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Recent Articles
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View Current and Archived Best Ideas Newsletters
Jan 11, 2025
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View previous editions of the Best Ideas Newsletter in this article.
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Delta Delivers Most Profitable December Quarter in Its History
Jan 11, 2025
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Image Source: Colin Brown.
We liked Delta’s fourth quarter results and outlook for 2025, but we’re not interested in adding any airline to the newsletter portfolios. Airline economics are notoriously difficult to forecast, and their operating results are heavily levered to volatile jet fuel prices. Swings in the economic environment can also have a large impact on performance given the operating leverage inherent to their business models. Delta is currently riding an upswing in demand, but we remain cautious on shares given the volatility innate to an airline’s business model. We remain on the sidelines.
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Dividend Increases/Decreases for the Week of January 10
Jan 10, 2025
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Let's take a look at firms raising/lowering their dividends this week.
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Dividend Aristocrat Caterpillar’s Dividend on Solid Ground
Jan 8, 2025
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Image Source: Caterpillar.
Though Caterpillar’s top line is under pressure “due to the impact of lower-than-expected sales to users in its Construction Industries segment and the timing of deliveries in its Resource Industries and Energy & Transportation segment,” Caterpillar’s lucrative services business and backlog remain healthy, and it covers its dividend nicely with ME&T free cash flow. Shares yield 1.6% at the time of this writing.
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