STLA

Dividend Increases/Decreases for the Week of April 18

by

Below we provide a list of firms that raised their dividends during the week ending April 18. 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                          ASML (ASML): now $1.92 per share quarterly dividend, was $1.57. Bar Harbor Bankshares (BHB): now $0.32 per share quarterly dividend, was $0.30. Choice Properties Real Estate Investment Trust (CHP.UN:CA): now CAD 0.0642 per share monthly dividend, was CAD 0.0641. Coca-Cola FEMSA (KOF): now $0.8830 per share quarterly dividend, was $0.7811. Companhia Paranaense de Energia – COPEL (ELPC): now $0.1172 per share quarterly dividend, was … Read more

Tesla’s Margins, Free Cash Flow Swell in Third Quarter

by

Image: Tesla has returned to a free cash flow rich entity. By Brian Nelson, CFA Tesla (TSLA) reported solid third quarter earnings on October 23. Total revenues increased 8%, while gross profit increased 20% in the quarter, as gross margins expanded nearly 200 basis points. Income from operations was up 54% thanks to more than a 320 basis-point improvement in its operating margin. Adjusted EBITDA advanced 24% in the quarter on a year-over-year basis thanks to a 240 basis-point improvement in its EBITDA margin. Non-GAAP net income increased 8% year-over-year, while non-GAAP diluted earnings per share increased 9% year-over-year. Tesla’s total production was 469,796 in the quarter, up 9%, while total deliveries increased 6%, both on a year-over-year basis. Management … Read more

Ferrari’s Results Speak to Resilience in Ultra-Luxury Markets

by

Image: Ferrari raised its guidance for 2023.  By Brian Nelson, CFA On November 2, sports car maker Ferrari N.V. (RACE) reported excellent third-quarter results that showed net revenues advancing 23.5% on a year-over-year basis, with total shipments up 8.5% from the same period a year ago. Adjusted earnings before interest and taxes (EBIT) advanced 41.6% from last year’s period, as the firm hauled in industrial free cash flow of €301 million in the quarter. Net industrial debt stood at €233 million at the end of September. As shown in the image above, management raised its year-end guidance thanks in part to a strong product mix and improved revenue from racing activities, and the firm noted that its “order book remains … Read more

Fed Rate Decision, UAW Strike Continues, Microsoft Ups Payout

by

Image Source: Mike Mozart By Brian Nelson, CFA If you’re thinking like us about the ongoing Fed rate-hiking cycle, you’re probably thinking that perhaps we’ll see another rate hike or two down the road, even if the Fed pauses at today’s September 20 meeting. However, whether the Fed pauses from here on out or executes a couple more rate hikes, it really shouldn’t matter much to long-term investors. From where we stand, the conversation about interest rates should now be shifting away from worries about elevated inflation to the future positive prospects that correspond to the work that the Fed has already done. With the market-cap weighted S&P 500 (SPY) just a stone’s throw away from all-time highs, despite aggressive … Read more

Tesla Is A Net-Cash-Rich, Free-Cash-Flow Generating, Secular-Growth Powerhouse

by

Image: Tesla is generating billions and billions of dollars in free cash flow. By Brian Nelson, CFA The cash-based sources of intrinsic value (and the trajectory of growth in them) are the most important considerations when it comes to assessing the attractiveness of an equity. Two of the most important cash-based sources of intrinsic value are net cash on the balance sheet and future expected free cash flows, and in these two areas, Tesla (TSLA) excels. Though we won’t be adding Tesla to any of the newsletter portfolios anytime soon, we like it within a diversified basket of large-cap growth equities, of which the Best Ideas Newsletter in some ways approximates. When Tesla reported its second-quarter 2023 results July 19, … Read more

Tesla Registers Record Total Deliveries in Second Quarter 2023

by

Source: Tesla By Brian Nelson, CFA At the start of 2023, Tesla’s (TSLA) price-to-fair value ratio stood at just 0.39, revealing a stock that was severely undervalued and one of the most undervalued stocks in our coverage universe. Shares of Tesla have rocketed higher more than 150% so far in 2023, and while we highlighted it as one of our favorite stocks to start this year, it never made it into the newsletter portfolios. We’re not too worried about that though given how well the newsletter portfolios were positioned with respect to exposure to large cap growth, which, itself, is up more than 35% so far in 2023. On July 2, Tesla noted that it delivered a total of 466,140 … Read more

Dividend Increases/Decreases for the Week of April 21

by

Below we provide a list of firms that raised their dividends during the week ending April 21. 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                          Bar Harbor Bankshares (BHB): now $0.28 per share quarterly dividend, was $0.26. Builders Capital Mortgage (BCF:CA): now $0.3945 per share quarterly dividend, was $0.1972. CapStar Financial (CSTR): now $0.11 per share quarterly dividend, was $0.10. Costco (COST): now $1.02 per share quarterly dividend, was $0.90. Cross Timbers Royalty Trust (CRT): now $0.2446 per share monthly dividend, was $0.1792. Discover Financial Services (DFS): now $0.70 … Read more

Big Changes in the Auto Industry as Chip Shortages, Supply Chain Issues, and Rising Input Costs Complicate Matters; Tesla and Ferrari Our Two Favorite Names

by

Image: Ferrari’s fundamental momentum has been strong of late. Image Source: Ferrari N.V. 2022 Globe Newswire By Brian Nelson, CFA The auto industry perhaps has changed more than any other industry the past five years. First, it was Ford (F) that said it wouldn’t make passenger cars anymore, except for its iconic Mustang. Then, the European Union said that it would eventually end the internal combustion engine (ICE) by 2035. Then, Tesla (TSLA) reached over $1,200 per share and over a $1 trillion market capitalization. Can you imagine a world where Ford is not making sedans, the once modern-marvel of the internal combustion engine is dying, and where one car maker is worth as much as the next nine car … Read more

Dividend Increases/Decreases for the Week of February 16

by

Below we provide a list of firms that raised their dividends during the week ending February 16. 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                          Advanced Info Service Public Ltd. ADR (AVIFY): now $0.102 per share semi-annual dividend, was $0.090. Ardmore Shipping (ASC): now $0.21 per share quarterly dividend, was $0.16. British American Tobacco (BTI): now $0.7431 per share quarterly dividend, was $0.7006. Brookfield Reinsurance (BNRE): Now $0.08 per share quarterly dividend, was $0.07. Brunswick (BC): now $0.42 per share quarterly dividend, was $0.40. Cisco (CSCO): now $0.40 per … Read more

Dividend Increases/Decreases for the Week of April 19

by

Below we provide a list of firms that raised their dividends during the week ending April 19. 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                          Absa Group Limited (AGRPY): now $0.57 per share semi-annual dividend, was $0.55. Airbus SE (EADSY): now $0.363 per share annual dividend, was $0.357. Alm. Brand A/S (ABDBY): now $0.1024 per share annual dividend, was $0.0552. Bae Systems plc (BAESY): now $0.902 per share semi-annual dividend, was $0.553. Banca Mediolanum S.p.A. (BNCDY): now $0.617 per share semi-annual dividend, was $0.393. Bar Harbor Bankshares (BHB): now … Read more