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Recent Articles
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Merger Mania
Mar 3, 2024
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Image Source: Glenn Beltz.
Mergers and acquisition [M&A] activity continues as the market sets new highs. Elevated borrowing costs as a result of the Fed’s aggressive rate hiking cycle in 2022 are pushing many entities to pursue all-stock transactions.
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Dividend Increases/Decreases for the Week of March 1
Mar 1, 2024
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Let's take a look at firms raising/lowering their dividends this week.
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3 Catalysts for Apple’s Stock
Feb 29, 2024
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Image: Apple’s shares have done quite well since the beginning of 2023.
We see three positive catalysts on the horizon for Apple. First, Apple is now shifting resources from its electric car endeavor to work on generative artificial intelligence [AI]. Though an Apple Car would have been a nice deliverable later this decade, we like the move, as it relates to future iterations of the iPhone, which will likely have varying levels of AI features. This should drive a meaningful upgrade cycle across its installed base of iPhones. Second, we think Apple’s Vision Pro is another revenue driver, and recent reports indicate that demand has been higher than expected. Third, we think the Apple Watch X, the next iteration of its wearables line-up that will likely have features to measure blood pressure adn detect sleep apnea, will also drive a lot of upgrades across its installed base, in our view.
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Republic Services Issues Solid Guidance for 2024
Feb 28, 2024
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Image Source: Republic Services.
Republic Services is one of our favorite industrial entities. The company has valuable property in the form of disposal facilities, and its collection operations, while always facing a competitive environment, are essential services, making its business relatively recession-resistant. Republic Services is also a strong cash-flow generator. During 2023, for example, the garbage hauler generated cash flow from operations of ~$3.618 billion (was $3.19 billion in 2022) and adjusted free cash flow of ~$1.985 billion (was $1.742 billion in 2022). The company’s cash dividends paid were $638.1 million and $592.9 million in 2023 and 2022, respectively, so Republic Services is doing a great job covering its payout with traditional measures of free cash flow.
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