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Recent Articles
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Stock Market Locked in Technical Downtrend; Millionaires Expect More Pain in 2023
Dec 20, 2022
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Image: The stock market has been locked in a downtrend through all of 2022, and the latest bull trap has spoiled the Santa Claus rally. 2023 may be an equally rough year.
This market just doesn’t want to go higher in the near term, and the latest bull trap wasn’t encouraging at all. We think long term investors should stay the course, but it is looking more and more like we won’t see a stock market bottom until sometime in 2023. Santa brought coal this year.
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Waste Management’s Free Cash Flow Facing Pressure from Sustainability Initiatives
Dec 16, 2022
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Image Source: Waste Management’s 2022 Sustainability Report.
2023 will mark the 20th consecutive year that Waste Management has increased its dividend payout. Though free cash flow is facing pressure due to its sustainability growth initiatives that are driving total capital expenditures higher, the company’s valuable disposal capacity and pricing power across its municipal solid waste operations are a couple qualities that we like. Shares are trading about in line with our fair value estimate at the moment, as they boast a ~1.6% forward estimated annual dividend yield.
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Dividend Increases/Decreases for the Week of December 16
Dec 16, 2022
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Let's take a look at firms raising/lowering their dividends this week.
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Union Pacific Outperforming North American Rail Traffic Trends But Facing Inefficiencies and Inflation Hurdles
Dec 14, 2022
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Image Source: Union Pacific.
The rail industry may have avoided a labor strike, but North American rail traffic remains under pressure, while many operators are struggling with inflationary pressures and operational inefficiencies. Union Pacific remains our favorite way to play the rails, but 2022 has been a difficult year for the firm, with free cash flow coming under pressure as capital investments have soared so far in 2022. Union Pacific garners an ‘A’ rating by Moody’s, Fitch and S&P, so we’re not too worried about its large net debt position. Shares yield ~2.4% at the time of this writing, but we’re not pulling the trigger.
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