Wednesday, April 24, 2024
Like everybody else, I love dividends. Always have and always will. I am also a big fan of stock buybacks. I get a kick out of the endless debate about stock buybacks. They are neither good nor bad in and of themselves. Stock buybacks are fantastic at low valuations with funds generated by the business. […]
There has been a series of flawed assumptions followed by lousy planning from the governments of the world as they have continued their push to reduce carbon emissions by replacing current energy sources with renewables, primarily wind and solar. This discussion will not take the path you may be imagining. The enormous and wrong assumption […]
On August 24, we had confirmation of what I’ve been saying for a while now: energy is the place to invest if you’re looking for dividends, specifically oil dividends. As Reuters reports: “Energy companies reaping record profits from soaring oil and gas prices have helped global dividend payments to shareholders soar above pre-pandemic levels and […]
The DCP Midstream (DCP) buyout offer earlier this month marked another master limited partnership (MLP) coming off the board. Over the last eight years, the number of publicly traded midstream MLPs declined by 74%. Here’s what that means for investors, especially those who like the tax-advantaged, high-yield income from MLPs… On August 18, Phillips 66 […]
BHP Group (BHP) is returning a record amount of cash to investors as surging coal prices helped the world’s biggest miner deliver a 26% increase in annual profits. The company and its shareholders are grateful it hung on to some of its coal assets. That kept BHP’s cash profit climbing in the 2022 financial year, […]
Unusual options activity placed Energy Select Sector SPDR ETF (XLE) into the spotlight last week. It turns out a massive options trade of 150,000 contracts traded in a spread, with about $16 million of capital required. This one trade accounted for nearly half the options traded on the day. It appears the position may be […]
Forget oil—the real money is in natural gas. Or at least that’s the message coming from a pioneer of the U.S. shale revolution, Chesapeake Energy (CHK). From Prince to Pauper to Prince Again? Once upon a time—when its stock was valued at more than $35 billion and its CEO, Aubrey McClendon, had the biggest pay […]
I continue to love the sector Wall Street seems to hate: energy. Analysts are saying oil has peaked and bad times are directly ahead for the sector. I believe that oil markets are more fragile than the recent price decline might signal. The same factors that sent energy prices higher over the past year remain […]
At the moment the oil market at the moment is much like the famous quote from the beginning of “A Tale of Two Cities.” It is a tale of two markets: the futures market for oil (controlled by Wall Street) and the physical market, which reflects the real-world demand for oil. Both factor in many […]
Crude oil prices have dropped significantly since early June, and energy stock prices have matched or exceeded the decline. Yet energy commodity prices remain very high, and the supply/demand imbalances point towards higher prices later in the year. Now is the time to invest in all three of the energy subsectors. Here’s my favorite way […]
