Endangered Dividends List
There have been no dividend cuts since the previous issue of EIA. There are also no additions to the list in advance of the release of Q3 results, which for our coverage universe should mostly be reported in the next three to five weeks.
Portfolio: Updating our Targets
Considering our sanguine outlook for commodity prices, we’re updating our buy under target prices for several stocks in our portfolio universe including raising our buy under price for EOG Resources to $90, Pioneer Natural Resources to $175 and Occidental Petroleum to $32.
Time is Running Out to Catch Energy in 2021
There’s little more than three months left in 2021. And time is rapidly running out for energy-light investors and their advisors to catch up to the sizzling performance of oil and gas stocks.
The S&P 500 Energy Index has returned better than 31 percent year to date, or nearly 12 percentage points more than the S&P 500 as a whole. And oil and gas stocks are even further ahead of the companies conventional wisdom says will replace them: The Invesco Solar ETF (NYSE: TAN) is underwater by -18 percent year-to-date, while the ARK Innovation ETF (NYSE: ARKK) is lower by more than -5 percent.
Cashing in on Canada’s Budding Energy Renaissance
Next month marks the 15-year anniversary of the so-called “Halloween Massacre”—when Canada’s then Prime Minister Stephen Harper reversed a pledge not to tax income trusts, and brought the investment boom to an abrupt end.
Endangered Dividends List
There have been no dividend cuts since the previous issue of EIA, leaving the year-to-date total at nine. We are, however, making several changes to the Endangered Dividends List to reflect the impact of Q2 earnings, guidance updates and market developments.
Portfolio: How We’ve Fared and a Look Ahead
“Rock Bottom Prices Ready to Rise”: That was the headline of our December 31, 2020 issue. And we followed it up with “Energy: Ready, Set, Buy!” for what posted on January 18, 2021. That advice has turned out quite well for readers who followed our advice to buy stocks of best in class energy companies.
Endangered Dividends List
Since the previous issue of EIA, two coverage universe companies have announced dividend cuts. That brings the total number this year to nine, a small fraction of last year’s reductions but also a clear demonstration there’s still danger to dividends at this stage of the cycle.
Portfolio: Q2 Wrapup and the Best of Good Buys
All of our Model Portfolio and High Yield Energy List companies have now released their Q2 results and updated guidance. Here in brief are the highlights. See the Feature article for a macro discussion of the results and what they say about the outlook for the rest of 2021 and beyond.
Another Chance to Buy Top Quality Energy Cheap
Benchmark North American oil prices are back over $70 per barrel. That’s a level few outside of our Energy and Income Advisor investment community expected at the beginning of 2021. Natural gas, meanwhile, has pushed to its highest price since December 2018, well over $4 per million British Thermal Units.
Energy stocks, however, remain largely unloved. In fact, the S&P Energy Index is still 11 percent below its late June high, before the combination of profit-taking, concerns about a new coronavirus wave and OPEC+ output increases took the wind out of its sails.
Energy stocks’ underperformance of the commodities demonstrates once again the lack of investor conviction in the staying power of the sector rally that began in early November 2020. In fact, the S&P Energy Index currently trades almost 20 percent lower than it did in early January 2020 prior to pandemic, when benchmark oil sold for $10 a barrel less than it does now and gas was almost $2 lower.
Endangered Dividends List
Shell Midstream Partners LP (NYSE: SHLX) is the seventh company in our Energy and Income Advisor coverage universe to cut its dividend in calendar 2021. The company announced a quarterly payout of 30 cents per share for payment August 13, a reduction of -34.8 percent from the previous level of 46 cents.
Live Chat with
Elliott and Roger on May. 25, 2022
Portfolios & Ratings
Model Portfolios
Balanced portfolios of energy stocks for aggressive and conservative investors.
Producers and Drillers
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
MLPs and Midstream
Our assessment of every energy-related master limited partnership.
International Coverage
Roger Conrad’s coverage of more than 70 dividend-paying energy names.
Experts
-
Elliott H. Gue
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
-
Roger S. Conrad
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor