Founded in 1961, Lancaster Colony (LANC) is a specialty food maker that owns several niche dip, bread, frozen roll, crouton, dressing, and flatbread brands, including Marzetti, New York Bakery, Sister Schubert’s, Flatout, Aunt Vi’s, Reames, Mamma Bella’s, Romanoff, and Chatham Lodge. In addition, Lancaster makes licensed products including Olive Garden dressing, Jack Daniel’s mustard, and [...]
General Electric (GE) announced a slew of major strategic initiatives today that will ultimately result in another dividend cut within 12 to 18 months. I estimate the dividend could be reduced by as much as 35%. Specifically, the company decided to spin-off its healthcare segment (23% of profits in 2017) and divest its ownership [...]
Shares of Starbucks (SBUX) dropped 9% today as investors digested the company’s disappointing update about its expected growth this quarter. Specifically, management now expects just 1% growth in global same-store sales (locations open at least a year) in the current quarter, below prior expectations for 3% growth. Additionally, Starbucks announced plans to “optimize” [...]
Regulated utilities are often a core component of a conservative income portfolio thanks to their predictable earnings, generous dividends, and defensive profile. However, PPL (PPL) has been anything but defensive lately. The stock has lost 26% over the past year, including dividends. While rising interest rates have weighed on the performance high-yielding, slow-growing companies, [...]
It’s official now. The U.S. Justice Department’s antitrust lawsuit to block AT&T’s (T) merger with Time Warner (TWX) was rejected by U.S. District Court Judge Leon on June 12 with no conditions attached. AT&T plans to close the $85 billion mega-merger on or before June 20, altering the company’s future trajectory, for better or worse. [...]
Founded in 1947 in New York City, Franklin Resources (BEN) is the 34th largest asset manager in the world. The firm's 9,000 employees (including about 650 investment professionals) manage over $730 billion in assets for a client base located in more than 170 nations around the globe. Franklin Resources is almost a pure play [...]
Founded in 1947, Dover (DOV) is an international industrial conglomerate. In 2017, the company decided to spin off its energy division (18% of 2017 revenue) into a seperate company called Apergy (APY). The spin-off became official in May 2018 and left Dover with three less volatile business segments. Engineered Systems (40% of pro-forma revenue): Dover [...]
Founded in 1929, American States Water (AWR) is a regional regulated water and electrical utility serving 75 communities in Northern, Coastal, and Southern California. It also serves 24,000 electrical customers in San Bernardino county. Source: AWR Investor Presentation The company has two major segments. The Golden State Water Company owns the firm's regulated water and [...]
Bell Canada Enterprises was founded in 1880 and changed its name to BCE (BCE) in 1983. The firm is one of Canada's big three telecom companies (the largest by customer base) and provides wireless, wireline, internet, and television services to residential, business, and wholesale customers in Canada. BCE has a total of 19.1 million customers [...]
Tracing its roots back to 1886, Diageo (DEO) is the largest producer of spirits in the world and was formed in 1997 after the merger of Guinness and Grand Metropolitan. Diageo is a British company, but the UK does not impose any foreign dividend tax withholdings on investors. Some of the firm's 200 leading [...]
Founded in 1883, Leggett & Platt (LEG) patented the first steel coil bedspring. Over the past 135 years, the company has become a diversified manufacturer that conceives, designs, and produces a wide range of engineered components (innersprings, recliner mechanisms, adjustable beds, steel wire, seat frames, carpet cushion, armrests, etc.) used in bedding, furniture, carpet, automobiles, [...]
Campbell Soup reported disappointing earnings on May 18, 2018. The stock tumbled 12% on the day and has lost approximately 30% over the past year. The company has struggled to adapt its portfolio to changing consumer tastes that prefer fresher, healthier offerings. Campbell Soup's CEO is stepping down, and the firm is undergoing a [...]
Founded in 1999, Brookfield Renewable Partners (BEP) is a renewable energy-focused limited partnership, or YieldCo, that's run by Brookfield Asset Management (BAM). The company is one of the world’s largest publicly-traded renewable power platforms with a portfolio consisting of over 16,300 megawatts of capacity and 843 generating facilities in North America, South America, Europe, and [...]
Ares Capital Corporation (ARCC) is an externally managed business development company, or BDC. The company is a subsidiary of Ares Management LP (ARES), which provides the firm's management team. Ares Management has over 1,000 employees working around the world and manages over $100 billion in assets. Ares Capital specializes in acquisitions, recapitalizations, mezzanine debt, [...]
Founded in 1869, Royal Bank of Canada (RY) is Canada's largest bank by assets (about $1 trillion) and one of the 15 largest global banks by market cap. The firm is well-diversified across businesses, geographies and client segments, serving 16 million customers worldwide in Canada, the U.S., and 35 other countries. Royal Bank of Canada [...]