Carrier Global Corporation (CARR) announced the sale of its Commercial and Residential Fire business to an affiliate of Lone Star Funds for $3 billion. This move is a key part of Carrier’s portfolio transformation following its acquisition of Viessmann Climate Solutions and divestitures of other units. The sale is expected to close by the end of 2024 and will result in approximately $2.2 billion in net proceeds for Carrier, which plans to use the funds for share repurchases.
FedEx has consistently generated strong returns through dividend growth, with an average annual total return of 10.2% from 1973 to 2023. Despite facing industry headwinds, the company has navigated these challenges through cost-saving measures, including its DRIVE initiative and Network 2.0 overhaul. As a result, FedEx’s operating income has grown, and margins have expanded during the recent revenue decline. The company’s financial position remains solid, with an interest coverage ratio of 14.6 and a moderate debt-to-capital ratio. Shares of FedEx appear undervalued at current levels, with a fair value estimate of $303 per share. This undervaluation represents an opportunity for investors to capitalize on the company’s potential for long-term growth and attractive dividend yield.
Synchrony Financial (NYSE: SYF) announced its first-quarter 2024 financial results, reporting strong performance across key business drivers. The company saw a rise in revenue, driven by growth in its digital and retail segments. Synchrony also announced a quarterly cash dividend and an incremental share repurchase program of up to $1 billion, signaling its commitment to returning value to shareholders.
