Tag Archives: passive-income

Mission Produce ($AVO): The avocado company worth a closer look

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Mission Produce, Inc. (NASDAQ: AVO) is a vertically integrated supplier of fresh Hass avocados (and growing categories such as blueberries and mangoes). The company’s mission centers on reliably sourcing, ripening, packing and distributing high-quality avocados year-round while expanding into complementary produce categories to smooth seasonality and add higher-margin lines for customers. (SEC+1)

Why some investors call $AVO a “hidden gem”
• Scale in a tight market: Mission Produce reported trailing-12-month revenue of roughly $1.4B (TTM), driven by higher selling prices and broadening sourcing to Peru, Mexico, Guatemala and other regions — giving it scale in an industry with frequent supply shocks. (Yahoo Finance+1)
• Recent momentum in results: the company reported Q2 fiscal-2025 revenue of $380.3M (up ~28% year-over-year) and continued quarter-to-quarter revenue strength into Q3, reflecting strong demand and price environment for Hass avocados. Those beats have grabbed investor attention. (Mission Produce Investors+1)
• Diversification & supply-footprint: Mission is investing in packhouses and farming operations (including expansion in Guatemala and development of blueberry and mango programs), which helps reduce single-market exposure and gives operational levers when avocado prices swing. (Blue Book Services+1)
• Clean-ish balance sheet for a seasonal ag business: total assets are roughly $1.0B with total liabilities around $402M (SEC filings / investor materials show positive shareholders’ equity and manageable long-term debt) — positioning it to withstand seasonal price swings and invest in capacity. (SEC+1)

Key risks
• Commodity and weather risk: avocados are sensitive to weather (El Niño, droughts) and geopolitical trade/tariff moves; supply disruptions can quickly swing margins. (MarketWatch)
• Price cyclicality: the company’s Marketing & Distribution segment drives most revenue, so falling avocado prices can reduce top-line even as volumes rise. (Cash Flow Templates)

📈 Current Price & 12-Month Outlook

As of December 4, 2025, AVO shares trade around US$12.03 per share. (MarketBeat+2StockAnalysis+2) According to recent analyst consensus, many project a 12-month target price of about US $17.00 — implying a potential upside of roughly 40–45% over the next year. (StockAnalysis+2Zacks+2)

If conditions remain favorable — robust demand for avocados, stable supply (including from diversified growing regions), and continued execution on expansion initiatives — AVO could reach or even modestly exceed that $17 target. However, risks such as commodity-price swings, weather events, and shifting consumer demand could temper gains. As with all agriculture-linked equities, the upside remains meaningful but also volatile.

Bottom line
Mission Produce combines market leadership in a high-growth consumer category (avocados), rising scale and an improving product mix. That combination — plus a balance sheet that appears able to support continued investment — is why some investors view $AVO as a “hidden gem” in ag/food distribution. But it remains a cyclical, weather-sensitive play; prospective buyers should weigh valuation, seasonality, and tariff/volume outlooks before acting. (Yahoo Finance+1)

Disclosure: I currently hold a position in Mission Produce, Inc. (NASDAQ: AVO). All information provided is for informational and educational purposes only and should not be interpreted as financial advice, investment recommendations, or an endorsement to buy or sell any security. Investors should conduct their own research and consult with a qualified financial professional before making investment decisions.

References

MarketBeat. (2025, December 4). Mission Produce (AVO) Stock Forecast & Price Target 2025. https://www.marketbeat.com/stocks/NASDAQ/AVO/forecast/ MarketBeat

StockAnalysis.com. (n.d.). Mission Produce, Inc. (AVO) Stock Price & Overview. https://stockanalysis.com/stocks/avo/ StockAnalysis

Zacks. (n.d.). Mission Produce, Inc. (AVO) Price Target & Stock Forecast. https://www.zacks.com/stock/research/AVO/price-target-stock-forecast Zacks

Investing.com. (n.d.). Mission Produce Inc (AVO) Consensus Estimates. https://www.investing.com/equities/mission-produce-inc-consensus-estimates Investing.com

Yahoo Finance. (n.d.). Mission Produce (AVO) Stock Quote & Summary. https://finance.yahoo.com/quote/AVO/ Yahoo Finance+1

Why Invest in Cohen & Steers $UTF During Market Downturns

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Cohen & Steers Infrastructure Fund, Inc. (ticker: UTF) is a closed-end fund that invests primarily in listed infrastructure companies — utilities, pipelines, toll roads, telecoms and similar businesses — with an emphasis on income and total return. The fund targets at least 80% exposure to infrastructure securities and is permitted to hold preferreds and fixed-income as well. (Cohen & Steers+1)

The case for UTF in a downturn

  1. High and steady monthly distribution. UTF pays a monthly cash distribution (recently about $0.155 per share) that translates to a forward annualized dividend around the high-single to mid-single digits (roughly a 7–8% yield at current market prices). That regular payout can make UTF attractive to income-seeking investors during equity market weakness. (Cohen & Steers Resources+1)
  2. Defensive underlying exposure. Infrastructure companies often provide essential services (power, water, roads, telecom) with relatively stable cash flows and regulatory protections that can soften downside in economic contractions compared with cyclical sectors. UTF’s strategy explicitly focuses on these companies and includes income-oriented holdings (common equity plus a portion in preferreds/fixed income). (SEC+1)
  3. Closed-end structure can add opportunity. As a closed-end fund, UTF can trade at a premium or discount to net asset value (NAV) and use leverage or share repurchases to enhance returns. In downturns, discounts can widen and create potential buying opportunities for investors seeking yield and income—though discounts can also persist. Recent fund documents show management tools (repurchase programs, rights offerings) are in use when needed. (Cohen & Steers+1)
  4. Relative price stability historically. While all market securities fall in tough selloffs, UTF’s share price history shows less extreme volatility than many small-cap or tech names because of its income focus and infrastructure holdings. (See sources below for historical price and distribution history.) (Yahoo Finance+1)
  5. Total-return potential from dividends + capital. In a downturn the regular dividend cushions total returns. If the portfolio’s underlying cash flows remain intact, the dividend can provide an attractive yield while capital recoveries occur — particularly for buy-and-hold income investors.

Risks you must weigh

  • Discount/premium risk: CEFs can trade at large, persistent discounts to NAV; the market price might not reflect NAV recovery quickly. (CEF Connect)
  • Leverage and interest-rate sensitivity: Some closed-end funds use leverage that can magnify losses when markets fall and can increase sensitivity to rising rates. UTF’s prospectus and factsheet discuss leverage and fixed-income exposure. (Cohen & Steers Resources+1)
  • Concentration risk: Heavy exposure to infrastructure and related subsectors means sector-specific shocks (regulatory, energy shocks, etc.) can hit performance. (SEC)

Current snapshot (load-bearing facts)

  • Market price (recent close): roughly $24.20. (Yahoo Finance)
  • Forward annualized dividend / distribution: roughly $1.86 per share (monthly payments ≈ $0.155) — forward yield around 7–8% at current prices. (StockAnalysis+1)
  • Investment objective: total return with emphasis on income; invests at least 80% in infrastructure securities. (SEC+1)

12-month stock-price projection (company/analyst estimates-style scenarios)

Analysts don’t always publish a single consensus price target for closed-end funds like UTF; where a consensus target isn’t available, a scenario approach is often more informative. Below I created three plausible projected price scenarios for the next 12 months — Bear (–15% y), Baseline (+4% y) and Bull (+25% y) — starting from the recent market close (~$24.20). These are illustrative projections (not predictions or investment advice), intended to show how price paths and total return dynamics might look under different macro/backdrop outcomes.

Key assumptions used for the chart: start price $24.20, monthly compounding equivalent to the annual scenario rates listed above. These scenarios do not include dividends — they show market-price outcomes only (adding dividends would materially improve total returns, especially at a ~7–8% yield).

Quick takeaways

  • UTF’s monthly dividend and exposure to essential infrastructure make it a reasonable consideration for income-focused investors during market downturns; the dividend can provide cashflow support while equity markets recover. (Cohen & Steers Resources+1)
  • However, because UTF is a closed-end fund, price movements can diverge from underlying NAV and be influenced by fund-specific factors (discounts, leverage, corporate actions). That tradeoff (high yield vs. structural CEF risks) is central to whether UTF is appropriate for any individual portfolio. (Cohen & Steers+1)

Disclosure

I currently hold a position in the Cohen & Steers Infrastructure Fund (UTF). This information is provided for educational and informational purposes only and should not be considered financial advice. Always conduct your own research and consult with a qualified financial professional before making any investment decisions.

References

Cohen & Steers. (n.d.). Cohen & Steers Infrastructure Fund (UTF). Retrieved from https://www.cohenandsteers.com/

Cohen & Steers. (n.d.). UTF: Cohen & Steers Infrastructure Fund—Fact sheet. Cohen & Steers. (Original fund literature.)

Dividend.com. (n.d.). UTF dividend history: Cohen & Steers Infrastructure Fund. Retrieved from https://www.dividend.com/

DividendMax. (n.d.). Cohen & Steers Infrastructure Fund dividend information. Retrieved from https://www.dividendmax.com/

SEC. (n.d.). Cohen & Steers Infrastructure Fund, Inc. (UTF) — Prospectus & filings. U.S. Securities and Exchange Commission. Retrieved from https://www.sec.gov/

StockAnalysis.com. (n.d.). UTF: Cohen & Steers Infrastructure Fund stock dividend & history. Retrieved from https://stockanalysis.com/

Yahoo Finance. (n.d.). UTF — Cohen & Steers Infrastructure Fund price & chart data. Retrieved from https://finance.yahoo.com/

📈 Why Target $TGT Could Be a Solid Income + Growth Pick

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High Dividend Yield & Track Record
Target currently pays $4.56 annually ($1.14 per quarter), translating into a robust ~4.9% yield on today’s ~$93 share price (StockAnalysisTipRanks). The company has increased its dividend for 54 consecutive years, a hallmark Dividend King that inspires investor confidence (NasdaqStockAnalysis). Its most recent raise (1.8%) was declared in June 2025, effective with the $1.14 quarterly payment on Sept 1, 2025 (ex-div Aug 13) (Target Corporation).

Payout Coverage & Sustainability
Target retains a payout ratio of roughly 52%—meaning it distributes just over half of earnings as dividends, leaving room to reinvest and buffer downturns (KoyfinStockAnalysis). It also generated ~$2.9 B in free cash flow over the past 12 months, comfortably above its roughly $2 B annual dividend obligation (Nasdaq).

Valuation Lean vs Peers
At a P/E near 11×, Target trades well below peers like Walmart (~37×), suggesting the market has priced in current headwinds—offering potential upside if operational trends normalize over time (Nasdaq).

🧾 Balance Sheet Overview (as of latest trailing 12 mo / August 2025)

Based on S&P-compiled data (StockAnalysisMarketBeat):

📌 Metric💰 Value (USD mm)
Total Assets~$57.9 B
Cash & Equivalents~$4.34 B
Inventories~$12.9 B
PPE (net)~$33.6 B
Total Liabilities~$42.4 B
└ Current Liabilities~$19.2 B
└ Long-Term Debt~$15.4 B
Shareholders’ Equity~$15.4 B (book value ~ $33.9/share)
Net Debt~$16.1 B

Target maintains a healthy asset base, anchored by substantial property, inventory, and cash buffers. Long‐term debt is sizable but manageable given recurring cash flow. Equity has grown steadily (~$14.7 B in FY 2024 to ~$15.4 B TTM), with tangible book value per share near $34—over one-third of share price (StockAnalysis).

🔍 Business Momentum & Outlook

  • Recent performance (Q2 FY 2025):
    Net sales declined ~0.9% YoY and comp sales fell ~1.9%, though digital sales rose ~4.3%. Operating income slipped ~19% to $1.3 B. Full-year EPS guidance remains at $8.00–$10.00 GAAP (adjusted ~$7–$9) (Target Corporation).
  • Strategic tailwinds:
    Investments in same-day fulfillment via Shipt, modernization of logistics, and omnichannel integration are expected to drive margin recovery (expected to improve toward ~6% by FY 2028) (University of Iowa).

💡 Investment Case: Why Consider TGT

  1. Reliable, high income: ~4.9–5.0% yield, backed by decades of increases.
  2. Dividend sustainability: Strong cash flow vs payout; modest payout ratio.
  3. Undemanding valuation: Trading at low P/E, offering value if business stabilizes.
  4. Solid balance sheet: Ample liquidity, reasonable leverage, growing equity.
  5. Long-term turnaround potential: Operational improvements could bolster margins and share price over time.

Risks include macro-sensitive retail environment, margin pressures, inventory mismanagement, and stiff competition. However, the dividend acts as a buffer while strategic moves take root.

📌 Bottom Line

For income-focused investors looking to pair dividend yield with capital appreciation potential, Target (TGT) stands out as a compelling blended opportunity. Its long-standing dividend credibility, backed by solid free cash flow and a durable balance sheet, makes it a defensive anchor in a portfolio. Coupled with low valuation and a clear path to operational recovery, TGT offers both yield today and upside tomorrow.

Disclosure: I currently hold a position in Target Corporation (NASDAQ: $TGT). This article reflects my personal opinions and analysis, and is not intended as financial advice. Please conduct your own research or consult a financial advisor before making any investment decisions.

References

Corporate Target. (2025, June 12). Target Corporation increases quarterly dividend by 1.8 percent. Target Corporate. https://corporate.target.com/press/release/2025/06/target-corporation-increases-quarterly-dividend-by-1-8-percent

Corporate Target. (2025, August 21). Target Corporation reports second quarter 2025 earnings. Target Corporate. https://corporate.target.com/press/release/2025/08/target-corporation-reports-second-quarter-earnings

Koyfin. (2025). Target Corp (TGT) dividend overview. Koyfin. https://www.koyfin.com/company/tgt/dividends/

MarketBeat. (2025). Target financials (NYSE: TGT). MarketBeat. https://www.marketbeat.com/stocks/NYSE/TGT/financials/

Nasdaq. (2025, August 27). 1 green flag for Target stock right now. Nasdaq. https://www.nasdaq.com/articles/1-green-flag-target-stock-right-now-0

Stock Analysis. (2025). Target (TGT) dividend history and growth. Stock Analysis. https://stockanalysis.com/stocks/tgt/dividend/

Stock Analysis. (2025). Target balance sheet (TGT). Stock Analysis. https://stockanalysis.com/stocks/tgt/financials/balance-sheet/

TipRanks. (2025). Target dividend and payout ratio (TGT). TipRanks. https://www.tipranks.com/stocks/tgt/dividends

University of Iowa – Tippie College of Business. (2024). Target Corporation equity research report. https://www.biz.uiowa.edu/henry/download/f24_TGT.pdf