Wiser Investing - Benjamin C. Halliburton

Oshkosh’s Stable Dividend Driven by Long-Term Contract Wins • 1.8% dividend yield. • Secular tailwind from municipal underspending and defense rearmament. • Revenue forecasted to grow 10.8% in 2024, driven by increased demand in the vocational segment. • Expanding access business into Europe, trying to get ahead of tariffs. #defense #civilspending #stocks #investing #divdiends #OSK https://lnkd.in/gfaX6PXe

Glass House Brands Offers Opportunity at Scale • Largest producer of Cannabis in California, with approximately 1.5 million square feet of space for Cannabis and Hemp, producing over 500k lbs per year. • Owns 5.5 million square feet of cultivation facilities, ready to hyper-sale once federal legalization or rescheduling occurs.  • Moving Cannabis across state lines could soon be legal with the DEA announcing its intention to potentially reschedule Cannabis from I to III, with an expected date in 2025.  • Some of the lowest production costs in the US, with ~$130/lb in cost expected for the full year 2024 with 50% gross margin. • Improving competitive conditions in California as less efficient competitors withdraw form the market; both wholesale and retail markets are shrinking. #investing #stocks #Cannabis #growth #regulation https://lnkd.in/gPm4Ht2X

Quest Diagnostics Has Massive Secular Tailwind and Strong Base • 2.0% Yield. • Strong secular volume tailwind from aging population, with Medicare Advantage holders having a higher average revenue-per-test.  • AI (Artificial Intelligence) in pathology testing should drive high margin growth. • Tailwind from more bespoke testing, with genetic testing seeing a market-wide spending growth of 8% and 5% volume growth according to Avalon. • Increasing leverage to 2.5-3.0x debt to EBITDA to enable more freedom in aggressive acquisitions. • Strong M&A profile, purchasing Canadian provider LifeLabs for $1 billion, which will generate $710 million in additional annual revenues by 2025. https://lnkd.in/g8i3QdDF #dividends #medicareadvantage #investing #stocks

Weyerhaeuser Offers Industry Leading Asset Portfolio • 2.84% Yield. • Industry-leading 90% of revenue comes from working timberland rather than leasing it for harvesting rights (stumpage) • Largest timberland holdings in North America with more than 10.5 million acres. • Long-term tailwinds from historic pent-up demand and lows in new housing. • Timber assets generally appreciate with inflation and tree growth. https://lnkd.in/g_EkUv6q #realassets #inflation #investing #dividend

FedEx Presents Opportunity After Sell Off • FedEx’s DRIVE and Network 2.0 programs aim to streamline operations, saving $6 billion annually by 2028 without sacrificing top line growth. • Despite a recent 9% stock price drop, FedEx offers a 4.0% buyback yield and 2.1% dividend yield, making it attractive for long-term investors. • The expiration of the USPS airmail contract poses short-term challenges but could improve margins through better fleet utilization and cost management. • FedEx maintains strong financials with $5.9 billion in cash and a net debt to EBITDA of 1.9x, ensuring stability amid economic uncertainties. #stocks #investing #dividend https://lnkd.in/gPhswaHG

• 5.0% Yield. • Offering services to enhance margin including more small-business mix and specialized medical logistics services. • Consolidating 200 sorting centers, with the new automated counterparts offering a reported 30% efficiency improvement. • Expects to generate $5.8 billion in free cash in 2024, adding to its already massive $6.3 billion cash position. • Industry-leading capital efficiency, with a return on invested capital median of 27% for the last 3 years. #dividend #investing #stocks https://lnkd.in/g3_iF2ZX

Economic and Market Review September 2024 • Equity markets have strong year-to-date returns, with the S&P500 having its first positive September in 5 years. • Gold and silver surge amid continued economic uncertainty and global conflict fears. • The Fed's 50bps rate cut spurred a market rally, but economists are split on whether it signals an over-correction. • China’s economy struggles with deflation, prompting the PBOC to introduce aggressive stimulus measures aimed at boosting GDP to 5% by the end of 2024. • The U.S. faces growing debt concerns with interest payments projected to exceed $1 trillion by 2025. • Major dockworkers' strike threatens to disrupt supply chains further. https://lnkd.in/gedT7iyh #economics #market #investing #stocks

Potato Pros Lamb Weston Invest in Volume • 2.2% Yield. • LW holds #1 market share in North America, and #2 for the rest of the world for frozen-potato products. • Dominance in the frozen-potato product market, being the provider for French-fries for customers such as McDonalds, Chic Fil A, Arby’s and Sonic. • Transitioning to a volume-focused growth strategy rather than pricing-focused.  • Expects headwinds in restaurant traffic to begin to alleviate in the middle of 2025. https://lnkd.in/gvsXcNjb #investing #stocks #LW #consumerstaples

Albertsons-Kroger Deal Offers a Potential Premium • 2.7% Yield. • Kroger agreed to purchase Albertsons for $24.6 billion in October 2022. • If approved, Albertsons shareholders will receive $27.25 per share, a 48.3% premium to the current stock price. • Albertsons holds 6.4% of total grocery market share in 2023, while Kroger holds 10.1%. • $600 million claw back provision to be paid to Albertsons if the merger does not go through, recouping its costs.  #MA #Stocks #investing #dividends https://lnkd.in/gxeK_V_N

Dividend Aristocrat Target Waits for Consumer Rebound • 2.94% Yield. • Expanding margins despite sales slump, increasing gross margin by 160bps.  • Deleveraged balance sheet down to 1.8x net debt to EBITDA, down substantially from 2022 highs.  • Approaching holiday season will buoy results until rate cuts begin to impact consumer spending habits back toward discretionary goods.  • Resumed share buybacks, authorized outstanding buybacks are 13.6% of outstanding shares.  • Stock is a hold post August 21st earnings release as the stock has popped 22.5% since its August 5th lows. #stocks #investing #consumer #target #retail #dividend https://lnkd.in/gK4WiJvp