Core Viewpoint - American Express is demonstrating strong dividend growth alongside aggressive share buybacks, raising questions about its long-term investment value after a significant stock price increase [1][3]. Dividend Growth - The company has increased its dividend by 17% in March, reflecting robust business strength, with a current yield of 0.9% [5][6]. - American Express's annual dividend payments represent only 21% of the expected earnings per share for 2025, allowing for continued investment and potential future dividend increases [6][12]. Financial Performance - In the third quarter, American Express reported a revenue increase of 11% year-over-year to $18.4 billion and a net income rise of 16% to $2.9 billion, with earnings-per-share growth at 19% [7][8]. - The company has seen strong momentum, particularly in demand for its U.S. Platinum products, with account acquisitions doubling compared to pre-refresh levels [8]. Share Repurchases - In the first nine months of 2025, American Express returned $6.1 billion to shareholders, with $4.4 billion from share repurchases and $1.7 billion from dividends [9]. - The company has a history of aggressive share repurchases, returning $7.9 billion to shareholders in 2024, with $5.9 billion from buybacks [10]. Valuation and Market Position - The stock currently trades at a price-to-earnings ratio of about 25, up from 21 a year ago, reflecting its premium valuation in the financial sector [11]. - Despite the higher valuation, the company's strong earnings momentum and low payout ratio suggest that robust dividend growth is likely to continue [12].

Core Insights - RLI Corp. (RLI) shares have gained momentum, trading above the 50-day simple moving average (SMA), indicating a bullish trend [1][3][8] - The Zacks average price target for RLI is $69.25 per share, suggesting a potential upside of 7.3% from the last closing price [2] - RLI shares have underperformed over the past year, losing 21.6% compared to the industry's growth of 11% [4][20] Company Performance - RLI is a specialty property-casualty (P&C) underwriter focused on niche markets, with a strong local branch office network and a broad range of product offerings [4][13] - The company has a solid dividend track record, having paid dividends for 190 consecutive quarters and increased its regular dividend for 50 straight years, with a five-year compound annual growth rate of 8.8% [16] - RLI's combined ratio remains exemplary, reflecting strong underwriting profitability, and management is focused on enhancing performance by exiting underperforming products [15][20] Financial Metrics - RLI's price-to-book multiple is 3.14, significantly higher than the industry average of 1.52 and the median of 1.37, indicating that the stock is overvalued compared to peers [10][12] - The trailing 12-month return on equity for RLI is 16.5%, well above the industry average of 8%, while return on invested capital is 2.1%, below the industry average of 6.2% [17] - The Zacks Consensus Estimate for 2026 revenues indicates a 4.1% year-over-year increase, but earnings are expected to decrease by 10.4% year-over-year [18] Market Position - RLI's focus on product diversification and innovation supports solid business expansion, with sustained rate increases and an expanding distribution network [13] - Compared to peers W.R. Berkley Corporation (WRB) and Cincinnati Financial Corp. (CINF), which gained 20.9% and 14.9% respectively over the past year, RLI's performance has lagged [9][20] - Despite its high valuation, RLI is considered an attractive option for income-focused investors due to its impressive dividend history [16][21]

Core Insights - Philip Morris International (PM) is the largest tobacco company, benefiting from strong margins in both its declining cigarette business and its growing "smoke-free" segment [1] - The company's profitability has enabled consistent dividend increases, reflecting its robust financial health [1] Company Analysis - PM has a durable competitive advantage due to its established market position and strong balance sheet [1] - The focus on high-growth smoke-free products indicates a strategic shift towards innovation and sustainability within the tobacco industry [1]

Valued at $23.2 billion by market cap, PulteGroup, Inc. (PHM) stands as one of the largest residential homebuilding companies in the United States. Founded in 1950, the  Georgia-headquartered company acquires and develops land primarily for residential purposes and constructs a wide range of housing products, including single-family detached homes, townhomes, condominiums, and duplexes marketed under a portfolio of well-known brands such as Pulte Homes, Centex, Del Webb, DiVosta, American West, and John Wi ...

Core Insights - The article emphasizes the importance of high-yield investments, particularly in the current market environment where growth stocks are dominating attention, and the S&P 500 has reached new all-time highs [2]. Group 1: Investment Focus - The company iREIT+HOYA Capital specializes in income-producing asset classes, aiming to provide sustainable portfolio income, diversification, and inflation hedging [1]. - The investment group offers research on various financial instruments including REITs, ETFs, closed-end funds, preferred stocks, and dividend champions, targeting dividend yields of up to 10% [2]. Group 2: Market Context - The current market conditions are seen as favorable for layering into high-yield investments, as the focus on growth stocks may overlook opportunities in income-generating assets [2].

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article expresses personal opinions and is not intended as investment advice [2] - It emphasizes the importance of conducting individual research before making investment decisions [2]

Key Takeaways ENSG raised its quarterly dividend to 6.5 cents, marking 23 consecutive years of dividend increases.Ensign paid $10.8M in dividends in the first nine months of 2025 and repurchased $20M in stock.ENSG ended Q3 with $443.7M in cash and a low 6.1% long-term debt-to-capital ratio.The Ensign Group, Inc. (ENSG) recently raised its quarterly dividend to 6.5 cents per share, up from 6.25 cents, extending its record of dividend growth. Over the past five years, the insurer has raised its payout six tim ...

Core Insights - The article emphasizes the importance of identifying high-quality dividend-growing and undervalued investment opportunities to achieve strong total returns through cash dividends and capital gains [1]. Group 1 - Scott Kaufman, known as Treading Softly, has over a decade of experience in the financial sector and serves as the lead analyst for Dividend Kings [1]. - The focus of the analysis is on generating a robust total return by harvesting cash dividends alongside strong capital gains [1].

For the latest updates on the energy infrastructure space as well as a look ahead, don't miss our next webcast "What's in the Pipeline for MLPs/Midstream in 2026?†on Wednesday, January 14, 2026 at 2:00 pm ET. Follow the link here to register. For more news, information, and analysis, visit the Energy Infrastructure Content Hub. The energy infrastructure company expects to generate nearly $8.7 billion in adjusted EBITDA for 2026, a 4% increase over its 2025 guidance. This projection underscores the durabilit ...

Core Insights - The rise in popularity of new covered call ETFs may mislead investors into thinking these are novel investment vehicles, while the Nuveen Dow 30 Dynamic Overwrite Fund (DIAX) has been in existence for some time [1] Investment Strategy - A hybrid investment strategy combining classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]