Anthony Schiavone

Now that dividend payout is not currently covered by free cashflow, but I do think it's sustainable considering their balance sheet and the investments it's making today to support that higher free cashflow in the future.

So I think that 7% dividend yield alone might be enough to beat the market over like a five to 10 year period, considering where market valuations are today.

So I think it's a buy.

Okay.

Also going with the buy.

Roughly 4.3% dividend yield today.

Management expects to grow free cash flow at a 10% annual rate through 2030.

That represents a double-digit expected return over the next five years.

I think that beats the market.

I'm going to back it.

You mentioned the dividend payout ratio is only about 12%.

That's at the low end of management's targeted payout ratio of about 10% to 15%.

They have a stated goal to increase dividends.

That dividend growth rate is accelerating over the last two years.

I think a dividend increase this year or even next year is probable.

I think this is a company that has the ability to raise its dividend, and probably will, looking over a five-plus-year time horizon.

But will it increase it in 2026?

I'm not so sure.

Benjamin seems to prefer share buybacks right now.

They did just increase the dividend considerably in 2022 and 2023.