High Yields and Dividend Growth Potential: an Exclusive Interview with John McIlveen, the Senior Vice President for Research at Jacob Securities
67 WALL STREET, New York - May 14, 2013 - The Wall Street Transcript has just published its High-Yield Equity Securities Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Increasing Demand for Midstream Assets - U.S. Energy Infrastructure Build Out - Oil and Gas Transportation Infrastructure Demand - Master Limited Partnerships Distribution Growth - Low Treasury Yields and MLP Dividends -
Companies include: Capstone Turbine Corp. (CPST). Enerplus (ERF), Northland (NPI.TO), Innergex (INE.TO), Veresen Inc. (VSN.TO) and many others.
In the following excerpt from the High-Yield Equity Securities Report, an experienced Canadian high dividend power generation analyst discusses his inveatment criteria and top picks for investors:
TWST: How are the renewable energy stocks doing in Canada?
Mr. McIlveen: Well, there are actually three categories of renewable energy, so you really have to look at them individually. This one that we're talking about here is power generation.
The second one is equipment manufacturers, and they have had a very difficult time. Those are companies that make solar panels, they make wind turbines, things like that. They get in overcapacity situations, and of course, that always crushes everybody for a little while. For example, with the solar panel manufacturing market, they'll cream it for three years, and then they crush it for three years. This one, of course, also had China entering virtually all of these markets in a very big way and crushing everybody with the price competition.
The third category is the other power generators that don't pay a dividend. They have been crushed. They are all down anywhere from 40% to 80% from say 18 months ago, and that's because they have to go to market every time they want to build a new plant and the market punishes them if they think they need money. They crush the stock, and then the stock gets so low that the companies don't want to raise money. They probably could, but its just so dilutive with your stock half of what is was like a year ago, so they don't do it. They start going to private markets and doing joint ventures or deals with private equity as opposed to public equity. Those stocks as a group have been crushed over the last year or two.
TWST: For investors looking at these dividend-paying stocks, what should they be paying attention to, which should they look at?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
