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Recent Articles
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Broadcom Remains a Free Cash Flow Cow
Mar 9, 2025
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Image: Broadcom’s shares have done quite well since the beginning of 2023.
Broadcom’s cash from operations was $6.1 billion for the first quarter, less capital expenditures of $100 million, resulting in free cash flow of $6 billion, or 40% of revenue. Looking to the second quarter of fiscal 2025, management expects revenue of approximately $14.9 billion, above the $14.59 billion consensus estimate, and second quarter adjusted EBITDA to be 66% of projected revenue. Broadcom ended the quarter with $9.3 billion in cash and cash equivalents and short-and long-term debt of $66.6 billion. Though its balance sheet is saddled with an outsized debt load, it remains a free cash flow cow.
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Costco Is Not Immune to Tariff Pressures
Mar 9, 2025
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Image Source: Costco.
For the 24 weeks ended February 16, 2025, Costco’s net cash provided by operating activities increased to $6.0 billion from $5.4 billion in the same period a year ago. Additions to property and equipment came in at $2.4 billion for the 24 weeks ended February 16, 2025, up from $2.1 billion in last year’s quarter. Free cash flow was $3.6 billion over the 24 weeks. Cash and cash equivalents increased to $12.36 billion, higher than its long-term debt load of $5.76 billion. We like Costco, but its shares are mighty pricey, and tariffs may create short-term disruptions as the firm works to deal with the expected higher costs through its supply chain.
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Dividend Increases/Decreases for the Week of March 7
Mar 7, 2025
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Let's take a look at firms raising/lowering their dividends this week.
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Enterprise Products Partners Remains a Key Idea
Mar 3, 2025
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Image: Enterprise Products Partners units have fared well since the beginning of 2023.
Enterprise generated ~$2.4 billion in net cash provided by operating activities in the fourth quarter, while capital investments were ~$2 billion, resulting in non-GAAP free cash flow of $393 million. For 2025, organic growth capital investments are expected in the range of $4-$4.5 billion, while sustaining capital expenditures are expected to be $525 million. At the end of 2024, Enterprise had total debt principal outstanding of $32.2 billion and consolidated liquidity of roughly $4.8 billion. We continue to like Enterprise as an idea in the High Yield Dividend Newsletter portfolio.
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