Core Insights - The article emphasizes the importance of investing in sectors that exhibit strong cash-flow potential and durable business models, highlighting a macro-focused investment strategy [1]. Group 1: Investment Strategy - The author combines macro analysis with bottom-up stock research to identify high-quality compounders and dividend growth opportunities [1]. Group 2: Analyst's Position - The author has a beneficial long position in shares of specific companies, indicating a personal investment interest in the discussed stocks [2].

Core Viewpoint - Enbridge is positioned for significant growth with a strong track record of increasing dividends and achieving financial guidance consistently over the years [1][2]. Financial Performance - Enbridge reported record financial results last year, with a 4% increase in cash flow per share and a 3% increase in dividends [4]. - The company has a market capitalization of $112 billion and a dividend yield of 5.31% [7]. Growth Projects - Enbridge placed CA$5 billion ($3.7 billion) of growth capital projects into commercial service last year and has sanctioned CA$14 billion ($10.2 billion) of new expansions through 2025 [4][5]. - The company has a backlog of CA$39 billion ($28.5 billion) in projects expected to enter commercial service by 2033, covering its four core franchises [5]. Future Opportunities - Enbridge is pursuing potential projects valued at upwards of CA$50 billion ($36.5 billion) that could be secured by 2030, with an additional CA$10 billion to CA$20 billion ($7.3 billion-$14.6 billion) in new projects anticipated over the next 24 months [7]. - The company expects its cash flow per share growth rate to accelerate to around 5% annually after 2026, supporting continued dividend growth of up to 5% per year [8]. Investment Potential - Enbridge offers a compelling blend of income and growth, with the potential for double-digit total annual returns for investors due to its dividend yield and expected earnings growth [9].

Company Overview - IdaCorp (IDA) is a utility company headquartered in Boise, Idaho, with a year-to-date price change of 9.28% [3] - The company currently pays a dividend of $0.88 per share, resulting in a dividend yield of 2.55%, which is lower than the Utility - Electric Power industry's yield of 2.79% but higher than the S&P 500's yield of 1.36% [3] Dividend Performance - IdaCorp's annualized dividend of $3.52 has increased by 1.7% from the previous year [4] - Over the past five years, the company has raised its dividend five times, achieving an average annual increase of 5.14% [4] - The current payout ratio is 59%, indicating that the company distributes 59% of its trailing 12-month earnings per share as dividends [4] Earnings Growth and Future Outlook - For the fiscal year, IdaCorp anticipates solid earnings growth, with the Zacks Consensus Estimate for 2026 projected at $6.42 per share, reflecting a year-over-year growth rate of 8.81% [5] - The company is positioned as an attractive dividend investment, supported by a strong Zacks Rank of 2 (Buy) [6]

Core Viewpoint - PPL Corp. expects full-year 2026 earnings per share to be in the range of $1.90 to $1.98, with a commitment to annual earnings growth of 6 to 8 percent through 2029, particularly stronger growth anticipated from 2027 onwards [1] Group 1: Financial Performance and Projections - The company projects earnings per share for 2026 to be between $1.90 and $1.98 [1] - PPL aims for annual earnings per share growth of 6 to 8 percent through 2029, with growth expected to be in the top half of this range based on 2025 earnings of $1.81 per share [1] Group 2: Capital Investments and Dividends - Planned infrastructure investments have been increased to $23 billion from 2026 through 2029, up from a previous plan of $20 billion from 2025 to 2028 [2] - PPL announced a 4.6 percent increase in its quarterly common stock dividend, raising it to $0.2850 per share from $0.2725 per share, effective April 1, 2026 [2] - The company targets annual dividend growth of 4% to 6% to support reinvestment [3] Group 3: Market Performance - In pre-market trading, PPL shares are priced at $35.54, reflecting a decrease of $1.43 or 3.87 percent [4]

Core Viewpoint - The Capital Group Dividend Value ETF (CGDV) has increased its quarterly dividend payments by 38% over the past three years, making it a noteworthy option for passive income investors despite not being widely recognized [1]. Group 1: ETF Overview - The CGDV ETF's quarterly dividend payments rose from $0.139 to $0.193 per share from December 2023 to December 2025, indicating a significant increase in dividend payouts [1]. - The fund focuses on companies that pay dividends or have the potential to do so, with a current 12-month distribution rate of 1.26% [1]. - The CGDV ETF has a total of 53 companies in its holdings, providing a fair level of diversification [1]. Group 2: Performance Metrics - The CGDV ETF has shown a share price increase of 89% over the past five years, not accounting for dividend distributions [1]. - The fund has an annualized expense ratio of 0.33%, which translates to $0.33 per year for every $100 invested [1]. - The recent dividend growth trajectory suggests potential for future increases, possibly exceeding 10% per year if the trend continues [1].

Core Insights - The article highlights the investment philosophy of Leo Nelissen, focusing on long-term investment strategies, macro analysis, and identifying durable businesses with strong cash-flow potential [1]. Group 1: Investment Strategy - Leo Nelissen emphasizes a combination of macro-focused strategies and bottom-up stock research to uncover high-quality compounders and dividend growth opportunities [1]. - The approach aims to identify structural investment themes that can provide sustainable returns over time [1]. Group 2: Market Engagement - The article mentions that Leo Nelissen has been active in the market since 2011, starting at a young age, which reflects a long-term commitment to understanding market dynamics [1].

Core Insights - Major aerospace and AI companies are significantly increasing their dividends, with all three raising them by at least 10%, and two by over 25% [1][2] Company Performance - GE Aerospace reported a remarkable 31% increase in dividends, raising its quarterly payment to 47 cents per share, resulting in an indicated yield of approximately 0.6% [5] - In 2025, GE Aerospace experienced a revenue growth of 21%, a 32% rise in orders, and ended the year with a backlog of $190 billion, driven by strong demand for commercial jet engines [4] - Monolithic Power Systems (MPWR) saw a total return of 54% in 2025 and a 29% increase in 2026, with significant growth in its dividend and data center forecasts [6] Market Trends - The announcements of dividend increases coincide with improving fundamentals across the aerospace and AI-linked infrastructure sectors, indicating an acceleration in dividend growth [2] - The overall performance of these companies reflects a positive outlook for the aerospace and AI industries, with expectations of continued growth in revenue and cash flow [4][5]

Core Insights - The Federal Reserve's recent rate-cutting cycle and potential future cuts are prompting income investors to seek higher yields in the equities market [4][5] - Dividend growth ETFs are becoming increasingly important for generating reliable income to combat inflation and enhance dividend portfolios [5] ETF Performance and Characteristics - Popular dividend-focused ETFs like JPMorgan Equity Premium Income ETF (JEPI) and NEOS S&P 500 High Income ETF (SPYI) have gained traction due to their high yields of 8.02% and 11.79% respectively [6] - However, these ETFs have shown limited share price growth, with JEPI trading between $50 and $63.19 and SPYI between $43.59 and $52.68 since their respective inceptions [7] - For investors seeking both dividend growth and capital appreciation, Schwab US Dividend Equity ETF (SCHD) and Vanguard Dividend Appreciation ETF (VIG) are recommended as they have outperformed the S&P 500 in 2026 [8]

Core Viewpoint - West Pharmaceutical Services (WST) offers a modest dividend yield of 0.34% but has increased its dividends by 73% since 2016, indicating a strong growth trajectory despite recent cash flow challenges [1][2] Dividend Profile - The current dividend yield of 0.34% is below the S&P 500 average, but WST has consistently increased its dividend for over a decade, with annual payouts rising from $0.49 in 2016 to $0.85 in 2025, reflecting a compound annual growth rate of approximately 9.5% [1] - In 2024, WST paid out $59.1 million in dividends, which is only 9% of its operating cash flow of $653.4 million, leaving room for future increases [1] Cash Flow Analysis - Free cash flow coverage decreased to 4.68x in 2024 from 7.27x in 2023, primarily due to a 15.8% decline in operating cash flow and a rise in capital expenditures to $377 million, which constituted 57.7% of operating cash flow [1] - The decline in cash flow raises questions about potential operational challenges or a shift towards a heavier investment cycle, although management's expansion plans suggest a focus on long-term growth [1] Capital Allocation - In 2024, WST allocated $566.6 million to share repurchases, significantly overshadowing the dividend payout, which indicates a preference for buybacks as the primary method of returning capital to shareholders [1] - This strategy may benefit dividend growth over time by reducing share count, but it also suggests that dividends are a secondary priority for management [1] Business Fundamentals - WST reported Q4 2025 adjusted earnings of $2.04 per share, exceeding consensus estimates, with revenue of $805 million driven by growth in the High-Value Product Components segment [1] - The company provided 2026 guidance of earnings between $7.85 and $8.20 per share, with revenue expectations of $3.215 to $3.275 billion, indicating a projected organic sales growth of 5-7% [1] Price Performance - WST shares have declined by 23.53% over the past year and 10.66% year-to-date, reflecting volatility typical of growth-oriented healthcare stocks [2] - Despite a 10-year return of 362.45%, recent stock performance suggests a reassessment of the company's growth prospects or valuation multiples by investors [2]

Core Viewpoint - Carrier Global Corporation demonstrates a strong commitment to dividend growth, with a recent 6.7% increase in its quarterly dividend, despite facing operational challenges in the residential market. The company's robust free cash flow and insider confidence support the sustainability of its dividend payments [6][24][25]. Dividend Profile - Carrier's dividend yield stands at 1.39%, which is below the industrial sector average, contrasting with Trane Technologies' 0.81% yield. However, Carrier has an A- overall dividend grade due to strong free cash flow coverage and a sustainable payout ratio of approximately 38% [4][5][8]. - The company has consistently increased its dividend for six consecutive years, with a significant acceleration in growth, including an 18.4% year-over-year increase projected for 2025 [2][3]. Financial Performance - In 2025, Carrier returned approximately $3.7 billion to shareholders, including $800 million in dividends and $2.9 billion in share repurchases. The free cash flow of $2.1 billion comfortably covered the dividend obligations [5][11]. - The fourth quarter of 2025 saw revenue decline to $4.84 billion, a 6% year-over-year decrease, with adjusted earnings per share falling 37% due to pressures in the residential segment [9]. Growth Drivers - The commercial HVAC segment showed resilience with a 50% increase in orders, driven by data center projects, while aftermarket services continue to grow at double-digit rates, providing stable revenue [10][20]. - For 2026, Carrier projects sales of approximately $22 billion and adjusted earnings per share around $2.80, indicating high single-digit growth [11]. Insider Confidence - Recent insider transactions, including significant purchases by CEO David Gitlin and CFO Patrick Goris, indicate strong management confidence in the sustainability of the dividend [13][14]. Valuation Context - Carrier trades at 40 times trailing earnings and 24 times forward earnings, reflecting investor expectations for margin recovery. The stock price has increased by 27.36% year-to-date, indicating market anticipation of recovery in residential markets and growth in data centers [15][16]. Conclusion - While Carrier's dividend growth trajectory is strong, the current yield may not attract income-focused investors compared to peers like Trane. The company's focus on capital appreciation and robust cash generation supports its dividend sustainability amid market challenges [24][25].