Dividend Stock Thoughts

• Compelling 5.4% dividend yield, supported by resilient fee-based cash flows.
• Recent acquisitions of Magellan, EnLink, and Medallion have solidified OKE as a top-tier diversified midstream operator.
• Approximately 90% of earnings are now fee-based, significantly reducing direct commodity price exposure.
• Trading at a discount to our intrinsic value estimate, particularly given the synergy potential from recent M&A.
• Long-term volume risk tied to energy transition pressures on refined products and regulatory hurdles for new infrastructure.

• 8.6% Dividend Yield.
• 1.4 billion cubic feet of capacity across 235 warehouses, providing a globally diversified, hard-to-replicate cold-storage footprint.
• 18% US market share, 6% global market share.
• 60.0% of warehouse segment revenue under fixed contracts, anchoring cash flows through a soft volume and pricing environment.
• Development pipeline targeted at 10–12% ROIC, increasingly focused on build-to-suit and higher-growth international markets (notably Asia-Pacific).
• Near-term headwinds in 2026–2027 from excess capacity and weaker demand.

• 13.9% Yield
• Triple net lease structure provides strong 52.3% operating margins even factoring in tenant defaults.
• Conservative capital structure, 1.2x debt to EBITDA with $2.2 billion in unencumbered property.
• 8.3 million active leasable square feet, with 1.2 million leasable square feet under development.
• Early results from tenant refresh started in the quarter ending March 2025 are positive, with management expecting market normalization within 18-36 months.
• Captive base, with cannabis operators having limited financing opportunities for large-scale properties leading to long 13.5-year average lease periods.

• 3.8% Dividend Yield.
• DAC has 15 new methanol-fueled container ships under construction, all pre-contracted upon delivery, representing 27.2% capacity expansion set to fuel growth.
• DAC operates an 84-ship fleet with 471,500 Twenty Foot Equivalent (TEUs) of containerized capacity and 1,760,861 DWT of dry-bulk capacity.
• Excluding new ship construction capex, DAC generated $572.4 million in trailing twelve-month free cash flow.
• The company has 99% of operating days contracted through 2025 and 85% through 2026 giving the company great visibility.

• 5.67% Dividend Yield
• $120m pipeline project should increase realizations in New Mexico as well as unlock the potential of the newly acquired Silverback II assets.
• Power generation JV expansion to 56% of Texas field and the introduction of similar generation in New Mexico reduces costs by using low-value byproduct gas.
• 2025’s focus will be on expanding the undeveloped asset base rather than new drills while hydrocarbon prices are depressed.
• Strong balance sheet with breakeven in the mid $30 range and an estimated net debt to EBITDA of 1.3x post-acquisition close.

• 4.64% Dividend Yield
• Management has initiated a 24-month plan to eliminate Chinese manufacturing dependency, increase USMCA compliance for Mexican operations, and implement targeted price increases.
• Strong brand recognition with DeWalt, Craftsman, Stanley, with a renewed focus on the professional sector.
• Expects over $500 million in free cash during 2025 despite tariffs.
• Aggressive transformation, with a long-term target of 35% gross margin (currently 30.2%) and 16% EBITDA margin (currently 9.8%).

• 4.35% Dividend Yield
• SFD maintains strong financial health with a 0.7x debt-to-EBITDA ratio, $928 million cash on hand, and no major debt payments until 2027.
• The company plans $400-500 million in capex for 2025, split between maintenance and operational improvements focused on automation.
• The company has already cut 20% of its herd size since December 2024, with the goal of internally producing only 30% of needed hogs to stabilize margins across commodity cycles.
• Despite export challenges, the USDA only expects a 2% drop in overall pork trade, and low storage levels may limit pricing pressures from oversupply in the domestic market.

• 5.9% Dividend Yield.
• QSR (quick service restaurants) have historically been resilient in economic downturn, sometimes even seeing volume increases.
• Improved unit-economics for franchisees by waiving certain fees to drive down payback period from 5.5 years to 3.2 years, which we believe will incentivize expansion.
• Papa Dough loyalty program has 17.5 million active members, up 21% since 2023, thanks to the program revamp providing better value and more tailored discounts.
• Pivot to value offerings to boost short-term volumes and ensure market share expansion, making it up over the long term through commissary markup increases over the next 5 years.

• 8.2% Dividend Yield
• Despite current headwinds in North American sales WHR’s high domestic manufacturing footprint (80% of US sales) provides insulation against potential tariff impacts.
• With a debt reduction target from 4.4x to 3.4x by end of 2025 and projected $550 million in free cash flow, WHR appears financially positioned to weather current housing market weakness.
• The stock has declined 27.0% over the trailing twelve months, potentially creating an attractive entry point as worst-case scenarios appear priced in.

• 3.0% Yield.
• HIMX’s automotive display-driver sales increase just under 20% year over year, now representing around 50% of global market share.
• Invested in partner FOCI, seeking to accelerate development of CPO (co-packaged optics) to improve efficiency in data transmission within datacenters.
• Continued partnership with “leading AR (augmented reality) partner” in creating new consumer AR wearables device.
• Computer vision partnership with NVDA (Nvidia), allowing HIMX’s technology to be plug-and-play with NVDA software.

• 6.9% Yield.
• Despite a high cash payout ratio of 106.3%, LYB intends to increase its dividend in 2025, backed by a $3.4 billion cash position.
• LYB reported growing industrial demand in North America, with high utilization rates and cost advantages from low natural gas prices.
• LYB is reviewing six underperforming assets in Europe, potentially leading to divestitures, closures, or efficiency investments.
• LYB is shutting down its Texas refinery, incurring $345 million in closing costs but freeing up $240 million in working capital.
• LYB’s net debt/EBITDA ratio of 2.1x is below the industry median of 2.4x.

• 3.4% Dividend Yield
• Opportunistic repurchase authorization funded with dividend reduction.
• Fekola mine in Mali concerns are resolved, expecting to receive mining authorization in early 2025.
• First commercialization of Goose mine in Canada in September.
• BTG expects 2025 production growth of 27%.
• Strong financial position, selling off royalties and issuing convertible notes to bolster cash position and pay down high-interest revolver.