Group 1 - The article promotes iREIT on Alpha as a platform providing in-depth research on various income alternatives including REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, highlighting its positive testimonials [1] - Leo Nelissen is identified as an analyst focusing on economic developments related to supply chains, infrastructure, and commodities, contributing to iREIT®+HOYA Capital with an emphasis on dividend growth opportunities [2] Group 2 - The article includes a disclosure stating that the author has no stock or derivative positions in the mentioned companies and does not plan to initiate any positions in the next 72 hours, emphasizing the independence of the analysis [3] - Seeking Alpha's disclosure notes that past performance does not guarantee future results and clarifies that no investment recommendations are being made, indicating the nature of the analysis as independent and not reflecting the views of Seeking Alpha as a whole [4]

Industry Overview - The global drug market is projected to reach $1.21 trillion by 2025, highlighting the significance of the pharmaceutical industry [1] AbbVie Performance - AbbVie reported third-quarter 2025 revenue of $15.78 billion, a 9.1% increase from the same quarter last year, surpassing analyst expectations of $15.58 billion [2] - The company announced a 5.5% increase in its quarterly cash dividend, raising it from $1.64 to $1.73 per share, with the first payment scheduled for February 17, 2026 [3] - AbbVie's stock has increased by 15.18% over the past three months, outperforming the S&P 500 Index, which rose by 7.50% during the same period [4] Dividend and Valuation - AbbVie trades at a forward price-earnings ratio of 21.57x, slightly above the healthcare sector average of 18.77x, indicating investor confidence in AbbVie compared to its peers [7] - The company has maintained a dividend yield of approximately 3.22%, significantly higher than the healthcare sector average of 1.58% [7] - AbbVie has a history of raising its dividend for 54 consecutive years, reflecting strong business confidence, with a payout ratio of 59.92%, allowing for future dividend increases while investing in new medicines [8]

Financial Data and Key Metrics Changes - Targa Resources reported adjusted EBITDA for Q3 2025 at $1.275 billion, representing a 19% increase year-over-year and a 10% sequential increase [18] - The company expects full-year 2025 adjusted EBITDA to be around the top end of the guidance range of $4.65 billion to $4.85 billion [18] - Available liquidity at the end of Q3 was $2.3 billion, with a pro forma consolidated leverage ratio of approximately 3.6x, within the long-term target range of 3x-4x [18] Business Line Data and Key Metrics Changes - Permian natural gas inlet volumes averaged a record 6.6 billion cubic feet per day in Q3, an 11% increase year-over-year [11] - NGL volumes increased by about 180,000 barrels per day compared to the previous year, driven by growth in the Permian [6] - NGL pipeline transportation volumes averaged a record 1.02 million barrels per day, and fractionation volumes averaged 1.13 million barrels per day in Q3 [14][15] Market Data and Key Metrics Changes - The company noted that October volumes were impacted by producer shut-ins due to low commodity prices and storms, but these volumes have largely returned [11] - The outlook for NGL supply growth remains strong, supported by ongoing projects and expansions in the Permian [15] Company Strategy and Development Direction - Targa Resources is focused on executing large capital projects while investing in high-return projects to transform into a large investment-grade integrated NGL infrastructure company [9] - The company announced several new growth projects, including the Speedway NGL transportation expansion and the Yeti gas processing plant, to accommodate continued volume growth [7] - The strategy emphasizes maintaining a strong investment-grade balance sheet while increasing common dividends and reducing share count [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued Permian volume growth, supported by customer success and a favorable industry trend of rising gas-to-oil ratios [8] - The company anticipates a durable increase in free cash flow, even in a strong growth environment [9] - Management acknowledged some conservatism in Q4 guidance due to potential headwinds from maintenance and commodity price fluctuations [51] Other Important Information - Targa plans to recommend an increase in the annual common dividend to $5 per share, a 25% increase from the previous level, effective Q1 2026 [19] - The company repurchased $156 million in common shares during Q3, bringing year-to-date repurchases to $642 million [18] Q&A Session Summary Question: How have things unfolded versus original expectations? - Management noted that volumes have largely materialized consistent with or better than initial forecasts, driven by producer performance and some volatility providing additional marketing opportunities [24] Question: What is the outlook for growth in the Permian? - Management expressed confidence in continued growth, supported by bottom-up forecasts from producers and a strong commercial position [27] Question: Can you discuss operational leverage and future expansions? - Management indicated that downstream spending will be modest post-2027, focusing on rateable fracs as projects come online [34] Question: What is the rationale behind recent project announcements? - Management emphasized a capital-efficient approach, leveraging existing volumes and ensuring operational reliability for producers [42] Question: How do you view the competitive landscape in the Permian? - Management acknowledged ongoing competition but highlighted Targa's unique capabilities and strong commercial relationships as key advantages [105]

Core Insights - As market indexes approach all-time highs, investors are seeking ways to hedge against uncertainties in traditional equities [1] - The Nuveen Multi-Asset Income Fund (NMAI) is highlighted as a potential investment vehicle for generating income while maintaining total returns comparable to traditional index funds [1] Investment Strategy - The strategy involves a combination of classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds to enhance investment income [1] - This hybrid approach aims to achieve a total return that aligns with the performance of the S&P index [1]

Core Insights - The article emphasizes the lack of a bubble in the current market despite acknowledging unfavorable risk/reward dynamics [1] Group 1: Analyst Background - Leo Nelissen is an analyst focused on major economic developments related to supply chains, infrastructure, and commodities [1] - He is a contributing author for iREIT®+HOYA Capital, aiming to provide insightful analysis and actionable investment ideas [1] - The analysis particularly emphasizes dividend growth opportunities [1]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) for Q3 2025 of CAD 0.87, an increase of CAD 0.02 compared to Q3 2024 [15] - Reported earnings for the quarter were CAD 409 million, or CAD 0.81 per common share, while year-to-date reported earnings were CAD 1.3 billion, or CAD 2.57 per common share [15] - Adjusted EPS for the year-to-date period was CAD 2.63, up CAD 0.18 compared to the same period last year [15] Business Line Data and Key Metrics Changes - U.S. Electric and Gas Utilities contributed a CAD 0.03 increase in EPS, driven by higher transmission revenue and AFUDC from major capital projects [15][16] - EPS for Western Canadian utilities increased CAD 0.01, primarily due to rate-based growth, although tempered by regulatory changes at Fortis Alberta [17] - The sale of Fortis TCI is expected to impact adjusted EPS by CAD 0.02 for the full year [17] Market Data and Key Metrics Changes - The new five-year capital plan totals CAD 28.8 billion, an increase of CAD 2.8 billion from the previous plan, supporting a rate-based growth of 7% [4][7] - The consolidated rate base is projected to grow by CAD 16 billion from approximately CAD 42 billion in 2025 to CAD 58 billion in 2030 [7] Company Strategy and Development Direction - The company emphasizes a regulated growth strategy with a focus on maintaining customer affordability and prioritizing capital investments that yield cost savings [4][6] - The capital plan is heavily directed towards transmission and distribution investments, with 77% allocated to these areas [7] - The company aims for annual dividend growth guidance of 4%-6% through 2030, supported by a disciplined capital investment strategy [4][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of the capital plan and the potential for additional growth opportunities beyond the base plan [13][22] - The company remains committed to safety, reliability, affordability, and cleaner energy delivery for customers [22] - Management acknowledged the challenges in securing agreements and regulatory approvals for new projects but remains optimistic about future growth [26][35] Other Important Information - The company completed the sale of Fortis TCI and entered into an agreement to sell investments in Belize, resulting in a 100% regulated asset portfolio [3][4] - The board declared a fourth-quarter dividend increase of approximately 4%, marking 52 consecutive years of dividend increases [13] Q&A Session Summary Question: Timing and likelihood of incremental generation opportunities - Management highlighted the complexities involved in securing agreements and building necessary infrastructure, indicating that while opportunities exist, many steps remain before they can be included in the capital plan [25][26] Question: Thoughts on further asset sales - Management stated that the focus is on executing the five-year capital plan and that the recent asset sales do not indicate a strategy to divest further [29][30] Question: Timing for securing capital for new generation in Arizona - Management indicated that while customers desire immediate solutions, the timeline for securing capital and building infrastructure is longer due to permitting and construction requirements [34][35] Question: EPS CAGR initiation - Management is evaluating the potential for earnings guidance but is currently focused on rate-based growth and capital plan details [42][43] Question: Trends in buyer appetite for assets - Management noted that buyer interest fluctuates and that recent transactions do not indicate a shift in strategy regarding Caribbean assets [44] Question: Factors affecting higher spending - Management emphasized that customer affordability is a priority and that new large load customers should contribute to infrastructure costs, mitigating impacts on existing customers [49][50] Question: Funding plan and hybrid issuances - Management confirmed that while no further hybrid issuances are planned, they remain open to exploring this option depending on market conditions [56][57]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) for Q3 2025 of CAD 0.87, an increase of CAD 0.02 compared to Q3 2024 [15] - Reported earnings for the quarter were CAD 409 million, or CAD 0.81 per common share, with year-to-date reported earnings of CAD 1.3 billion, or CAD 2.57 per common share [14] - Adjusted EPS for the year-to-date period was CAD 2.63, up CAD 0.18 compared to the same period last year [15] Business Line Data and Key Metrics Changes - U.S. Electric and Gas Utilities contributed a CAD 0.03 increase in EPS, driven by higher transmission revenue and AFUDC from major capital projects [15] - EPS for Western Canadian utilities increased by CAD 0.01, primarily due to rate-based growth, although tempered by regulatory changes [17] - ITC's continued capital investments and related rate-based growth increased EPS by CAD 0.02, despite higher stock-based compensation [16] Market Data and Key Metrics Changes - The company expects to invest approximately CAD 5.6 billion for the full year, with CAD 4.2 billion invested through September [3] - The new five-year capital plan totals CAD 28.8 billion, up CAD 2.8 billion from the previous plan, supporting a rate-based growth of 7% [4][6] - Consolidated rate base is projected to increase by CAD 16 billion from approximately CAD 42 billion in 2025 to CAD 58 billion in 2030 [6] Company Strategy and Development Direction - The company has shifted to a 100% regulated asset portfolio following the sale of Fortis TCI and investments in Belize [3] - The five-year capital plan emphasizes maintaining customer affordability and includes significant investments in transmission and distribution [4][5] - The company aims for annual dividend growth guidance of 4%-6% through 2030, with a recent dividend increase of approximately 4% [4][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of the capital plan and the potential for additional growth opportunities beyond the base plan [12][21] - The company is focused on safety, reliability, affordability, and cleaner energy delivery for customers [21] - Management acknowledged the challenges in securing agreements and regulatory approvals for new projects but remains optimistic about future growth [25][26] Other Important Information - The company raised over CAD 2 billion in debt, including a hybrid issuance of CAD 750 million at 5.1% [19] - The New York State Public Service Commission approved Central Hudson's three-year rate plan, which includes a continuation of an allowed ROE of 9.5% [20] Q&A Session Summary Question: Timing and likelihood of incremental generation opportunities - Management highlighted the complexities involved in securing agreements and building necessary infrastructure, indicating that while opportunities exist, they require careful negotiation and regulatory processes [25][26] Question: Thoughts on further asset sales - Management stated that the focus is on executing the five-year capital plan and that the recent asset sales do not indicate a strategy to divest further [27][28] Question: Timing for securing capital for new generation in Arizona - Management indicated that while customers desire quick connections, practical realities such as permitting and infrastructure development will dictate timelines [32][33] Question: EPS CAGR initiation - Management is evaluating the potential for earnings guidance but is currently focused on rate-based growth and capital plan clarity [39][40] Question: Buyer appetite for Caribbean assets - Management noted that interest in Caribbean assets fluctuates and that recent sales do not indicate a broader exit strategy from the region [41][42] Question: Friction points for higher spending - Management emphasized that customer affordability is not a concern, but equipment availability and permitting are critical factors [45][46] Question: Approval processes for new data center loads - Management confirmed that the Arizona Corporation Commission approval is the primary requirement for the first 300 megawatts, with further approvals needed for additional capacity [50][51] Question: Funding plan and hybrid issuances - Management clarified that while no further hybrid issuances are currently planned, they remain open to exploring this option depending on market conditions [54][55]

Financial Performance & Capital Plan - Q3 2025 actual EPS was $0.81, and adjusted EPS was $0.87, compared to $0.85 in Q3 2024[9] - The company announced a new $28.8 billion 2026-2030 capital plan, the largest in its history[9] - A Q4 dividend increase of approximately 4% was declared, marking 52 consecutive years of dividend increases[9] - The 2026-2030 capital plan is $2.8 billion over the prior plan[12] - The capital plan is expected to support an average annual rate base growth of 7%[18] Capital Allocation & Growth Drivers - Transmission investments account for 46% of the $28.8 billion 2026-2030 capital plan[19] - ITC's five-year capital plan is $9.8 billion, supporting an ~8% rate base CAGR[23] - UNS Energy's five-year capital plan is $5.6 billion, supporting a ~7% rate base CAGR[26] - FortisBC's five-year capital plan is $4.9 billion, supporting a ~6% rate base CAGR[30] Funding & Liquidity - The company issued $750 million in hybrids at Fortis Inc at 5.1% in Q3 2025[55] - The five-year capital plan is funded by 59% cash from operations, 11% equity, and 30% net debt[61]

Core Insights - Fortis Inc. reported third quarter net earnings of $409 million, or $0.81 per common share, a decrease of $11 million compared to the same period in 2024, primarily due to income taxes and closing costs related to the sale of FortisTCI [4][6][10] - The company announced a new five-year capital plan totaling $28.8 billion, an increase of $2.8 billion from the previous plan, driven by higher transmission investments and customer growth [3][12][20] - Fortis expects annual dividend growth of 4-6% through 2030, supported by a robust rate base growth projected to increase from $41.9 billion in 2025 to $57.9 billion by 2030 [3][20][22] Financial Performance - Net earnings attributable to common equity shareholders for Q3 2025 were $409 million, or $0.81 per share, down from $0.85 per share in Q3 2024 [4][8] - Adjusted net earnings per common share increased to $0.87, up from $0.85 in the same quarter of 2024 [8][10] - Year-to-date net earnings increased by $114 million, or $0.18 per share, compared to the same period in 2024, driven by rate base growth and favorable exchange rates [6][10] Capital Expenditures and Investments - Capital expenditures for 2025 are expected to be approximately $5.6 billion, up from a previous estimate of $5.2 billion, primarily due to increased transmission investments [11][12] - The new capital plan includes significant investments in transmission and distribution to support load growth and reliability, with only 21% related to major capital projects [12][22] - Fortis has identified additional growth opportunities beyond the five-year plan, including investments associated with the MISO long-range transmission plan [14][22] Dividends and Shareholder Value - The Board of Directors declared a 4.1% increase in the common share dividend for the fourth quarter of 2025, reflecting the company's commitment to shareholder returns [3][16] - The dividend reinvestment plan is expected to provide common equity proceeds to support the capital plan [13][20] Regulatory and Market Developments - The New York State Public Service Commission approved a three-year rate plan for Central Hudson, which includes a 9.5% allowed return on equity [19] - Fortis is experiencing interest from potential new large retail customers in sectors such as manufacturing and data centers, indicating potential for future energy demand growth [15][22] Environmental and Strategic Outlook - Fortis aims to achieve interim greenhouse gas emissions reduction targets of 50% by 2030 and 75% by 2035, although challenges remain [23] - The company remains committed to a coal-free generation mix by 2032 and a net-zero goal by 2050 [23]

Core Insights - Vanguard Dividend Appreciation ETF (VIG) focuses on U.S. companies with a history of growing dividends, while ProShares S&P 500 Dividend Aristocrats ETF (NOBL) invests in a diversified group of U.S. stocks with a focus on S&P 500 constituents [1] Cost & Size Comparison - NOBL has an expense ratio of 0.35%, while VIG has a significantly lower expense ratio of 0.05% [2] - As of October 31, 2025, NOBL's 1-year return is (1.8%), compared to VIG's 11.8% [2] - NOBL offers a dividend yield of 2.1%, higher than VIG's 1.6% [2] - Both ETFs have a beta of 0.86, indicating similar price volatility [2] - NOBL has assets under management (AUM) of $11.1 billion, while VIG has a much larger AUM of $115.1 billion [2] Performance & Risk Comparison - Over the past five years, NOBL experienced a maximum drawdown of (17.92%), while VIG had a higher drawdown of (20.39%) [4] - A $1,000 investment in NOBL would have grown to $1,396 over five years, while the same investment in VIG would have grown to $1,701 [4] Portfolio Composition - VIG holds 338 companies, with significant allocations in technology (28%), financial services (22%), and healthcare (15%) [5] - Top holdings in VIG include Broadcom, Microsoft, and JPMorgan Chase [5] - NOBL focuses on S&P 500 companies, with a portfolio of 70 stocks, emphasizing consumer defensive, industrials, and financial services [6] - Key holdings in NOBL include C.H. Robinson Worldwide, AbbVie, and Caterpillar [6] Dividend Growth - VIG has grown its dividend payments by 10% annually over the last five years, outpacing NOBL's 6% growth [9] - VIG's holdings are characterized by higher sales growth potential, allowing for faster dividend increases despite a lower initial yield [10] - Since 2013, VIG has quadrupled investors' money, while NOBL has tripled total returns [10]