Core Insights - The Schwab International Dividend Equity ETF (SCHY) is a passively managed fund aimed at tracking the Dow Jones International Dividend 100 Index, providing low-cost, income-oriented international exposure with a 3.72% dividend yield [2][3][10] Fund Overview - SCHY was launched on April 29, 2021, by Charles Schwab, with an expense ratio of 8 basis points and approximately $1.3 billion in assets under management (AUM) [3][15] - The fund has an average daily trading volume of 364,000 shares, indicating minimal spread risk for investors [3] - SCHY is fully invested in international equities, comprising 103 holdings, primarily mid- to large-cap stocks [7] Performance Metrics - Cumulative returns for SCHY show a year-to-date increase of 18.60% and a one-year return of 12.14% [4] - The fund's annualized return since inception is 5.57%, which is lower compared to peer strategies [4][15] Index and Stock Selection - SCHY is indexed to the Dow Jones International Dividend 100 Index, which includes mid- and large-cap international dividend-paying companies, excluding REITs [5] - The stock screening process involves evaluating fundamental qualities such as free cash flow, return on equity, indicated dividend yield, and 5-year dividend growth rate [5][14] Portfolio Composition - The top three country exposures in SCHY are the UK (15.36%), Australia (12%), and France (11.65%) [7] - The portfolio is heavily weighted towards financials (15%) and consumer staples (14.84%) [7] - The top 10 holdings account for 40% of the total portfolio weight, with British American Tobacco, Wesfarmers, and BHP Group being the largest positions [8] Distribution and Income Strategy - SCHY pays a quarterly distribution rate of $1.05 per share, yielding 3.72% on a trailing twelve-month basis, and has shown annual growth in distributions since inception [10][12] - The fund is suitable for passive income strategies and can be beneficial for tax-deferred accounts like IRAs or 401(k)s [12] Competitive Landscape - SCHY is noted as the lowest-cost strategy among its peers, with a significant AUM of $1.3 billion, although it has underperformed compared to other international dividend income strategies [15] - The Global X MSCI SuperDividend EAFE ETF (EFAS) is highlighted as a top-performing peer, despite its smaller AUM of $30 million [16]

Market Overview - The U.S. markets started 2025 strong but have faced significant volatility due to tariff pressures and geopolitical uncertainty [1] - Expectations for a September FOMC rate cut have increased amid signs of a cooling labor market and inflationary effects from trade policies [1] Performance of Indices - The S&P 500 has retreated while the Dow Jones Industrial Average has moved higher, indicating volatile performance across indices [2] Investment Opportunities - Dividend-paying stocks are highlighted as a potential source of stability and income during market fluctuations [2] - Companies with resilient business models and a history of profitability can provide steady cash flows through dividends, serving as a defensive anchor for portfolios [2] Bank Stocks to Watch - Chemung Financial Corporation (CHMG), United Community Bank (UCB), and M&T Bank (MTB) have recently announced dividend hikes, enhancing shareholder value [3][9] - These bank stocks have rallied over 10% in the past year [3] Chemung Financial Corporation (CHMG) - As of June 30, 2025, Chemung Financial had $2.9 billion in assets [6] - The company announced a quarterly cash dividend of 34 cents per share, a 6.3% increase from the previous payout, payable on October 1, 2025 [6][9] - Chemung Financial has increased its dividend three times in the past five years, with an annualized growth rate of 3.09% [7] - The dividend yield is 2.52% with a payout ratio of 26% [7] - The Zacks Consensus Estimate for 2025 sales indicates a year-over-year rise of 16.4%, while earnings are expected to increase by 18.9% [11] United Community Bank (UCB) - As of June 30, 2025, UCB had $28.1 billion in assets [12] - The bank announced a quarterly cash dividend of 25 cents per share, a 4.2% increase from the prior payout, payable on October 3, 2025 [13][9] - UCB has increased its dividend seven times in the past five years, with an annualized growth rate of 6.51% [13] - The dividend yield is 3.07% with a payout ratio of 39% [13] - The Zacks Consensus Estimate for 2025 sales reflects a rise of 7.4%, while earnings are expected to grow by 14.8% [17] M&T Bank (MTB) - As of June 30, 2025, M&T Bank had $211.6 billion in assets [17] - The bank announced a quarterly cash dividend of $1.50 per share, an 11% increase from the previous payout, payable on September 30, 2025 [18][9] - M&T Bank has increased its dividend four times in the past five years, with an annualized growth rate of 5.36% [18] - The dividend yield is 2.84% with a payout ratio of 34% [18] - The Zacks Consensus Estimate for 2025 sales suggests a year-over-year growth of 3.6%, while earnings are expected to increase by 11.1% [21]

Core Insights - The oil and gas industry is experiencing significant mergers, with ExxonMobil acquiring Pioneer Natural Resources and Chevron acquiring Hess, both focusing on offshore oil blocks in Guyana [1][2] - Hess' 30% stake in the Stabroek Block is a key asset, with ExxonMobil holding 45% and CNOOC 25%, making it a valuable partnership for both ExxonMobil and Chevron [4] - The consortium aims to increase production from the Stabroek Block to 1.3 million barrels per day by the end of 2027, having already produced 500 million barrels by November 2024 [5][9] Company Strategies - ExxonMobil has identified Guyana as one of its "advantaged assets," contributing significantly to its production, which was 4.55 million barrels of oil equivalent per day in Q1 2025 [6] - Both ExxonMobil and Chevron have focused on improving production asset quality, reducing break-even levels, and generating positive free cash flow even at low oil prices [11] - ExxonMobil's corporate plan forecasts a break-even Brent crude price of $30 per barrel by 2030, with a projected $165 billion in cumulative surplus operating cash flow at an average Brent price of $65 [12] Financial Performance - Chevron's break-even price is estimated to be in the low $30 range, which, combined with the Hess acquisition, is expected to enhance its production capabilities while maintaining low costs [13] - Both companies have strong dividend histories, with ExxonMobil increasing dividends for 42 consecutive years at a yield of 3.6%, and Chevron for 38 years at a yield of 4.5% [15] - The price-to-earnings ratios for ExxonMobil and Chevron are 14.6 and 17.4 respectively, indicating attractive valuations for value investors [15]

Core Viewpoint - The ongoing AI boom presents strong growth opportunities, but concerns about tariffs and macroeconomic challenges temper investor optimism. Dividend-paying stocks are recommended for consistent income amidst this uncertainty [1]. Group 1: ConocoPhillips (COP) - ConocoPhillips distributed $2.5 billion to shareholders in Q1 2025, comprising $1.5 billion in share repurchases and $1.0 billion in dividends, with a quarterly dividend of $0.78 per share, yielding 3.3% [2]. - Analyst Scott Hanold from RBC Capital maintains a buy rating on ConocoPhillips with a price target of $115, citing its strong balance sheet and competitive returns-focused value proposition [3][4]. - The company is positioned to generate competitive free cash flow (FCF) through various commodity price cycles, with a low break-even point below $40 per barrel [5]. Group 2: U.S. Bancorp (USB) - U.S. Bancorp offers a quarterly dividend of $0.50 per share, yielding 4.2%, and is recognized for its diversified financial services [7]. - Analyst Gerard Cassidy reaffirms a buy rating with a 12-month price target of $50, highlighting the bank's new leadership and strong operating leverage of 270 basis points reported in Q1 2025 [8][9]. - U.S. Bancorp has consistently returned up to 80% of its earnings through stock buybacks and dividends, with a focus on increasing tangible book value [9][10]. Group 3: HP Inc. (HPQ) - HP declared a quarterly dividend of $0.2894 per share, yielding 4.5%, and is on track to achieve significant cost savings through its Future Ready plan [12]. - Analyst Amit Daryanani maintains a buy rating with a price target of $29, noting HP's successful diversification and plans to manufacture 90% of U.S.-bound products outside China [13][14]. - HP aims to generate $2 billion in gross annual run-rate savings, leveraging internal AI tools to enhance productivity and efficiency [15].

Market Overview - Wall Street is experiencing a rally due to easing tariff fears and optimism regarding a potential rate cut by the Federal Reserve in the near future [1][2] - The S&P 500 and Nasdaq reached new closing highs, with investors hopeful that a rate cut will further enhance stock performance [1] Trade Agreements - Recent trade deals between the United States and Vietnam, as well as with China and the United Kingdom, have positively influenced market sentiment [4][5] - Despite the positive news, uncertainties remain regarding the impact of new tariffs on the economy, as the White House has not provided clarity [6] Federal Reserve Outlook - Optimism surrounding an anticipated rate cut in July is contributing to the market rally, although Federal Reserve Chairman Jerome Powell has maintained a hawkish stance [7] - Market participants are expecting two 25-basis-point rate cuts by the end of the year, but the lack of a clear timeline from the Federal Reserve may affect investor sentiment [7] Dividend-Paying Stocks - In light of market volatility, cautious investors may consider dividend-paying stocks for stable income and capital protection [3] - Three notable dividend-paying stocks include: - **Bank OZK**: Announced a dividend of $0.44 per share with a yield of 3.38%, having increased its dividend 21 times over the past five years [9][11] - **Lindsay Corporation**: Declared a dividend of $0.37 per share with a yield of 0.98%, having increased its dividend five times in five years [13][11] - **Sandstorm Gold Ltd.**: Announced a dividend of $0.02 per share with a yield of 0.59%, having raised its dividend seven times in five years [15][11]

Market Overview - Wall Street experienced a strong recovery in May, regaining most losses from early April due to tariff announcements by President Trump, but volatility persists as the impact of tariffs on the economy remains unclear [1][4][9] - The Federal Reserve has not indicated plans to resume rate cuts despite recent cooling inflation, contributing to market uncertainty [2][5] Economic Indicators - U.S. job growth slowed significantly in May, with nonfarm payrolls increasing by only 139,000 and private payrolls rising by just 37,000, raising concerns about the economy's health [6] Dividend-Paying Stocks - In light of ongoing market uncertainty, investing in dividend-paying stocks is recommended as they tend to be more stable and reliable during economic fluctuations [7] - Four notable dividend-paying stocks include: - **Casey's General Stores, Inc. (CASY)**: Operates 2,893 convenience stores across 17 states, with a dividend of $0.57 per share and a yield of 0.46% [8][10] - **Utz Brands, Inc. (UTZ)**: Manufactures a variety of salty snacks, declaring a dividend of $0.06 per share with a yield of 1.75% [11][12] - **Sun Communities, Inc. (SUI)**: Focuses on manufactured housing communities, announcing a dividend of $1.04 per share and a yield of 3.01% [13][14] - **EOG Resources, Inc. (EOG)**: Engaged in oil and natural gas exploration, with a dividend of $1.02 per share and a yield of 3.41% [15][16]

Core Insights - ZIM Integrated Shipping (ZIM) is recognized for its shareholder-friendly approach, particularly through dividends, indicating strong financial health and cash flow confidence [1][9] - The company declared a regular dividend of approximately $382 million or $3.17 per share for the December quarter and $89 million or $0.74 per share for Q1 2025, reflecting 30% of the quarter's net income [2][9] - ZIM's shares have increased over 26% in the past month, outperforming the broader shipping industry [8][9] Dividend Performance - ZIM's dividend strategy is appealing to income-seeking investors, providing a stable income stream and acting as a hedge against economic uncertainty [3] - The company’s recent dividend declarations demonstrate its commitment to returning value to shareholders despite ongoing industry uncertainties [2][9] Comparative Analysis - Other dividend-paying shipping companies, such as Euroseas Limited and Safe Bulkers, also show strong dividend growth and appealing payout ratios, indicating a trend within the industry [4][5] - Euroseas increased its quarterly dividend by 8.3% to $0.65 per share, while Safe Bulkers maintains a dividend yield of 5.3% with a growth rate above 20% [4][5] Valuation and Earnings Estimates - ZIM trades at a 12-month forward price-to-sales (P/S) ratio of 0.32X, which is considered inexpensive compared to industry standards [9] - The Zacks Consensus Estimate for ZIM's 2025 earnings has been revised upward, indicating positive market sentiment [11][12]

Core Viewpoint - United Parcel Service (UPS) and Westinghouse Air Brake Technologies Corporation (WAB) have both announced dividend increases this year, demonstrating a shareholder-friendly approach despite economic uncertainties [1][3]. Dividend Performance - WAB's board approved a 25% dividend increase, raising its quarterly cash dividend to $0.25 per share ($1.00 annualized) from $0.20 (80 cents annualized) [3]. - UPS raised its quarterly cash dividend to $1.64 per share ($6.56 annualized) from $1.63 ($6.52 annualized) [3]. Dividend Sustainability - Concerns about the sustainability of UPS's dividends arise due to its elevated dividend payout ratio, which indicates potential challenges in maintaining long-term dividend payments [4][6]. - UPS's free cash flow has declined from a high of $9 billion in 2022, with projections of $5.7 billion in 2025 against expected dividend payments of approximately $5.5 billion [5][6]. - In contrast, WAB's lower dividend payout ratio suggests no significant concerns regarding its ability to sustain dividend payments [6]. Price Performance - WAB has achieved a 5.1% year-to-date gain, while UPS has seen a double-digit decline in stock performance in 2025 [8]. - UPS's poor performance is attributed to revenue weakness due to geopolitical uncertainty and high inflation affecting consumer sentiment [11]. Market Outlook - WAB's strength is linked to its focus on new technologies and cost-cutting initiatives, with the global rail supply market expected to grow at an annual average of around 3% until 2027-29 [12]. - The Zacks Consensus Estimate for WAB indicates a year-over-year sales increase of 4.6% and 4.9% for 2025 and 2026, respectively, while UPS's estimates show a 4.1% decrease for 2025 [13][14]. Valuation Comparison - WAB is trading at a forward sales multiple of 3.08, above its five-year median of 2X, while UPS has a forward sales multiple of 0.92, below its five-year median of 1.54 [15]. - WAB's higher valuation suggests investors are paying a premium for its performance, while UPS's lower valuation reflects concerns about its dividend sustainability [16]. Investment Recommendation - Given WAB's better price performance, improving earnings estimates, and lower dividend payout ratio, it appears to be a more favorable investment compared to UPS [17].

Core Viewpoint - Expeditors International of Washington, Inc. (EXPD) has announced a 5.5% increase in its quarterly cash dividend, raising it from 73 cents to 77 cents per share, reflecting the company's commitment to enhancing shareholder returns [1] Group 1: Dividend Increases - The recent dividend hike will be paid on June 16, 2025, to shareholders of record as of June 2 [1] - In May 2022, EXPD raised its semi-annual cash dividend by 15.5% to 67 cents per share, and in 2023, it increased the dividend by 3% from 67 cents to 69 cents [2] Group 2: Shareholder Returns - In 2022, EXPD rewarded shareholders with cash dividends totaling $213.79 million and share repurchases amounting to $1,581.908 million [2] - The management's decision to raise the dividend indicates strong confidence in the company's business outlook and commitment to shareholder value [4] Group 3: Investment Considerations - Dividend-paying stocks like EXPD provide a steady income stream and typically exhibit less price volatility, making them attractive for investors seeking to hedge against economic uncertainty [3] - Actions to enhance shareholder value, such as dividend increases, are believed to strengthen investor confidence and support long-term stock performance [4]

Core Viewpoint - The current economic uncertainties, particularly due to tariffs, are negatively impacting domestic air travel demand for major U.S. airlines, including Delta Air Lines (DAL) and United Airlines (UAL), leading to a reassessment of their investment potential. Group 1: Delta Air Lines (DAL) - DAL is facing a slowdown in domestic air travel demand, prompting the withdrawal of its full-year 2025 outlook and a reduction in planned capacity growth from 3-4% to flat in the second half of 2025 [4][5] - Despite challenges, DAL benefits from declining oil prices, which have led to a 7% year-over-year decrease in fuel expenses in Q1 2025, positively impacting its bottom line [6] - DAL resumed quarterly dividends in 2023 and increased its payout by 50% in June 2024, reflecting confidence in cash flow and appealing to income-seeking investors [7] - The airline's liquidity is strong, ending Q1 2025 with $3.7 billion in cash against $2.9 billion in debt, indicating sufficient cash to meet obligations [8] Group 2: United Airlines (UAL) - UAL is also experiencing a slowdown in domestic travel but has seen strong international revenues, with Atlantic and Pacific unit revenues increasing by 4.7% and 8.5% year-over-year, respectively [9] - UAL has provided earnings per share guidance for 2025 under two scenarios: $11.50 to $13.50 in a stable market and $7 to $9 in a recessionary environment [10][11] - To address weak demand, UAL plans to reduce scheduled domestic capacity by 4 points starting in Q3 2025, while facing high labor costs and fleet delivery delays due to issues with Boeing's 737 MAX [12][13] - UAL announced a $1.5 billion share buyback plan in October 2024, marking its first buyback since the pandemic, and has repurchased $451 million in shares through April 2025 [14] Group 3: Comparative Analysis - The Zacks Consensus Estimate indicates a 0.6% decrease in DAL's 2025 sales, while UAL is expected to see a 2.9% increase in the same period [15][16] - Both airlines have seen their EPS estimates trending downward over the past 30 days, with DAL's 2025 EPS expected to drop by 12.7% and UAL's by 3.6% [15][16] - Year-to-date, DAL and UAL stocks have declined significantly, with DAL down 30.5% and UAL down 29% [18] - DAL is trading at a forward sales multiple of 0.44, while UAL is at 0.37, both below their industry's average, indicating attractive valuations [21] Group 4: Conclusion - The uncertain market environment is adversely affecting both DAL and UAL, but DAL's dividend payments and stronger liquidity position make it a more favorable investment compared to UAL, which does not offer dividends and faces fleet-related concerns [24][25][26]