![]() ![]() That more than covered the company's $9 billion in dividends and $2 billion in share buybacks. 31, 2022, Pfizer generated $26 billion in free cash flow, after all capex spending and working capital needs. This gives PFE the kind of economies of scale that drug development requires.įor example, in the last year ending Dec. Moreover, its huge size – $100.3 billion in revenue in 2022, including 13% year-over-year growth in Q4 alone – allows it to spend large amounts on R&D and capital expenditures. Pfizer has a strong foundation of diverse drugs that produce strong cash flows for its shareholders. Pfizer ( PFE, $40.18) is a diversified pharmaceutical company that offers medicines and vaccines in a broad spectrum of therapeutic areas. Given its healthy dividend yield, moderate multiple and strong buyback program, investors might expect that the blue chip stock will do reasonably well over the next year. That tends to increase both its earnings and dividends per share going forward. It also spent $4.6 billion on buybacks last quarter, an $18.4 annualized rate. In addition, MSFT stock is not that expensive, relatively speaking, trading at just 29.8 times earnings forecast for the fiscal year ending June 2023, and 25 times fiscal 2024 earnings. The bottom line is that Microsoft's products are still relevant and the company is growing nicely. In addition, its other revenue in Intelligent Cloud grew 18% last quarter. This is because Microsoft's Office, LinkedIn and cloud services products (Productivity and Business Processes division) enjoy strong appeal with consumers (up 7% in the latest quarter). That more than covered the $19 billion dividend cost, as well as $28 billion in share buybacks. 31, 2022, Microsoft generated $84.3 billion in free cash flow. That gives MSFT stock an ample 1.0% dividend yield. Its powerful free cash flow is more than sufficient to cover dividends, share repurchases, acquisitions and debt reduction.įor example, Microsoft pays a $2.72 per-share annual dividend, up 9.7% over last year, and it's likely to rise a similar amount this year. More importantly, it has paid a dividend for the last 19 years, including 14 consecutive years of dividend growth. ![]() Microsoft ( MSFT, $277.66) is a major software company with tentacles in every area of the industry: operating systems, cloud, gaming, artificial intelligence (AI) and application software. And at 21 times this year's earnings forecasts – below its five-year average – WEN stock is attractively valued to boot. If that's not enough, investors seeking out the best defensive stocks can rest easy knowing the company has paid dividends for the past 19 years. That means that its 4.8% dividend yield looks secure. For example, the company repurchased 3.5 million shares last year for $51 million, and this year, it's on track to do the same. WEN currently has 212.594 million shares outstanding, and this is expected to decrease as it buys back more of its shares. This is more than enough to cover Wendy's $1.00 per share dividend, which only costs the company $212.6 million. Moreover, its FCF is expected to rise to $250 million. Although its reported earnings per share (EPS) fell to 82 cents from 89 cents, Wendy's management now forecasts that in 2023 EPS will rise to between 95 cents and $1.00. Last year the company's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), a cash flow measure, grew 6.6%. In addition, total sales grew 6.4% to $13.3 billion in 2022 over 2021. For example, global same-store sales were up 4.9% in 2022, thanks in part to 12.4% international growth. Its earnings, cash flow and dividends are growing, and the company forecasts meaningful growth next year, as well. are owned by 217 franchisees, and 98.9% of the international QSRs are owned by 106 franchisees. Most of these are franchised owned QSRs - 93.3% of the stores in the U.S. 1, 2023, the majority of which are in the U.S. It has 7,095 restaurants globally as of Jan. Wendy's ( WEN, $20.77) is the second largest hamburger quick service restaurant (QSR) chain in the U.S. ![]()
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