CP

Air Quality Standards Take Aim at Coal

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After competing with an abundance of lower-priced, cleaner natural gas, coal miners (KOL) may now have to deal with more demand headwinds as governments aim to reduce coal burning. The US Expectations are already for as much as 27 gigawatts’ worth of coal generation (about 8.5% of the US coal fleet) to retire by 2016. This percentage could rise to nearly 17% (one-sixth) by 2020, according to the Energy Information Administration. In addition to the expected retirements, the Environmental Protection Agency (EPA) plans to block all new coal-fired plants unless the construction of these plants coincides with expensive technology that captures greenhouse gas emissions. Image Source: Energy Information Administration Though the EPA forecasts that no traditional coal-fired power plants (1) … Read more

Headline Risk Entering the Market

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The summer months have been relatively uneventful, with the exception of concerns relating to the Federal Reserve’s coming tapering of its bond-buying program and quibbles between hedge fund giants over a company that makes protein shakes—we’re talking about Herbalife (HLF) in the latter example. Even the sequester proved to be a largely underwhelming event so far through 2013. As a result, the market has focused on fundamentals, awarding strong performance and punishing poor performance (almost irrespective of valuation parameters). However, the market remains fully valued at current levels, with the forward price-to-earnings ratio on S&P 500 companies in-line with its 10-year average at 14.1 times, and the distribution of our Valuentum Buying Index ratings tilting decidedly negative. The forward price-to-earnings … Read more

Valuentum’s Joint Outlook for the Railroad and Coal Industries

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Key Takeaways: North American railroads operate as an oligopoly, benefit from substantial barriers to entry, and boast significant pricing power. Free cash flow generation trends are strong at the largest operators–Union Pacific (UNP) and Canadian National (CNI)–but industry-wide free cash flow margins (free cash flow divided by revenue) average in the mid-single-digits as elevated maintenance capital costs weigh on conversion rates. Canadian National and Union Pacific are currently the most efficient operators (as measured by their respective operating ratios), while Genessee & Wyoming (GWR) and Canadian Pacific (CP) trail the pack. Coal is the single most important commodity to the railroads, accounting for more than 20% of class I railroad freight revenue. Though US coal volumes should advance over the … Read more

Dividend Increases/Decreases for the Week of May 2

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Below we provide a list of firms that raised their dividends during the week ending May 2. 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 International Group (AIG): now $0.45 per share quarterly dividend, was $0.40. American Water Works (AWK): now $0.8275 per share quarterly dividend, was $0.7650. Apple (AAPL): now $0.26 per share quarterly dividend, was $0.25. Apollo Global Management (APO): now $0.51 per share quarterly dividend, was $0.46. Atkore (ATKR): now $0.33 per share quarterly dividend, was $0.32. Bachem Holding AG (BCHMF): now CHF 0.85 per … Read more

Dividend Increases/Decreases for the Week Ending May 12

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Below we provide a list of firms that raised/lowered their dividends during the week ending May 12. 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 The Brink’s (BCO): now $0.15 per share quarterly dividend, was $0.10. Buckeye Partners (BPL): now $1.25 per share quarterly dividend, was $1.2375. BWX Technologies (BWXT): now $0.11 per share quarterly dividend, was $0.09. Cabot (CBT): now $0.315 per share quarterly dividend, was $0.30. Canadian Pacific Railway (CP): now CAD 0.5625 per share quarterly dividend, was CAD 0.50. Clorox (CLX): now $0.84 per share quarterly dividend, was … Read more

Dividend Increases/Decreases for the Week Ending May 11

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Below we provide a list of firms that raised their dividends during the week ending May 11. 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 Algonquin Power & Utilities (AQN): now $0.1282 per share quarterly dividend, was $0.1165. Baker Hughes (BHGE): now $0.18 per share quarterly dividend, was $0.12. Baxter (BAX): now $0.19 per share quarterly dividend, was $0.16. BG Staffing (BGSF): now $0.30 per share quarterly dividend, was $0.25. Brookline Bancorp (BRKL): now $0.10 per share quarterly dividend, was $0.09. Business First Bancshares (BFST): now $0.08 per share quarterly dividend, … Read more

Dividend Increases/Decreases for the Week Ending May 10

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Below we provide a list of firms that raised their dividends during the week ending May 10. 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 A&W Revenue Royalties Income Fund (AWRRF): now CAD 0.154 per share monthly dividend, was CAD 0.147. Algonquin Power & Utilities (AQN): now $0.141 per share quarterly dividend, was $0.1282. ALPS Alerian Energy Infrastructure ETF (ENFR): now $0.28753 per share quarterly dividend, was $0.25892. Atlantica Yield (AY): now $0.39 per share quarterly dividend, was $0.37. Arbor Realty Trust (ABR): now $0.28 per share quarterly dividend, was $0.27. … Read more