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David Alton Clark  

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  • Kinder Morgan: Finding The Sweet Spot
    Today, 1:01 AM KMI 13 Comments

    Summary

    • Kinder Morgan has the opportunity to invest up to $5.3 billion beyond the current backlog in the West region alone.
    • The majority of the new investments are related to the transition from coal to natural gas powered electrical generation plants. The EIA expects natural gas to overtake coal fired power.
    • The EIA projects increasing demand for electricity will create a need for new capacity. The EIA projects natural gas plants will account for more than 70% of all new capacity.
    • Kinder Morgan is well positioned to take advantage of these developments. The company is well-versed in the art of finding the sweet spot.
  • Johnson & Johnson: A Dividend Growth Powerhouse In The Making?
    Fri, Mar. 27 JNJ 45 Comments

    Summary

    • JNJ currently sports a dividend with a yield of approximately 3%.
    • This may be reason enough for some income investors to own the stock right now.
    • Nonetheless, I see an excellent opportunity for youthful dividend growth investors with a long-term outlook.
  • Kinder Morgan: The Cat Is Officially Out Of The Bag
    Fri, Mar. 27 KMI 220 Comments

    Summary

    • There has been rampant speculation that Kinder Morgan’s Trans Mountain Pipeline Expansion project may not be approved by the Canadian government.
    • This latest issue at hand was the vehement protests regarding the company’s plan to tunnel underneath the Burnaby Mountain.
    • Nonetheless, based on a recently released letter from Canada’s Natural Resources Minister Greg Rickford, it looks like Kinder Morgan has the Canadian government it its corner.
  • Kinder Morgan: The Sharks Have Begun To Circle
    Thu, Mar. 26 KMI 87 Comments

    Summary

    • Kinder Morgan has stated the company will increase the dividend by 16% this year and 10% each year until 2020.
    • These projections sound good in theory. Yet, the company will need to grow EPS in order to make good on these promises.
    • In the following article I will detail what I see as the top three growth opportunities for the beyond the current backlog.
  • AT&T: A Bird In Hand Is Worth 2 In The Bush
    Thu, Mar. 26 T 58 Comments

    Summary

    • AT&T is in the midst of a major industry shake up that may hamper profits. Nonetheless, the stock has actually held up quite well.
    • Furthermore, it’s hard to ignore the company’s superior dividend yield. AT&T has a higher yield than any stock in the Dow at 5.68%.
    • In the following article I will explain why AT&T takes the cake when it comes to a great total return opportunity.
  • General Electric: Enough Idle Chatter, Let's Cut To The Chase
    Tue, Mar. 24 GE 38 Comments

    Summary

    • Barclays soured on the multi-industry conglomerate sector in a note released Monday. Barclays sees stock returns being limited to mid-single-digit levels in 2015 and improving only slightly in 2016.
    • However, the firm reiterated its Outperform rating on General Electric. Barclays stated General Electric is "in the midst of positive change.".
    • Several potential head and tail winds have emerged for the stock. Nonetheless, there is one major positive reason to own the stock, the dividend.
  • Micron: Is The Worm About To Turn (Again)?
    Tue, Mar. 24 MU 18 Comments

    Summary

    • Micron’s stock is down nearly 20% since the start of the year.
    • In an article I wrote in November of last year I stated this would be the case.
    • The question… is now the time to buy or jump ship?
  • Exxon Mobil: Seeds Of The Next Oil Boom Are Being Sown As We Speak
    Fri, Mar. 20 XOM 47 Comments

    Summary

    • Exxon Mobil is the best positioned company to navigate the latest oil price shock.
    • Presently, I surmise more pain lies ahead for the oil patch. Even so, this may actually be good news for the company.
    • You see, the seeds of the coming boom are inevitably sown during the current bust.
    • In this article I will do my best to deconstruct the current state of affairs and determine if Exxon Mobil currently offers a buying opportunity for dividend and income investors.
  • Bank Of America: Best Buy Among Big Banks With Most Upside To Boot?
    Fri, Mar. 20 BAC 46 Comments

    Summary

    • Bank of America’s stock came under pressure since the Fed’s statement came out Wednesday.
    • The Fed’s statement was seen as being dovish which is construed as bad news for banks.
    • In this article I will explain why this is not necessarily the case.
  • Kinder Morgan: A $6.4 Billion Backlog Growth Opportunity Nears Fruition
    Thu, Mar. 19 KMI 39 Comments

    Summary

    • A major growth opportunity for Kinder Morgan gained momentum recently, referred to as the Northeast Energy Direct Project. This is a major component of the region's growth opportunities.
    • Kinder Morgan states growth opportunities in the Eastern region could add up to $10 billion to the backlog. The NED project accounts for $6.5 billion of the potential backlog inclusion.
    • In this article, I will provide some color and insight regarding the recently released information and come to a conclusion regarding the stock for dividend growth investors.
  • General Electric: A Picture Is Worth A Thousand Words
    Wed, Mar. 18 GE 64 Comments

    Summary

    • General Electric has had several new developments come to the fore recently.
    • Some of these developments could be construed as negatively affecting earnings in 2015.
    • This has caused me to change my rating on the stock from Buy to Hold.
    • In the following article, I will do my best to lay out what I see as the negatives for the company presently and come to a conclusion.
  • General Electric: The Path To Increased Profitability Materializes
    Editors' Pick • Sun, Mar. 15 GE 69 Comments

    Summary

    • General Electric has been focused on improving the bottom line for quite some time.
    • At the company’s Technology Investor Meeting held on March 11 Dan Heintzelman, Vice Chairman of Enterprise Risk and Operations, detailed the company’s strategy to attack gross margins.
    • In the following article I will provide the details of the plan and provide my take on its efficacy.
    • Finally, I will make a determination if the stock currently presents a buying opportunity for dividend growth investors.
  • AT&T: Time To Be Greedy?
    Fri, Mar. 13 T 177 Comments

    Summary

    • AT&T's stock has taken a beating along with the rest of the telecom sector in recent weeks. The FCC's net neutrality ruling has substantially increased uncertainty.
    • The company sees revenues and margins pressured in the near term by the success of its mobile share program. Even so, it expects this impact to diminish over time.
    • AT&T actually reiterated its full-year guidance. The recent sell-off has unwittingly increased the yield to 5.67%, thereby creating a buying opportunity in the stock.
    • Dividend growth investors looking for income now and the chance to lock in a superior yield for years to come should seriously consider AT&T at this level.
  • General Electric: About To Pull Yet Another Rabbit Out Of Its Hat?
    Thu, Mar. 12 GE 23 Comments

    Summary

    • General Electric has significantly under-performed its industrial peers since the 2008 debacle.
    • The primary reason for the stock’s under-performance is that exposure to financial risks created by GE Capital has run off investors.
    • The company has been committed to shrinking GE Capital over the years. General Electric recently stated it may even sever the business entirely.
    • The conundrum is that GE Capital generated $2.3 billion in profit last year. And there you have the proverbial rock and hard place. With General Electric’s profits trapped squarely in the middle.
    • The question is… can General Electric pull another Rabbit out of its hat?
  • Kinder Morgan: Trees Don't Grow To The Sky
    Thu, Mar. 12 KMI 126 Comments

    Summary

    • I have been bullish on Kinder Morgan for the past year.
    • I feel the stock offers dividend income investors the best opportunity for growth over the next five years at least.
    • The stock has held up quite well throughout oil's drastic descent of nearly 50%. Even so, there are always risks to any investment. There are several headwinds on the horizon.
    • With the stock trading close to all-time highs, new dividend growth investors looking to start a position may want to take a wait-and-see approach to starting a position.
  • Bank Of America: The Best Bank To Buy For The Next 5 Years?
    Tue, Mar. 10 BAC 46 Comments

    Summary

    • Bank of America sold off recently due to a series of reports the bank may fail the 2015 stress test.
    • After passing the first round of tests with more than sufficient capital ratios, the bank looks in good shape to have its capital return plans approved on March 11th.
    • The bank's shares have been crippled in recent quarters by an endless onslaught of legal issues. Even so, it appears this headwind may finally be coming to an end.
    • Nevertheless, there are always headwinds to consider. I will do my best to distinguish reality from repartee and determine if Bank of America presents a buying opportunity at current levels.
  • General Electric: Has The Blueprint For A Break Up Materialized?
    Sun, Mar. 8 GE 59 Comments

    Summary

    • General Electric’s CEO Jeff Immelt has been the focus of several articles recently. Rumor has it Immelt’s days are numbered.
    • After contemplating Immelt’s potential departure for some time, the thought General Electric should break up completely crossed my mind.
    • General Electric’s latest blunder going all-in on oil and gas just as the commodity cratered may have been the final straw that broke the proverbial camel’s back.
    • In the following article I will do my best to deconstruct the pros and cons of a General Electric break up and come to a conclusion.
  • Kinder Morgan: Don't Be Fooled By The Nattering Nabobs Of Negativism
    Editors' Pick • Fri, Mar. 6 KMI 118 Comments

    Summary

    • Kinder Morgan's Trans Mountain pipeline expansion plan continues to have trouble with the City of Vancouver and Burnaby. This is only the latest flare up between the parties.
    • The expansion is a $5.4 billion plan to increase capacity of the Northwestern oil pipeline to 890,000 barrels per day throughput. The expansion plan would provide substantial tax revenue increases.
    • The opposition will inevitably reach a fever pitch as the National Energy Board hearing draws near. In the following article, I will explain why it's really simply business as usual.
  • General Electric: This One Chart May Spell 'The End' For Immelt
    Thu, Mar. 5 GE 113 Comments

    Summary

    • Rumors are swirling Jeff Immelt’s reign at General Electric may finally be coming to an end.
    • Immelt’s legacy at General Electric has been one of colossal underperformance as compared to the S&P 500.
    • Some have suggested the final nail in Immelt’s coffin was the decision to enter into the oil and gas business.
    • In the following article I will do my best to distinguish reality from repartee and come to a conclusion.
  • Ford: About To Take A Turn For The Worse?
    Thu, Mar. 5 F 46 Comments

    Summary

    • Ford’s stock looks like it's getting ready to roll over.
    • The company’s sales in February came up short.
    • Other macro issues have come into focus which may dampen future sales.
    • In the following article I will do my best to shed some light on potential head and tail winds for the stock.
  • Kinder Morgan: Has The Worm Turned Once Again?
    Wed, Mar. 4 KMI 110 Comments

    Summary

    • Kinder Morgan offers dividend growth investors the lowest risk highest reward dividend growth investment opportunity for the next five years.
    • The company has stable free cash flow, strong prospects for growth and a high level of visibility related to dividend growth projections.
    • The company stated the dividend will increase by 16% in 2015 and by 10% each year until 2020. Furthermore, the stock appears undervalued at current levels.
    • New regulations related to rail transport of petrochemicals may bode well for the company in the near future as well.
  • General Electric: Is Immelt About To Play The Ace Up His Sleeve?
    Thu, Feb. 26 GE 124 Comments

    Summary

    • General Electric shareholders effectively have a $20 billion ace in the hole in the form of a final Synchrony split off.
    • The transaction will effectively act as massive share repurchase significantly reducing the share count.
    • There are other major positive developments associated with the transaction as well. None of which are currently priced in to the stock.
    • Could an enormous insider buy be a signal the transaction may be executed sooner rather than later?
  • Chevron: Trapped Between A Rock And A Hard Place
    Wed, Feb. 25 CVX 16 Comments

    Summary

    • Chevron is a globally integrated operator with substantial size and scale to navigate a low oil price environment. Nonetheless, the company is trapped between a rock and a hard place.
    • Things will get worse before they get better. I do not believe oil has bottomed. Prices need to stay lower for a lot longer to shake out marginal producers.
    • Nonetheless, the seeds of the next boom are inevitably sewn during the current bust. Chevron will survive due to its low leverage and diversified portfolio of upstream reserves and production.
  • General Electric's Latest Headache Adds To 2015 Earnings Uncertainty
    Mon, Feb. 23 GE 33 Comments

    Summary

    • General Electric’s Alstom acquisition just hit a snag.
    • The EU confirmed it will open an in-depth investigation into whether General Electric's planned acquisition of Alstom's energy unit might limit competition in the market for heavy-duty gas turbines.
    • These types of investigations are considered routine. Nonetheless, this development will add months to the timeline and increase the uncertainty surrounding General Electric’s largest deal ever.
  • Exxon Mobil: The Day Of Reckoning Draws Near
    Fri, Feb. 20 XOM 90 Comments

    Summary

    • Exxon Mobil has had a plethora of bad news come out in recent days.
    • First, it was revealed Warren Buffett liquidated his entire position in the stock. Second, the company experienced a major refinery explosion Tuesday night. Finally, oil inventories rose drastically.
    • The stock is down on the news. Even so, I believe more trouble lies ahead for the stock. In the following article I will make my case.
  • Bank Of America: Buy The Dip, It Will Not Last
    Thu, Feb. 19 BAC 85 Comments

    Summary

    • The Fed meeting minutes from January were just released. The minutes reinforced the Fed's dovish stance.
    • Consequently, money center banks began to sell off on the news as the yield curve flattened.
    • I believe the sell off in Bank of America shares offers an excellent buying opportunity. In the following article I will explain why.
  • General Electric's Next Big Growth Opportunity Presents Itself
    Wed, Feb. 11 GE 121 Comments

    Summary

    • General Electric is a blue-chip, dividend-paying stalwart. The company has increased the dividend seven times over the past five years.
    • The company is able to do this by staying on the cutting edge of innovation in all segments of the business across the board.
    • Many have touted that the downdraft in oil prices would be devastating to General Electric's profits. I beg to differ.
    • General Electric's well-balanced and diversified portfolio of businesses allows the company to withstand a downturn in one segment or another.
    • In the following article, I will highlight one segment with promising growth prospects going forward.
  • Kinder Morgan: A Highly Strategic And Accretive Silver Lining Materializes
    Tue, Feb. 10 KMI 44 Comments

    Summary

    • It was just reported Kinder Morgan purchased three Vopak U.S. Terminals and one undeveloped site for $158 Million.
    • The transaction will boost Kinder Morgan’s storage capacity to over 45 million barrels on the Houston ship channel and 138 million barrels in North America.
    • The transaction will further solidify Kinder Morgan’s position as the largest independent terminal operator in North America.
    • In the following article I will lay out the details of the transaction and add some color as to why this is a very savvy move by the company.
  • Chevron: Don't Be Fooled By Dead Cat Bounce
    Tue, Feb. 10 CVX 42 Comments

    Summary

    • Chevron popped nearly seven percent over the past week as oil began to rally.
    • I posit the rally is unjustified and will prove to be a dead cat bounce.
    • This risk/reward equation to buy shares for dividend growth investors is now unfavorable.
  • Chevron: Against All Odds
    Sat, Jan. 31 CVX 48 Comments

    Summary

    • Chevron just reported fourth-quarter earnings that actually bested estimates.
    • Nevertheless, the stock nosedived when the company announced the stock buyback program was being suspended.
    • Fortunately, the stock reversed course when the CEO stated maintaining the dividend was a top priority on the conference call.
    • In the following article, I will point out the key highlights and do my best to add some value to the discussion.
  • Exxon Mobil: There Will Be Blood
    Thu, Jan. 29 XOM 188 Comments

    Summary

    • Exxon Mobil reports earnings on Monday February 2, 2015, before the market opens.
    • Crude oil’s rapid descent will negatively impact Exxon’s results. The only question that remains is by how much.
    • The bull and bears are taking up their respective positions. It appears the line in the sand has been drawn.
    • In the following article I will do my best to shed some light on the subject.
  • Chevron: The Crude Reality
    Tue, Jan. 27 CVX 108 Comments

    Summary

    • The rapid pace of oil’s downward spiral will negatively impact Chevron. The question is by how much.
    • Chevron’s stock has fallen 17% over the last six months while oil has plummeted over 60% and continues lower.
    • The current narrative is that a supply and demand imbalance is responsible for oil’s downward spiral and will “self-correct” in short order. I beg to differ.
    • I submit there is much more in play than a mere supply/demand imbalance presently. I do not see the downward spiral ending anytime soon.
    • In the following article I will do my best to add some prescient thoughts for your consideration on the subject.