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Recent Articles
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UPS May Cut Its Lofty Dividend
Sep 20, 2025
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Image Source: TradingView.
Looking to 2025, UPS is not providing full year revenue or operating profit guidance due to the current macroeconomic uncertainty. The firm is working hard to become more efficient with $3.5 billion in expected expense reductions due to its network reconfiguration and Efficiency Reimagined initiatives. That said, UPS registers a Dividend Cushion ratio of 0.4, below parity, and its lofty dividend yield of 7.8% speaks to risk of a dividend cut. We like UPS but would not be surprised if it slashes its payout in coming periods. Buyer beware.
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Verizon’s Debt Load is Too High for Our Income-Oriented Preference
Sep 19, 2025
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Image Source: TradingView.
Verizon’s cash flow from operations totaled $16.8 billion in the first half of 2025, up from $16.6 billion in the same period a year ago. Free cash flow was $8.8 billion in the first half of 2025, up from $8.5 billion in the first half of 2024. Verizon’s net unsecured debt at the end of the second quarter was $116 billion, roughly 2.3 times consolidated adjusted EBITDA. For 2025, management is targeting adjusted EBITDA growth of 2.5%-3.5% and adjusted earnings per share growth of 1%-3%. Cash flow from operations is expected to be between $37-$39 billion on the year, with free cash flow of $19.5-$20.5 billion. We like Verizon but can’t get familiar with its massive debt load. Shares yield 6.3% at the time of this writing.
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Dividend Increases/Decreases for the Week of September 19
Sep 19, 2025
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Let's take a look at firms raising/lowering their dividends this week.
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Dick’s Sporting Goods Raises Guidance as It Closes its Deal for Foot Locker
Sep 18, 2025
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Image Source: TradingView.
Year-to-date, Dick’s Sporting Goods has opened three new House of Sport locations, and eight new Dick’s Field House locations. Dick’s Sporting Goods bought back $299 million in stock, while it paid $196 million in the quarter. The firm raised its full year 2025 guidance for comparable sales growth to a range of 2%-3%, up from 1%-3% previously. Dick’s Sporting Goods raised its full year 2025 guidance for earnings per diluted share to the range of $13.90-$14.50, up from $13.80-$14.40 previously. We liked the fundamental momentum in the second quarter and remain positive on the company’s decision to buy Foot Locker. Dick’s Sporting Goods remains an idea in the Dividend Growth Newsletter portfolio.
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