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Recent Articles
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Salesforce Doesn’t Make the Cut for the Newsletter Portfolios
Dec 24, 2022
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Image: How we rank our favorite ideas. We're huge fans of ideas in the simulated newsletter portfolios and Exclusive publication. We like these ideas better than others on our website.
We’re not interested in adding Salesforce to any of the simulated newsletter portfolios at this time, and we’re reiterating our wide fair value estimate range for shares amid executive departures and a weakened software spending environment. Microsoft remains our favorite play on the software space at this time, a company that we include in both the Best Ideas Newsletter portfolio and Dividend Growth Newsletter portfolio.
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Raising Our Fair Value Estimate of Dividend Aristocrat Caterpillar
Dec 24, 2022
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Image: Caterpillar’s financial momentum is impressive. Image Source: Caterpillar.
Things are looking good for Caterpillar, and the company’s free cash flow strength continues to support its payout and Dividend Aristocrat status. Caterpillar’s results are cyclical and exhibit operating leverage, which cuts both ways, but the firm’s pricing power is working wonders on its financials at the moment. Higher dealer inventories due in part to timing and labor shortages, foreign currency headwinds, and weakening dynamics in the residential construction market and in Europe and China are concerns, but the company’s strong performance warrants a fair value estimate increase, in our view. Though we like Caterpillar quite a bit, we’re not looking to add shares to any simulated newsletter portfolio at this time, however.
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FedEx’s Revenue Falls, Operating Income Tumbles in Fiscal Second Quarter
Dec 23, 2022
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Image: FedEx’s forecast for fiscal 2023 earnings have almost been halved since it gave guidance in June of this calendar year. Image Source: FedEx.
We thought FedEx would be able to offset weakness in its business with yield and cost savings initiatives, but things have deteriorated even further than what we had been expecting. Revenue faced considerable pressure during the company’s second-quarter fiscal 2023 results, while operating income tumbled more than 60% in the period. The firm has now cut its fiscal 2023 earnings per share forecast practically in half since it gave updated guidance in June of calendar 2022, and its financial targets for fiscal 2025 may be in jeopardy. We’re no longer evaluating FedEx for inclusion in the Dividend Growth Newsletter portfolio, despite shares yielding ~2.6% at the time of this writing.
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Dividend Increases/Decreases for the Week of December 23
Dec 23, 2022
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Let's take a look at firms raising/lowering their dividends this week.
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