BHP

Dividend Increases/Decreases for the Week Ending September 8

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Below we provide a list of firms that raised/lowered their dividends during the week ending September 8. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Anthem (ANTM): now $0.70 per share quarterly dividend, was $0.65. BHP Billiton (BHP): now $0.86 per ADS semi-annual dividend, was $0.80. BIOQUAL (BIOQ): now $0.60 per share annual dividend, was $0.45. Blue Hills Bancorp (BHBK): now $0.15 per share quarterly dividend, was $0.05. Brady (BRC): now $0.2075 per share quarterly dividend, was $0.205. Brinker (EAT): now $0.38 per share quarterly dividend, was $0.34. Clough Global Allocation … Read more

Valuentum’s 3 Breakthroughs in the Field of Finance and More

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Valuentum’s President Brian Nelson pauses for a picture before speaking at the CFA Society of Houston in March 2017. By Valuentum Editorial Staff Let’s cover Valuentum’s 3 major breakthroughs in the field of finance. The first one is big and may challenge you to rethink everything you think you know about investing. 1. On a logical framework, Valuentum has debunked John C. Bogle’s landmark syllogism that has paved the way for the concept of index investing. Index investing has been built on a logical shortcoming, whether supported by evidence or not. We think it is important that the investment community know of this. Read (pdf): The “Luck” and “Randomness” of Index Funds (2018), Brian Nelson, CFA See video documentation: /FALLACY_of_Index_Funds To … Read more

Dividend Cushion Ratio Efficacy Undeniable

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By Kris Rosemann We weren’t surprised by Costamare’s (CMRE) ~66% cut in its dividend, and readers should have been on the same page. Prior to the cut, the firm registered a -1.5 Dividend Cushion ratio, well below the cutoff for consideration as a safe payout. We have long been concerned with the safety of the dividend, as the above chart depicts. Not only was the quantitative portion of our research spot on with respect to the risk in Costamare’s dividend, but the qualitative side of our research adequately reiterated our concerns. The headline of Costamare’s dividend report: Costamare should not be paying a dividend, in our opinion. Costamare is but one of many dividend cuts the Dividend Cushion ratio has … Read more

Dividend Increases/Decreases for the Week Ending August 19

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Below we provide a list of firms that raised/lowered their dividends during the week ending August 19. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week American Financial (AFG): now $0.3125 per share quarterly dividend, was $0.28. Briggs & Stratton (BGG): now $0.14 per share quarterly dividend, was $0.135. Brinker (EAT): now $0.34 per share quarterly dividend, was $0.32. Chemical Financial (CHFC): now $0.27 per share quarterly dividend, was $0.26. Community Bank System (CBU): now $0.32 per share quarterly dividend, was $0.31. Delta Natural Gas Company (DGAS): now $0.2075 per share quarterly … Read more

Little Progress Seen in Iron Ore Market Balancing

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Image Source: Peter Craven By Kris Rosemann Recent reports from the likes of BHP Billiton (BHP) have echoed our previous concerns with the iron ore market, “Iron Ore Market Stability Still A Ways Off.” A number of factors on both the supply and demand sides of things are expected to provide pressure to the price of iron as we move further into the back half of 2016. BHP, for one, anticipates economic uncertainty, political instability and well supplied markets to continue weighing on iron ore prices, among other commodities.  Seasonal factors will weigh on Chinese (FXI) demand–the nation is the world’s largest purchaser of seaborne iron–in the winter months when construction typically slows as a result of more inclement weather. … Read more

Brexit: Secession Bells Are Ringing!

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First Baptist Church in Columbia, S.C., where the first secession convention in the United States opened on Dec. 17, 1860. Source: Library of Congress, Washington, DC. Photo. Encyclopædia Britannica Online. Web. 24 Jun. 2016. Global markets are plunging, and the implosion may still be in the early innings. Market valuations remain stretched among stagnant global economic growth, and “Brexit” may be the catalyst for a correction. In the paraphrased words of the well-known The Day of the Jackal author, Frederick Forsyth: the peasants have spoken. On June 23, the UK (EWU) held a referendum, in which anyone of voting age could take part, to decide whether the country should leave the European Union. The turnout was incredible at nearly 72%, and … Read more

Still More Ag Deals Being Cultivated?

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Image Source: Aqua Mechanical After Monsanto (MON) COO Brett Begemann called any takeover talks “wild speculation” just a week ago, German health care and agricultural product firm Bayer (BAYRY) on May 23 officially confirmed that it has offered to acquire US seeds company Monsanto for $62 billion in cash, or $122 per share. Monsanto’s shares continue to trade at a discount to the disclosed price in light of the uncertain path to deal completion. The proposed offer represents a substantial premium to Monsanto’s May 9 closing price of ~$89 and our standalone fair value estimate in the low $90s. At a deal multiple of nearly 16 times Monsanto’s trailing EBITDA and one far above our fair value estimate, Monsanto shareholders … Read more

Iron Ore Market Stability Still A Ways Off

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Image Source: Peter Craven After an increase in iron ore prices in early 2016, some iron ore producers have warned that the rally may not be sustained, while others believe the beginning of a prolonged rebound may be in place. The Chinese economy (FXI), the largest consumer of iron ore in the world, remains in a transition phase while iron ore producers continue to increase production, with some producing at record levels. Many major suppliers are currently undertaking large investment projects that will create material production capacity growth in the future as well. Though we cannot deny the slight bounce in iron ore prices, we aren’t sure supply and demand rebalancing is right around the corner. Recent headlines may cause … Read more

The Long-term Remains Ominous for Potash Producers

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By Brian Nelson, CFA We think investors are finally getting a feel for the vulnerability of commodity-oriented equities, almost across the board. Potash (POT), the largest member of Canpotex, rang the alarm bell a number of weeks ago, slashing its dividend, “The Bounce in Energy and Potash’s ‘Surprising’ Dividend Cut (Jan 2016).” Times have been tough across the industry, but the big shocker was its “little brother,” pure-play Intrepid Potash (IPI), which put up terrible fourth-quarter results February 29 and warned that “pricing pressure…has the potential to cause a breach in (its) loan covenants.” Incredible. Intrepid Potash has now fallen to under $1 per share from ~$40 in early 2011. As we wrote in July 2013, “Uralkali Backs Out of … Read more

Avoid Dividend Double Whammies By Using the Dividend Cushion!

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By Brian Nelson, CFA I think a lot of investors sell themselves short. Of course you want a strong and growing dividend, but analysis shouldn’t stop there. One of the most important things you could ever do is evaluate just how strong that dividend truly is via the Dividend Cushion ratio, a metric that measures a company’s dividend coverage via future free cash flow generation with consideration of its balance sheet health. For example, how valuable would it have been to know that Kinder Morgan (KMI), ConocoPhillips (COP), and BHP Billiton (BHP) were going to cut their dividends…in advance of them doing so? Our membership knew these cuts were probable long before anyone else because they paid attention to each … Read more