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Recent Articles
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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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Lowe’s Experiences Softness in Bigger Ticket Discretionary Demand
Jan 8, 2025
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Image: Lowe’s shares have rallied nicely since the beginning of 2023.
Buoyed in part by anticipated modest storm-related demand in the fourth quarter, management expects total sales for the full year 2024 of $83.0-$83.5 billion (was $82.7-$83.2 billion)—consensus was $82.99 billion--and comparable sales to be between -3.0% to -3.5% (was -3.5% to -4.0%). Its adjusted operating margin for the year is now targeted in the range of 12.3%-12.4% (was 12.4%-12.5%), while adjusted diluted earnings per share is expected in the range of $11.80-$11.90 (was $11.70-$11.90), the midpoint above consensus of $11.81. Our fair value estimate of $242 for Lowe’s shares is roughly in-line with where the firm’s equity is trading, and while its recently raised guidance was well-received, we remain on the sidelines with respect to the company in the newsletter portfolios. Shares yield 1.9%.
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Target Expects Ho Hum Holiday Results
Jan 6, 2025
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Image Source: Target.
For the holiday fourth quarter, Target expects 1.5% comparable sales growth with GAAP and adjusted earnings per share in the range of $1.85-$2.45 (versus $2.64 consensus), translating to a full year expected GAAP and adjusted earnings per share range of $8.30-$8.90. The midpoint of the guidance range was down compared to its prior outlook in the range of $9.00-$9.70 and the consensus mark of $9.52. Target appears to be losing share against Walmart, Amazon and Costco, and there is no clear path to regaining it. Target’s shares yield 3.3% at the time of this writing.
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