Nov.17 -- U.S. Senator Marsha Blackburn, a Republican from Tennessee, discusses today's Senate hearing with the heads of tech companies Facebook Inc. and Twitter Inc. She speaks on "Bloomberg Technology."
Nov.17 -- U.S. Senator Marsha Blackburn, a Republican from Tennessee, discusses today's Senate hearing with the heads of tech companies Facebook Inc. and Twitter Inc. She speaks on "Bloomberg Technology."
Dividend stocks are the Swiss army knives of the stock market.When dividend stocks go up, you make money. When they don’t go up — you still make money (from the dividend). Heck, even when a dividend stock goes down in price, it’s not all bad news, because the dividend yield (the absolute dividend amount, divided by the stock price) gets richer the more the stock falls in price.Knowing all this, wouldn’t you like to find great dividend stocks? Of course you would. Raymond James analysts have chimed in – and they are recommending two high-yield dividend stocks for investors looking to find protection for their portfolio. These are stocks with a specific set of clear attributes: a dividend yield of 10% and Strong Buy ratings.Kimbell Royalty Partners (KRP)We’ll start with Kimbell Royalty Partners, a land investment company operating in some of the US’ major oil and gas producing regions: the Bakken of North Dakota, Pennsylvania’s Appalachian region, the Colorado Rockies, and several formations in Texas. Kimbell owns mineral rights in more than 13 million acres across these regions, and collects royalties from over 95,000 active wells. Over 40,000 of those wells are in the Permian Basin of Texas, the famous oil formation that has, in the past decade, helped turn the US from a net importer of hydrocarbons to a net exporter.The coronavirus crisis hit Kimbell directly in the pocketbook, knocking down share prices and earnings as economic restrictions, social lockdowns, and the economic downturn all struck at production and demand. The situation has only begun to revive, with the Q3 revenues growing 44% sequentially to reach $24.3 million.Kimbell has long been a reliable dividend payer, with a twist. Where most dividend stocks keep their payouts stable, typically making just adjustment in a year, Kimbell has a history of reevaluating its dividend payment every quarter. The result is a dividend that is rarely predictable – but is always affordable for the company. The last declaration, for the third quarter, was 19 cents per common share, or up 46% from the previous quarter. At that rate, the dividend yields ~10%,Covering the stock for Raymond James, analyst John Freeman noted, “Despite a strong quarterly performance and a nearly 50% distribution raise in 3Q, the market continues to under appreciate the unique value proposition of Kimbell's assets, in our view. Kimbell has a best-in-class 13% base decline, exposure to every major basin and commodity, as well as a very manageable leverage profile…”Regarding the possible anti-hydrocarbon stance of a Biden Administration, Freeman sees little reason for worry, saying, “Investors concerned about a potential Biden presidency (which appears increasingly likely) have little to fear in KRP. The company has less than ~2% of acreage on federal lands, meaning a frac ban on those properties would not have a material impact on KRP's business and might actually help them if it improved the overall supply impact."In line with these comments, Freeman rates KRP a Strong Buy, and his $9 price target implies it has room for 25% growth going forward. (To watch Freeman’s track record, click here)Wall Street appears to agree with Freeman, and the analyst consensus view is also a Strong Buy, based on 5 unanimous positive reviews. This stock is priced at $7.21, and its $11 average target is even more bullish than Freemans, suggesting a one-year upside of ~52%. (See KRP stock analysis on TipRanks)NexPoint Real Estate Finance (NREF)NexPoint inhabits the real estate trust niche, investing in mortgage loans on rental units, both single- and multi-family occupancy, along with self-storage units and office spaces. The company operates in the US, across major metropolitan hubs.NexPoint held its IPO in February this year, just before the coronavirus pandemic inspired an economic crisis. The offering saw 5 million shares sell, and brought in some $95 million in capital. Since then, the shares are down 13%. Earnings, however, have posted gains in each full quarter that the company has reported as a public entity, coming in at 37 cents per share in Q2 and 52 cents in Q3. The Q3 number was 30% above the forecast.The dividend here is also solid. NexPoint started out with a 22-cent per share payment in Q1, and raised it in Q2 to its current level of 40 cents per common share. This annualizes to $1.60, making the yield an impressive ~10%.Stephan Laws, 5-star analyst with Raymond James, is impressed with what he sees here. Laws writes of NexPoint, “Recent investments should drive significant core earnings growth, which is reflected in the increased 4Q guidance range of $0.49-0.53 per share (up from $0.46-0.50 per share). The guidance incorporates the full quarter impact of the new 3Q investments as well as new mezz investments made in October. We are increasing our 4Q and 2021 estimates, and we have increased confidence in our forecast for a 1Q21 dividend increase, which we now forecast at $0.45 per share…”Following these sentiments, Laws puts a Strong Buy rating on NREF. His $18 price target suggest the stock has a 9% upside potential for the year ahead. (To watch Laws’ track record, click here)With 2 recent Buy reviews, the analyst consensus on NREF shares is a Moderate Buy. The stock’s $18 average price target matches Laws’, implying 9% growth. (See NREF stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Investors are crowding into the stock market right now, and they aren't seeing the big signals that indicate they are about to get caught up in a rough period of selling, says our call of the day from contrarian investor Steven Jon Kaplan.
The House will vote this week on the Holding Foreign Companies Accountable Act. Will it lead to the delisting of Alibaba stock and other China stocks?
Think carefully about your choice so you can actually pay off your student debt.
Nikola may now need to quickly raise cash as its GM deal has fallen apart.
(Bloomberg) -- Exxon Mobil Corp. is about to incur the biggest writedown in its modern history as the giant U.S. oil and gas producer reels from this year’s collapse in energy prices.Exxon -- traditionally far more reluctant to cut the book value of its business than other oil majors -- on Monday disclosed it will write down North and South American natural gas fields by $17 billion to $20 billion. That could make it the industry’s steepest impairment since BP Plc’s 2010 Gulf of Mexico oil spill that killed 11 workers and fouled the sea for months. Meanwhile, capital spending will be drastically reduced through 2025.The announcement comes in the waning days of a grueling year for Chief Executive Officer Darren Woods, who’s resorted to laying off thousands of employees, curtailing retirement benefits and canceling ambitious growth projects. The former refinery manager, who stepped in to the top job in 2017, has been forced to recast his seven-year, $210 billion blueprint for rejuvenating Exxon’s aging portfolio of crude and gas holdings.In addition to dropping vast swaths of gas assets from the development queue, Woods is capping capital spending at $25 billion a year through 2025, a $10 billion reduction from his pre-pandemic target.This year has been particularly bruising for America’s most-iconic oil explorer. Exxon lost money for three consecutive quarters, an unprecedented streak, the shares dipped to an 18-year low and the company was ejected from the bosom of blue-chip stocks, the Dow Jones Industrial Average. Woods also plans to cut 15% of the company’s workforce by the end of next year.From being the largest company in the S&P 500 Index as recently as 2012, Exxon now ranks just inside the top 50 as energy lost its luster and technology giants grew. Chevron Corp. now has a larger market valuation than Exxon.No PivotUnlike its European peers, Exxon has so far chosen to stick with its $15 billion-a-year dividend and has increased borrowing in recent months to fund it and its other capital priorities. On an annualized basis, the dividend has been increased each year for almost four decades.Optimism that vaccines will soon restore global economic growth buoyed crude prices in recent weeks but the impact of the contagion on Big Oil is likely to be longlasting. With European giants Royal Dutch Shell Plc and BP accelerating the pivot to renewables and Exxon locking in drastic spending cuts, capital flows into big, traditional developments are expected to shrink in coming years.Cowen & Co. analyst Jason Gabelman detected a subtle shift in Exxon’s word choices that may herald a dramatic change in financial priorities. Whereas company executives touted Exxon’s “reliable and growing dividend” during the third-quarter earnings conference call, Monday’s statement only mentioned reliability, the analyst said in a note to clients.‘High-Grading’“Continued emphasis on high-grading the asset base -- through exploration, divestment and prioritization of advantaged development opportunities -- will improve earnings power and cash generation, and rebuild balance sheet capacity,” Woods said in the statement.Exxon has been warning shareholders since October that its gas assets were at risk of significant impairment. Previously, the energy titan’s largest writedown was for about $3.4 billion in 2016, according to Bloomberg Intelligence.Assets removed from Exxon’s development plans include so-called dry gas resources in Appalachia and the Rocky Mountains, Oklahoma, Texas, Louisiana and Arkansas, as well as western Canada and Argentina, the company said. It will attempt to sell “less strategic” assets.The writedown stems from former CEO Rex Tillerson’s decision a decade ago to buy XTO Energy for $35 billion rather than spend years building an in-house shale business. At the time, the outlook for North American gas prices was bright because demand was rising faster than supply.Supply GlutInstead, fracking was a victim of its own success, unleashing so much gas that it overwhelmed demand and the infrastructure needed to handle it, resulting in a prolonged stretch of depressed prices.U.S. rival Chevron recorded an impairment of more than $5 billion on Appalachian gas a year ago, and recently agreed to sell those fields to EQT Corp. for about $735 million.(Updates to recast lead paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
It's been an impressive November for S&P 500 stocks. And the month served up another reminder of the power in picking top stocks.
Shares of Nio Inc. and XPeng Inc. surged Tuesday, after the China-based electric vehicle makers reported strong growth in deliveries in November, with Nio's more than doubling and XPeng's more than quadrupling.
Pfizer stock jumped in mid-November after the pharma company said it was "within days" of seeking emergency authorization for its coronavirus vaccine. But is the stock a buy now?
If you wait until you are 70 to take your Social Security benefit, you will receive monthly payments that are 32% higher than the benefits you would have received at age 66, which is the retirement age for many Americans. Retirees who wait to claim can get hundreds of dollars more each month than those who take benefits early. About half of Americans take Social Security before full retirement age, often because they can't afford not to.
At the outset of 2020, Moderna (MRNA) was hardly a household name. But with 2021 in plain sight, the whole world is keeping a close watch on the company’s latest developments.More pointedly, Moderna has firmly planted itself in the general public’s psyche due to its Covid-19 vaccine candidate mRNA-1273. The company reported interim data from a late stage study, in which mRNA-1273 displayed a 94.1% success rate in preventing the coronavirus (100% against severe cases), making the granting of an EUA (emergency use approval) from the FDA increasingly likely. In fact, Brookline Capital analyst Leah Rush Cann believes approval could be sealed by mid-December.After assessing the Moderna model following the vaccine’s positive results, the 5-star analyst noted, “Moderna’s probability of success should be meaningfully increased; therefore, we are lowering our discount and increasing our target price to reflect these changes.”The change is a significant uptick – up from $95 to $164. Unsurprisingly, the analyst’s rating for MRNA stays a Buy. (To watch Cann’s track record, click here)The bullish case for Moderna currently resides with mRNA-1273’s worldwide commercial opportunity. Moderna anticipates manufacturing between 500 million to 1 billion doses next year, and Cann expects the vaccine to account for 99.2% of the company’s 2021 revenue. The US government has already put in an order for 100 million doses of mRNA-1273, with an option to purchase another 400 million. The European Union has ordered 80 million doses and another 56 million are earmarked for Canada.However, Cann also points out the Covid-19 vaccine is just one of several assets in Moderna’s potentially lucrative pipeline.“mRNA-1273 is one of 17 experimental clinical compounds Moderna has in development,” Cann said. “The potential products in clinical development have the potential to have combined estimated sales of $77.1 billion by 2030. In addition, Moderna has seven preclinical programs that have the potential for combined 2030 sales of $8.4 billion.”Most of Cann’s colleagues also look favorably upon Moderna’s prospects, though not all are convinced. Based on 8 Buys, 4 holds and 2 Sells, the stock has a Moderate Buy consensus rating. However, shares have gained 680% year-to-date, and trading at near all-time high of $152.74. The analysts evidently feel the stock has surged enough for now; The $111.46 average price target suggests the share price will drop by 27% over the next 12 months. (See MRNA stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The feasibility of President-elect Joe Biden’s bold plan for sweeping tax increases on the wealthy has been vastly diminished in the absence of big Democratic wins in the U.S. House of Representatives and Senate. Biden’s focus on raising income taxes on the top 1% of earners, for instance, could appeal to some Republicans nodding toward a more populist agenda and get pushed through. “Since it wasn’t a blue wave, it’s much less likely we’ll see sweeping reform,” says Ali Hutchinson, managing director at Brown Brothers Harriman.
Cannabis stocks continued their postelection rise from the ashes Monday, ahead of votes this week regarding decriminalization in the U.S. House of Representatives and the United Nations.
Financial advisors need to help these clients with their retirement planning. A job loss for a person nearing retirement may result in cuts to lifestyle expenses or downsizing the dream for the golden years.
When looking for the best artificial intelligence stocks to buy, identify companies using AI technology to improve products or gain a strategic edge, such as Microsoft, Netflix and Nvidia.
Stock futures rise as investors await testimony from Federal Reserve Chairman Jerome Powell and look back at the best monthly performance for equities since April; Tesla to be added to the S&P; 500 in one tranche; Salesforce reports earnings.
Former Tesla Inc (NASDAQ: TSLA) factory worker, Martin Tripp, has agreed to pay the company $400,000 to settle a lawsuit, Bloomberg reports.What Happened: Tripp's payment is part of the $167 million lawsuit filed by Tesla in 2018 that accused him of illegally divulging trade secrets related to Model 3 production.Tripp, who worked at the Nevada factory from 2017 to 2018, was fired after Tesla found out he was the source leaking information about Model 3 production delays to reporters. Telsa filed a lawsuit against Tripp a day after firing him. Tripp and Tesla CEO Elon Musk have engaged in a public feud since, trading insults.Tripp claimed that he was a whistleblower and wanted to bring to light Tesla's factory inefficiencies and scrap wastage, which cost the company $150 million, and he countersued Musk for defamation.Why It Matters: As part of the settlement, Tripp admitted violating trade secret laws and confidentiality agreements and promised to pay Tesla $25,000 for continuing to reveal information about the company despite being ordered to stop by a judge. The federal judge also threw out Tripp's case for failing to show that Musk acted with actual malice.Price Action: TSLA shares closed lower by 3.10% at $567.60 on Monday.Image Courtesy: WikimediaSee more from Benzinga * Click here for options trades from Benzinga * Elon Musk Surpasses Bill Gates To Become World's Second Richest * Tesla Rolls Out Firmware Update After Hacker Discovers Model X Security Flaw(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
With several months having now passed since each pick, we can begin to measure the performance of each stock recommended by analysts at The Motley Fool Stock Advisor during the third quarter. So far the group has delivered an average gain of 18%, outperforming each of the major indexes during that span. Here's a breakdown.Crowdstrike Holdings Inc (NASDAQ: CRWD) * Recommended on July 2 * Performance Since Recommendation: up 38%Analyst Reasoning:Tom Gardner recommended CrowdStrike for three key reasons, the big one being that the company's Falcon platform is more effective than its competitors. And with millions of people working from home during the pandemic, cybersecurity has become more critical than ever. This has increased both the size of the addressable market and the need for a company like CrowdStrike. The company also reported both earnings and guidance in early September above analyst estimates.ASML Holding (NASDAQ: ASML) * Recommended on July 16 * Performance Since Recommendation: 13%Analyst Reasoning:David Gardner's recommendation of ASML, the Dutch semiconductor company, is because they're the market leader in lithography systems, which are required to make newer generation 7-nanometer-and-under chips.While other semiconductor companies specialize in certain chips, ASML is chip agnostic. According to Gardner, ASML has a monopoly on extreme ultraviolet (EUV) lithography technology, with a large head start over potential competitors. This means the company will continue to grow as the world becomes more reliant on semiconductors for everything. Wix.com Ltd (NASDAQ: WIX) * Recommended on August 6 * Performance Since Recommendation: down 18%Analyst Reasoning:Tom Gardner recommended Wix.com in August as a pandemic play. Though the stock has rallied hard this year along with other e-commerce plays, the company's freemium model allows it to acquire customers at a greater rate than its peers. "Despite its rich valuation, Wix.com is in the perfect space to profit from the desperate need among millions of businesses worldwide to get access to the power of the internet," he wrote."JD.com Inc (NASDAQ: JD) * Recommended on August 20 * Performance Since Recommendation: up 13%Analyst Reasoning:David Gardner's recommendation of JD.com is another pandemic play. He likes the stock because the company appears to be closing the gap with Alibaba (NYSE: BABA). JD, which has only been profitable for one year, recently reported EPS for Q3 above estimates along with in-line revenue. They also recently racked up $43.17 billion in sales from Singles' Day. That growth, combined with the fact that its largest competitor appears to be in the regulatory crosshairs, has JD well-positioned going forward. Fiverr International Ltd (NYSE: FVRR) * Recommended on Sept 3 * Performance Since Recommendation: up 64%Analyst Reasoning:Tom Gardner wrote to buy Fiverr seven weeks before the company reported a blowout quarter, sending its shares skyrocketing. Though he acknowledged there are other players in the space (notably Upwork (NASDAQ: UPWK), the $100 million total addressable market for the gig economy in the U.S. alone makes this an attractive play. Going forward, a lot of the company's growth should come from international markets, as they've expanded all over Europe in 2020. Bandwidth Inc (NASDAQ: BAND) * Recommended on Sept. 17 * Performance Since Recommendation: down 2%Analyst Reasoning:David Gardner's call to buy Bandwidth comes down to the "late mover advantage." Unlike the other names on this list, BAND has been around for decades. But their timing--building up their network after the dotcom bubble and before newer competitors like Twilio (NASDAQ: TWLO) and RingCentral (NASDAQ: RING) entered the market--allowed them to acquire close to 70 million numbers for its voice over internet protocol service. Today, Bandwidth counts most of the largest conferencing solutions as customers, including Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) for Google Voice, Microsoft Corporation (NASDAQ: MSFT) for Skype, and Zoom Video Communications (NASDAQ: ZM). See more from Benzinga * Click here for options trades from Benzinga * How COVID Is Forcing Financial Services Companies To Adapt * Khiron Is Continuing To Grow Its Presence In Latin America(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Advanced Micro Devices stock hit a record high after the company's second-quarter earnings report. Here is what its fundamentals and technical analysis say about buying AMD stock now.
Few companies have such storied history as IBM, which has undergone a massive, multiyear restructuring. Now, with a new chief executive and big push into the cloud, is IBM stock a buy?