Dividend Stock Thoughts
AN INVESTMENT IN KNOWLEDGE PAYS THE BEST INTEREST ~ Benjamin Franklin
Video: 4.2% Dividend Yield and 7-10% Growth for Comstock Resources
• 4.2% dividend yield.
• Growing production reached record high of1,400 MMcf/day.
• Sustainable EPS and FCF (Free Cash Flow) growth.
• Lowest in the industry cost structure which helps generate 80% EBITDA margins.
• Huge FCF growth of 218% to $286 million for 3Q2022.
• Delevering program to reduce Debt-to-EBITDA to 0.9x.
Citigroup’s Big Dividend Finally Set to Grow
• 4.2% dividend yield.
• Repositioning toward a consumer-centric model, investing money into digital banking and improving customer experience.
• Divesting from most legacy banking outside of North America, ICG (Institutional Clients Group) will stay international.
• Strong labor markets drove fewer credit losses.
• Investment banking losses offset by strength in commercial/customer banking.
Video: Bank Stocks with Over 4% Yield: Us Bank (USB) and Citigroup (C)
US Bank (USB):
• 4.2% Dividend Yield.
• Higher interest rate environment increased interest income by 21%.
• Expanding payments business through the acquisition of Talech.
• West-coast expansion with Union Bank acquisition.
• Strategic Partnership with State Farm to expand customer base.
Citigroup (C):
• 4.2% dividend yield.
• Repositioning toward consumer-centric model, investing money into digital banking and improving customer experience.
• Divesting from most legacy banking outside of North America, ICG will stay international.
• Strong labor markets and high rates have allowed for fewer credit losses.
• Investment banking losses offset by strength in commercial/customer banking.
Video: 5.6% Dividend for Lincoln National’s (LNC). Stock Poised to Recover After COVID Expense Shock.
Lincoln National Corp (LNC):
• 5.6% Dividend Yield. Stock pullback is an attractive entry at E23 PE of 3.3.
• COVID-19 claims are decreasing, and earnings hit now behind the company.
• Record of steady growth in earnings and dividends. Secure $1.80 dividend payment is easily covered by E23 EPS of $9.10.
• Portfolio yield increases will have a positive impact on earned interest and allow for more favorable product pricing.
• New CEO, renewed management direction.
USB: Strong Acquisitions and Partnerships Grow Core Business
• 4.2% Dividend Yield.
• Higher interest rate environment increased interest income by 21%.
• Expanding payments business through the acquisition of Talech.
• West-coast expansion with Union Bank acquisition.
• Strategic Partnership with State Farm to expand customer base.
BDN: 12% Yield and Steep Discount to $9.48 BV
• 12.2% Distribution Yield from Brandywine Realty Trust (REIT).
• 61% Funds from Operations Distribution Coverage for
• Occupancy is improving with a 1.2% quarter-over-quarter increase to 90.8%.
• 8.1-year average lease term assures rent durability.
• 9.4% average increase in cash rents since 1Q22.
• 70% tenant retention for FY22 10% higher than expected.
• Risk is persistent softness in commercial real estate market that cannot be offset by superior execution.
Video: Medtronic: 3.6% Dividend Yield, Streamlining Portfolio with 50% of Free Cash Returned to Shareholders
• 3.2% Dividend Yield.
• High cash flow generation with a good cash position. Targeting 50% Free Cash Flow (FCF) return to shareholders.
• Leverage existing customer relationships to grow its subscription and cybersecurity model.
• Fulfillment constraints subsiding as parts shortages decline.
• Earnings per Share (EPS) growth accelerating towards 7%.
Video: Cisco: 6-7% per Year Dividend Growth. Core Growth and Repositioning Yields Huge FCF and EPS Increase
• 3.2% Dividend Yield.
• High cash flow generation with a good cash position. Targeting 50% Free Cash Flow (FCF) return to shareholders.
• Leverage existing customer relationships to grow its subscription and cybersecurity model.
• Fulfillment constraints subsiding as parts shortages decline.
• Earnings per Share (EPS) growth accelerating towards 7%.
Medtronic is a Compelling 3.6% Dividend Grower
• 3.6% Dividend Yield. Dividend increased 8% last fiscal year.
• World’s largest medical device producer and developer.
• High 80% cash flow conversion with 50% Free Cash Flow (FCF) shareholder return target.
• Huge growth portfolio, with 230 products entering the trial phase and 200 approvals in FY22.
• Portfolio streamlining including a spinoff of low-growth segments into NewCo.
• Repositioning toward a higher growth portfolio.
• Chinese drag being offset with double-digit growth in other developing markets.
Cisco: Repositioning Success Yields Huge FCF
• 3.2% Dividend Yield.
• High cash flow generation with a good cash position. Targeting 50% Free Cash Flow (FCF) return to shareholders.
• Leverage existing customer relationships to grow its subscription and cybersecurity model.
• Fulfillment constraints subsiding as parts shortages decline.
• Earnings per Share (EPS) growth accelerating towards 7%.