’s full-year sales and earnings guidance for 2022 in conjunction with its latest earnings update. We continue to like Honeywell as an idea in the Dividend Growth Newsletter portfolio to gain exposure to the recovering aerospace industry and exposure to the nascent quantum computing industry. Shares of HON yield ~2.1% as of this writing.

May 18, 2022

Newsletter Portfolio Idea Republic Services Holding Up Quite Well in the Face of Major Headwinds
Image Shown: Shares of Republic Services Inc have held up quite well over the past several months while equity markets swooned lower. On May 5, Republic Services reported first quarter 2022 earnings that beat both consensus top- and bottom-line estimates. The waste management firm is benefiting from its immense pricing power and volume growth. We continue to like Republic Services as an idea in both the Dividend Growth Newsletter and ESG Newsletter portfolios. Shares of RSG yield ~1.4% as of this writing.

Apr 26, 2022

Dividend Growth Idea Lockheed Martin Doing Its Best to Arm Western Allies
Image Shown: Dividend growth idea Lockheed Martin Corporation is very shareholder friendly. The defense contractor is doing its best to arm Ukraine and other Western allies during these difficult times. Image Source: Lockheed Martin Corporation – First Quarter of Fiscal 2022 IR Earnings Presentation. The Russian invasion of Ukraine in February 2022 and simmering geopolitical tensions in East Asia between Western aligned nations and China over Taiwan and other issues have created a backdrop that is conducive to significant increases in national defense spending. Though we hope peace prevails soon, the realities on the ground in Ukraine and elsewhere call for North Atlantic Treaty Organization (‘NATO’) member nations and other Western aligned nations to ramp up their military budgets to deter future threats and to prepare for worst case scenarios.

Feb 10, 2022

Dividend Growth and ESG Favorite Republic Services Is Buying U.S. Ecology
Image Shown: Republic Services Inc is one of our favorite waste management companies. On February 9, the company announced it was acquiring US Ecology Inc through an all-cash deal. US Ecology provides specialized waste management services and has an asset base that is nearly irreplaceable. We like the deal as it could generate meaningful cost saving and revenue synergies. Image Source: Republic Services Inc – February 2022 Infographic. On February 9, one of our favorite waste management companies, Republic Services announced a deal to acquire U.S. Ecology through an all-cash deal worth about $2.2 billion when including net debt considerations. Republic Services is paying $48 per share in cash to take over U.S. Ecology, which provides specialized waste management services. We like this deal as it will add nearly irreplaceable assets to Republic Services’ asset base and is expected to be immediately accretive to its adjusted earnings and free cash flow performance once the transaction closes.

Dec 19, 2021

FedEx Beats Estimates, Raises Guidance
Image Source: FedEx Corporation – Second Quarter of Fiscal 2022 Earnings Infographic. On December 16, the logistics giant FedEx Corp reported second-quarter earnings for fiscal 2022 (period ended November 30, 2021) that beat both consensus top- and bottom-line estimates. The firm also moderately raised its earnings guidance for fiscal 2022 in conjunction with its earnings update after previously reducing its full fiscal year guidance when reporting its fiscal first quarter earnings update. FedEx noted in its fiscal second quarter earnings press release that “higher revenue per shipment at all transportation segments” positively benefited its operating income performance and helped offset headwinds from labor shortages and related supply chain constraints. The company also recently announced a new $5.0 billion share buyback program that includes a $1.5 billion accelerated share repurchase program component.

Oct 15, 2021

Dividend Increases/Decreases for the Week October 15
Let's take a look at companies that raised/lowered their dividend this week.

Oct 13, 2021

Fastenal’s Latest Earnings Update Indicates US Economic Recovery Continues
Image Source: Fastenal Company – Third Quarter of 2021 IR Earnings Presentation. On October 12, Fastenal reported third-quarter 2021 earnings that beat top-line consensus estimates and matched bottom-line consensus estimates. The company’s latest earnings report reinforces our thesis that the US economy is continuing to recover from the worst of the coronavirus (‘COVID-19’) pandemic. In 2020, Fastenal generated over 85% of its total sales in the US. Fastenal provides products and services in the decentralized maintenance, repair & operation (‘MRO’) industry, a space where the company attempts to gain an advantage over distribution by locating its operations as close as possible to the economic point of contract with its customers. We view Fastenal as a bellwether to broader trends in the industrials sector. With that said, let's dig into its latest report.

Oct 5, 2021

Innovative Fuel Cell Company Ceres Power Has a Stellar Growth Outlook
Image Shown: Ceres Power Holdings plc is a pioneer in the fuel cell industry. If Ceres Power and its strategic partners are successful, Ceres Power could offer investors ample capital appreciation upside though we caution that this is a highly speculative name. Image Source: Ceres Power Holdings Plc – First Half of 2021 Interim Report IR Presentation. Ceres Power is a pioneer in an attractive industry and continues to secure crucial strategic collaboration agreements with major industrial players worldwide. The company’s capital appreciation upside potential could be quite substantial, especially as products built on its SteelCell technology progress from the pilot phase to the commercial phase, providing its core licensing and royalties business a major uplift. Its SOEC offerings could be another source of tremendous long-term upside, though again, these are still early days. Investors should be aware of this innovative company.

Sep 24, 2021

Honeywell’s Dividend Growth Supported by Promising Cash Flow Growth Outlook
Image Source: Honeywell International Inc – Second Quarter of 2021 IR Earnings Presentation. We view Honeywell International as one of the best industrial plays out there and include shares of HON as an idea in the Dividend Growth Newsletter portfolio. Honeywell has exposure to the aerospace and downstream energy markets--industries that were hit hard by the coronavirus (‘COVID-19’) pandemic but are now recovering in earnest--and to the proliferation of e-commerce and “smart buildings.” Furthermore, in the event that a bipartisan infrastructure bill currently awaiting approval in the US House of Representatives gets signed into law, Honeywell has exposure to the expected surge in domestic infrastructure investments. Our fair value estimate for Honeywell sits at $240 per share with room for upside as the top end of our fair value estimate range sits at $288 per share. As of this writing, shares of HON yield ~1.7%.

Sep 20, 2021

Dividend Growth Idea Lockheed Martin Has Ample Space Upside
Image Source: Lockheed Martin Corporation – Second Quarter of Fiscal 2021 IR Earnings Presentation. The commercial and military opportunities in the realm of space have been growing at a brisk pace of late, and in our view, the growth runway in this area is immense. Lockheed Martin Corp is a giant defense contractor with a sizable space business that caters to national defense, governmental, and commercial needs. We include Lockheed Martin as an idea in the Dividend Growth Newsletter portfolio, and shares of LMT yield ~3.1% as of this writing. The company has four core business operating segments and ‘Space’ is one of those segments, which generates a sizable amount of its annual sales.