Latest news with #PPC
Forbes
a day ago
- Business
- Forbes
These 5 Special Dividends Are More Than Meets The Eye
Young businessman working on laptop at home. Most mainstream financial websites are not 'smart enough' to include special dividends. The yields they display reflect plain ol' quarterly or monthly payouts. For most stocks this does not matter. But for a select few 'special payers' this is a costly oversight. One that we can capitalize on as thoughtful contrarians. In a moment we'll discuss five special dividends. The vanilla screens say they pay as little as 3.2% but in reality they dish up to 13.8%! What exactly is a special dividend payment? It is a one-time cash payout, often the result of a massive cash influx from, say, selling off part of the company or having an unusually profitable year. Usually it is a one-shot deal. But it can be a regular thing. Let's consider chicken producer Pilgrim's Pride (PPC), which recently paid a $6.30 per share special dividend. This is a tremendous 12.7% yield. That's amazing for people who held PPC at the time, but given the company's dividend history, it's likely this is it: PPC Dividend PPC is a classic example of a one-time payer. We are looking for exceptions—the one-time payment that happens every year! These are 'regular' special dividends, sometimes called 'supplemental dividends,' that the company pairs with a regular dividend they know they can afford. Example: ABC Inc. pays 25 cents per share quarterly, but at the end of the year, it pays out 50% of its free cash flow as a supplemental dividend. That dividend still might vary—say, $1 in 2023, $1.50 in 2024, and $1.25 in 2025—but it's extra yield on top of what it can afford to pay on the regular. In some cases, these special dividend payers can be quite generous. Let's take these 3.2%-11.3% yielders that actually pay out 9.0%-13.8% once we include their special distributions: Buckle (BKE)Stated Dividend Yield: 3.2%Actual Dividend Yield (With Specials): 9.0% Buckle (BKE) is a mid- to high-end fashion retailer that's primarily known for its jeans, but it also sells all sorts of apparel, activewear, swimwear and accessories. Fashion stocks have always been fickle, but post-COVID, they've been downright counterintuitive. Numerous 'mall retail' stocks found themselves slowly declining in the years preceding the pandemic, only to find new life despite COVID broadly knocking brick-and-mortar retail on its tail. That includes the Buckle, whose top and bottom lines have dipped from their post-COVID highs but are still far better than what the store delivered for years prior to the pandemic. Looking at its regular dividend over the past decade or so, the difference is hard to notice—a couple of small raises in 2021, but that's it. However, that's because Buckle's dividend has long been unlike its fashion retail brethren. The company prefers to pay a modest regular quarterly dividend, then top it up each year with sometimes spectacular special dividends that boost BKE's yield by double, triple, sometimes even more. Naturally, the rub is that, by virtue of offering massive special dividends, the amount of income we collect from Buckle has the potential to shift enormously from one year to the next—even if the specials have been fairly consistent of late, and even if operational results are largely expected to remain steady over the next couple of years. Even the potential for income volatility isn't great for retirement planners, but for more adventurous investors, it's a secret store of upside that most people will typically overlook. Amerisafe (AMSF)Stated Dividend Yield: 3.3%Actual Dividend Yield (With Specials): 9.7% Amerisafe (AMSF) is a relatively unusual insurer that deals in workers' compensation. The company operates in 27 states and deals in 'high-hazard' industries such as construction, trucking and agriculture. Anyone who wants to invest in an industry with consistent profits should sprint away from the insurance space. AMSF is actually relatively stable compared to, say, P&C insurance, where even good operators may occasionally suffer annual losses. But even then, Amerisafe's bottom line is a moving target. Which makes a regular-and-specials program an extremely responsible way to manage the dividend. AMSF pays a modest (but growing!) quarterly dividend that typically yields around 3%. Then every year, usually in December, it will pay a special dividend with whatever profits it can spare. Like with Buckle, this payout usually doubles or triples the amount of income its shareholders collect in a given year. Again, retirees can't plan their budgets around dividends like Amerisafe's. But consider this: AMSF's 2024 special dividend was the company's lowest in roughly a decade, and it still boosted the stock's total yield to nearly 10%. With that level of dividend, we don't need much positive price action to have a great annual return. I'd keep an eye on that bottom line, though. AMSF's profits, which have already slid for a couple years now, are projected to thin this year and next, too. One area of the market that's rife with 'regular' special dividends is the business development company (BDC) community. These companies share a lot in common with real estate investment trusts (REITs): they were both created by Congress, they both exist to allow regular investors to invest in an otherwise difficult-to-reach asset, and they both are required to pay out at least 90% of their taxable income in the form of dividends. But BDCs invest in dozens if not hundreds of small businesses: not exactly a hotbed of stability and reliability. So in the BDC space, we'll frequently see fairly generous regular dividends complemented with specials that take already good yields and make them downright great. Gladstone Investment Corp. (GAIN)Stated Dividend Yield: 6.4%Actual Dividend Yield (With Specials): 14.3% Gladstone Investment Corp. (GAIN) is part of my favorite Wall Street family: the Gladstones! This group of businesses also includes another publicly traded BDC, Gladstone Capital Corp. (GLAD), as well as a pair of publicly traded REITs: Gladstone Land Corp. (LAND) and Gladstone Commercial Corp. (GOOD). GAIN's target portfolio company will generate $4 million to $15 million in annual EBITDA, have a proven business model, stable cash flows and minimal market or technology risk. As far as BDCs go, GAIN has a narrower portfolio than most, at just 25 companies—mostly manufacturing, business services and consumer services firms, but a few consumer product specialists, too. What sticks out most about Gladstone Investment Corp., however, is its willingness to deal in equity. Most BDCs will typically only have 5% to 10% exposure to equity, but GAIN's target mix is 25% equity/75% debt. This is essential to GAIN's 'buyout' strategy. Gladstone Investment typically provides most (if not all) of the debt capital along with a majority of the equity capital. Its debt investments allow it to pay out a still-high regular dividend, but then it also pays out (extremely variable) supplemental payouts when they realize gains on equity investments. To wit, GAIN's regular monthly dividend accounts for 6% worth of yield, but a 54-cent special dividend to be paid in June and a 70-cent distribution last October work out to an additional 8.3% in yield! That said, Gladstone's specials are all over the place. The company paid three in 2022 and five in 2023, but just one in 2024 and (so far) just one in 2025. Nuveen Churchill Direct Lending Corp. (NCDL)Stated Dividend Yield: 11.3%Actual Dividend Yield (With Specials): 13.8% Nuveen Churchill Direct Lending Corp. (NCDL) is among a handful of other BDCs, such as Goldman Sachs BDC (GSBD) and Carlyle Secured Lending (CGBD), that's connected from a big-name asset manager with a sterling reputation. In this case, NCDL is tied to both fund manager Nuveen, as well as its parent TIAA. The fund's external manager—Churchill, a Nuveen affiliate—invests the BDC in senior secured loans to private equity-owned middle market companies in the U.S. The $2.1 billion portfolio is 210 companies strong right now. The vast majority of holdings (91%) are first lien loans, though Nuveen Churchill Direct Lending also deals in second lien debt, subordinated loans and equity co-investment. This is a relatively young BDC that has only been in existence since 2018, and it just went public in 2024. I wrote plenty about the company in a September column, but here, I want to focus on the payout. Nuveen Churchill Direct Lending has come out of the gate with a regular-and-specials format. The regular quarterly dividend has been set at 45 cents per share, and it has so far paid an additional 10-cent special in every quarter since its IPO. That's a strong double-digit yield base with, at least for now, a meaningful 2.5 percentage points in special sweeteners. The special distributions were declared in connection with the IPO, and April's 10-cent payout was the final dividend in that tranche. Indeed, NCDL's streak might stop this summer—based on its previous activity, any special dividends to be paid in July likely would have been announced in April. If nothing else, investors should keep their eye on NCDL over the next few quarters to see whether these specials were a one-off event or something the BDC will come back to following strong financial results. Also, NCDL is young, so it's difficult to tell where its 'normal' valuation range will lie, but for now, the BDC is trading at an 11% discount to NAV. Barings BDC (BBDC)Stated Dividend Yield: 11.3%Actual Dividend Yield (With Specials): 12.9% Barings BDC (BBDC) is the cheapest of these three BDCs, trading at an 18% discount to NAV right now. The Barings name might not mean much to some readers, but longtime BDC investors will surely remember the name 'Triangle Capital.' That's what the company was known as until August 2018, when the company rebranded following years of writing off bad investments and hacking away at its dividend. But it wasn't just a rebrand—it was a new lease on life. Global financial services firm Barings became an external advisor and overhauled BBDC's portfolio. Today, Barings primarily invests in senior secured private debt investments in 'well-established' middle-market companies across numerous industries. Target companies for its sponsor-backed investments (issuers owned by private equity firms), the largest part of its business at 75%-85% exposure generally, generate between $15 million and $75 million in EBITDA annually. It also has smaller exposure to non-PE-owned businesses, as well as a pair of middle market first lien loan originators, Eclipse Business Capital and Rocade Capital. Meanwhile, about 70% of its investments are first lien loans, though it also has exposure to second lien, mezzanine, equity, structured, and joint venture investments. We've booked gains in BBDC twice through our Dividend Swing Trader service, so I frequently have my eye on this one for short- and long-term opportunities alike. So I was pleased to see when Barings made a splash in Q1. After a few years of dividend growth, the company's quarterly dividend had been stuck at 26 cents per share since mid-2023. However, in February, Barings announced it would pay 5-cent special dividends across the first three quarters of 2025 'based on these strong results, our confidence in our portfolio, and the momentum we have seen so far in 2025.' While I'd prefer growth in the 'stickier' regular dividend, this is a welcome development. The company hasn't made 'top-up' specials since 2014 and 2015. If BBDC makes this a lasting habit, its already stellar dividend will become even tastier. I'll be keeping a close eye on the stock over the next couple of quarters to see if it extends this line of specials into the end of 2025 and into 2026. Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: How to Live off Huge Monthly Dividends (up to 8.7%) — Practically Forever. Disclosure: none
Yahoo
3 days ago
- Business
- Yahoo
1 Safe-and-Steady Stock to Keep an Eye On and 2 to Approach with Caution
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets. Luckily for you, StockStory helps you navigate which companies are truly worth holding. Keeping that in mind, here is one low-volatility stock that could succeed under all market conditions and two that may not keep up. Rolling One-Year Beta: 0.33 Offering everything from pre-marinated to frozen chicken, Pilgrim's Pride (NASDAQ:PPC) produces, processes, and distributes chicken products to retailers and food service customers. Why Is PPC Not Exciting? Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4.5% over the last three years was below our standards for the consumer staples sector Demand is forecasted to shrink as its estimated sales for the next 12 months are flat Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 10.7% that must be offset through higher volumes At $47.90 per share, Pilgrim's Pride trades at 9.9x forward P/E. Check out our free in-depth research report to learn more about why PPC doesn't pass our bar. Rolling One-Year Beta: 0.73 With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE:AMC) operates movie theaters primarily in the US and Europe. Why Does AMC Fall Short? Products and services have few die-hard fans as sales have declined by 2.7% annually over the last five years Cash burn makes us question whether it can achieve sustainable long-term growth Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders AMC Entertainment's stock price of $3.47 implies a valuation ratio of 2.5x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than AMC. Rolling One-Year Beta: -0.14 Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE:MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states. Why Are We Fans of MOH? Annual revenue growth of 19.4% over the past five years was outstanding, reflecting market share gains this cycle Economies of scale give it fixed cost leverage when sales grow as well as negotiating power over membership pricing and reimbursement rates Earnings per share have massively outperformed its peers over the last five years, increasing by 14.6% annually Molina Healthcare is trading at $300 per share, or 11.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. 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
The Citizen
5 days ago
- Entertainment
- The Citizen
Annual Winter Revival this weekend
The eMalahleni Pentecostal Protestant Church (PPC) is presenting the annual Winter Revival. This event is taking place on May 29 to May 31 from 18:00 to 20:30. On Saturday there are two sessions, one at 10:00 to 13:00 and the second at 17:30 to 20:30. The theme this year is 'God will turn nothing into something'. The hosts are Pastor Zac and Nombuso Morodi. Guest speakers include: Pastor Shaun Mnguni, Pastor Francois Botes, Mrs P, Prophet Elijah Qwabe, and Pastor Caiphus Mashilane (PPC district chairperson). The Winter Revival is taking place at Klarinet Ext 8, Fairy Prion Street, opposite MNS Substation. For more information, call: 061 441 4053. Breaking news at your fingertips … Follow WITBANK NEWS on our website, Facebook, Twitter, Instagram or TikTok Chat to us: info@ At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Express Tribune
25-05-2025
- Express Tribune
Divorced man commits self-immolation
A man set himself on fire due to his divorced wife's refusal to reconcile. Muhammad Alam, a resident of Chak No. 53/GB, had married Sadia Bibi, a resident of Chak No. 123/GB, but had divorced her three months ago. He wanted to take her back home, but she refused to reconcile. Due to her refusal, Alam poured petrol on himself and set himself on fire. A rescue team shifted him to the Civil Hospital, where he succumbed to his injuries. Upon receiving information about the incident, the Jaranwala SP and other police officials reached the spot. They took the body into custody, completed the legal formalities and handed it over to the family members. In another incident, the police arrested three suspects, including Ahmad Raza, on the charges of kidnapping his former wife and daughter at gunpoint in the Millat Town area. A video of the kidnapping had gone viral on social media, prompting the CPO to form teams that conducted raids at various locations and apprehended the suspects. The police registered a case under Section 496A of the PPC. Meanwhile, a young man was injured in aerial firing at a mehndi ceremony, following which the police arrested nine suspects. According to the police, Manzoor Ali Hassan and the eight others opened fire into the air during the mehndi ceremony in Dhadiwala, resulting in 25-year-old Abdul Rehman being injured by a bullet. He was shifted to a hospital. Faisalabad CPO Sahibzada Bilal Omer ordered the officials concerned to submit a detailed report on the incident.
Yahoo
23-05-2025
- Business
- Yahoo
PPC Trading Cheaper Than Industry: What's Next for Investors?
Pilgrim's Pride Corporation PPC, one of the world's leading food companies, currently trades at a forward 12-month price-to-earnings ratio of 9.84X. The figure is below the industry and the S&P 500's average of 12.55X and 21.49X, respectively, highlighting PPC as a potentially undervalued stock. For investors, this presents an attractive opportunity, which is further underscored by PPC's current Value Score of A. Image Source: Zacks Investment Research PPC's shares have gained 2.3% in the past three months against the industry and the S&P 500 index's decline of 0.9% and 2.3%, respectively. Let us delve into the financial and strategic fundamentals that underpin Pilgrim's Pride's current position in the market. Pilgrim's Pride is well-positioned for continued growth, supported by strong consumer demand for chicken, strategic market positioning and enhanced operational efficiencies. The company's focus on key customers is helping refine its portfolio and build competitive advantages over peers. As a result, Pilgrim's Pride reported first-quarter 2025 adjusted earnings of $1.31 per share, up from 77 cents in the prior-year Pride is set to benefit from a favorable supply-demand environment in 2025, supported by steady consumer demand and rising protein production. The USDA anticipates a 1.7% year-over-year increase in U.S. chicken production for 2025, along with a 1.6% rise in overall protein availability, driven by gains in both chicken and pork. This backdrop supports strong pricing for Pilgrim's Pride's products. Additionally, the company's efforts to expand its branded product portfolio and strengthen distribution with key customers provide a solid foundation for continued Pride benefited from a reduction in the cost of sales in the first quarter of 2025. The company's cost of sales decreased to $3,908.1 million from $3,978 million in the prior-year quarter, contributing to a significant increase in gross profit, which rose to $554.9 million from $383.9 million. These improvements underscore Pilgrim's Pride's operational efficiency and effective cost management, positioning it favorably in a competitive Pride continues to build momentum through its strong focus on innovation and brand diversification. In the first quarter of 2025, the company introduced more than 80 new products by March, highlighting its commitment to expanding and refreshing portfolio. This strategy is yielding results, with combined sales of the Just BARE and Pilgrim's brands surging more than 50%. Overall, key brands are gaining traction, supported by year-over-year increases in both sales and volume. Image Source: Zacks Investment Research Reflecting positive sentiment around Pilgrim's Pride, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past 30 days, the consensus estimate has risen 13 cents to $5.41 for the current fiscal and 25 cents to $4.82 per share for the next fiscal. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Image Source: Zacks Investment Research Pilgrim's Pride faces challenges in its export business, particularly due to trade uncertainties and biosecurity concerns. The company experienced a decline in export volumes in the first quarter of 2025 compared with the first quarter of 2024, due to several factors, including winter weather-related port disruptions in January, concerns over a potential port strike and strong domestic demand for dark meat, which constrained the supply available for international markets. Pilgrim's Pride also has been experiencing higher selling, general and administrative expenses (SG&A) for a while now. In the first quarter of 2025, the SG&A expenses were $133.8 million, up from $119.1 million reported in the prior year quarter. The increase was primarily due to higher legal settlement and defense costs, as well as elevated incentive compensation. If not effectively managed, the continued increase in such expenses could further impact the company's profitability in the coming quarters. Pilgrim's Pride's strong operational execution, robust consumer demand and focus on branded product innovation position it well for continued growth. The company's attractive valuation and rising earnings estimates further support its long-term potential. However, near-term headwinds, including export volume pressures, higher SG&A expenses and external trade uncertainties, could weigh on its performance. Given these mixed factors, investors may consider holding onto PPC stock while monitoring cost trends and international market recovery. At present, PPC carries a Zacks Rank #3 (Hold). Nomad Foods Limited NOMD manufactures, markets and distributes a range of frozen food products in the United Kingdom and internationally. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Nomad Foods' current fiscal-year sales and earnings implies growth of 4.6% and 7.3%, respectively, from the prior-year levels. NOMD delivered a trailing four-quarter earnings surprise of 3.2%, on International, Inc. MDLZ manufactures, markets and sells snack food and beverage products in Latin America, North America, Asia, the Middle East, Africa and Europe. It presently carries a Zacks Rank of 1. MDLZ delivered a trailing four-quarter earnings surprise of 9.8%, on average. The Zacks Consensus Estimate for Mondelez International's current financial-year sales indicates growth of 4.9% from the year-ago numbers. Oatly Group AB OTLY, an oatmilk company, provides a range of plant-based dairy products made from oats. It presently carries a Zacks Rank of 2 (Buy). OTLY delivered a trailing four-quarter earnings surprise of 25.1%, on consensus estimate for Oatly Group's current fiscal-year sales and earnings implies growth of 2.7% and 65.8%, respectively, from the year-ago figures. 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 Pilgrim's Pride Corporation (PPC) : Free Stock Analysis Report Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report Nomad Foods Limited (NOMD) : Free Stock Analysis Report Oatly Group AB Sponsored ADR (OTLY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
