Marjorie Taylor Greene Is Buying These 2 High-Yield Dividend Stocks. Should You?

Marjorie Taylor Greene Is Buying These 2 High-Yield Dividend Stocks. Should You?

  • 21.03.2025 10:11
  • msn.com
  • Keywords: Life Insurance, Term Life Insurance

Marjorie Taylor Greene is investing in Devon Energy and UPS, two high-yield dividend stocks, but it's unclear if they're good for others. Meanwhile, someone regrets not buying enough life insurance in their 40s, as it now falls short of covering expenses without a stable income.

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Context

Business Insights and Market Implications Analysis

1. Devon Energy (NYSE: DVN)

  • Key Facts:

    • Produces 737,000 barrels of oil equivalent per day in 2024, the highest level ever.
    • Forward dividend yield: 3.53%, lower than recent years due to debt reduction focus.
    • Rep. Marjorie Taylor Greene and other Republicans (Rep. Jefferson Shreve, Rep. Kevin Hern) have invested.

  • Strategic Considerations:

    • Plans to increase production to 805,000–825,000 barrels in 2025.
    • Forecasted free cash flow of over $3 billion next year.
    • CFO Jeff Ritenour expects $200–$300 million in share buybacks quarterly.

  • Market Implications:

    • Attractive valuation: trades at 7.2x forward earnings vs. S&P 500 energy sector's 14.3x.
    • Strong cash flow and debt reduction indicate solid dividend footing.

2. United Parcel Service (NYSE: UPS)

  • Key Facts:

    • World’s largest package delivery company, delivers ~22.4 million packages daily.
    • Forward dividend yield: 5.52%, increased for 16 consecutive years.
    • Rep. Greene and Democratic congressman Ro Khanna have invested.

  • Strategic Considerations:

    • Aims to reduce shipments with Amazon by 50% over three years, targeting cost reduction and higher profitability.
    • Management expects improved free cash flow and operating margins post-transition.

  • Market Implications:

    • Attractive for value investors: trades at 15x forward earnings (lower than historical levels).
    • Strong dividend history and global reach position UPS as a stable investment.

Analysis

  • Competitive Dynamics: Both companies are focusing on operational efficiency and shareholder returns. Devon's growth in production and debt reduction align with industry trends, while UPS's strategic shift aims to enhance profitability despite customer volume changes.

  • Long-term Effects: Both companies' strategies suggest potential for sustained financial health, making them attractive for income-focused investors.

  • Regulatory Impact: No significant regulatory risks mentioned, though energy policies could affect Devon. UPS’s focus on cost management is less susceptible to external regulations.

  • Investment Consideration: While congressional investments are not a guarantee of success, the companies' fundamentals and market positioning suggest potential value for income investors.