Actionable Conclusions (1-10): Analysts Estimated 28.23% To 154.1% Net Gains For Ten Top Energy Dogs By June 2018
Four of ten top gaining Energy Sector dogs based on analyst 1-year target prices, were verified as being among the top ten dividend-yielding of thirty for the coming year (as tinted in the chart above). Thus, the yield-based forecast for the Energy sector as graded by Wall St. wizards was 40% accurate.
Ten probable profit-generating trades were revealed in YCharts for June 2018 were:
Seadrill Partners (SDRL) was projected to net $1,540.98, based on dividends plus a median target price estimate from two analysts, less broker fees. The Beta number showed this estimate subject to volatility 128% more than the market as a whole.
NGL Energy Partners (NGL) was... more
Many people believe that the Yield Curve is an important economic indicator.On March 1, 2010, I wrote a post on the issue, titled “The Yield Curve As A Leading Economic Indicator.”An excerpt from that post:
On the NY Fed link above, they have posted numerous studies that support the theory that the yield curve is a leading indicator. My objections with using it as a leading indicator, especially now, are various. These objections include: I don’t think such a narrow measure is one that can be relied upon; both the yields at the short and long-end of the curve have been overtly and officially manipulated, thus distorting the curve; and, although the yield curve may have been an accurate leading indicator in the past, this period of economic weakness is inherently... more
Chevron’s (CVX) issues with free cash flow are nothing new. In fact, basically the entire oil & gas complex experienced similar troubles a couple of years ago as the bottom fell out of oil and other commodities. But company doesn’t make Chevron’s misery with respect to FCF any more bearable and it has continued to suffer straight through to today. That creates many problems but chief among them is with respect to the dividend. Chevron, like the other oil majors, relies heavily upon its ability to return cash to shareholders to make its stock interesting for buyers. The problem is that its FCF hasn’t been able to fund the dividend for a long time and the deficits that have been built up have very negative impacts going forward.
For this... more
Investors who seek a stable and predictable dividend income should not ignore Hydro One (OTC:OTC:HRNNF) (TSX:H). The company’s revenue source is predictable as ninety-nine percent of its revenue comes from regulated electricity transmission and distribution. With predictable cash flow and revenue, the stock is a perfect defensive dividend stock. However, with a modest 5% rate base increase, its dividend growth is expected to be modest.
Hydro One was the biggest IPO in the Toronto Stock Exchange in 2015 when the cash-thirsty government of Ontario decided to sell some of its shares to the public market. Over the past 2 years, the government sold half of its shares but remains the company's largest shareholder. As of May 2017, the government had... more
In a manner reminiscent of the Greenspan “conundrum” from the 2004–2006 hiking campaign, today long-term yields are falling while the Federal Reserve (Fed) raises short-term rates. The fed funds rate target range is now 100 basis points higher than it was before the current hiking cycle began, but the 10-year Treasury yield is 13 basis points lower. There are three possible explanations for this yield curve behavior:
Rather than being accommodative, the Fed may actually become more restrictive than it expects. The Fed is projecting longer-run inflation at 2 percent, but if the market perceives that inflation is going to stay around 1.5 percent or lower, then the Fed could actually be ahead of the curve on inflation, and a lot closer to the end of tightening. The... more
8Point3 Energy Partners (CAFD) is one of my favorite high-yield, renewable energy investments. That's because the business model of this YieldCo is essentially that of a solar utility, with cash flow guaranteed by long term, fixed rate contracts (with a weighted average remaining term of 19.8 years) with large utility counterparties.
That in turn, has allowed 8Point3 to provide a very generous, secure, and fast growing (12% to 15% per year) dividend.
That being said, during its last earnings release, 8Point3 Energy's two sponsors and general partners, First Solar (Nasdaq: FSLR), and SunPower (SPWR), announced they were considering selling the YieldCo, which created massive uncertainty about its long-term prospects.
NEP Total Return Price data by YChartsOn the other... more
I have written several articles about Atrium European Real Estate (OTC:ATRBF) before, and the company is part of the Nest Egg Dividend Portfolio, focusing on European dividend income. As it has been a year since the most recent in-depth article on Atrium, I figured it's time to update my views, especially after the recent dividend hike, special dividend payments and an improving economic situation in Eastern Europe.
Atrium does have an OTC listing, but for liquidity reasons, I would strongly recommend you to trade in Atrium's shares through the facilities of Euronext Amsterdam and the Vienna Stock Exchange where Atrium is listed with ATRS as its ticker symbol. The total average daily volume on both exchanges combined is in... more
The Stock - Canadian Imperial (CM)
Ah, the Canadian Banks! They don't get too much publicity or mention here in the United States, where I am, but how I love their business model and their ever-rewarding dividend payments to shareholders. Canadian Imperial has net income over $3B and is earning almost 1% Return on Average Assets on an almost $400B dollar institution - which is phenomenal, in my eyes. The company originated back in the later 1800's and has been around forever (formed through merger of candian Bank of commerce & Imperial Bank of Canada), and their dividend under CM has been going for over 25 years.
However, what really sparked my interest to write the analysis on CM, was that they finally closed on their $5 billion acquisition of PrivateBancorp, based... more
I first wrote about Black Diamond Group Ltd. (OTC:BDIMF) in March this year and wanted to take a bit of a different focus. I cover Canadian energy service companies, and typically when I write my articles, I write them assuming that the reader has a good understanding of this industry. However, within the last month, Black Diamond Group Ltd. shares have become extremely cheap, bringing the dividend yield up to over 13% last week and a current dividend yield of 11.5%. Therefore, I wanted to focus this article specifically more towards the retail investor looking for safe dividend yields. This article will go over the Q1 financial statements and consider the long-term viability of the business, the safety of its current dividend, and the ability for the company to grow... more
One of the best ways to generate stable income in any market environment is through dividend growth investing. Thankfully, this strategy is not rocket science and it is fairly simple for anyone to implement. Ideally, you want to build a portfolio of dividend paying stocks that have a track record of increasing their dividends every year. This way, not only are you generating stable income, but you are also able to maintain the purchasing power of your dollar (as long as your dividends are at least rising at the rate of inflation).
All Dividend Stocks Are Not Created Equal
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