Markus Andrews

If you’re listing your home with certain features coveted by today’s buyers, that may help it sell for a higher price, new research from Zillow finds.
At the top of buyers’ wish lists is an outdoor TV, which may add more than $10,000 to the sale.

Filippobacci | E+ | Getty Images

If your home boasts certain trendy outdoor features, you may be able to sell it for more in today’s market.
At the top of the list is outdoor TVs, which may help raise the home sale price to 3.1% more than expected, representing a $10,749 boost based on the average home, according to new research from Zillow.

These sets have weatherproofing features to help them withstand exposure to precipitation and extreme temperatures, and can cost significantly more than standard indoor sets.
Other backyard features that may push sale prices higher include having an outdoor shower, which may help push sales up 2.6%; a bluestone patio, which is tied to a 2.3% increase; she shed, 2%; pizza oven, 1.9%; and outdoor kitchen, 1.7%.
The results come from Zillow’s analysis of sale premiums for 359 features across one million home sales for 2023.
“This year was really all about the backyard features,” said Zillow home trends expert Amanda Pendleton.
“It embodies this new lifestyle people want post-pandemic, where their social life is centered around their home, and specifically their yards,” she said.

Recent research from the National Association of Home Builders similarly found that outdoor features are at the top of buyers’ wish lists. That includes having a patio, exterior lighting, a front porch and landscaping.
The NAHB research also found having more space, such as by having a separate laundry room, walk-in pantry and a table area in the kitchen, were also ranked highly by the 3,000 U.S. homebuyers surveyed.

‘I wouldn’t go out of my way to install these features’

Zillow found other popular features that contributed to a higher sale price include preferred materials including soapstone, matte black and quartz, as well as beverage centers that serve as separate refrigerators to keep drinks cold.
“If you have these features already in your home, you want to make sure that you’re including them in your listing description,” Pendleton said.
“But I wouldn’t go out of my way to install these features and expect these kinds of sale premiums,” she cautioned.
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Today’s buyers are generally looking for smaller homes, around 2,070 square feet versus 2,260 square feet buyers sought 20 years ago, according to the NAHB.
Instead, today’s buyers are focusing on personalized features they prefer, according to Rose Quint, assistant vice president of survey research at the NAHB.
Due to a lack of inventory for existing homes, more homebuyers are turning to new construction. In 2023, 14% of home sales were for new homes, up from 7% a decade ago, Quint said.
Today’s homebuyers are emphasizing technology features for both safety and energy efficiency, she noted. That includes security cameras, video doorbells, programmable thermostats and multizone HVAC and energy management systems.

Trendy features can make a home sell faster

Zillow’s research pointed to home features that may help sell a home faster. The home details at the top of that list that have trended on social media — rounded corners and plant ledges — contributed to sales that were 6.2 days and 5.6 days faster, respectively.
“These types of features are really appealing to a younger buyer, a first-time buyer entering the market,” Pendleton said.
Other features that helped homes sell faster include having a frameless shower, terrazzo, picket fence, modern farmhouse, turf, fenced yard, Energy Star appliances and a saltwater pool, according to Zillow’s research.
“We are seeing more competition for homes that have these trendier features,” Pendleton said.

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The Mega Millions jackpot soared to an estimated $1.1 billion without a winner on Friday.
While it’s smaller than the last record payout, the victor could still face common pitfalls, experts say.
The next Mega Millions drawing is Tuesday at 11 p.m. ET.

The Mega Millions jackpot grew to more than $1.6 billion on Aug. 9, 2023.
Justin Sullivan | Getty Images

State taxes can be hefty

“None of these winners think about taxes until they have a third of it going right to Uncle Sam and the state government,” said Andrew Stoltmann, a Chicago-based lawyer who has represented several lottery winners.

None of these winners think about taxes until they have a third of it going right to Uncle Sam and the state government.

Andrew Stoltmann

Eight states — including California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming — don’t levy income taxes on lottery winnings.

However, you must redeem the winning ticket in the state where you bought it, meaning an out-of-state purchase in a high-tax state could trigger a bigger bill.
But the annuity payout could save on future state taxes, depending on where you choose to live, Stoltmann said. The annuity includes an initial sum followed by 29 annual payments.

Sign and secure the ticket

Lottery winners have a set timeline to come forward and collect their money — and some prizes have gone unclaimed.
“Sign your ticket, take photos and scans and then secure it,” said Michael Whitty, partner at law firm Smith, Gambrell and Russell, who has also advised past lottery winners.
Mega Millions says it’s critical to “protect yourself” by signing the back of your ticket. Otherwise, anyone who holds the winning ticket can file a claim to collect the proceeds.
Alternatively, there may be ways to protect your privacy by claiming the prize money via a trust or limited liability corporation. Regardless, you should consult an attorney first.

Avoid a ‘legal catfight’ on shared tickets

You could also have winning ticket issues when pooling money with friends or co-workers, according to Stoltmann.
“The nastiest legal catfights happen when a group of people buy a ticket together” and one person claims they bought the winning ticket alone, he said.
You should always have a “basic written agreement” that outlines who purchased the tickets, the numbers on those shared tickets and how the group will split the money if there’s a winner, Stoltmann said.

Mega Millions isn’t the only way to win big. The Powerball jackpot has ballooned to an estimated $800 million without a big winner from Saturday night’s drawing. The chances of scoring the grand prize for that game are roughly 1 in 292 million.

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As the Federal Reserve prepares to lower interest rates, the central bank is being particularly careful about not repeating past mistakes, experts say.
“The real danger here is that the Fed loosens prematurely, which is exactly what they did in the late 1960s,” said Mark Higgins, author of “Investing in U.S. Financial History: Understanding the Past to Forecast the Future.”

Federal Reserve Bank Chair Jerome Powell speaks during a news conference at the bank’s William McChesney Martin building on March 20, 2024 in Washington, DC. 
Chip Somodevilla | Getty Images

Slowly but surely, recessionary talk is dying down and confidence in the Federal Reserve is picking up.
Last week, the central bank held its benchmark rate steady — as expected — amid signs of positive economic growth, and signaled it plans multiple cuts before the end of the year.

Chairman Jerome Powell indicated that with the economy still growing at a healthy pace and unemployment below 4%, the Fed can take a more measured approach when loosening monetary policy.
However, if history is any guide, there would likely still be some significant economic disruptions before this period of elevated inflation is over, according to Mark Higgins, senior vice president for Index Fund Advisors and author of “Investing in U.S. Financial History: Understanding the Past to Forecast the Future.”
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Monetary policy is a balancing act, Higgins said.
“When you have extended periods of high inflation, to get back to price stability, you usually go too far in the other direction,” Higgins said.

At least, that is how it has played out in the past, he said.

The Fed’s ‘two major mistakes’

“The Fed has made two major mistakes in its history,” according to Higgins, and those two missteps still influence the central bank’s moves today.
“The first [mistake] was allowing the banking system to fail in the early 1930s, which caused the Great Depression to deepen significantly,” he said. “The second was the great inflation of the 1970s when inflationary pressures picked up and the Fed tightened but backed off prematurely, which is the risk the Fed faces now.”
While financial regulations and the creation of deposit insurance could prevent a widespread banking crisis from happening today, “the real danger here is that the Fed loosens prematurely, which is exactly what they did in the late 1960s,” Higgins said.

“Deep down, Powell is petrified of redoing Volcker again,” Steven Eisman, Neuberger Berman’s senior portfolio manager, said recently on CNBC’s “Squawk Box.”
The Fed has “engineered what looks to be a soft landing, inflation is coming down, the economy is still strong, why would you waste rate cuts now and risk a resurgence of inflation when really all you need to do is declare victory?” he said.
Today, Higgins said, “the risks of allowing inflation to persist still far outweighs the risk of triggering a recession. [The Fed’s] failure to do this in the late 1960s is one of the major factors that allowed inflation to become entrenched in the 1970s.”

The risks of allowing inflation to persist still far outweighs the risk of triggering a recession.

Mark Higgins
author of “Investing in U.S. Financial History: Understanding the Past to Forecast the Future.”

Those inflation-busting efforts and the aftermath have clearly had a lasting impact on the central bank.
Even in prepared remarks earlier this month, Powell referenced Volcker’s earlier interest rate policy as a reason policymakers don’t want to ease up too quickly now. “Reducing policy restraint too soon or too much could result in a reversal of progress we have seen in inflation and ultimately require even tighter policy to get inflation back to 2%,” Powell said.
This time around, the central bank is likely to remain extremely cautious, Higgins said, even if that means holding rates higher for longer.
“My gut is that they are aware of the risks and won’t ease too early,” he said.
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Millions of older adults who are behind on their student loans could soon receive a smaller Social Security benefit.
That warning from Democratic lawmakers, including Sen. Elizabeth Warren, D-Mass., and Sen. Ron Wyden, D-Ore., came in a letter to the Biden administration.
“When borrowers are in collections, on average their Social Security benefits are estimated to be reduced by $2,500 annually,” the lawmakers wrote. “This can be a devastating blow to those who rely on Social Security as their primary source of income.”

Martinprescott | E+ | Getty Images

Millions of older adults who are behind on their student loans could soon receive a smaller Social Security benefit.
That was the warning from Democratic lawmakers, including Sen. Elizabeth Warren, D-Mass., and Sen. Ron Wyden, D-Ore., in a recent letter to the Biden administration.

“When borrowers are in collections, on average their Social Security benefits are estimated to be reduced by $2,500 annually,” the lawmakers wrote on March 19. “This can be a devastating blow to those who rely on Social Security as their primary source of income.”
The U.S. government has extraordinary collection powers on federal debts and it can seize borrowers’ tax refunds, wages and retirement benefits. Social Security recipients can see up to 15% of their benefit reduced to pay back their defaulted student debt, which “can push beneficiaries closer to — or even into — poverty,” the lawmakers wrote.
After the pandemic-era pause on student loan payments expired in October of last year, the U.S. Department of Education said it wouldn’t resume its collection practices for 12 months.
However, the lawmakers wrote, “we are concerned that borrowers will face the extreme consequences associated with missed payments when protections expire in late 2024.”
They asked the Biden administration to provide a briefing on its efforts to address the issue by April 3.

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The U.S. Department of Education did not immediately respond to a request for comment.
The government’s collection practices with student loan borrowers, including the garnishment of wages and Social Security benefits, is an area under review, a source familiar with its plans told CNBC.

‘A morally bankrupt policy’

Outstanding student debt has been growing among older people. To that point, more than 3.5 million Americans aged 60 and older had student debt in 2023, a sixfold increase from 2004, according to the lawmakers.
Consumer advocates say the government’s collection actions are extreme.
“Many retirees need their Social Security benefits to survive,” said higher education expert Mark Kantrowitz.
Social Security benefits constitute nearly all income for one-third of recipients over the age of 65, the lawmakers said in their letter. The average check for retired workers is $1,907 this year, according to the Social Security Administration.
The garnishments mean older adults are often “forced to choose between skipping meals or rationing medicine,” Kantrowitz said. “It is a morally bankrupt policy.”

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U.S. home prices increased 0.6% from a month before in February, in line with the 0.6% average monthly gain in the roughly eight years leading up to the Covid-19 pandemic, according to a new Redfin analysis.
While price growth is moderating and inventory is improving, overall housing costs remain high. Here’s what buyers and sellers can expect.

Andrew Caballero-Reynolds | AFP | Getty Images

The rate at which home prices grow is slowing down.
U.S. home prices increased 0.6% from a month before in February, in line with the 0.6% average monthly gain in the roughly eight years leading up to the Covid-19 pandemic, according to a new Redfin analysis.

Before the pandemic, it was normal for prices to grow about half a percent every month, or to increase around 5% or 6% annually, said Daryl Fairweather, the chief economist at Redfin.
“We’re back to that trend, despite these higher mortgage rates,” she said.
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A similar trend appeared in Moody’s Analytics House Price Index, said Matthew Walsh, assistant director and economist at Moody’s Analytics.
“Home prices are appreciating at the same pace as before,” he said. “It’s returned to the trend that we saw pre-pandemic.”

However, the market today is vastly different from the market two to eight years ago, experts say. The average home is still unaffordable for most potential buyers while inventory has slightly improved but not enough to meet demand.
“The sentiment we’re getting from our agents is that neither sellers nor buyers are satisfied with this market,” Fairweather said. “Sellers are dissatisfied … with offers that they’re getting. And buyers are disappointed in rising prices and rising mortgage rates.”

Levels of transactions are at ‘recessionary lows’ 

While the housing market has stabilized in terms of price growth, a major difference between the market today and the pre-pandemic period is the relatively low number of transactions, which is largely due to high mortgage rates, said Fairweather. Mortgage rates peaked at nearly 8% last year, but are still over 6%, according to Freddie Mac data.
In fact, the level of transactions are at “recessionary lows” despite “a pop in the data in February,” Walsh said.
Another factor affecting sales is the extremely limited supply of homes, he added.
New listings climbed 5% during the last four weeks ended March 17, the biggest year-over-year jump since May 2023, Redfin found. But “it’s like a small recovery from a rock bottom,” said Fairweather.
“We’re not back to where we were pre-pandemic,” she said.
Supply growth is mostly tied to a seasonal trend, economists say. Owners often list their homes for sale in February because they prefer to move in the spring and summertime, Walsh said.
And sometimes, life happens. “Another factor is just people needing to move for either a new job or they’re getting married, or there’s some other big life event,” Fairweather said.

The rate lock-in effect is loosening its grip

The mortgage rate lock-in effect, also known as the golden handcuff effect, kept homeowners with extremely low mortgage rates from listing their homes last year: They didn’t want to finance a new home at a much higher interest rate. Now, that is loosening its grip on the market and slightly boosting available supply, economists say.
“It was definitely keeping people in place, but the more time that passes, the less strong that effect becomes,” Fairweather said.
Some buyers who had put off listing their homes “are coming to terms with higher mortgage rates,” because they feel they can no longer postpone the move, Walsh explained.
While the rate lock-in effect is still playing a role in today’s low inventory, it will fade further over time, especially as the Federal Reserve decides to cut rates later this year, Fairweather said.
Mortgage rates are also forecast to modestly decline this year as the Fed trims interest rates, while home prices are likely to remain flat or unchanged nationally, Walsh said.

New builds are slightly improving

New-home sales are running at the high end of the range seen pre-pandemic, averaging about 600,000 per month, Walsh said. There were 661,000 new homes sold in January, 1.5% more than in December, according to the U.S. Census Bureau.
Buyers frustrated with the tight supply of existing homes, are giving a lift to the new-home market. “Builders are certainly benefiting from that,” he said.
Homebuilders can also offer buyers incentives that homeowners might not, such as mortgage rate buydowns or price cuts, Walsh added.
However, the boost is not enough to bolster the acute housing supply across the country. “It’s going to take us some time to make up for that gap, even though they’re building more than before,” he said.

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Borrowers with multiple federal student loans who request a consolidation by April 30 — which will leave them with one, larger loan — could be closer to student loan forgiveness.
Here’s what to know.

Maria Korneeva | Moment | Getty Images

The Biden administration has set a key deadline for student loan borrowers hoping to get forgiveness.
Those with multiple federal student loans who request a consolidation by April 30 — which will leave them with one, larger loan — could benefit from the U.S. Department of Education’s overhaul of income-driven repayment plans.

Those changes have already led to debt cancelation for more than 930,000 people and $45 billion in relief.
“The opportunity to consolidate loans will help many more borrowers to qualify for student loan forgiveness,” said higher education expert Mark Kantrowitz.
Here’s what to know about the deadline.

Consolidation can get you closer to loan forgiveness

Income-driven repayment plans, which date to 1994, set borrowers’ monthly payments based on a share of their discretionary income. Those payments are typically lower than under standard repayment, and can be zero under some plans.
Borrowers typically get any remaining debt forgiven after 10, 20 or 25 years, depending on the plan.

One complicating factor for borrowers in these programs is that they often have multiple loans, taken out at different times, Kantrowitz said.
“They get at least one new loan each year in school, on average,” he said.
That can mean a borrower has multiple timelines to forgiveness, one for each of those loans.
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Now, the Biden administration is temporarily offering borrowers the chance to combine their loans and to get credit going back as far as their first loan payment on the oldest of their original loans in that bundle.
For example, say a borrower graduated from college in 2004, took out more loans for a graduate degree in 2018 and is now in repayment under an income-driven plan with a 20-year timeline to forgiveness. Consolidating could lead them to immediately qualify for forgiveness on all of those loans, experts say.
In normal times, consolidating your student loans can be a terrible move for those hoping to get rid of their debt as your forgiveness timeline is restarted. But the Biden administration has changed that program detail through April 30.

What to know about consolidating your student loans

All federal student loans are eligible for consolidation, including Federal Family Education Loans, Parent Plus loans and Perkins Loans, Kantrowitz said.
You can apply for a Direct Consolidation Loan at StudentAid.gov or with your loan servicer.
“So long as the application is submitted by April 30, they should be fine, even if the servicers takes longer to process it,” Kantrowitz said.

Some borrowers who took out small amounts may even be eligible for cancelation after as few as 10 years’ worth of payments, if they enroll in the new income-driven repayment option, known as the SAVE plan.
Consolidating your loans shouldn’t increase your monthly payment, since your bill under an income-driven repayment plan is based on your earnings and not your total debt, Kantrowitz said.
Your new interest rate will be a weighted average of the rates across your loans.

Before consolidating, it may be a good idea to get a complete payment history of each loan, so that you can later make sure you’re getting the full credit you’re entitled to, said Elaine Rubin, director of corporate communications at Edvisors, which helps students navigate college costs and borrowing.
You should be able to get a history of your payments at StudentAid.gov by looking into your loan details. You can also ask your servicer for a complete record.
The payment history counts when your loans first entered repayment, not when the loan was borrowed, Rubin said.
If a borrower believes there is an issue with their payment count, they can talk to their loan servicer or submit a complaint with the Department of Education’s Federal Student Aid unit, she added. More

Bottles of Pepsi soda are seen on display at a Target store on February 09, 2024 in the Flatbush neighborhood of Brooklyn borough New York City.
Michael M. Santiago | Getty Images

Even as the major averages have recently hit fresh records, there are plenty of catalysts that could shake things up, including geopolitical tensions and the upcoming U.S. presidential election.
Investors seeking some stability in their portfolios may want to consider high-quality dividend stocks, especially those with a track record of steady income payments.

Analysts conduct thorough research of companies’ fundamentals and their ability to pay and increase dividends over the long term.   
Here are three attractive dividend stocks, according to Wall Street’s top experts on TipRanks, a platform that ranks analysts based on their past performance.
Enbridge
Energy infrastructure company Enbridge (ENB) is this week’s first dividend-paying pick. The company moves nearly 30% of North America’s crude oil production and about 20% of the natural gas consumed in the U.S.
Enbridge has increased its dividend for 29 years. It has a dividend yield of 7.7%.
Following its recent investor day event, RBC Capital analyst Robert Kwan reiterated a buy rating on ENB stock. The analyst thinks that recent developments, including regulatory approval of the acquisition of the East Ohio Gas Company, would support the market’s confidence in the company’s ability to grow its earnings.

It is worth noting that East Ohio Gas is the largest of the three utilities (the other two are Questar Gas and the Public Service Company of North Carolina) that Enbridge agreed to acquire from Dominion Energy.
“Dominion utilities represent the next episode in Enbridge’s series of growth platforms,” said Kwan.
The analyst highlighted that the company extended its growth targets through 2026 and now expects earnings before interest, taxes, depreciation and amortization growth in the range of 7% to 9% from 2023 through 2026. That compares with the previous growth outlook of 4% to 6% from 2022 to 2025. Additionally, the company anticipates that this forecast will enable it to increase its annual dividend.
Kwan ranks No. 191 among more than 8,700 analysts tracked by TipRanks. His ratings have been successful 67% of the time, with each generating an average return of 10.2%. (See Enbridge Hedge Funds Activity on TipRanks)
Bank of America
Next up is Bank of America (BAC), one of the leading banking institutions in the world. The bank returned $12 billion to shareholders via dividends and share repurchases in 2023.
The bank announced a dividend of 24 cents per share for the first quarter of 2024, payable on March 29. BAC stock offers a dividend yield of 2.6%.
Recently, RBC Capital analyst Gerard Cassidy reiterated a buy rating on Bank of America with a price target of $39. The analyst is optimistic about the leadership of chairman and CEO Brian Moynihan, who is helping the bank steadily generate improved profitability through a focus on expenses and solid credit underwriting principles.
Cassidy also noted that BAC has a solid balance sheet, with a common equity tier 1 ratio of 11.8% and a supplementary leverage ratio of 6.1% as of Dec. 31, 2023.
“Also, due to its strong capital position and PPNR (pre-tax, pre-provision revenue), it should be capable of paying and increasing its dividend throughout a downturn,” said Cassidy.
The analyst highlighted the bank’s growing deposit market share, its dominant position in global capital markets, and the stock’s attractive valuation. He expects BAC’s profitability to gain from the increased adoption of its mobile offerings.  
Cassidy ranks No. 143 among more than 8,700 analysts tracked by TipRanks. His ratings have been successful 62% of the time, with each generating an average return of 14.9%. (See BAC Technical Analysis on TipRanks)
PepsiCo
This week’s third dividend pick is snack food and beverage giant PepsiCo (PEP). Last month, the company reported better-than-expected earnings for the fourth quarter, even as its revenue declined and missed analysts’ expectations due to pressure on demand in the North American business.
Nonetheless, PepsiCo announced a 7% hike in its annualized dividend to $5.42 per share, effective with the dividend payable in June 2024. This increase marked the 52nd consecutive year in which it boosted its dividend payment. PepsiCo currently has a dividend yield of 2.9%.
Overall, PepsiCo is targeting cash returns to shareholders of about $8.2 billion in 2024, including $7.2 billion in dividends and $1 billion worth of share repurchases.
On March 18, Morgan Stanley analyst Dara Mohsenian upgraded PepsiCo stock to buy from hold with a price target of $190. The analyst cited two reasons behind an earlier downgrade of the stock – valuation concerns and his opinion that the consensus organic sales growth (OSG) guidance seemed too high.
However, Mohsenian noted, “Both of these issues have now played out, and we would be aggressive buyers here ahead of a powerful inflection in H2 after PEP bottoms fundamentally in Q1, and returns to above consensus and peer OSG, with PEP’s valuation compression overdone.”
The analyst named PepsiCo a top pick, contending that the market is not fully pricing in the growth prospects of the company’s international business.
Mohsenian ranks No. 383 among more than 8,700 analysts tracked by TipRanks. The analyst’s ratings have been profitable 68% of the time, with each generating an average return of 9.2%. (See PepsiCo Stock Buybacks on TipRanks) More

The Greencore logo is seen on the outside of its factory building in Bristol, England.
Matt Cardy | Getty Images

Company: Greencore Group (GNC-GB)

Business: Greencore Group is an Ireland-based manufacturer of convenience foods. Its segments include Convenience Foods UK and Ireland. Greencore supplies a range of chilled, frozen and ambient foods to retail and food service customers in the United Kingdom. The company supplies all of the supermarkets in the United Kingdom. It also supplies convenience and travel retail outlets, discounters, coffee shops, foodservice and other retailers. It has over 16 manufacturing and 18 distribution centers in the United Kingdom.
Stock Market Value: 531.2 million pounds (about 1.14 pounds per share)

Activist: Oasis Management

Percentage Ownership:  n/a
Average Cost: n/a
Activist Commentary: Oasis Management is a global hedge fund management firm headquartered in Hong Kong with additional offices in Tokyo, Austin and the Cayman Islands. Oasis was founded in 2002 by Seth Fischer, who leads the firm as its chief investment officer. Oasis is an authentic international activist investor, doing activism primarily in Asia (and occasionally Europe). The firm has an impressive track record of prolific and successful international activism. Oasis has as many arrows in its quiver as any activist and has been successful in getting seats on boards, opposing strategic transactions, advocating for strategic actions, improving corporate governance, and holding management accountable.

What’s happening

On March 15, the Financial Times reported that Oasis Management has been building a stake in Greencore, approaching the UK’s 5% threshold, and that managing director Daniel Wosner has met with the board and management several times.

Behind the scenes

Greencore Group is a leading supplier of prepackaged and convenience foods in the UK and Ireland, serving customers including supermarkets, convenience stores, retail outlets, coffee shops and other retailers. The company reports segmental information in two categories: “food to go” and “other convenience.” In 2023, “food to go” accounted for 65% of the group’s revenue and “other convenience” generated the remaining 35%. A key inflection point in recent history for Greencore was the Covid-19 pandemic. Since then, the company has struggled to regain its footing and recover both its stock price and operating performance. The stock has fallen sharply since its pre-pandemic peak. In addition, the company’s adjusted operating profit of 76.3 million pounds and adjusted earnings before interest, taxes, depreciation and amortization of 132.8 million pounds have not caught up to its pre-pandemic levels of 105 million pounds and 142 million pounds, respectively. In addition, operating margins fell to 2% in 2020 and 2021, down from 6% to 7% in the years leading up to the pandemic. They have failed to recover completely, resting at 4% in 2023.

Compared to its peers, many of whom were similarly set back by the forces of the pandemic, inflation and a recessionary macro environment in the UK and Ireland, Greencore has particularly struggled to return to its former performance. First, Greencore has not reinstated its dividend since suspending it in 2020. Greencore’s peers currently offer dividend yields between 1% and 7%, averaging approximately a 3.5% yield. Some of them had also suspended payments following the outbreak of Covid-19, but resumed them shortly thereafter. In addition, Greencore’s operating and EBITDA margins are lower than those of its peers Premier Foods and Bakkavor, but it had better margins in both categories in 2019.
Oasis is known as an Asian activist, which is true – 90% of its activist campaigns have been in Asia. But the firm has selectively pursued activism in Europe two other times prior to this. Both times its returns have been incredible – averaging 108.75% versus 5.29% for the MSCI EAFE Index. Moreover, both of those investments were in similar businesses to Greencore: One was a direct peer, Premier Foods, and the other was The Restaurant Group. At The Restaurant Group, Oasis successfully agitated for the removal of the company’s chairman, as well as asset sales to accelerate medium-term strategic plans to increase adjusted EBITDA, and the company was eventually taken private by Apollo. The Premier Foods campaign was a three-act play. In 2017, after the firm accumulated an 8.3% stake, Premier invited Daniel Wosner, managing director of Oasis, to join the board of directors, but he submitted his resignation after just one year. In its second act, Oasis immediately began agitating for change, urging shareholders to vote against the re-election of then-CEO Gavin Darby, citing shareholder value destruction, poor financial performance, consistent missed targets, a lack of strategy and weak corporate governance. While Darby was re-elected in 2018, shortly thereafter he announced his resignation. In the firm’s third act, Wosner was invited back to join the board in February 2019, and the company announced that it would launch a strategic review.
Since Wosner’s reappointment, Premier and Greencore appear as a rising star and a falling comet, respectively. Premier Foods has generated a total return of nearly 300%, while Greencore is down 41.5% in that time. Premier has resumed its dividend, while Greencore has suspended it. Premier has EBITDA margins of approximately 20% versus mid- to high-single digits for Greencore.
It is hard to believe there is another investor more qualified to create shareholder value at Greencore than Oasis. The situation at Greencore appears amicable, and the company would probably be served well to offer Wosner an opportunity to join the board. Oasis could help put the company in a financial position where it can resume dividend payments or accelerate buybacks. In addition, at The Restaurant Group and Premier, Oasis pushed for the sale of non-core assets, which is consistent with streamlining operations and creating shareholder value. It’s not necessarily Oasis’ plan to push for the ouster of executives here, especially since Greencore’s CEO Dalton Philips was recently appointed in 2022 and CFO Catherine Gubbins was appointed to her role in 2023. But certainly, there need to be changes, and this should put management on notice. One Greencore director who Oasis knows well is Alastair Murray, the former CFO and once-interim CEO of Premier Foods. Indeed, Oasis had played a part in elevating Murray to replace former Premier CEO Gavin Darby in 2019.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. More