Core Viewpoint - Spire is focusing on strategic growth through the acquisition of Duke Energy's Piedmont Natural Gas Tennessee business, which is expected to enhance its utility footprint and diversify its portfolio, with the transaction anticipated to close in early 2026 [1][7]. Financial Performance - For fiscal 2025, Spire reported adjusted earnings of $4.45 per share and approved a 5.1% increase in the annual dividend, raising it to $3.30 per share, marking the 23rd consecutive year of dividend hikes [4][6][14]. - The company invested $922 million in fiscal 2025, with nearly 90% allocated to utilities, and achieved a regulatory revenue increase of $210 million due to a rate case in Missouri [5][13]. Leadership Changes - Scott Doyle was appointed as president and CEO on April 24, 2025, and Steve Greenley joined as COO on October 13, 2025, indicating a significant leadership transition [3][4]. Regulatory Developments - The Missouri Legislature passed Senate Bill 4 in April 2025, modernizing regulatory rate-setting mechanisms, while the Missouri Public Service Commission approved a stipulation agreement resulting in a $210 million revenue increase [10][11]. - In Alabama, Spire concluded its annual budget process and worked with stakeholders through the Rate Stabilization and Equalization process, with new rates effective in early December [12]. Future Outlook - Management's priorities for fiscal 2026 include ensuring safe and reliable service, executing the capital plan efficiently, maintaining customer affordability, achieving constructive regulatory outcomes, and successfully integrating the Tennessee acquisition [15].

Chevron Corp (CVX) announced a 4.0% dividend per share (DPS) hike to $7.12 annually on Jan. 30, slightly lower than my expectation of a 5% hike to $7.18. CVX stock has risen 20% since mid-December. It could be fully valued as it has reached my price target. This article will discuss how shareholders can play CVX. CVX closed at $176.90 on Friday, Jan. 30, up $5.71 (+3.34%), and up $24.39 or+16.1% year-to-date from $152.41 on Dec. 31, 2025. More News from Barchart CVX stock - last 3 months - Barchart Mor ...

Core Insights - United Rentals, Inc. (URI) reported lower-than-expected fourth-quarter 2025 results, with adjusted earnings per share (EPS) and total revenues missing the Zacks Consensus Estimate. Year-over-year, total revenues grew while adjusted EPS declined [1][10]. Financial Performance - Adjusted EPS for the fourth quarter was $11.09, missing the consensus estimate of $11.90 by 6.8%, and decreased 4.3% from the prior year [4]. - Total revenues reached $4.21 billion, falling short of the consensus mark of $4.26 billion by 1.1%, but grew 2.8% year-over-year [4]. - Equipment Rentals revenues increased 4.6% year-over-year to $3.58 billion, with fleet productivity rising 0.5% [5]. - Used equipment sales declined 14.6% year-over-year to $386 million, resulting in an adjusted gross margin of 47.2%, which contracted 170 basis points [5]. Segment Performance - General Rentals segment revenues grew 2.5% year-over-year to $2.4 billion, but rental gross margin contracted 120 basis points to 36.2% due to inflation and increased depreciation [6]. - Specialty segment revenues improved 9.2% year-over-year to a record $1.18 billion, although rental gross margin contracted 520 basis points to 40.3% due to higher costs and changes in revenue mix [7]. Margin Analysis - Total equipment rentals' gross margin contracted 240 basis points year-over-year to 37.6% [8]. - Adjusted EBITDA for the quarter increased 0.1% year-over-year to $1.901 billion, but the adjusted EBITDA margin contracted 120 basis points to 45.2% [8]. Full Year Overview - For the full year 2025, total revenues were $16.1 billion, growing 4.9% year-over-year, while adjusted EPS declined 2.6% to $42.06 [11]. - Adjusted EBITDA improved 2.3% year-over-year to $7.33 billion, but the adjusted EBITDA margin contracted 120 basis points [11]. Balance Sheet and Cash Flow - As of December 31, 2025, cash and cash equivalents were $459 million, with total liquidity at $3.322 billion. Long-term debt increased to $12.65 billion [12]. - Net cash from operating activities was $5.19 billion, up from $4.55 billion in 2024, and free cash flow increased 6% year-over-year to $2.18 billion [13]. Shareholder Returns - In 2025, URI returned $2.364 billion to shareholders, including $1.9 billion through share repurchases and $464 million through dividends [14]. - URI completed a $1.5 billion share repurchase program and launched a new $1.5 billion program, later raised to $2 billion [14]. 2026 Guidance - For 2026, total revenues are expected to be between $16.8 billion and $17.3 billion, with adjusted EBITDA anticipated to be between $7.575 billion and $7.825 billion [15]. - Net rental capital expenditure is projected to be in the range of $2.85 billion to $3.25 billion [15]. - Net cash from operating activities is expected to be between $5.3 billion and $6.1 billion, with free cash flow anticipated to be between $2.15 billion and $2.45 billion [16].

Core Insights - Valero Energy Corporation (VLO) reported fourth-quarter 2025 adjusted earnings of $3.82 per share, exceeding the Zacks Consensus Estimate of $3.22, and significantly up from 64 cents per share in the same quarter last year [1][9] - Total quarterly revenues decreased slightly from $30.8 billion in the prior-year quarter to $30.4 billion, but still surpassed the Zacks Consensus Estimate of $28.1 billion [1][2] Financial Performance - The improved quarterly results were driven by increased refining margins, higher ethanol production volumes, and lower total cost of sales, although these were partially offset by a decline in renewable diesel margins [2] - Valero's total cost of sales amounted to $28,468 million, down from $30,127 million in the previous year, attributed to a decrease in the cost of materials and other expenses [10] Dividend Announcement - Valero Energy increased its quarterly cash dividend to $1.20 per share, representing a 6% increase from the previous dividend of $1.13 per share, payable on March 9, 2026, to shareholders of record as of February 5, 2026 [3] Segment Performance - Adjusted operating income in the Refining segment reached $1,733 million, up from $441 million in the year-ago quarter, supported by a higher refining margin per barrel [4] - The Ethanol segment reported an adjusted operating profit of $117 million, up from $20 million in the prior-year quarter, aided by higher production volumes and increased margins [4] - Operating income in the Renewable Diesel segment fell to $92 million from $170 million in the year-ago quarter, impacted by a decline in sales volume and margins [5] Throughput Volumes - Valero's refining throughput volumes totaled 3,113 thousand barrels per day (MBbls/d), an increase from 2,995 MBbls/d in the previous year [6][9] - The Gulf Coast region contributed approximately 59.8% to the total throughput volume, with other regions accounting for 14.8% (Mid-Continent), 16.8% (North Atlantic), and 8.5% (West Coast) [7] Margins and Expenses - The refining margin per barrel of throughput increased to $13.61 from $8.44 in the prior year, while refining operating expenses per barrel rose to $5.03 from $4.67 [8] - Valero's adjusted refining operating income was $6.05 per barrel of throughput compared to $1.60 a year ago [8] Capital Investment and Balance Sheet - The fourth-quarter capital investment totaled $412 million, with $368 million allocated toward sustaining the business [11] - At the end of the fourth quarter, Valero had cash and cash equivalents of $4.7 billion, total debt of $8.3 billion, and finance-lease obligations of $2.4 billion [11]

Core Insights - Applied Industrial Technologies, Inc. (AIT) reported Q2 fiscal 2026 earnings of $2.51 per share, exceeding the Zacks Consensus Estimate of $2.48, marking a 4.6% year-over-year increase [1][9] - Net revenues reached $1.16 billion, slightly missing the consensus estimate of $1.17 billion, but reflecting an 8.4% year-over-year growth [2][9] Revenue Breakdown - The Service Center-Based Distribution segment generated revenues of $747.3 million, accounting for 64.3% of total revenues, with a year-over-year increase of 3.2% [3] - The Engineered Solutions segment, contributing 35.7% to net revenues, reported revenues of $415.7 million, up 19.1% year-over-year, driven by acquisitions and pricing gains [4] Margin and Cost Analysis - AIT's cost of sales increased by 8.7% year-over-year to $809.7 million, while gross profit rose 7.7% to $353.3 million, resulting in a slight decrease in gross margin to 30.4% [5] - Selling, distribution, and administrative expenses increased by 11.1% year-over-year to $230.1 million, with EBITDA rising 3.9% to $140.4 million [5] Balance Sheet and Cash Flow - As of the first six months of fiscal 2026, AIT had cash and cash equivalents of $406 million, up from $388.4 million at the end of fiscal 2025, with long-term debt remaining stable at $572.3 million [6] - The company generated net cash of $219 million from operating activities, a decrease of 1.7% year-over-year, while capital expenditures rose 27.1% to $13.6 million [7] Dividend and Shareholder Returns - AIT announced an 11% increase in its quarterly dividend to 51 cents per share, marking the 17th dividend hike since 2010 [8][9] Future Guidance - For fiscal 2026, AIT anticipates adjusted earnings in the range of $10.45-$10.75 per share and expects sales growth of 5.5-7%, with an organic growth forecast of 2.5-4% [10]

Core Insights - Kimberly-Clark Corporation reported a stronger-than-expected quarter, driven by solid execution and expanding profit momentum despite sales pressure from changes in the U.S. diaper business [1][3] Financial Performance - The company reported fourth-quarter adjusted earnings per share of $1.86, exceeding the analyst consensus estimate of $1.81 [3] - Quarterly sales were $4.08 billion, slightly missing the expected $4.09 billion, with revenues down by 0.6% and organic sales growth of 2.1% [3] - Gross margin was 35.9%, with an adjusted gross margin of 37%, consistent with the prior year [4] - Adjusted operating profit increased to $629 million, a rise of 13.1% from the previous year, attributed to strong productivity gains and reduced planned spending [4] Strategic Initiatives - The company is making significant progress in various international markets, including Australia, Brazil, and South Korea [5] - The acquisition of Kenvue is viewed as a transformative step that will enhance the company's momentum and improve care standards globally [5] Cash and Dividend - Kimberly-Clark ended the quarter with cash and equivalents totaling $688 million and inventories of $1.475 billion [6] - The company announced an increase in its quarterly dividend to $1.28 per share, up from $1.26, payable on April 2, 2026 [7] 2026 Outlook - The company anticipates reported net sales to be impacted by approximately a 50-basis-point decline due to exiting the U.S. private-label diaper business [8] - Forecasts indicate mid- to high-single-digit adjusted operating profit growth on a constant-currency basis [8] - Expected double-digit adjusted EPS growth from continuing operations is projected, driven by increased equity-company income and stable net interest expense [9]

Core Viewpoint - Diamondback Energy (FANG) is expected to potentially raise its dividend on February 24 during its earnings release, which could positively impact its stock price. However, shorting out-of-the-money put options may present a more favorable investment strategy [1]. Dividend and Stock Performance - FANG closed at $154.02 on January 23, 2026, below its recent peak of $160.28 on December 10, 2025, but above a low of $140.45 on January 7, 2026 [2]. - The current annual dividend yield for FANG is 2.60%, with last year's average yield at 2.66% according to Morningstar and 2.63% according to Yahoo! Finance, indicating it is not undervalued historically [4]. Oil Prices and Cash Flow - Recently reported average oil prices for Q4 were $58.00 per barrel, down from $64.60 in Q3, with hedged oil prices also decreasing from $63.70 to $57.07. Additionally, the hedged gas price fell from $1.75 per Mcf to $1.03 in Q4 [5]. - Due to lower oil prices, there are expectations of reduced cash flow, which will depend on flexible capex spending and acquisition/disposal plans. However, the company has a history of increasing its dividend per share annually for the past seven years [6]. Management Priorities - Management has indicated a focus on shareholder returns over capex spending, suggesting potential adjustments to share buyback plans in light of anticipated lower cash flow [7]. Dividend Projections and Stock Price Targets - A reasonable expectation is a 5% increase in the dividend per share to $4.20, resulting in a forward yield of 2.73%. This could lead FANG stock to rise to a price range between $159.70 and $161.54, with an average target of $160.62 [8]. - If the annual dividend reaches $4.30, the stock could average between $163.50 and $165.39, representing a potential increase of 6.77% from the recent close [9].

Core Viewpoint - Occidental Petroleum (OXY) is expected to release its Q4 earnings on February 19, with potential for a dividend per share increase, which could positively impact OXY stock price [1][3]. Dividend Increase Potential - Occidental has consistently raised its dividend per share (DPS) over the last four years, with a 9% annual increase from 88 cents to 96 cents last year [4]. - A conservative estimate suggests a 4.16% increase to $1.00 per share this year, which could elevate the stock value to $50.00, representing a 17% increase from the recent closing price of $42.70 [3][4]. Financial Capability - Analysts project Occidental to earn at least $2.27 per share this year, which would comfortably cover the anticipated dividend increase [5]. - The company's free cash flow (FCF) for the year, as of Q3, was reported at $2.375 billion, with cash dividends paid out amounting to $1.186 billion, resulting in a payout ratio of less than 50% [6][7]. Current Stock Performance - OXY stock currently has an annual dividend yield of 2.248%, with historical averages being lower at 1.12% over five years and 2.18% over the last 12 months [8].

Core Viewpoint - SATS Ltd announced a 33% increase in its interim dividend to S$0.02 per share, reflecting management's confidence in the recovery of air travel and its business outlook post-COVID [3][5]. Business Model and Dividend Policy - SATS operates in the air travel and tourism industry, providing ground-handling services, in-flight and on-ground food solutions, and cargo handling [1]. - The company's turnover and earnings are closely tied to travel activity, airport operations, and food costs, making consistent dividend payments more significant than large hikes [2]. Dividend Hike Implications - The recent dividend hike signals management's positive outlook on business fundamentals and the potential to achieve pre-pandemic net margins [5]. - However, it is important to note that this increase does not guarantee sustained high earnings or dividend yields [5][6]. Financial Performance and Valuation - Following the dividend announcement, SATS shares rose by 9%, with the current share price at S$3.40, reflecting a trailing P/E ratio of 22.3 times [7][8]. - The dividend yield stands at 1.4%, significantly below the decade average of 3%, and the company did not pay an annual dividend for three years due to COVID [8]. Future Considerations - Key questions for SATS include the sustainability of travel demand and the company's ability to manage costs amid competitive pressures [8]. - If SATS can return to its pre-COVID price of S$5 per share, it would represent a capital appreciation of approximately 28% [8]. Risk Factors - SATS remains a cyclical business, vulnerable to air travel strength, inflation, economic slowdowns, and potential dividend cuts [6][10]. - The company has a debt level of S$2.45 billion, which should be considered when evaluating investment [11].

Core Insights - First Majestic Silver Corp. reported a total production of 7.8 million silver-equivalent ounces in Q4 2025, marking a 37% year-over-year increase driven by a 77% surge in silver production [1][9] Production Highlights - The fourth quarter production included a record 4.2 million silver ounces and 41,417 gold ounces, along with 14.2 million pounds of zinc, 8.1 million pounds of lead, and 235,886 pounds of copper [1] - The San Dimas mine produced 2.45 million AgEq ounces, with silver production increasing by 10% year-over-year [3] - The Santa Elena mine produced 2.28 million AgEq ounces, down 16% year-over-year [3] - La Encantada produced 1 million ounces of silver, up 32% from Q4 2024, driven by a 20% growth in ore processed and an 11% increase in silver grades [4] - Los Gatos contributed 2.09 million AgEq ounces, including 1.49 million ounces of silver [4] Strategic Developments - In January 2025, First Majestic completed the acquisition of Gatos Silver, Inc., securing a 70% interest in the Cerro Los Gatos mine, enhancing its position as an intermediate primary silver producer [2] - The company initiated its 2025 drilling program at the Jerritt Canyon mine, completing 5,889 meters of drilling in Q4 2025, exceeding its annual target [5] Financial Updates - First Majestic announced an increase in its quarterly dividend from 1% to 2% of net quarterly revenues [6] - For 2026, the company expects silver production to be between 13-14 million ounces, with gold production projected at 116,000-129,000 ounces [7] Market Performance - First Majestic's stock price increased by 249.3% over the past year, outperforming the industry average of 208.2% [10]