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Dividend Increases for the Week Ending January 10

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Below we provide a list of firms that raised their dividends during the week ending January 10. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports, please click here (or use our ‘Symbol’ search box in our website header). Firms Raising Their Dividends This Week DDR (DDR): now $0.155 per share quarterly dividend, was $0.135. Fly Leasing Limited (FLY): now $0.25 per share quarterly dividend, was $0.22. Ford (F): now $0.125 per share quarterly dividend, was $0.10. Sovran Self Storage (SSS): now $0.68 per share quarterly dividend, was $0.53. Spectra Energy (SE): now $0.335 per share quarterly dividend, was $0.305.

Ford Ups Dividend; Mulally to Stay

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It hasn’t been that long ago since Ford reinstated its dividend, and Thursday brought the most recent increase, the second in two years. The automaker announced today that it will pay a first-quarter 2014 dividend of 12.5 cents per share, up 25% from the 2013 quarterly dividend of 10 cents per share. Though Ford’s Valuentum Dividend Cushion score indicates the pace of the advance is steep (and much higher than we would have expected), we like that management continues to put shareholders’ interests first. We think investors should expect a long-term dividend growth rate in the low-single-digits given the inherent cyclicality of the auto business. Ford will now yield in excess of 3.1% based on Thursday’s closing price. We plan … Read more

Throw December Auto Sales Numbers Away; December Ice Storms and a Late Thanksgiving Holiday to Blame

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The excuses for the subpar selling performance at automakers in December (up just 0.3%) were many: the frigid ice and snow storms that scared customers away; a late Thanksgiving holiday that stole sales from the month; and a shortened holiday shopping season that left consumers scrambling to buy holiday gifts for family and friends, as opposed to spending time car shopping. Though the impact of each contributing factor is difficult to measure, we think the combination of these items was the main culprit for disappointing December auto sales, not that the consumer has decided to forgo car purchases and that the upswing in auto sales has come to an abrupt halt. Some caution is starting to creep into the market—see … Read more

FedEx, Ford and Facebook Topping News

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On Wednesday, FedEx (FDX) reported slightly lower-than-expected bottom-line performance in its fiscal second-quarter results. Revenue advanced 3% during the quarter, while reported operating income leapt 15% thanks to roughly 80 basis points of operating-margin improvement. Adjusted for the effects of Hurricane Sandy, however, year-over-year performance wasn’t that great. The firm’s quarterly earnings per share mark of $1.57 compares to an adjusted measure of $1.50, or a 4.7% increase, which itself was augmented by its share-repurchase program. Free cash flow was negative during the six months ended November 30, 2013, consistent with the cash use during the prior-year period. The company experienced improved yield and cost management (and materially better operating margin performance) at FedEx Express (its largest operating segment), but … Read more

Ford Shines Bright in November; Potential Channel Stuffing By GM; Toyota Suggests Industry Sales at Fastest Pace Since 2007; Nissan Sets November Record; Honda’s Second-Best November Performance

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On Tuesday, Best Ideas portfolio holding Ford (F) put up its best November US auto sales performance in almost a decade. US sales at the automaker advanced 7% in the month, exceeding the mid-5% consensus forecast, while retail sales were up 9% for the period. The F-Series topped 60,000 sales for the seventh consecutive month (it sold 65,501 F-Series trucks in the month, up 16% on a year-over-year basis), and passenger car strength was led by Fusion and Fiesta sales, which jumped 51% and 26%, respectively. Total passenger car sales achieved the best sales result since 2002. November was a month to remember for Ford!  The automaker announced that it would build 770,000 vehicles in the first quarter of 2014 … Read more

Green Letter Day for Industrial Best Ideas Portfolio Holdings; Record Results for Ford and Precision Castparts

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I guess you can say a ‘Red Letter Day’ for our Best Ideas portfolio can be more appropriately called a ‘Green Letter Day,’ as stock-market advances are typically colored in green. Today is such a day for two holdings in our Best Ideas portfolio: Ford (F) and Precision Castparts (PCP). These are two companies that we have pounded the table on repeatedly during the past couple years. Ford Posts Record 3Q Pre-Tax Profit On Thursday, Ford (F) posted excellent third-quarter results that showed fantastic top and bottom-line performance. Total company revenue advanced an impressive 12% thanks to wholesale volume expansion of 16% and year-over-year share gains in all regions. The auto maker also posted record third-quarter pre-tax profit of $2.59 … Read more

Third-Quarter Industrial Earnings Support Exposure in Best Ideas Portfolio

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For starters, if you haven’t yet read through our piece on General Electric’s (GE) third-quarter earnings, it’s a must-read. The step-up in backlog and order trends at the industrial behemoth are quite remarkable, and we think GE’s performance bodes well for the sector as a whole. Still, let’s drill down on a few themes across the industrial space and how our Best Ideas portfolio is well-positioned to capture the strength of underlying trends. Danaher (DHR) Danaher reported third-quarter results Thursday that showed revenue expansion of 5.5% and diluted net earnings per share growth of 9%. The company generated 30 basis points of operating-margin improvement and generated more than $800 million in free cash flow, or about 17.8% of revenue (a very … Read more

Ford Once Again Leads the Pack with September Sales

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September auto sales once again revealed a strong US auto market that continues to capitalize on pent-up demand. Though the seasonally adjusted annual rate (SAAR) fell from its 16 million-unit rate in August to 15.3 million units in September, the sequential decline seems mostly attributable to a timing shift (there were two fewer selling days in September than a year ago), and we’re not reading too much into the perceived modest industry-wide slowdown. As we can see from the chart below, there is plenty of volatility in the numbers from month to month, something that investors should continue to expect. Source: NADA Ford Best Ideas Newsletter portfolio holding Ford (click ticker for report: ) exceeded consensus estimates calling for flat … Read more

US Auto Market Shows Resolve in August; Ford Remains Our Best Idea; C-Max Outselling Tesla’s Model S

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During the past two years, we’ve never wavered on our bullish take on the domestic automotive sector—pent-up demand, inexpensive credit, and a rapidly age fleet have all combined to propel a robust automotive comeback. August was no different, with the SAAR topping 16.1 million units during the month. Let’s take a look at how some of the auto makers performed. Ford Best Ideas Newsletter portfolio holding Ford (click ticker for report: ) posted fabulous August sales results as unit sales surged 12.2% year-over-year to 221,270 units. Retail sales were up 20% year-over-year, and Ford could hardly produce enough vehicles to meet demand, adding 1,400 workers at its Flat Rock Assembly. F-Series sales continued to lead the way, with unit sales … Read more

Best Ideas Newsletter Holding Ford Posts a Fantastic Second Quarter

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Best Ideas Newsletter portfolio holding Ford (click ticker for report: ) continued to seize upon its positive momentum Wednesday morning, posting terrific second quarter results. Revenue surged 16% year-over-year to $36 billion, easily exceeding consensus estimates. Pre-tax profit surged to a record high level of $2.6 billion, which translates to operating income of $0.45 per share—50% higher than the same period a year ago and well above consensus estimates. Automotive-related operating cash flow registered $3.3 billion compared to $0.8 billion during the second quarter of 2012. Image Source: F 2Q 2013 Investor Slides Ford’s execution was superb across the board, particularly in China, where we’ve seen several new models hit showrooms. Strong results in China led to much stronger results … Read more