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Yahoo
2 days ago
- Business
- Yahoo
Leadership Changes Announced At American Electric Power Company (NasdaqGS:AEP) To Support Long-Term Strategy
American Electric Power Company recently announced executive leadership changes, including the appointments of Rob Berntsen and Johannes Eckert to key roles. Despite this news, AEP's share price remained flat over the past week amidst a shifting market context influenced by global events and anticipation of the Federal Reserve's interest rate decision. As stock markets experienced slight upticks, with the Dow and S&P 500 posting gains, AEP's market performance was consistent with broader trends, neither contributing significantly to nor deviating from the relative market stability observed during the period. We've discovered 2 risks for American Electric Power Company (1 is significant!) that you should be aware of before investing here. Explore 24 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. The recent executive leadership changes at American Electric Power Company could influence the company's strategic plans and potentially refine its focus on regulatory and investment initiatives. While short-term share price movement remained stagnant following the announcement, AEP has achieved a significant total return of 50.81% over the past five years, illustrating the company's potential for consistent shareholder returns over longer periods. Over the past year, AEP matched the US Electric Utilities industry's return of 15.8%, indicating its competitive performance within its sector. Considering the company's future growth strategies, the leadership changes could play a role in solidifying regulatory activities and capital investment plans, which are vital for the anticipated revenue and earnings growth. Despite recent stability in share price, analysts have set a price target of approximately US$109, slightly above the current share price of US$107.44, suggesting anticipation of modest growth in value. The leadership team's effectiveness in implementing AEP's growth strategies could thus impact both revenue forecasts and the achievement of these targets. As the company maneuvers through regulatory risks and capital requirements, the updated management structure might influence its ability to optimize earnings growth. Gain insights into American Electric Power Company's outlook and expected performance with our report on the company's earnings estimates. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:AEP. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
3 days ago
- Business
- Yahoo
U.S. Stocks Like Boeing, GE, Ford, and Intel Are All Being Severely Outperformed by Their Overseas Competitors
A new analysis of long-term stock performance reveals that several iconic U.S. companies have been dramatically outpaced by their international competitors over the past decades. Comparing pairs of leading American and foreign firms across major industries, the data highlights a striking trend: U.S. giants have often lagged far behind their overseas counterparts in terms of shareholder returns. While this isn't sweeping across every industry — with giants like Nvidia (NVDA) outpacing nearly any company on the planet — it does highlight a concerning trend amongst America's biggest names. Long before Boeing (BA) faced the recent Air India crash — an event that sent its shares down about 4% — the company was already being outperformed by its European rival, Airbus (EADSY). From 2000 through 2020, Boeing and Airbus traded in close lockstep, but since then, their paths have diverged sharply. Boeing has struggled with production and regulatory challenges, while Airbus has surged ahead, capitalizing on global demand for commercial aircraft. Trump Is Giving Tesla's Robotaxis a Leg Up Ahead of June 22. Should You Buy TSLA Stock Now? Dear Nvidia Stock Fans, Mark Your Calendars for July 16 The Trump Family Is Betting Big on Mobile Phones. Should Apple Stock Investors Be Worried? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. While both companies have experienced periods of growth and volatility, Airbus has decisively pulled ahead in total returns. Boeing has been plagued over the years with a number of high-profile events that make the stock difficult to invest in, despite being a global leader in a lucrative industry. Most notable was the disastrous launch of the Boeing 737 MAX, a plane that was sent out all over the world with some serious issues, which then resulted in 346 people's deaths from 2 crashes. This event caused Boeing to lose an estimated $60 billion from fines, legal fees, order cancellations, and other costs. While this is largely in the rear-view mirror, every subsequent incident or crash involving Boeing planes is widely publicized and heavily scrutinized, making it difficult for the stock to get ahead. The latest Air India crash is just the latest in a string of events creating uncertainty around the brand and an opportunity for its largest competitor. Don't Miss: Move over Netflix & Disney: This Pre-IPO Startup Is Unlocking $2 Trillion in IP & Licensing Revenue Global Content Battles Are Brewing — And This Pre-IPO Studio Just Raised $3.1M to Enter the Fight The story is similar in the industrial sector. Since October 1989, Siemens has delivered far superior returns compared to General Electric (GE). While both stocks soared during the 1990s, GE's performance collapsed after 2000, never regaining its former highs. GE has since begun closing the gap over the past 3 years, currently amid a +500% rally from its 2022 lows. Despite this, the stock is up only 70% in the past decade, and still down 20% from its 2000 highs. GE, however, has a substantially larger market capitalization than Siemens, at $252 billion compared to Siemens' $198 billion. Conversely, Siemens has delivered consistent returns over those same periods. Siemens has grown 115% over the past 5 years and 133% over the past 10 years, all with a dividend yield nearly 4 times that of GE. This means Siemens stock is giving investors consistent, moderate growth with a respectable 2.2% dividend. If you managed to gain confidence and buy into GE at its recent bottom, you'd certainly be doing better in the short term. In the automotive industry, the gap is even more dramatic. If you had bought Ford (F) stock in 1987, you'd currently be sitting on about a 7% gain on the stock. Notably, they offer an enticing dividend of approximately 5% at the $10 per share mark. But that is really all you can expect as an ROI, because Ford has been unable to stay above $10 per share for decades. Toyota (TM), on the other hand, is up 138% since 2008 alone. The stock is currently under pressure due to the ongoing tariff policies in the United States, but it was performing well just last year. It rallied 86% from its 2023 lows to 2024 highs before pulling back. From those 2023 lows until today, the stock is still up 33%, even if investors who bought in 2024 are likely unhappy right now. Perhaps the most striking example comes from the semiconductor sector. Since September 1994, Taiwan Semiconductor Manufacturing Company (TSM) has delivered exponential returns, currently up over 3,100% since the late '90s. While Intel (INTC) saw a substantial rise in the early to mid-1990s, peaking around 2000, the company has only declined since then. Odds are, if you have invested at any time since the late '90s, the only ROI you've seen is from their very modest dividend or selling during 2021. These examples, while selective, offer instructive illustrations of a broader dynamic. The massive earnings growth and price appreciation of a handful of big "tech" stocks have masked significant underlying weakness in the broader U.S. equity market. For investors holding broad index funds, this dispersion provides a hedge. However, this dynamic also underscores the risks associated with long-term erosion of innovation. Today's blue chip leaders may eventually become tomorrow's laggards, and without new dynamic companies to take their place, the U.S. equity market — and potentially the economy — could become less attractive to investors. It could also signal the early stages of broader issues, such as those associated with the pressures of being a public company, corporate governance, and more. After all, if the public markets didn't pressure Boeing to release the 737 MAX before it was ready, they'd be at least $60 billion richer. As global competition intensifies, these long-term performance gaps highlight the importance of diversification and vigilance for investors, as well as the need for continued innovation to maintain U.S. market leadership. On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Will CAT's Dividend Hike Revive Investor Confidence in Uncertain Times?
Caterpillar CAT has reaffirmed its long-standing commitment to shareholder returns with the recently announced 7% hike in quarterly dividend to $1.51 per share. This marks the 31st consecutive year of dividend increases, underscoring its resilience even amid near-term headwinds. The annualized dividend of $6.04 implies a yield of 1.69%, which outpaces the manufacturing - construction and mining industry's 1.58%, the sector's 1.47% and the S&P 500's 1.24%. CAT's payout ratio of 26.91% is also higher than the industry's 23.61%. This announcement comes at a critical juncture for Caterpillar, following a weaker-than-expected first-quarter 2025 performance, with both revenues and earnings declining due to softer volumes. The company's guidance for "slightly lower" full-year revenues (factoring in tariffs) had raised doubts about a dividend hike this year. Nonetheless, the increase signals management's confidence in its long-term cash-generating capacity. Notably, Caterpillar has paid a cash dividend every year since it was formed and has paid a quarterly dividend since 1933. CAT has been a member of the S&P 500 Dividend Aristocrats Index since 2019. Over the past five years, Caterpillar's dividend has grown at a rate of around 8%, supported by a near doubling of its free cash flow. In 2024, the company returned around $10.3 billion to shareholders as dividends and share repurchases, and another $4.3 billion in the first quarter of 2025. Caterpillar has a dividend/free cash flow ratio of 0.31. It has set a target to continue to return substantially all Machinery, Energy & Transportation (ME&T) free cash flow to shareholders over time through dividends and share repurchases. Caterpillar's recent dividend hike bolsters investor confidence in its long-term growth outlook. Supported by continued technological innovation and an anticipated rebound in end-market demand, the company remains well-positioned to generate steady cash flows and drive sustainable growth, even as it contends with short-term headwinds like tariffs and broader economic pressures. Illinois Tool Works Inc. ITW, a multi-industrial manufacturing leader, is also a member of the S&P 500 Dividend Aristocrats Index. It has an impressive dividend growth streak of 61 years. In August 2024, Illinois Tool Works raised its dividend by 7% to the current quarterly payout of $1.50. The company generally raises the dividend in August and to maintain its position in the Index, another rate hike is likely on the cards. Illinois Tool Works has a five-year dividend growth of 7.1% and a current yield of 2.48%. Illinois Tool Works has a payout ratio of 59%. In 2024, Illinois Tool Works returned $3.2 billion of surplus capital to shareholders through dividends and share repurchases and $0.8 billion in the first quarter of 2025. ITW has a dividend/free cash flow ratio of 0.19. Going forward, the company continues to target a payout ratio of around 50% of free cash flow. Deere & Company DE, which produces equipment for agriculture, construction, forestry and turf care, has a current dividend yield of 1.27%. Although Deere paused increases in 2020, it has raised dividends six times since 2021. The last hike, of 10% to $1.62 per share, was announced in December 2024. Deere has a payout ratio of 31.3% and a five-year dividend growth of 18.2%. Deere returned more than $5.6 billion to shareholders via dividends and share buybacks in fiscal 2024 and $1.68 billion so far in fiscal 2025. Deere's dividend/free cash flow ratio stands at 18.9%. CAT shares have lost 1.6% so far this year against the industry's 1.1% growth. In comparison, the Zacks Industrial Products sector has moved down 2.2%. The S&P 500 has gained 1.5% in the same time frame. Image Source: Zacks Investment Research Caterpillar is currently trading at a forward 12-month price/earnings (P/E) ratio of 18.04X compared with the industry average of 19.86X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for CAT's 2025 earnings indicates a year-over-year decline of 14.6%. The consensus mark for revenues implies a drop of 2.4% for the year. The earnings estimates for 2026 indicate 12.8% growth, with revenues rising 4.6%. Earnings estimates for Caterpillar for both 2025 and 2026 have moved down over the past 60 days. Image Source: Zacks Investment Research Caterpillar stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Illinois Tool Works Inc. (ITW) : Free Stock Analysis Report Caterpillar Inc. (CAT) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
5 days ago
- Business
- Globe and Mail
Will CAT's Dividend Hike Revive Investor Confidence in Uncertain Times?
Caterpillar CAT has reaffirmed its long-standing commitment to shareholder returns with the recently announced 7% hike in quarterly dividend to $1.51 per share. This marks the 31st consecutive year of dividend increases, underscoring its resilience even amid near-term headwinds. The annualized dividend of $6.04 implies a yield of 1.69%, which outpaces the manufacturing - construction and mining industry's 1.58%, the sector's 1.47% and the S&P 500's 1.24%. CAT's payout ratio of 26.91% is also higher than the industry's 23.61%. This announcement comes at a critical juncture for Caterpillar, following a weaker-than-expected first-quarter 2025 performance, with both revenues and earnings declining due to softer volumes. The company's guidance for "slightly lower" full-year revenues (factoring in tariffs) had raised doubts about a dividend hike this year. Nonetheless, the increase signals management's confidence in its long-term cash-generating capacity. Notably, Caterpillar has paid a cash dividend every year since it was formed and has paid a quarterly dividend since 1933. CAT has been a member of the S&P 500 Dividend Aristocrats Index since 2019. Over the past five years, Caterpillar's dividend has grown at a rate of around 8%, supported by a near doubling of its free cash flow. In 2024, the company returned around $10.3 billion to shareholders as dividends and share repurchases, and another $4.3 billion in the first quarter of 2025. Caterpillar has a dividend/free cash flow ratio of 0.31. It has set a target to continue to return substantially all Machinery, Energy & Transportation (ME&T) free cash flow to shareholders over time through dividends and share repurchases. Caterpillar's recent dividend hike bolsters investor confidence in its long-term growth outlook. Supported by continued technological innovation and an anticipated rebound in end-market demand, the company remains well-positioned to generate steady cash flows and drive sustainable growth, even as it contends with short-term headwinds like tariffs and broader economic pressures. A Look at Some Other Dividend-Paying Industrial Stocks Illinois Tool Works Inc. ITW, a multi-industrial manufacturing leader, is also a member of the S&P 500 Dividend Aristocrats Index. It has an impressive dividend growth streak of 61 years. In August 2024, Illinois Tool Works raised its dividend by 7% to the current quarterly payout of $1.50. The company generally raises the dividend in August and to maintain its position in the Index, another rate hike is likely on the cards. Illinois Tool Works has a five-year dividend growth of 7.1% and a current yield of 2.48%. Illinois Tool Works has a payout ratio of 59%. In 2024, Illinois Tool Works returned $3.2 billion of surplus capital to shareholders through dividends and share repurchases and $0.8 billion in the first quarter of 2025. ITW has a dividend/free cash flow ratio of 0.19. Going forward, the company continues to target a payout ratio of around 50% of free cash flow. Deere & Company DE, which produces equipment for agriculture, construction, forestry and turf care, has a current dividend yield of 1.27%. Although Deere paused increases in 2020, it has raised dividends six times since 2021. The last hike, of 10% to $1.62 per share, was announced in December 2024. Deere has a payout ratio of 31.3% and a five-year dividend growth of 18.2%. Deere returned more than $5.6 billion to shareholders via dividends and share buybacks in fiscal 2024 and $1.68 billion so far in fiscal 2025. Deere's dividend/free cash flow ratio stands at 18.9%. CAT's Price Performance, Valuation & Estimates CAT shares have lost 1.6% so far this year against the industry's 1.1% growth. In comparison, the Zacks Industrial Products sector has moved down 2.2%. The S&P 500 has gained 1.5% in the same time frame. Image Source: Zacks Investment Research Caterpillar is currently trading at a forward 12-month price/earnings (P/E) ratio of 18.04X compared with the industry average of 19.86X. The Zacks Consensus Estimate for CAT's 2025 earnings indicates a year-over-year decline of 14.6%. The consensus mark for revenues implies a drop of 2.4% for the year. The earnings estimates for 2026 indicate 12.8% growth, with revenues rising 4.6%. Earnings estimates for Caterpillar for both 2025 and 2026 have moved down over the past 60 days. Caterpillar stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Illinois Tool Works Inc. (ITW): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report
Yahoo
7 days ago
- Business
- Yahoo
Union Bankshares' (NASDAQ:UNB) investors will be pleased with their splendid 103% return over the last five years
Union Bankshares, Inc. (NASDAQ:UNB) shareholders might be concerned after seeing the share price drop 21% in the last month. But at least the stock is up over the last five years. However we are not very impressed because the share price is only up 58%, less than the market return of 98%. So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Union Bankshares actually saw its EPS drop 3.2% per year. By glancing at these numbers, we'd posit that the decline in earnings per share is not representative of how the business has changed over the years. Therefore, it's worth taking a look at other metrics to try to understand the share price movements. We note that the dividend is higher than it was previously - always nice to see. Maybe dividend investors have helped support the share price. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Union Bankshares, it has a TSR of 103% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! It's good to see that Union Bankshares has rewarded shareholders with a total shareholder return of 36% in the last twelve months. And that does include the dividend. That gain is better than the annual TSR over five years, which is 15%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 1 warning sign for Union Bankshares that you should be aware of. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
