EPD

Paper: Value and Momentum Within Stocks, Too

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Please select the image below to download, “Value and Momentum Within Stocks, Too:” Abstract: This paper strives to advance the field of finance in four ways: 1) it extends the theory of the “The Arithmetic of Active Management” to the investor level; 2) it addresses certain data problems of factor-based methods, namely with respect to value and book-to-market ratios, while introducing price-to-fair-value ratios in a factor-based approach; 3) it may lay the foundation for academic literature regarding the Valuentum, the value-timing, and ultra-momentum factors; and 4) it walks through the potential relative outperformance that may be harvested at the intersection of relevant, unique and compensated factors within individual stocks. To download the full report, please click here (pdf). ———- Actual results … Read more

Dividend Aristocrat Enterprise Products Partners Showcases Strong Earnings Growth in Second Quarter

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Image Source: 2Q 2024 Enterprise Products Partners Earnings Slides By Brian Nelson, CFA On July 30, Enterprise Products Partners (EPD) reported decent second quarter results. During the quarter, the midstream energy company generated net income attributable to common unitholders of $1.4 billion, or $0.64 per unit on a fully diluted basis, a 12% increase from the same period a year ago. Distributable cash flow [DCF] came in at $1.8 billion, up from $1.7 billion in last year’s quarter and covered its distribution 1.6 times. Enterprise increased its distribution 5% in the second quarter, to $2.10 per common unit on an annualized basis, marking the 26th consecutive year it has raised its payout. Management commented on the second quarter performance: Enterprise … Read more

Dividend Increases/Decreases for the Week of July 12

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Below we provide a list of firms that raised their dividends during the week ending July 12. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          Almacenes Exito S.A. American Depositary Share (EXTO): now $0.0113 per share quarterly dividend, was $0.0112. América Móvil (AMX): now $0.2608 per share annual dividend, was $0.2560. Ameren Illinois Company PFD 4.92% (AILLM): now $1.232 per share quarterly dividend, was $1.175. Amerigo Resources Ltd. (ARREF): now CAD 0.04 per share quarterly dividend, was CAD 0.03. AptarGroup (ATR): now $0.45 per share quarterly dividend, was $0.41. … Read more

3 High Dividend Yielders for Consideration

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Image: Energy Transfer, Philip Morris, and Altria have outperformed the SPDR S&P 500 Dividend ETF (SDY) since the beginning of 2024. By Brian Nelson, CFA The market remains laser-focused on inflation readings and employment trends – two of the main dynamics that influence policy at the Federal Reserve. Since the beginning of 2024, the market has ratcheted down expectations of rate cuts from as many as 5 or 6 to just 1 or 2 in 2024. With yields on risk-free instruments poised to go lower soon, a focus on high yielding equities may be appropriate for the income investor. Here are three high dividend yielders that we like for consideration. Energy Transfer (ET) Midstream pipeline operator Energy Transfer has come … Read more

High Yield Dividend Income Investing Is Not as Easy as Chasing the Highest Yield

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Dear members: — The skills to successfully invest for long-term capital gains or long-term dividend growth are much different than those required for generating high yield dividend income. Income investing is a much different proposition. However, the skills do center on a similar equity evaluation process, but one that requires an acknowledgement and heightened awareness of considerably greater downside risks. Income investing, or high yield dividend income investing, should at times be considered among the riskiest forms of investing, as many high dividend-yielding securities tend to trade closer to the characteristics of junk-rated bonds than they do most net cash rich and free cash flow generating powerhouses that we like so much in the Best Ideas Newsletter portfolio (1) and Dividend Growth … Read more

Enterprise Products Offers Investors Key Midstream Exposure

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Image: Enterprise Products Partners has come back nicely since the doldrums of the COVID-19 meltdown. By Brian Nelson, CFA On April 30, Enterprise Products Partners (EPD) reported decent first-quarter 2024 results. Net income grew to $0.66 per diluted unit, up 5% compared to the $0.63 per diluted unit it put up during the first quarter of 2023. Distributable cash flow [DCF] came in at $1.9 billion for the first quarter of 2024, about the same as it was in last year’s quarter. The company’s DCF covered its distributions declared in the first quarter by 1.7x. The pipeline giant continues to buy back units, having used roughly half of its authorized $2 billion buyback program. Management had a lot to say … Read more

Earnings Roundup: MO, EPD, SBUX, CLX, HON

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By Brian Nelson, CFA Altria’s (MO) Dividend Growth Outlook Through 2028 Looks Solid On February 1, Altria Group, which is yielding ~9.5% at the time of this writing, reported mixed fourth-quarter results that showed revenue missing on the top line, but the company’s non-GAAP earnings per share coming in-line with the consensus forecast. For the fourth quarter, net revenue dropped 2.2% as a result of lower sales in its smokeable products portfolio, which was only partially offset by strength in its oral tobacco segment. Adjusted diluted earnings per share was roughly flat thanks in part to both a lower share count and lower tax rate, both of which helped offset modest weakness in its operating companies income (OCI). Altria’s fourth-quarter … Read more

Dividend Increases/Decreases for the Week of January 12

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  Below we provide a list of firms that raised their dividends during the week ending January 12. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week                          A2B Australia Limited (CGAAY): now $0.7671 per share dividend, was $0.0567. AbbVie (ABBV): now $1.55 per share quarterly dividend, was $1.48. Apogee (APOG): now $0.25 per share quarterly dividend, was $0.24. Apollo Global Management, Inc. SER A MAND CNVp (APO.PR.A): now $0.844 per share quarterly dividend, was $0.75. ATCO (ACO.X:CA): now CAD 0.4898 per share quarterly dividend, was CAD 0.4756. ATCO Ltd. (ACO.Y:CA): … Read more

Dividend Aristocrat Enterprise Products Partners Boasts 7%+ Yield, Investment-Grade Marks

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Image: Enterprise Products Partners continues to raise its distribution year after year. Source: Enterprise Products Partners. By Brian Nelson, CFA Enterprise Products Partners (EPD) represents rare exposure to the midstream energy pipeline space in the simulated High Yield Dividend Newsletter portfolio, a key feature of the monthly High Yield Dividend Newsletter, released by email to its subscribers on the first of each month. The master limited partnership is one of the largest providers of midstream energy services of natural gas, natural gas liquids (NGLs), crude oil and other refined products in North America. Units offer investors a distribution yield of ~7.6% at the time of this writing, one that is covered nicely by the firm’s distributable cash flow [DCF], not to … Read more

A Note on Valuation — Low P/E Stocks with High Dividend Yields

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“But carrying low valuation parameters is far from synonymous with “underpriced.” It’s easy to be seduced by the former, but a stock with a low p/e ratio, for example, is likely to be a bargain only if its current earnings and recent earnings growth are indicative of the future. Just pursuing low valuation metrics can lead you to so-called “value traps”: things that look cheap on the numbers but aren’t, because they have operating weaknesses or because the sales and earnings creating those valuations can’t be replicated in the future.” – Howard Marks, Something of Value (2021) By Brian Nelson, CFA I was reminded of Howard Marks’ 2021 memo, “Something of Value,” after a few readers expressed interest in low … Read more