Eudividend @Eudividend: "WEEKLY UPDATE Good Morning 🔆 WEEK 20,..."

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WEEKLY UPDATE Good Morning 🔆 WEEK 20, 2024 At the beginning of the last week markets were calm and stable expecting new inflation data. Markets ended week on high note with all major indexes higher for the week. S&P500 is up 1.54%, DJIA 1.24% and Russel 2000 up 1.47%. According to FactSet 92% of companies reported their Q1 earnings and nearly 80% of them exceeded Wallstreet forecasts. The Producer Price Index (PPI) was reported on Tuesday. PPI for April rose 0.5%, more than expected, and rose 2.2% on an annual basis. On the same day Fed Chair Powell said that inflation progress is slow and that rates are not likely to move soon. April’s Consumer Price Index (CPI) was reported on Wednesday. CPI have increased 0.3% from March and 3.4% annually. It is down from 3.5% in March. Core CPI (which excludes food and energy prices) was also up 0.3% on monthly basis and 3.6% on annual basis. Housing is slow to change with prices up by 0.4% for the month and 5.5% annually. Housing related costs comprise about one third of the weighting in the CPI. According to the Bureau of Labor Statistics housing and gasoline inflation comprise about 70% of the monthly CPI increase for all items. So it is still some longer way to go towards the Central Bank’s 2% goal for inflation. Nevertheless, On Wednesday Dow jumped above 40K for the first time. On Friday EU CPI data was released. It is up 2.58% from one year ago. Morgan Stanley expects disinflation in the second half of the year and that Fed will cut three times this year starting in September. At present we have a goldilocks scenario when an economy and labor market are strong, inflation slowly comes down and interest rates are stable. It is probable that the current scenario will continue in the second half of the year. These conditions are favorable for our portfolio. In particular if interest rates would come down. So far this month our portfolio gained 6.65%. On Wednesday the minutes of the Fed April monetary policy meeting will be released. PORTFOLIO NEWS OF THE WEEK 💶 Earnings Last Week (May 13 - 19) On May 14 $VOD.L ( Vodafone Group PLC) reported earnings. European telecom VOD reported revenue of EUR 4.1B, 2.5% less than a year ago. Service revenue growth was good (+6.3% per year) but offset by higher energy costs and higher wages. Adjusted EBITDAaL was EUR13.4B and Adjusted FCF EUR3.5B, in line with company’s guidance. In 2025 Vodafone will invest in Germany turnaround (it is main market of Vodafone) to bolster revenue and earnings across German market. The company is in the process of selling its Italian unit to Swisscom for EUR8B and Spanish unit to Zegona for EUR5B. Also it is waiting for the approval by the UK regulator of a potential merger with telecom Three UK. That merger, as well as growth in Germany, could boost stock price significantly in the future. It announced share buyback program to return EUR2B over 12 months. 📆This Week’s Earnings Reports On May 22 earnings are reported by $AV.L (Aviva) ☀️Ex – Dividend Dates This Week The following Ex -Dividend Date is expected this week. 🍏May 20 $WBA (Walgreens Boots Alliance Inc) Quarterly dividend of $0.25 per share (in line with previous) will be paid on June 12. The yield is 5.5%. 🍰Dividend Payments The following dividends are to be paid this week. 🔹May 22 $TEL.OL (Telenor) TEL.OL pays a semiannual dividend of NOK5 per share. The yield is 7.2%. 🔹May 23 $HR (Healthcare Realty Trust Inc) HR pays a quarterly dividend of $0.31 per share. The yield is 7.8%. 👉Portfolio’s Top Stock Movers Last week the following companies belonging to our portfolio had the biggest stock price changes. Winners: $VOD.L +11.5%, $FORTUM.HE (Fortum Oyj) +8.3%, $NEP (NextEra Energy Partners LP) +7.6% Laggards: $ENB (Enbridge Inc) -2.8%, $ENG.MC (Enagas) -2.5%, $HIW (Highwoods Properties Inc) -2.1% 📈Performance Last week was great for telecoms and REITs as REITs are up 2.09%, Telecoms up 3.26% and Utilities up 1.4% on average. The portfolio is up 1.74% for the week.

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