Core Insights - Dividend investing is gaining popularity in 2025 due to market volatility and uncertainties, with U.S. stocks near record highs driven by trade optimism, strong corporate earnings, and AI advancements [1][2] Group 1: Dividend Growth Strategy - Dividends provide a reliable income stream, making them appealing during uncertain times, and dividend-paying stocks tend to stabilize portfolios [2][9] - Companies with a history of increasing dividends are typically financially strong and offer better long-term capital appreciation, leading to a more resilient portfolio [3][4] - Focusing on dividend growth rather than just yield can enhance returns, as these stocks often have superior fundamentals, including sustainable business models and strong cash flows [5][6] Group 2: Stock Selection Criteria - Selected stocks for dividend growth include Agnico Eagle Mines Limited (AEM), UGI Corporation (UGI), Qifu Technology Inc. (QFIN), Taiwan Semiconductor Manufacturing Company Ltd. (TSM), and Group 1 Automotive (GPI), all showing strong earnings and sales growth [3][9] - Criteria for selection include positive historical dividend growth, sales growth, and earnings per share (EPS) growth, along with expected future EPS growth [7][8] - Stocks are also evaluated based on their price-to-cash flow ratio being less than the industry average and having outperformed the S&P 500 over the past year [8][9] Group 3: Individual Stock Highlights - AEM is a gold producer with a positive earnings estimate revision of $0.42 and an estimated earnings growth rate of 52.5%, holding a Zacks Rank 1 and a Growth Score of B [10][11] - UGI Corp. has an estimated earnings growth rate of 2.29% and an average earnings surprise of 75.67%, also holding a Zacks Rank 1 and a Growth Score of B [12][13] - Qifu Technology has an estimated earnings growth rate of 25.62% and a Zacks Rank 1 with a Growth Score of B [14][15] - TSM has an estimated earnings growth rate of 34.66% and holds a Zacks Rank 2 with a Growth Score of A [15] - Group 1 Automotive has an estimated earnings growth rate of 4.3% and holds a Zacks Rank 1 with a Growth Score of A [16]

Financial Performance & Targets - UGI Corporation's YTD FY25 GAAP diluted EPS is $3.93, compared to $2.74 in YTD FY24[39] - The company increased its Fiscal 2025 adjusted EPS guidance to a range of $3.00 - $3.15 per share[39] - The company targets a long-term EPS growth rate of 4-6%[18] - The company targets a rate base growth of 9%+[18] - The company's leverage ratio target is between 3.5 – 4.0x[23] Capital Allocation & Deployment - The company plans to deploy approximately $3.9 billion in capital from FY24-27[25] - Approximately 66% of the capital will be returned to shareholders[25] - Approximately 18% of the capital will be used for debt reduction[25] - Approximately 85% of total capital invested in natural gas businesses[26] ESG - The company targets a 55% reduction in 5-year Scope-1 GHG Emissions[31]

Core Viewpoint - UGI shares have shown strong performance, reaching a new 52-week high and significantly outperforming the broader utilities sector and gas distribution industry [1][2]. Financial Performance - UGI has consistently beaten earnings estimates, with the latest EPS reported at $2.21 against a consensus of $1.8 [2]. - For the current fiscal year, UGI is projected to earn $3.13 per share on revenues of $7.81 billion, reflecting a 2.29% increase in EPS and an 8.36% increase in revenues [3]. - The next fiscal year forecasts an EPS of $3.23 on revenues of $8.81 billion, indicating year-over-year changes of 3.19% and 12.76%, respectively [3]. Valuation Metrics - UGI's current trading metrics show a P/E ratio of 11.7X for the current fiscal year, below the industry average of 16.3X [7]. - The trailing cash flow basis shows UGI trading at 5.6X compared to the peer group's average of 8.1X [7]. - UGI has a PEG ratio of 2.24, positioning it favorably among value stocks [7]. Investment Style Scores - UGI holds a Value Score of A, with Growth and Momentum Scores of B, resulting in a combined VGM Score of A [6]. - The Zacks Rank for UGI is 2 (Buy), supported by rising earnings estimates, indicating potential for further gains [8].

Core Insights - UGI Corporation's subsidiary, AmeriGas Propane, L.P., has agreed to divest its propane assets in Hawaii to Isle Gas, with the transaction expected to close in Q4 of fiscal 2025 [1][11] - The sale includes approximately 750,000 gallons of propane storage facilities and a delivery fleet, with proceeds aimed at debt reduction [2][11] - This divestiture aligns with UGI's strategy to optimize financial and operational performance by focusing on core resources and enhancing customer value [3][11] Financial Strategy - The sale of non-core assets is part of a broader strategy among utilities to raise capital for investments in more lucrative sectors, thereby improving credit profiles and reducing interest costs [4] - Companies often divest underperforming businesses to streamline operations and concentrate on areas with higher long-term value [5] Industry Comparisons - Sempra Energy is also divesting assets as part of a capital recycling program to fund a $56 billion capital spending plan, indicating a trend among utilities to focus on core operations [6] - CenterPoint Energy recently sold its natural gas distribution businesses for $1.2 billion to reallocate capital investments, further illustrating the strategic shift within the industry [8] Stock Performance - UGI's stock has increased by 9.6% over the past three months, outperforming the industry average growth of 8.1% [10]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks likely to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score [3] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - Concentrates on a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks with upward or downward price trends, utilizing recent price changes and earnings estimate shifts [5] VGM Score - Combines the three Style Scores to identify stocks with the best overall value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41%, significantly outperforming the S&P 500 [8] Stock Selection Strategy - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [10] - The direction of earnings estimate revisions is crucial in stock selection, as downward trends can indicate potential price declines [11] Company Spotlight: UGI Corporation - UGI Corporation is a holding company involved in the distribution and marketing of energy products, serving over 2.6 million customers [12] - UGI holds a Zacks Rank of 2 (Buy) and has a VGM Score of A, with a Momentum Style Score of B [13] - Recent earnings estimates for fiscal 2025 have been revised upward, with the consensus estimate increasing by $0.07 to $3.13 per share [13]

Group 1 - Zacks Premium provides various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum [2][9] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] - The Growth Score evaluates a company's future prospects through projected and historical earnings, sales, and cash flow [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection [6] Group 2 - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to assist investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9][10] Group 3 - UGI Corporation is a holding company involved in the distribution, storage, transportation, and marketing of energy products, serving over 2.6 million customers [11] - UGI holds a Zacks Rank of 2 (Buy) and has a VGM Score of A, indicating strong investment potential [12] - The company has a forward P/E ratio of 11.56, making it attractive to value investors, and has seen upward revisions in earnings estimates [12][13]

Core Viewpoint - UGI Corporation's planned investments are expected to enhance its aging infrastructure and improve overall performance, making it a strong investment option in the utility sector due to growth opportunities and a solid return on equity (ROE) [1] Group 1: Growth Projections - The Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has increased by 3.3% to $3.13 [2] - The Zacks Consensus Estimate for fiscal 2025 sales is projected at $7.81 billion, reflecting a year-over-year increase of 8.4% [2] - UGI's long-term earnings growth rate is estimated at 5.2%, with a trailing four-quarter average earnings surprise of 75.7% [2] Group 2: Financial Health - UGI's current ratio stands at 1.23, surpassing the industry average of 0.63, indicating sufficient short-term assets to cover liabilities [3] - The company's ROE is 16.21%, significantly higher than the industry average of 9.24%, demonstrating effective utilization of funds [4] - UGI's total debt to capital ratio is 58.34%, better than the sector's average of 59.23%, and the time-to-interest earned ratio is 2.5, indicating strong ability to meet interest obligations [5] Group 3: Dividend Performance - UGI has a long history of paying dividends for 141 years, with a current quarterly dividend of 37.5 cents per share, leading to an annualized dividend of $1.50 [6] - The compound annual growth rate (CAGR) for UGI's 10-year dividend is 6% for fiscal 2014-2024, and the current dividend yield is 4.1%, above the industry's average of 3.28% [6] Group 4: Strategic Investments - UGI plans to invest $800-$900 million in fiscal 2025 and up to $4.1 billion by 2027 to modernize its infrastructure [8][10] - These investments aim to enhance safety and reliability in natural gas production and storage, as well as replace aging infrastructure to efficiently serve an expanding customer base [9] - UGI has added over 6,600 residential heating and commercial customers year to date [9]

Core Insights - Wall Street has rebounded from early April lows and is near record highs, driven by optimism in U.S.-China trade negotiations, easing inflation, and strong corporate earnings, although uncertainty regarding Trump's policies remains [2]. Dividend Investing - Investors are increasingly turning to dividend investing for stable returns, as dividends provide consistent income and can mitigate portfolio volatility during uncertain market conditions [3]. - Stocks with a history of dividend growth are preferred, as they belong to mature companies that are less volatile and offer downside protection through consistent payout increases [5]. Selected Dividend Growth Stocks - Five dividend growth stocks identified as compelling investment options are Intuit Inc. (INTU), Fox Corporation (FOX), Qifu Technology Inc. (QFIN), UGI Corporation (UGI), and Ingredion Incorporated (INGR) [4][10]. - These stocks exhibit consistent dividend growth and strong long-term earnings potential, with positive earnings estimate revisions and solid expected earnings growth for the current fiscal year [10]. Stock Selection Criteria - Criteria for selecting dividend growth stocks include: - 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [7]. - 5-Year Historical Sales Growth greater than zero, reflecting strong revenue growth [8]. - 5-Year Historical EPS Growth greater than zero, showing solid earnings growth history [8]. - Next 3-5 Year EPS Growth Rate greater than zero, indicating expected earnings growth [8]. - Price/Cash Flow less than M-Industry, suggesting undervaluation [9]. - 52-Week Price Change greater than S&P 500, ensuring better performance than the broader market [9]. Company Profiles - **Intuit Inc. (INTU)**: A business and financial software company with an expected earnings growth rate of 18.4% and a Zacks Rank 1 [11]. - **Fox Corporation (FOX)**: A media company with an expected earnings growth rate of 32.4% and a Zacks Rank 2 [13]. - **Qifu Technology Inc. (QFIN)**: A Credit-Tech platform in China with an expected earnings growth rate of 25.3% and a Zacks Rank 2 [14]. - **UGI Corporation (UGI)**: An energy products distributor with an estimated growth rate of 2.29% and a Zacks Rank 2 [16]. - **Ingredion Incorporated (INGR)**: An ingredients solutions provider with an estimated earnings growth rate of 5.2% and a Zacks Rank 2 [17].

Core Viewpoint - UGI shares have increased by approximately 1.2% since the last earnings report, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Estimates Movement - Fresh estimates for UGI have trended downward over the past month, with the consensus estimate shifting by -175% [2] VGM Scores - UGI currently holds a Growth Score of B, but has a low Momentum Score of F. The stock has an A grade on the value side, placing it in the top 20% for this investment strategy. The overall aggregate VGM Score is B, which is relevant for investors not focused on a single strategy [3] Outlook - The estimates for UGI have been broadly trending downward, indicating a significant downward shift. UGI holds a Zacks Rank 2 (Buy), suggesting an expectation of above-average returns in the coming months [4]

Core Viewpoint - UGI shares have shown strong performance, increasing 29.3% year-to-date, outperforming the Zacks Utilities sector and the Zacks Utility - Gas Distribution industry [1][3]. Financial Performance - UGI has consistently exceeded earnings expectations, reporting an EPS of $2.21 against a consensus estimate of $1.8 in its last earnings report [2]. - For the current fiscal year, UGI is projected to achieve earnings of $3.11 per share on revenues of $7.81 billion, reflecting a 1.63% increase in EPS and an 8.36% increase in revenues [3]. - The next fiscal year forecasts an EPS of $3.14 on revenues of $8.74 billion, indicating a year-over-year change of 0.86% in EPS and 11.82% in revenues [3]. Valuation Metrics - UGI's current valuation metrics show it trading at 11.7X current fiscal year EPS estimates, below the peer industry average of 16.6X [7]. - On a trailing cash flow basis, UGI trades at 5.6X compared to the peer group's average of 8.2X [7]. - The stock has a PEG ratio of 2.26, which does not place it among the top value stocks [7]. Style Scores and Zacks Rank - UGI has a Value Score of A, a Growth Score of B, and a Momentum Score of F, resulting in a combined VGM Score of A [6]. - The stock holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, indicating potential for further gains [8].