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Recent Articles
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Microsoft’s Cloud Business Performing Better Than Expected
May 1, 2025
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 Image: Microsoft’s shares have held up well in this volatile market environment.
In the quarter, Microsoft returned $9.7 billion to shareholders in the form of dividends and share repurchases. Total cash, cash equivalents, and short-term investments totaled $79.6 billion at the end of the quarter, while debt totaled $42.9 billion. Cash flow from operations increased to $37 billion from $31.9 billion in the three months ended March 31, while capital expenditures were $16.7 billion, up from $11 billion in the prior-year quarter. We continue to be huge fans of Microsoft, and the company delivered in its fiscal third quarter results.
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Meta Platforms Posts Excellent First Quarter Results
May 1, 2025
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 Image: Meta’s free cash flow remains robust.
Looking to the second quarter of 2025, Meta Platforms expects total revenue to be in the range of $42.5-$45.5 billion (consensus was $43.8 billion) and total expenses to be in the range of $113-$118 billion, down from its prior outlook of $114-$119 billion. Full year 2025 capital expenditures, including principal payments on finance leases, are targeted at $64-$72 billion, raised from its prior outlook of $60-$65 billion. Management noted that the updated outlook in part reflects additional data center investments to support artificial intelligence efforts. Though Meta is not a large dividend payer, we think its dividend growth prospects are stellar, and the company is included in the Dividend Growth Newsletter portfolio.
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Enterprise Products Partners DCF Coverage of Its Distribution Remains Solid
Apr 30, 2025
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 Image: Enterprise Products Partners' units have done well of late.
In the first quarter of 2025, Enterprise Products Partners repurchased $60 million of its common units, with the partnership having utilized about 60% of its authorized $2 billion buyback program. Adjusted cash flow from operations was $2.1 billion for both the first quarter of 2025 and 2024. Total capital expenditures were $1.1 billion in the first quarter of 2025, consisting of $960 million in growth capital and $102 million in sustaining capital expenditures. Total debt outstanding was $31.9 billion, and Enterprise had total liquidity of $3.6 billion. We continue to like Enterprise’s DCF coverage of the distribution, and the company remains an idea in the High Yield Dividend Newsletter portfolio
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Altria Continues to Expect Adjusted Earnings Per Share Expansion
Apr 30, 2025
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 Image: Altria’s shares have recovered nicely since the beginning of 2024.
In the first quarter, Altria bought back 5.7 million shares at an average price of $56.97, for a total cost of $326 million. The company still has $674 million remaining under its share repurchase program, which it expects to complete by the end of the year. Altria paid $1.7 billion in dividends in the quarter, and the firm maintained its current outlook. Management continues to expect to deliver a full-year 2025 adjusted diluted earnings per share growth rate of 2%-5% versus 2024. The growth rate represents adjusted diluted earnings per share in the range of $5.30-$5.45 from a base of $5.19 in 2014. We continue to like Altria as an idea in the High Yield Dividend Newsletter portfolio.
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