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Kinder Morgan: Finding The Sweet Spot
- 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?
- 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
- 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
- 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
- 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
- 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)?
- 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
- 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?
- 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
- 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
- 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
- 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?
- 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?
- 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
- 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?
- 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?
- 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
- 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
- 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?
- 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?
- 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?
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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.