Dividend Stock Thoughts
An Investment in Knowledge Pays the Best Interest
Benjamin Franklin
Hasbro’s 6.1% Dividend Yield Pays as We Wait for Recovery
• 6.13% Dividend Yield.
• The company is undergoing major restructuring to focus on its core brands, offload the costly entertainment segment, and implement cost-saving measures.
• The company aims to save $220 million annually by the end of 2023, increasing to $300 million by 2024, by reducing its workforce and offloading non-core divisions.
• The Wizards of the Coast and Digital Gaming segment shows robust growth and high margins, now constituting 30% of Hasbro’s revenue.
• The Consumer Products segment faces challenges due to the macroeconomic environment but contains high-selling brands like Transformers.
Insuring Success Through $380 Million in Cost Savings
• 1.38% Yield, $1 billion left on repurchase authorization.
• Expecting an increase in free cash flow in to $1 billion in 2024.
• WTW’s strategic cost-saving program aims to deliver $380 million in annualized savings by fiscal 2024.
• Strength in every business, with new clients and higher fees driving results.
• Demographic trends provide secular tailwinds.
Video: Perrigo’s Pivot to OTC Products Produces a Bulwark Against Economic Uncertainty
• 3.63% dividend yield, we believe the company’s earnings will grow by 10% per year.
• Repositioning toward consumer-facing health brand progressing with divestitures and acquisitions. Power player in consumer staples.
• Opill prescription birth control approved for moving to OTC (Over The Counter) usage.
• Baby formula operation is undergoing expansion to allow for an additional 100 million units in volume per year, in the face of global shortages of baby formula.
HII Seas: Rearmament Continues to Propel Navy Spending and Improved Results
• 2.26% Dividend Yield.
• Total backlog of $49.5 billion up 5.7 % year over year. 5 years for shipbuilding and 2 years for Mission Technology.
• Naval shipbuilding is accelerating, with the Navy needing to build more than 55 ships to reach its 300-ship target.
• Mission Technology is an expansion area, with a segment book to bill of 2.4x.
• Largest military shipbuilder in the United States, benefiting significantly from naval rearmament.
6.5% Yield While Waiting for Whirlpool’s Recovery
• 6.5% Yield. EPS should cover the dividend in the current year with a 43% payout ratio.
• Significant reduction in cost inflation, saving $800 million over 2023.
• Repositioning toward medium and long-term growth, shedding the breakeven European segment while retaining 25% ownership.
• Deep Value cyclical is currently losing money after restructuring charges but had a peak 4-quarter EPS of $31.26 in September 2021.
Cigna Delivering Growth at a Great Price
• 1.58% Dividend Yield.
• Growing customers 9% to 165 million total relationships as of 3Q23.
• Diversified portfolio for sustained growth and resilience.
Diageo Targets Robust Market Share and Market Growth in Spirits
• 2.56% dividend yield
• $1 billion in share buyback program for fiscal 2024.
• Focusing on “Super-premium” brands as younger consumers shift toward quality over quantity.
• Dominant Spirits Portfolio makes up 80% of sales.
• Tequila is growing globally with European consumption doubling every year since 2021.
• The global alcoholic beverage market expected growth of 10.3% per year to 2028.
Pet and International Area Provide new Aisle for Growth for General Mills
• 3.6% dividend yield.
• A dominant force in the consumer-staples market, with a strong foothold in North America.
• Despite volume decreases in 1Q24, it recorded a net sales growth of 4%.
• As North American growth moderates, GIS’s pet and international segments present significant growth opportunities. Existing business is recession-resistant .
Video: Riley Exploration Permian (REPX) Looks Attractive for Dividend at 4.5% Yield
• $6 EPS for E2023, with earnings rising to $9 for E2024 if oil prices stay elevated.
• Acquisition did add leverage to the balance sheet, but the company has strong free cash flow.
• Mostly, 60%, oil, which is beneficial with crude prices holding up better than natural gas prices.
• Dividend increase, expecting to make regular dividend payments on a go forward basis.
PAAS Has Glittering Prospects with Asset Optimization
• 2.64% dividend yield, new capital allocation policy pending.
• Increasing demand in the industrial sector, especially for electrification and photovoltaic cells, is expected to continue driving silver demand.
• 2023 estimates project significant increases in output in silver and gold: 21-23 Moz of silver (a 19% YoY increase) and 870-970 Koz of gold (a 63% YoY increase).
• Development in silver with La Colorada Skarn, approval expected in 2H23. The gold expansion focuses on Phase 3 of the Jacobina mine, which could boost production significantly by 2025.
• PAAS divested from several non-core assets, expecting to save over $80 million annually in maintenance charges and increase its cash position by almost $600 million while still retaining specific royalties.
BTG’s Golden Horizons with Growth Footing
• 1.9% dividend yield, EG is targeting >13% shareholder return.
• Natural disasters are becoming more frequent and more intense, with primary insurers facing restrictions on premium hikes.
• Reinsurance rates have sustained tailwinds, with Everest realizing a 26.9% increase in premiums.
• Even in the face of increased catastrophe claims, the combined ratio in all segments of the company has improved. Reinsurance combined ratio dropped 340 bps to 88.2%, and primary insurance dropped 120 bps to 91.5%.
• International expansion effort in the primary insurance area resulting in premium growth of 13.5% year over year.
Everest Reaches Peak Performance with Rising Premiums and Business Expansion
• 1.9% dividend yield, EG is targeting >13% shareholder return.
• Natural disasters are becoming more frequent and more intense, with primary insurers facing restrictions on premium hikes.
• Reinsurance rates have sustained tailwinds, with Everest realizing a 26.9% increase in premiums.
• Even in the face of increased catastrophe claims, the combined ratio in all segments of the company has improved. Reinsurance combined ratio dropped 340 bps to 88.2%, and primary insurance dropped 120 bps to 91.5%.
• International expansion effort in the primary insurance area resulting in premium growth of 13.5% year over year.
