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Recent Articles
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Dividend Increases/Decreases for the Week of October 13
Oct 13, 2023
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Let's take a look at firms raising/lowering their dividends this week.
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Investors Likely Overreacting to Long-Run Impact That Weight-Loss Drugs Will Have on Snack and Food Stocks
Oct 9, 2023
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Image: Domino’s stock has slumped recently due to weakening same-store sales expansion and concerns that weight-loss drugs will have on snack and food demand.
The American eater continues to fight the “battle of the bulge” as many seek improved lifestyles and the health benefits from losing weight and getting in shape. The healthcare industry is delivering on this front, too, with diabetes drugs from Novo Nordisk and Eli Lilly called GLP-1 agonists that also have weight-loss benefits. Though we applaud what looks to be a solution in part for the obesity epidemic that has overtaken the U.S., investors are growing concerned that food that snack and food stocks will see slackening demand.
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Dividend Increases/Decreases for the Week of October 6
Oct 6, 2023
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Let's take a look at firms raising/lowering their dividends this week.
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We Like NextEra Energy’s ESG Focus But Capital Market Conditions Now Showing Cracks
Oct 3, 2023
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Image Source: NextEra Energy.
NextEra Energy operates a complex business structure, and the firm’s equity is facing pressure on news that its subsidiary NextEra Energy Partners is cutting its distribution per unit growth rate to the range of 5%-8% annually through 2026, which is materially below its prior expectations of growth in the 12%-15%. Since most partnerships are owned primarily for their distribution yields, the revision has sent units of NextEra Energy Partners tumbling, hurting its partner along the way. The news, while not tragic, wasn't very welcoming, and reading between the lines, it appears that we’re starting to see some cracks in the capital markets, as most partnerships are debt-heavy, relying on continuous, affordable access to the capital markets to fund and grow their operations (distributions), which isn’t guaranteed.
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