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Recent Articles
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Pfizer 6% Dividend Yield Speaks of Considerable Risk, Free Cash Flow Coming Up Short
Mar 21, 2024
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Image: Pfizer’s shares have been under considerable pressure the past few years.
Though we are positive on Pfizer’s turnaround, its Dividend Cushion ratio of 0.3 is not to be taken lightly (any ratio below 1 indicates heightened risk of a dividend cut). Income-oriented investors seeking a turnaround story may be interested in Pfizer, but we’re staying on the sidelines. We’ll continue to monitor developments at the pharma giant, especially as patents on several of its major drugs approach expiration. Shares yield ~6% at the time of this writing.
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Latest Report Updates
Mar 21, 2024
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Check out the latest report updates on the website.
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Phillips 66 Hovering Near All-Time Highs, Shares Yield ~2.7%
Mar 20, 2024
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Image: Phillips 66 continues to be very shareholder friendly returning cash in the form of share repurchases and dividends.
Though crack spreads can be quite volatile at times, there’s a lot to like about Phillips 66. The company is targeting 2025 mid-cycle adjusted EBITDA of $14 billion, up from $10 billion in 2022. Cost savings should remain ongoing, with its target calling for a total of $1.4 billion in savings, implying the company has $200 million more in savings to go. We like its investment-grade (A3/BBB+) balance sheet and target for 2025 mid-cycle adjusted operating cash flow of $10+ billion, up from $7 billion in 2022, with expectations that it will return more than half of operating cash flow to shareholders. Phillips 66 is a quality income idea for investors seeking exposure to the energy space.
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Hasbro Is Down But Not Out, Shares Yield ~5.3%
Mar 19, 2024
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Image: Hasbro’s shares have faced considerable pressure during the past few years.
Hasbro's recently reported fourth-quarter results weren't great and showed revenue declining 23% as it experienced material weakness in its Consumer Products segment (-25%) and Entertainment division (-49%) in the quarter. On an adjusted basis, backing out large impairment charges, the firm’s operating loss came in at $50 million in the quarter, while it recorded adjusted net earnings of $0.38 per share. Hasbro continues to navigate a difficult demand environment for physical toys, but the company’s free cash flow remains robust and was in excess of cash dividends paid during 2023. Shares yield ~5.3% at the time of this writing.
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