KMI

We Like NextEra Energy’s ESG Focus But Capital Market Conditions Now Showing Cracks

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Image Source: NextEra Energy By Brian Nelson, CFA We’ve written in the past about NextEra Energy (NEE), and our latest note can be found here. The company remains one of our favorite utilities, but mostly because of its renewables energy exposure as it relates to ESG considerations. When it comes to utilities, more generally, however, we tend to take a pass on almost all of them given the capital intensity involved in their operations and their interest-rate sensitivity, especially now in an environment where interest rates are returning to “normal” levels in the mid-single-digits. The forward estimated dividend yield on the Utilities Select Sector SPDR ETF (XLU) stands at ~3.8% at the time of this writing, and if investors are … Read more

Latest Report Refreshes

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Select the company’s link below to access their stock webpage where their 16-page stock report (pdf) can be downloaded. The stock webpage also houses the company’s dividend report (pdf), where applicable, as well as the latest company/industry commentary and news.    Comcast (CMCSA) Coterra Energy (CTRA) Dish Network (DISH) Kinder Morgan (KMI) Medtronic (MDT) Merck (MRK) Zoetis (ZTS) Schlumberger (SLB) Baker Hughes (BKR) Alcoa (AA) BHP Billiton (BHP) EOG Resources (EOG) ———- It’s Here!  The Second Edition of Value Trap! Order today!   —– Brian Nelson owns shares in SPY, SCHG, QQQ, DIA, VOT, BITO, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, and RSP. Some of the … Read more

ICYMI: Questions for Valuentum’s Brian Nelson

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Valuentum’s President Brian Nelson, CFA, answers your questions. Q: What Is Valuentum? A: In short, it is a strategy that combines the concepts of value and momentum within individual stocks. We measure value through the cash-based sources of intrinsic value – net cash on the balance sheet and future expected free cash flow. We measure momentum rather simply, generally via relative strength or other technical and momentum indicators. We like stocks with strong net cash positions on the balance sheet, ones that are generating tremendous free cash flow, and have strong secular growth prospects such that the prospect for expectations of free cash flow can continue to be ratcheted higher. Today, most Valuentum stocks are included in the stylistic area … Read more

Magellan Midstream Soars on Takeout Deal

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Image: Magellan Midstream Partners soars on a takeout offer from ONEOK, Inc. By Brian Nelson, CFA We’re as happy as we can be to see a midstream energy master limited partnership (MLP) takeout. On Sunday, May 14, it was publicly announced that Magellan Midstream (MMP) would be bought by ONEOK, Inc. (OKE) in a cash and stock deal worth ~$18.8 billion including assumed debt. According to the deal terms, the transaction would give $25 per share in cash and 0.667 common share of ONEOK for each MMP common unit. Though many are questioning the rationale behind the deal, energy infrastructure rollups continue to reduce the number of energy MLPs trading on public markets, as we predicted years ago. Units of … Read more

The Energy Sector Has Had a Great Run

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Image: The energy sector was the top-performing sector during 2022. Exxon Mobil’s and Chevron’s first-quarter 2023 results were strong but as expected. By Brian Nelson, CFA 2022 could have been a very painful year for many if they had ignored the energy sector. In fact, the only sector in the green last year was energy, which advanced ~59% during the year, according to data from S&P Global (SPGI). The next best-performing sector during 2022 was the utilities sector, which fell 1.44%. Even the consumer staples sector experienced a 3.17% decline during 2022. Quite simply, if you didn’t have energy exposure during 2022, one likely had a very painful year and a reduced chance of outperforming the S&P 500. Heading into … Read more

Dividend Increases/Decreases for the Week of April 21

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Below we provide a list of firms that raised their dividends during the week ending April 21. 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                          Bar Harbor Bankshares (BHB): now $0.28 per share quarterly dividend, was $0.26. Builders Capital Mortgage (BCF:CA): now $0.3945 per share quarterly dividend, was $0.1972. CapStar Financial (CSTR): now $0.11 per share quarterly dividend, was $0.10. Costco (COST): now $1.02 per share quarterly dividend, was $0.90. Cross Timbers Royalty Trust (CRT): now $0.2446 per share monthly dividend, was $0.1792. Discover Financial Services (DFS): now $0.70 … Read more

Our Reports on Stocks in the Oil and Gas Complex Industry

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Dividend Yield: Estimated on a forward-looking annualized basis. VBI: The Valuentum Buying Index, a timeliness indicator that overlays a price-to-fair-value estimate consideration. Fair Value Estimate: Derived by Valuentum’s enterprise valuation process. Dividend Cushion ratio: A ratio assessing the health of the dividend (the higher, the better). Data as of the date of this article. Individual company reports may have been updated subsequent to the publishing of this article, so please download a company’s stock and dividend report for its latest information and data. Note: The data in the tables of each of the below companies’ respective stock pages is updated the weekend after the publishing of this update. Please click on a company name below to view the corresponding equity … Read more

Energy Pipelines: What a Difference A Few Years Have Made!

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Image: Midstream energy companies have significantly improved their free cash coverage of their payouts in recent years. We’ve taken note. Source: Relevant 10-Q filings. By Brian Nelson, CFA As of our last check, no longer are the vast majority of energy pipeline players not covering their dividends/distributions with traditional free cash flow, as measured by cash flow from operations less all capital spending. Said another way, free cash flow after dividends, distributions is positive for a great many energy pipeline players these days. We’re pleased by the developments across midstream, and we expect to make some moves in the simulated newsletter portfolios to potentially add the Alerian MLP (AMLP) ETF to the simulated newsletter portfolios as a result. This is … Read more

Exclusive Call: What To Expect From Valuentum in 2023

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Video: 2022 was a successful year by almost every measure from the simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio to the simulated High Yield Dividend Newsletter portfolio and Exclusive publication and beyond. There were some disappointments in 2022, of course, but the year showed the value of a Valuentum membership. Join President of Investment Research Brian Nelson on this year’s Exclusive conference call to learn what to expect from Valuentum in 2023. Cheers! Transcript President of Investment Research Brian Nelson: Happy Holidays everyone! I hope that you are enjoying this special time of year with family and friends, and I wish you all a wonderful 2023! I just wanted to take a few minutes to recap … Read more

Be Careful With Celebrity Endorsement of Investment Products

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Dear members: — Have you ever wondered why so many trust the TV for financial advice or stock tips? — You guessed it: It comes back to “brain science” or the concept of familiarity. When we see a celebrity or our favorite stock guru on the television, it arouses our emotions and connects us with the idea, making the experience more memorable. The brain tends to treat our favorite newscaster or celebrity as a trusted, familiar friend, and therefore we translate those feelings into expertise and a “valid” endorsement. — As humans, we can sometimes be misled. Recently, Kim Kardashian had to pay $1.26 million to settle an SEC charge that she promoted a cryptocurrency while failing to disclose she … Read more