Group 1: Economic Context - Fed Chairman Jerome Powell warns that unemployment and inflation are likely to rise due to economic slowdown and tariffs, indicating potential stagflation [2] - Trump's tariffs could lead to a combination of slowing economic growth and increasing inflation, raising concerns for investors [2] Group 2: Investment Opportunities - Dominion Energy is highlighted as a strong investment during stagflation due to its essential service of electricity, with a forward dividend yield of 5.13% and expected EPS growth of 5% to 7% annually [3][6] - Kroger is positioned to benefit from consistent consumer demand for groceries, with its share price rising amid market turbulence, and it has less exposure to international tariffs compared to peers [7][8][9] - Vertex Pharmaceuticals is noted for its unique position in the market with approved medications for cystic fibrosis and a new pain medication, suggesting resilience in its share price despite economic challenges [11][13][14]

Core Viewpoint - Edison International is facing a class action lawsuit due to allegations of making false or misleading statements regarding its Public Safety Power Shutoffs program, which purportedly increased wildfire risks instead of mitigating them [3]. Group 1: Lawsuit Details - The class action represents investors who purchased securities between February 25, 2021, and February 6, 2025, with a deadline for filing a lead plaintiff motion set for April 21, 2025 [1]. - The lawsuit claims that Edison misrepresented the effectiveness of its wildfire risk mitigation strategies, leading to investor damages when the truth was revealed [3]. Group 2: Legal Representation - Investors are encouraged to contact the Portnoy Law Firm for a complimentary case evaluation and to discuss their legal rights regarding the lawsuit [2]. - The Portnoy Law Firm has a history of recovering over $5.5 billion for investors affected by corporate wrongdoing [4].

Core Insights - Xcel Energy (XEL) is expected to report quarterly earnings of $0.96 per share, a 9.1% increase year-over-year, with revenues projected at $3.93 billion, reflecting a 7.8% increase compared to the same period last year [1] Earnings Estimates - There has been a downward revision of 5.6% in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their initial forecasts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3] Revenue Projections - The consensus estimate for 'Operating revenues- Electric and natural gas' is $3.91 billion, representing a 7.9% increase from the previous year [5] - 'Operating revenues- Other' is expected to be -$60.80 million, indicating a significant decline of 364.3% year-over-year [5] - 'Operating revenues- Natural Gas' is forecasted to reach $921.31 million, suggesting a slight decrease of 2.1% year-over-year [5] - Analysts predict 'Operating revenues- Electric' will likely be $2.99 billion, reflecting an 11.4% increase year-over-year [6] Market Performance - Xcel shares have returned +1.5% over the past month, contrasting with the Zacks S&P 500 composite's -5.6% change [6] - Xcel holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near future [6]

Core Viewpoint - FirstEnergy Corporation (FE) is expected to report its first-quarter 2025 results on April 23, following a previous quarter that saw a negative earnings surprise of 4.3% [1] Factors Impacting Q1 Performance - In February 2025, FirstEnergy's subsidiary upgraded its electric system in eastern Westmoreland County, benefiting nearly 500 customers and likely boosting revenue for the upcoming quarter [2] - Jersey Central Power & Light, another subsidiary, completed electric system upgrades in northern and eastern Monmouth County, enhancing service for over 4,000 customers [3] - The completion of a utility-scale solar site in West Virginia by Mon Power and Potomac Edison, featuring nearly 14,000 solar panels producing up to 5.5 megawatts, is expected to positively impact first-quarter results [4] - Severe storms in March 2025 caused power outages affecting over 311,000 consumers, potentially leading to increased operating expenses for power restoration, which may offset some positive impacts [5] Q1 Expectations - The Zacks Consensus Estimate for earnings is 59 cents per share, reflecting a year-over-year increase of 7.3% [6] - Revenue is estimated at $3.64 billion, indicating a 10.8% improvement year-over-year [6] - Total electric distribution deliveries are expected to reach 38,784.4 megawatt-hours, up 5.9% from the previous year [6] Earnings Prediction - The current model does not predict an earnings beat for FirstEnergy, with an Earnings ESP of +0.85% and a Zacks Rank of 4 (Sell) [7][8]

Market Overview - The stock market has started the year poorly, with the S&P 500 down approximately 15% from its recent peak [1] NextEra Energy - NextEra Energy is a leading utility company, operating Florida Power & Light, the largest electric utility in the U.S., and is a major renewable energy producer [3] - U.S. electricity demand is projected to increase by 55% by 2040, driven by data centers, AI applications, onshoring of manufacturing, and electrification of transportation, providing NextEra with significant investment opportunities [4] - The company anticipates its adjusted earnings per share to grow at the high end of its 6% to 8% annual target range through 2027, with expected annual dividend growth of around 10% through at least next year [4] - Despite the expected surge in demand, NextEra's shares have fallen over 20% from their peak, increasing its dividend yield to 3.4% [5] Broadcom - Broadcom is experiencing rapid growth, with a 25% revenue increase in its fiscal 2025 first quarter and a 28% rise in free cash flow to $6 billion, largely driven by AI-related semiconductor sales, which surged by 77% [6] - The company expects a further 19% revenue growth in the second quarter, supporting continued dividend increases, having raised its payout by 11% last year [7] - Broadcom's shares have declined more than 30% from their recent peak, resulting in a valuation of approximately 25.7 times forward earnings, which is higher than the S&P 500's valuation of less than 20 times [8] Invitation Homes - Invitation Homes is a REIT focused on single-family rental properties, owning over 85,000 homes outright and managing nearly 17,700 properties for third parties [9] - The demand for rental housing remains strong due to a significant affordability gap, with rents being about $1,100 cheaper per month in its markets, maintaining high occupancy levels [10] - The company expects a modest 2% increase in net operating income this year, with long-term rent growth expected to accelerate once economic uncertainties subside [11][10] - Invitation Homes' stock price has decreased less than 10% amid a broader market decline, pushing its yield up to 3.5% [12]

Investment Rating - The report assigns an "Overweight" rating to Tenaga Nasional (TENA.KL) with a price target of RM16.30, reflecting a 22% upside from the current price of RM13.38 [7]. Core Insights - The power market is expected to remain tight, but risks related to US chip exports to South Asia have emerged, prompting a reduction in the price target from RM20.60 to RM16.30 [1][5]. - Tenaga Nasional has experienced a 35% re-rating in 2024 due to higher-than-expected power demand and positive surprises in data center growth in Malaysia [2]. - The tightening of export controls on chips for China data centers and tariffs on Malaysian semiconductors pose risks to Tenaga's growth narrative, leading to adjustments in the cost of capital and long-term growth expectations [2][3]. Summary by Sections Price Target and Valuation - The price target for Tenaga Nasional has been lowered to RM16.30 from RM20.60, reflecting increased risks associated with slower power demand growth [5][37]. - The implied target multiple has been adjusted from approximately 20x to 16x due to anticipated slower growth in power demand [5]. Financial Performance and Projections - Revenue projections for 2024, 2025, 2026, and 2027 are RM65,835 million, RM71,203 million, RM73,352 million, and RM75,278 million respectively [30]. - Earnings per share (EPS) estimates for 2025, 2026, and 2027 have been revised to RM0.90, RM1.00, and RM1.09, reflecting a decrease of 2%, 4%, and 13% respectively [34][33]. Market Dynamics - Load utilization in February 2025 was reported at 700MW, indicating a significant increase from 400MW in December 2024, with no slowdown observed in the data center pipeline [4]. - The report notes that Tenaga's data center pipeline remains robust, with 39 additional projects in the application stage and 60 at pre-consultation [4][21]. Regulatory and Economic Factors - The regulatory environment is expected to support Tenaga's capital expenditures, allowing for sustained dividends at a yield of 4% and earnings growth of 6-7% CAGR, even if data center demand disappoints in 2025 [5][41]. - The report highlights that Tenaga's profitability is set to benefit from energy transition investments and a growing demand for power, particularly from data centers [16][41].

Core Viewpoint - Dividend stocks can provide a combination of attractive and growing dividend income along with stock price appreciation, helping investors grow their wealth steadily [1] Group 1: Dividend Stocks Overview - Johnson & Johnson, Invitation Homes, and NextEra Energy are highlighted as top dividend stocks, each offering yields over 3%, significantly higher than the S&P 500's yield of 0.13% [2] - These companies have a strong history of increasing their dividend payments, which is expected to continue [2][13] Group 2: Johnson & Johnson - Johnson & Johnson currently has a dividend yield of 3.3%, generating $3.30 of dividend income annually for every $100 invested [4] - The company boasts a AAA-bond rating and a strong balance sheet with $13.5 billion in net debt against $38.8 billion in cash, supporting its $11.8 billion dividend outlay from $20 billion in free cash flow last year [5] - The company has increased its dividend by 4.8%, marking 63 consecutive years of growth, placing it among the elite Dividend Kings [6] - Johnson & Johnson invests heavily in R&D, with $17 billion spent last year, and has made over $30 billion in acquisitions, which are expected to support future dividend growth [7] Group 3: Invitation Homes - Invitation Homes has a dividend yield of 3.4% and owns or manages over 110,000 rental homes in high-demand markets, ensuring steady income [8] - The company has acquisition channels for purchasing newly built homes and currently has over 2,000 homes under construction, contributing to its growth [9] - Invitation Homes raised its dividend by 3.6% last December and has consistently increased its dividend since going public in 2017 [9] Group 4: NextEra Energy - NextEra Energy offers a dividend yield of 3.4% and generates stable cash flow from electricity demand and regulated rate structures [10] - The company is a leading investor in renewable energy infrastructure, expecting to grow its adjusted earnings per share at the high end of its 6% to 8% annual target range through at least 2027 [11] - NextEra anticipates a 10% annual increase in its dividend payout, having achieved a 10% compound annual growth rate over the past 20 years [12]

Core Viewpoint - Xcel Energy is expected to report a year-over-year increase in earnings and revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus EPS estimate for Xcel is $0.96 per share, reflecting a +9.1% change year-over-year [3]. - Revenues are anticipated to be $3.93 billion, which is a 7.8% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 4.03% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +0.70% suggests analysts have recently become more optimistic about Xcel's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Xcel currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Xcel was expected to post earnings of $0.87 per share but delivered only $0.81, resulting in a -6.90% surprise [12]. - Over the past four quarters, Xcel has only beaten consensus EPS estimates once [13]. Conclusion - Xcel is viewed as a compelling candidate for an earnings beat, but investors should consider other factors influencing stock performance [16].

Core Viewpoint - The stock market has experienced a significant decline this year due to tariff concerns, leading to increased dividend yields for high-quality companies, providing investors with opportunities for durable passive income streams even amid economic downturns [1]. Group 1: Dominion Energy - Dominion Energy currently offers a dividend yield of 5.1%, supported by stable cash flow from electricity and natural gas supply in Virginia and the Carolinas [2]. - The company is investing $50 billion through 2029 to expand power generation, anticipating increased electricity demand from AI data centers and onshoring manufacturing, which is expected to grow earnings per share by 5% to 7% annually [3]. Group 2: NNN REIT - NNN REIT has a dividend yield of 5.8%, generating steady rental income from a portfolio of single-tenant net lease retail properties where tenants cover all operating costs [4]. - The REIT pays out less than 70% of its cash flow in dividends, projecting $200 million in post-dividend free cash flow for reinvestment in additional income-generating properties, and has increased its dividend for 35 consecutive years [5]. Group 3: Brookfield Infrastructure - Brookfield Infrastructure offers a dividend yield of around 5%, with 85% of its funds from operations supported by government-regulated rate structures or long-term contracts [6]. - The company retains 60% to 70% of its stable cash flow for reinvestment, focusing on growing its business and upgrading infrastructure, with expected FFO per share growth of over 10% annually, supporting 5% to 9% dividend growth [7]. Group 4: Verizon - Verizon's dividend yield is 6.2%, with recurring cash flow from wireless and broadband services, generating $36.9 billion last year [8]. - The company is investing $17.1 billion in capital expenditures and has $8.6 billion in excess free cash, which is used to strengthen its balance sheet and support its dividend payments [9]. - Verizon is acquiring Frontier Communications for $20 billion to enhance its fiber network, with investments in fiber and 5G expected to grow cash flow and continue its 18-year dividend growth streak [10]. Group 5: Oneok - Oneok has a dividend yield of 5%, supported by stable cash flow from government-regulated rate structures and long-term contracts [11]. - The company is diversifying and expanding its midstream platform through major acquisitions and organic capital projects, positioning itself for 3% to 4% annual dividend growth while maintaining a trend of dividend stability for over 25 years [12]. Group 6: High-Yielding Dividend Stocks - The recent stock market sell-off has led to increased dividend yields, with many high-quality companies offering payouts of 5% and above, providing attractive income streams for investors [13].

Core Viewpoint - The article discusses the search for defensive investment opportunities to enhance portfolio stability in a challenging economic environment, particularly focusing on income-generating strategies favored by a Generation X investor [1]. Group 1: Investment Strategy - The investor profile described is a Generation X individual who is over-educated and under-funded, seeking ways to increase income [1]. - The investment approach leans towards conservative, income-generating strategies typically associated with older investors, while also recognizing the value of growth strategies favored by younger investors [1].