|Day's Range||1.7200 - 1.7200|
Federal Reserve Chair Jerome Powell is set to testify before lawmakers starting tomorrow. This as White House Economic Advisor Larry Kudlow addressed concerns over Powell's job security. Yahoo Finance's Seana Smith and Brian Cheung discuss.
Fed Chair Jay Powell is heading to Capitol Hill. Investors are watching as he is set to testify before the House Financial Services Committee and Senate Banking Committee this week. Yahoo Finance's Seana Smith and RDQ Economics Chief Economist John Ryding discuss.
Given the bargain prices as well as encouraging trends, investors are cashing in on the high dividend yields in the energy sector with ETFs.
NextEra Energy (NEE) will likely report its second-quarter earnings on July 24. The utility is expected to report an EPS of $2.28 for the quarter ended June 30.
The classic equity sectors to hunt for yield have been defense, consumer staples, and utilities. The idea has always been that these sectors provide less in the way of capital gains, compared to more volatile high-flying sectors like technology, but in exchange for the more moderate capital gains, investors get stability and yield.This year, however, as investors have tried to navigate the tail end of the business cycle and changing stances by the Federal Reserve, fund flows have gone to those classic defensive sectors. The result is double digit gains for the stock itself pre-dividend in year to date performance. Consumer Staples Select (NYSEARCA:XLP) is up almost 19%. The utility ETF Utilities SPDR (NYSEARCA:XLU) is not far behind, up 15%.Dividend yields have fallen under this scenario, and XLU yields just 3%, while XLP yields just 2.7%. It's clear then, that investors are going to need to look elsewhere for higher yields.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Energy, being rather out of favor this year, is offering some compelling opportunities. Dividend Stocks to Buy: Energy Transfer LPDividend Yield: 8.2%Energy Transfer (NYSE:ET) has been steadily executing on the strategic front. They have expanded their presence to China to meet growing demand for LNG and NGL products by opening an office in Beijing earlier in the year. ET signed a letter of intent with Sunoco (NYSE:SUN) to enter into a joint venture on a diesel fuel pipeline to West Texas. They have sold interests in certain pipelines to raise capital at attractive prices.Regardless of how the overall market is treating the energy sector, especially midstream master limited partnerships (MLPs), ET has not missed a beat. Financials are in good order with a distribution cash coverage ratio of 2.07x. Fiscal year adjusted EBITDA forecast of $10.7 billion have been reaffirmed.All the while the business keeps expanding. Plans on a Bakken pipeline optimization project will start next year. And on the Permian side, ET is expanding its Permian Express pipeline system by an incremental 120,000 barrels per day. The Permian Express 4 expansion is expected to be in service by the end of the third quarter of 2019.Cash flows are extremely healthy. The dividend is secure. And new projects are fueling growth. The future for ET looks better than good. DCP MidstreamDividend Yield: 10%DCP Midstream (NYSE:DCP) reported a strong first quarter yet yields remain sky high. This presents a great opportunity for patient investors who understand that equity sectors go on rotation and that there will be a day when the market wakes up and realizes how cheap companies have gotten.DCP owns and operates more than 60 plants and 64,000 miles of natural gas and natural gas liquids pipelines across 9 states. On this diverse base of assets, the company generated record distributable cash flow of $224 million in the first quarter. This puts the distribution coverage ratio at 1.45 times. So, despite difficult times for the sector, a best-in-class operator will still produce best-in-class results.NGL Energy Partner's (NYSE:NGL) pipeline throughput volumes was extremely strong, increasing approximately 30% year-over-year. In particular, Sand Hills and Southern Hills drove higher volumes. As a result, adjusted EBITDA set a record as well for the quarter. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Somehow DCP is just sitting there yielding 10%. Take advantage of the mispricing. BPDividend Yield: 6%BP (NYSE:BP) has a plan in place to secure long-term cash flow distributions to shareholders. Oil prices have been volatile, but their turnaround strategy is well underway.There are a number of ramp-up projects, three of which came on stream in Q1, and another that is scheduled to come on stream in Q2. These ramp-ups should make up for some lost volume that has certain analysts concerned.The good news is that most of the major turnarounds are behind BP, so the company is now in more of a steady state. There will be some impact in Q2 but not to the extent that the market seems to be pricing in.Lubricants, which has been a great business, has recently run into some issues with base oil prices, but management indicates that is leveling off. BP has made major efforts starting late last year to make that department more efficient, so there are ways to work around the headwinds.A recovery across a couple of BP's business lines going forward, in addition to the refinery system readying to go "full tilt" in 2020, has positioned the company well both from a growth and cash flow standpoint. Being paid 6% for the company's thought through strategy to play off isn't a bad deal. As of this writing, Luce Emerson was long shares of Energy Transfer LP. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip * 7 Services Stocks to Buy for the Rest of 2019 * 6 Stocks to Buy and 1 to Sell Based on Insider Trading The post 3 Best Dividend Stocks to Buy in the Energy Sector appeared first on InvestorPlace.
Southern Company (SO) declared a quarterly dividend of $0.62 per share on Monday. The dividend is in line with the previous quarterly dividend.
Shares of PNM Resources Inc. were indicated down nearly 3% in premarket trading Friday, after the electric utilities company cut its profit guidance for the second quarter and the full year, citing "substantially milder temperatures" in New Mexico. PNM lowered its Q2 earnings-per-share estimate to 36 cents to 38 cents from 57 cents to 59 cents, well below the FactSet consensus of 62 cents. The 2019 EPS guidance range was lowered to $2.05 to $2.11 from $2.10 to $2.20, versus the FactSet consensus of $2.15. "The PNM service territory experienced its mildest second quarter over the last 19 years, resulting in 37% lower cooling degree-days and lower expectations for second quarter ongoing earnings," the company said in a statement. PNM's stock has rallied 22.7% year to date through Thursday, while the SPDR Utilities Select Sector ETF has climbed 15.3% and the S&P 500 has advanced 19.7%.
The U.S. economy is putting up some impressive numbers in GDP, jobs and wages, but many pundits fear that a slowdown is pending. Trade-war fears with China and the European Union remain front and center in the news. And the yield curve is threatening to invert, meaning short-term interest rates may be moving higher than long-term rates. That's often a sign of pending recession on its own.By some measures, the current expansion is now 10 years old, making it one of the longest on record. That seems ancient, but there's no rule that says it can't continue. Australia is in its 28th consecutive year of economic growth.Even so, all good things do eventually come to an end. And for the U.S. (and for Australia, for that matter), economists are looking for slowdowns. Even the Federal Reserve has indicated it is ready to lower short-term interest rates to combat any problems that may arise.Professional investment managers may look to sell a good deal of their holdings to step aside as the market falls. However, for most individuals, timing the market by selling when conditions seem dicey, and buying back when conditions firm up, is a big mistake. Even the pros don't always get it right, and they have armies of analysts and rooms full of technology at their disposal.Here are six ways to prepare for the next stock market decline. The key is to make smaller adjustments to your portfolio to reduce risk and still be ready to participate when the market resumes its upward march. SEE ALSO: 25 Stocks Every Retiree Should Own
We have highlighted some investing ideas that could prove to be extremely beneficial for investors for the rest of the year in the current market environment.
Utilities, which are sensitive to interest rates, rose 1.8% while the S&P; 500 managed to gain almost 2% in the week that ended on July 5.
In a surprise move, Christine Lagarde was nominated as the president of the European Central Bank on Wednesday. What are the implications?
With the S&P 500 and Dow at all-time highs, it's been a great year for every stock market sector, and margin debt levels have room to grow.
On Wednesday, utility stocks continued to outperform as benchmark Treasury yields remained weak for the second consecutive day.
The unusual rally in utility stocks has pushed them to record valuation multiples this year. On average, they're currently trading at 19 times their forward earnings!
The Utilities Select Sector SPDR ETF (XLU) has continued to trade close to its peak recently. It closed at $59.63 at last week, almost 1% and 6% above its 50-day and 200-day simple moving averages.…
Joe Biden has proposed a climate change framework that aims to zero down on carbon emissions and create millions of new jobs by 2050.