|
|
Recent Articles
-
Verizon Targets $19.5-$20.5 Billion in Free Cash Flow for 2025
Dec 18, 2025
-
Image Source: TradingView.
Verizon’s total unsecured debt as of the end of the third quarter was $119.7 billion, resulting in a ratio of unsecured debt to consolidated net income (LTM) of 5.9 times. Its net unsecured debt to consolidated adjusted EBITDA ratio was 2.2 times. Though Verizon is a strong free cash flow generator, competition remains fierce with AT&T and T-Mobile, and its debt load is not something that we can get comfortable with. Shares yield 6.8% at the time of this writing.
-
UPS’ Dividend Remains on Shaky Ground
Dec 18, 2025
-
Image Source: UPS.
Looking to the fourth quarter of 2025, on a consolidated basis, UPS expects revenue to be approximately $24.0 billion on a non-GAAP adjusted operating margin between 11.0%-11.5%. The company reaffirmed a variety of other items, expecting capital expenditures of approximately $2.5 billion, dividend payments of around $5.5 billion, an effective tax rate of approximately 23.75%, $1.4 billion in pension contributions (of which $1.3 billion have been made), and share repurchases of ~$1.0 billion, which have been completed. For the nine months ended September 30, free cash flow was $2.74 billion. With a Dividend Cushion ratio well below parity, we remain cautious on UPS’ dividend payout. Shares yield 6.5% at the time of this writing.
-
Realty Income Raises Investment Volume Guidance for 2025
Dec 18, 2025
-
Image Source: TradingView.
Realty Income's dividend payments represented 74.7% of its diluted AFFO per share of $1.08 during the three months ended September 30. The REIT revised its AFFO per share guidance for 2025 to the range of $4.25-$4.27 from $4.24-$4.28 previously, while investment volume is now targeted at approximately $5.5 billion, up from approximately $5 billion previously. We like Realty Income’s dividend coverage, but don’t include shares in the High Yield Dividend Newsletter portfolio, as we think existing positions offer better risk/reward potential. Shares yield 5.6% at the time of this writing.
-
Oracle Has Turned Into a Net Debt Heavy, Free Cash Flow Burning Enterprise
Dec 12, 2025
-
Image Source: TradingView.
Oracle ended the fiscal second quarter with $19.8 billion in cash and marketable securities and $108.1 billion in notes payable and other borrowings. For the six months ended November 30, cash flow from operations was $10.2 billion, while capital expenditures were $20.5 billion, resulting in meaningfully negative free cash flow. For the tailing twelve months ended in the second quarter of fiscal 2026, cash flow from operations was $22.3 billion, while capital expenditures were $35.5 billion, resulting in negative free cash flow of $13.2 billion. On the call, management noted that its fiscal 2026 revenue expectations of $67 billion remains unchanged, but that capital spending will be about $15 billion higher than it forecasted at the end of the first quarter. Since Oracle is now a net-debt heavy, free cash flow burning enterprise, we now view shares as a source of cash in the newsletter portfolios.
|
