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698900.0
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2021-08-05 00:00:00 UTC
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Daily Dividend Report: D,GD,ADP,SLF,TSCO
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https://www.nasdaq.com/articles/daily-dividend-report%3A-dgdadpslftsco-2021-08-05
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The board of directors of Dominion Energy has declared a quarterly dividend of 63 cents per share of common stock. Dividends are payable on Sept. 20, 2021, to shareholders of record at the close of business Sept. 3, 2021. This is the 374th consecutive dividend that Dominion Energy or its predecessor company has paid holders of common stock. The company's last quarterly dividend was declared May 5, 2021.
The board of directors of General Dynamics today declared a regular quarterly dividend of $1.19 per share on the company's common stock, payable November 12, 2021, to shareholders of record on October 8, 2021.
The board of directors of Automatic Data Processing has declared a regular quarterly dividend of 93 cents per share payable October 1, 2021 to shareholders of record on September 10, 2021.
The Board of Directors of Sun Life Financial today announced that a dividend of $0.55 per share on the common shares of the Company has been declared, payable September 29, 2021 to shareholders of record at the close of business on August 25, 2021. This is the same amount as paid in the previous quarter.
Tractor Supply Company, the largest rural lifestyle retailer in the United States, today announced that its Board of Directors declared a quarterly cash dividend of $0.52 per share of the Company's common stock. The dividend will be paid on September 8, 2021, to stockholders of record of the Company's common stock as of the close of business on August 23, 2021.
VIDEO: Daily Dividend Report: D,GD,ADP,SLF,TSCO
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The board of directors of Dominion Energy has declared a quarterly dividend of 63 cents per share of common stock. The board of directors of General Dynamics today declared a regular quarterly dividend of $1.19 per share on the company's common stock, payable November 12, 2021, to shareholders of record on October 8, 2021. The board of directors of Automatic Data Processing has declared a regular quarterly dividend of 93 cents per share payable October 1, 2021 to shareholders of record on September 10, 2021.
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The board of directors of General Dynamics today declared a regular quarterly dividend of $1.19 per share on the company's common stock, payable November 12, 2021, to shareholders of record on October 8, 2021. The board of directors of Automatic Data Processing has declared a regular quarterly dividend of 93 cents per share payable October 1, 2021 to shareholders of record on September 10, 2021. The Board of Directors of Sun Life Financial today announced that a dividend of $0.55 per share on the common shares of the Company has been declared, payable September 29, 2021 to shareholders of record at the close of business on August 25, 2021.
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The board of directors of General Dynamics today declared a regular quarterly dividend of $1.19 per share on the company's common stock, payable November 12, 2021, to shareholders of record on October 8, 2021. The Board of Directors of Sun Life Financial today announced that a dividend of $0.55 per share on the common shares of the Company has been declared, payable September 29, 2021 to shareholders of record at the close of business on August 25, 2021. Tractor Supply Company, the largest rural lifestyle retailer in the United States, today announced that its Board of Directors declared a quarterly cash dividend of $0.52 per share of the Company's common stock.
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The board of directors of Dominion Energy has declared a quarterly dividend of 63 cents per share of common stock. The Board of Directors of Sun Life Financial today announced that a dividend of $0.55 per share on the common shares of the Company has been declared, payable September 29, 2021 to shareholders of record at the close of business on August 25, 2021. The dividend will be paid on September 8, 2021, to stockholders of record of the Company's common stock as of the close of business on August 23, 2021.
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698901.0
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2021-08-03 00:00:00 UTC
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iShares Core High Dividend ETF -- Insider Buying Index Registering 10.4%
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https://www.nasdaq.com/articles/ishares-core-high-dividend-etf-insider-buying-index-registering-10.4-2021-08-03
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A look at the weighted underlying holdings of the iShares Core High Dividend ETF (Symbol: HDV) shows an impressive 10.4% of holdings on a weighted basis have experienced insider buying within the past six months.
Dominion Energy Inc (Symbol: D), which makes up 1.25% of the iShares Core High Dividend ETF (Symbol: HDV), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $89,591,637 worth of D, making it the #22 largest holding. The table below details the recent insider buying activity observed at D:
D — last trade: $75.35 — Recent Insider Buys:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
03/03/2021 Robert M. Blue President and CEO 14,402 $69.44 $999,998
03/04/2021 Mark J. Kington Director 2,000 $69.29 $138,578
10 ETFs With Stocks That Insiders Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A look at the weighted underlying holdings of the iShares Core High Dividend ETF (Symbol: HDV) shows an impressive 10.4% of holdings on a weighted basis have experienced insider buying within the past six months. Dominion Energy Inc (Symbol: D), which makes up 1.25% of the iShares Core High Dividend ETF (Symbol: HDV), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. 03/03/2021 Robert M. Blue President and CEO 14,402 $69.44 $999,998 03/04/2021 Mark J. Kington Director 2,000 $69.29 $138,578 10 ETFs With Stocks That Insiders Are Buying » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A look at the weighted underlying holdings of the iShares Core High Dividend ETF (Symbol: HDV) shows an impressive 10.4% of holdings on a weighted basis have experienced insider buying within the past six months. Dominion Energy Inc (Symbol: D), which makes up 1.25% of the iShares Core High Dividend ETF (Symbol: HDV), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at D: D — last trade: $75.35 — Recent Insider Buys:
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A look at the weighted underlying holdings of the iShares Core High Dividend ETF (Symbol: HDV) shows an impressive 10.4% of holdings on a weighted basis have experienced insider buying within the past six months. Dominion Energy Inc (Symbol: D), which makes up 1.25% of the iShares Core High Dividend ETF (Symbol: HDV), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. 03/03/2021 Robert M. Blue President and CEO 14,402 $69.44 $999,998 03/04/2021 Mark J. Kington Director 2,000 $69.29 $138,578 10 ETFs With Stocks That Insiders Are Buying » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A look at the weighted underlying holdings of the iShares Core High Dividend ETF (Symbol: HDV) shows an impressive 10.4% of holdings on a weighted basis have experienced insider buying within the past six months. The table below details the recent insider buying activity observed at D: D — last trade: $75.35 — Recent Insider Buys: 03/03/2021 Robert M. Blue President and CEO 14,402 $69.44 $999,998 03/04/2021 Mark J. Kington Director 2,000 $69.29 $138,578 10 ETFs With Stocks That Insiders Are Buying » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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698902.0
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2021-07-29 00:00:00 UTC
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Thursday Sector Laggards: Utilities, Healthcare
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https://www.nasdaq.com/articles/thursday-sector-laggards%3A-utilities-healthcare-2021-07-29
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The worst performing sector as of midday Thursday is the Utilities sector, up 0.1%. Within that group, FirstEnergy Corp (Symbol: FE) and Dominion Energy Inc (Symbol: D) are two large stocks that are lagging, showing a loss of 0.5% and 0.4%, respectively. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 0.2% on the day, and up 7.54% year-to-date. FirstEnergy Corp, meanwhile, is up 26.48% year-to-date, and Dominion Energy Inc is up 1.99% year-to-date. Combined, FE and D make up approximately 8.8% of the underlying holdings of XLU.
The next worst performing sector is the Healthcare sector, higher by 0.4%. Among large Healthcare stocks, Baxter International Inc (Symbol: BAX) and Moderna Inc (Symbol: MRNA) are the most notable, showing a loss of 5.2% and 2.6%, respectively. One ETF closely tracking Healthcare stocks is the Health Care Select Sector SPDR ETF (XLV), which is up 0.2% in midday trading, and up 17.10% on a year-to-date basis. Baxter International Inc, meanwhile, is down 2.54% year-to-date, and Moderna Inc is up 225.60% year-to-date. Combined, BAX and MRNA make up approximately 2.9% of the underlying holdings of XLV.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Thursday. As you can see, nine sectors are up on the day, while none of the sectors are down.
SECTOR % CHANGE
Materials +1.6%
Financial +1.3%
Consumer Products +1.2%
Industrial +1.1%
Services +0.9%
Technology & Communications +0.9%
Energy +0.8%
Healthcare +0.4%
Utilities +0.1%
10 ETFs With Stocks That Insiders Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Combined, BAX and MRNA make up approximately 2.9% of the underlying holdings of XLV. Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom: Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Thursday. Materials +1.6% Financial +1.3% Consumer Products +1.2% Industrial +1.1% Services +0.9% Technology & Communications +0.9% Energy +0.8% Healthcare +0.4% Utilities +0.1% 10 ETFs With Stocks That Insiders Are Buying » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Within that group, FirstEnergy Corp (Symbol: FE) and Dominion Energy Inc (Symbol: D) are two large stocks that are lagging, showing a loss of 0.5% and 0.4%, respectively. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 0.2% on the day, and up 7.54% year-to-date. Among large Healthcare stocks, Baxter International Inc (Symbol: BAX) and Moderna Inc (Symbol: MRNA) are the most notable, showing a loss of 5.2% and 2.6%, respectively.
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Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 0.2% on the day, and up 7.54% year-to-date. One ETF closely tracking Healthcare stocks is the Health Care Select Sector SPDR ETF (XLV), which is up 0.2% in midday trading, and up 17.10% on a year-to-date basis. Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom: Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Thursday.
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The worst performing sector as of midday Thursday is the Utilities sector, up 0.1%. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 0.2% on the day, and up 7.54% year-to-date. Combined, FE and D make up approximately 8.8% of the underlying holdings of XLU.
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698903.0
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2021-07-26 00:00:00 UTC
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XLU, DUK, SO, D: Large Inflows Detected at ETF
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https://www.nasdaq.com/articles/xlu-duk-so-d%3A-large-inflows-detected-at-etf-2021-07-26
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $190.6 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 179,520,000 to 182,420,000). Among the largest underlying components of XLU, in trading today Duke Energy Corp (Symbol: DUK) is off about 0.1%, Southern Company (Symbol: SO) is down about 0.1%, and Dominion Energy Inc (Symbol: D) is lower by about 0.5%. For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average:
Looking at the chart above, XLU's low point in its 52 week range is $56.72 per share, with $68.05 as the 52 week high point — that compares with a last trade of $65.52. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $190.6 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 179,520,000 to 182,420,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of XLU, in trading today Duke Energy Corp (Symbol: DUK) is off about 0.1%, Southern Company (Symbol: SO) is down about 0.1%, and Dominion Energy Inc (Symbol: D) is lower by about 0.5%. For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $56.72 per share, with $68.05 as the 52 week high point — that compares with a last trade of $65.52. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $190.6 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 179,520,000 to 182,420,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $56.72 per share, with $68.05 as the 52 week high point — that compares with a last trade of $65.52. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $190.6 million dollar inflow -- that's a 1.6% increase week over week in outstanding units (from 179,520,000 to 182,420,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $56.72 per share, with $68.05 as the 52 week high point — that compares with a last trade of $65.52. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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698904.0
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2021-07-24 00:00:00 UTC
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5 High-Yield Dividend Stocks to Watch
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https://www.nasdaq.com/articles/5-high-yield-dividend-stocks-to-watch-2021-07-24
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A high dividend yield can be alluring for an income-focused investor, especially in today's low-yielding environment. However, it can also be a sign that a company's dividend is in trouble.
Because of that, investors need to thoroughly analyze higher-yielding stocks to make sure they aren't dividend-yield traps. That should include watching them for a few quarters to make sure their financial metrics or business plans trend in the right direction for dividend sustainability.
With that in mind, here are five dividend stocks with enticing payouts that income investors might want to put on their watchlists.
Image source: Getty Images.
A good way to invest in real estate
Gladstone Commercial (NASDAQ: GOOD) is a real estate investment trust (REIT) that pays a 6.6%-yielding monthly dividend. The company has a solid business model, as it owns a diversified real estate portfolio -- office, industrial, retail, and medical office properties -- net leased to various tenants.
The company's diversification and net leases -- where tenants pay most expenses -- enable the REIT to generate steady rental income. The issue with Gladstone is its high dividend payout ratio of about 95% of its funds from operations (FFO), which limits its financial flexibility. As such, investors might want to watch for an improvement in the payout ratio before adding this REIT to their income portfolios.
Going global for passive real estate income
Global Net Lease (NYSE: GNL) has a similar business model as Gladstone Commercial. It also has a diversified portfolio -- office, industrial, and retail properties -- net leased to financially strong tenants. The only difference is its global focus, as a third of its rental income comes from outside the U.S. It also offers an even higher dividend yield of 8.8%.
However, the REIT also has a high payout ratio, even after reducing its dividend last year. Again, investors might want to watch to see if this REIT improves its payout ratio before buying shares, since it might have to cut the dividend again if it doesn't boost it another way.
Wait to see if the rumors are true
Phillips 66 Partners (NYSE: PSXP) currently yields 9.4%. One factor weighing on the pipeline master limited partnership (MLP) is its controversial oil pipeline in North Dakota that opponents want to shut down. If that happened, it would significantly impact the company's income.
In addition to that, the MLP's parent, refining giant Phillips 66, might take it private, given the issues surrounding that oil pipeline and the energy market. Because of that, investors might want to wait and see how things shake out before buying this MLP for its income stream since it could evaporate quickly.
Breaking up is hard to do
Utility Duke Energy (NYSE: DUK) currently yields 3.8%. While utility dividends are usually as solid as they come -- Duke recently increased it by 2% and has paid one for 95 years -- there are some question marks about its future. That's because the company is under pressure from an activist investor to break apart.
If Duke does split off or sell some of its businesses, it might reset the dividend to retain more cash for reinvestment in projects focused on renewable energy. (That's what happened when rival Dominion Energy sold off most of its gas infrastructure assets to clean up its emissions profile.) Given that possibility, investors might want to wait to see what Duke decides before adding it to their portfolios for income.
Uncertainty about the future of the office
Office Properties Income Trust (NASDAQ: OPI) is another REIT with a high dividend yield of 7.5%. The company, as the name suggests, focuses on owning office properties. That's a concern given the uncertain future of the office in a post-pandemic world.
In particular, the REIT has a significant number of leases expiring over the next two years at 23.9% of its total space representing 20.8% of its rental income. If the company doesn't secure new or renewal leases for this space at rates consistent with expiring leases, it will pressure its rental income. Given that unknown, investors might want to see how leasing recovers before buying this REIT for its big-time dividend.
Interesting income ideas to watch
There's usually a reason why a dividend stock has a high yield. In these cases, there's some uncertainty about the future of the payout because of a tight financial profile or another headwind. Because of that, income investors should take a step back and watch these high-yield stocks for a while before buying to make sure they aren't dividend-yield traps.
10 stocks we like better than Duke Energy
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Duke Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Matthew DiLallo owns shares of Phillips 66. The Motley Fool recommends Dominion Energy, Inc and Duke Energy. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The company's diversification and net leases -- where tenants pay most expenses -- enable the REIT to generate steady rental income. In addition to that, the MLP's parent, refining giant Phillips 66, might take it private, given the issues surrounding that oil pipeline and the energy market. If Duke does split off or sell some of its businesses, it might reset the dividend to retain more cash for reinvestment in projects focused on renewable energy.
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A good way to invest in real estate Gladstone Commercial (NASDAQ: GOOD) is a real estate investment trust (REIT) that pays a 6.6%-yielding monthly dividend. The company has a solid business model, as it owns a diversified real estate portfolio -- office, industrial, retail, and medical office properties -- net leased to various tenants. It also has a diversified portfolio -- office, industrial, and retail properties -- net leased to financially strong tenants.
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With that in mind, here are five dividend stocks with enticing payouts that income investors might want to put on their watchlists. Again, investors might want to watch to see if this REIT improves its payout ratio before buying shares, since it might have to cut the dividend again if it doesn't boost it another way. Uncertainty about the future of the office Office Properties Income Trust (NASDAQ: OPI) is another REIT with a high dividend yield of 7.5%.
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Uncertainty about the future of the office Office Properties Income Trust (NASDAQ: OPI) is another REIT with a high dividend yield of 7.5%. * They just revealed what they believe are the ten best stocks for investors to buy right now... and Duke Energy wasn't one of them! A high dividend yield can be alluring for an income-focused investor, especially in today's low-yielding environment.
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698905.0
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2021-07-23 00:00:00 UTC
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Forget Oil Stocks, Buy These 3 Energy Stocks Instead
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https://www.nasdaq.com/articles/forget-oil-stocks-buy-these-3-energy-stocks-instead-2021-07-23
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For decades integrated oil giants had been seen as reliable dividend payers providing a product that the world couldn't live without. Now, however, it is pretty clear that oil's dominance of the world's energy markets is slowly coming to an end. If that has you thinking beyond oil, here are three dividend-paying energy stocks that might be a good fit for you.
1. Down to the basics
Not so long ago, Dominion Energy (NYSE: D) had an upstream energy exploration and production business, but it jettisoned that. It also owned midstream assets in the pipeline space, but those recently got sold, too. Now Dominion is largely a boring utility stock. That's not such a bad thing, even though the midstream sale came with a 33% dividend cut given the size of the division.
Image source: Getty Images.
The thing is, Dominion's set to get back on the growth path backed by regulator-approved spending. The company has $32 billion in capital spending scheduled over the next five years or so. That, in turn, is expected to result in around 6.5% annualized earnings growth through 2025. And that will allow the company to increase the dividend at a rate of around 6% a year while maintaining a solid payout ratio of roughly 65%. The current yield is about 3.3%, which isn't as high as some of the oil giants, but overall this looks like an attractive balance of yield and growth.
2. A clean-energy giant
The next name on the list is U.S. electric utility giant NextEra Energy (NYSE: NEE). There are some similarities between Dominion and NextEra, in that they both own regulated utilities. In NextEra's case it runs the Florida Power & Light company, the dominant provider in the Sunshine State, which has long benefited from population growth. However, where things get interesting is that NextEra has layered a renewable power business on top of its solid regulated utility foundation.
This is no small business, either, given that NextEra claims to be "the world leader in electricity generated from the wind and sun." With 26 gigawatts of generating capacity in its NextEra Energy Resources division, that's perhaps not such an outrageous claim. That makes this a great option for investors looking to bridge the old and the new in the broader energy sector. What's notable, however, is that NextEra has plans to add as much as 30 gigawatts of additional renewable projects by the end of 2024. That, plus spending plans in its regulated business, is expected to result in 6% to 8% earnings growth over the next few years, with the dividend expanding at an even more impressive 10% clip through "at least" 2022. The current dividend yield is a miserly 2% or so, but with even higher dividend growth potential than Dominion, this looks like solid option for dividend growth investors who think oil is going the way of the dinosaur.
ENB Dividend Yield data by YCharts
3. Going, going, but not yet gone
While it is clear that electricity, particularly clean energy, is going to eventually displace oil as the world's dominant power choice, we are a long way from the day when oil will no longer be needed. This is why some investors might want to consider Canadian midstream giant Enbridge (NYSE: ENB). The company's biggest businesses generate fees from operating the pipelines that move oil and natural gas around North America. Together these two cash-cow businesses make up around 83% of EBITDA. The rest is split between a regulated natural gas utility operation (14% of EBITDA) and a renewable-power business (the remainder).
So Enbridge has its toes in what is probably the most stable side of the energy industry, a boring utility business, and the emerging clean energy sector. Note that it has a number of large offshore wind projects in Europe that it is working on, which should result in the clean energy business growing in importance over the next few years. However, the biggest draw here is the huge 7% dividend yield. The company's growth plans (which include capital spending of between $3 billion and $6 billion a year), meanwhile, are expected to result in distributable cash flow growth of between 5% and 7% a year. The dividend is likely to trail just a touch behind that growth rate. Investors looking for a high-yield energy option that avoids the ups and downs of oil prices while also reaching into the utility and renewable power arenas will probably find Enbridge appealing.
Shifting with the times
You can't really just forget about oil yet because the world still needs the fuel. However, that doesn't mean you can't start to adjust your exposure to the energy sector so you don't have to worry as much about the changes taking shape in the industry. Dominion is a boring electric name that has repositioned for solid growth. NextEra is stepping on the accelerator as it builds out its clean energy business, taking full advantage of the energy industry's changing landscape. And Enbridge is a high-yield option that lets you keep some tangential exposure to oil while also benefiting from the clean energy shift that's taking shape. One, or more, will likely be attractive if you are worried about the future for oil drillers today.
10 stocks we like better than NextEra Energy
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and NextEra Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of June 7, 2021
Reuben Gregg Brewer owns shares of Dominion Energy, Inc and Enbridge. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends Dominion Energy, Inc and NextEra Energy. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In NextEra's case it runs the Florida Power & Light company, the dominant provider in the Sunshine State, which has long benefited from population growth. Note that it has a number of large offshore wind projects in Europe that it is working on, which should result in the clean energy business growing in importance over the next few years. Investors looking for a high-yield energy option that avoids the ups and downs of oil prices while also reaching into the utility and renewable power arenas will probably find Enbridge appealing.
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The company's biggest businesses generate fees from operating the pipelines that move oil and natural gas around North America. The Motley Fool recommends Dominion Energy, Inc and NextEra Energy. For decades integrated oil giants had been seen as reliable dividend payers providing a product that the world couldn't live without.
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The current dividend yield is a miserly 2% or so, but with even higher dividend growth potential than Dominion, this looks like solid option for dividend growth investors who think oil is going the way of the dinosaur. So Enbridge has its toes in what is probably the most stable side of the energy industry, a boring utility business, and the emerging clean energy sector. The Motley Fool recommends Dominion Energy, Inc and NextEra Energy.
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The current dividend yield is a miserly 2% or so, but with even higher dividend growth potential than Dominion, this looks like solid option for dividend growth investors who think oil is going the way of the dinosaur. Dominion is a boring electric name that has repositioned for solid growth. The Motley Fool recommends Dominion Energy, Inc and NextEra Energy.
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698906.0
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2021-07-21 00:00:00 UTC
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India's GAIL issues swap tender to buy and sell LNG over Aug-Dec - sources
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D
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https://www.nasdaq.com/articles/indias-gail-issues-swap-tender-to-buy-and-sell-lng-over-aug-dec-sources-2021-07-21-0
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Adds details
SINGAPORE, July 21 (Reuters) - GAIL (India) Ltd GAIL.NS has issued a swap tender offering liquefied natural gas (LNG) cargoes for loading in the United States and seeking cargoes for delivery into India over August to December, three industry sources said on Wednesday.
The state-run natural gas firm has offered to swap a cargo a month over the period in a tender closing on July 26, the sources added.
Four of the cargoes are for loading from the Cove Point plant in the United States while one is for loading from Sabine Pass export terminal, one of the sources said.
As for delivery into India, three cargoes are to be delivered into the Dabhol terminal while one will be delivered into Dahej and another into Hazira, the source added.
The Indian importer has 20-year deals to buy 5.8 million tonnes a year of U.S. LNG, split between Dominion Energy's D.N Cove Point plant and Cheniere Energy's LNG.AS Sabine Pass site in Louisiana.
GAIL has a separate tender seeking a LNG cargo for delivery into Dahej over Aug. 9 to 13, the sources said, adding that the tender closes on July 22.
(Reporting by Jessica Jaganathan; Editing by Clarence Fernandez and Shailesh Kuber)
((Jessica.Jaganathan@thomsonreuters.com; +65 6870 3822; Reuters Messaging: jessica.jaganathan.thomsonreuters.com@reuters.net; Twitter: https://twitter.com/j3ssi3))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details SINGAPORE, July 21 (Reuters) - GAIL (India) Ltd GAIL.NS has issued a swap tender offering liquefied natural gas (LNG) cargoes for loading in the United States and seeking cargoes for delivery into India over August to December, three industry sources said on Wednesday. The state-run natural gas firm has offered to swap a cargo a month over the period in a tender closing on July 26, the sources added. (Reporting by Jessica Jaganathan; Editing by Clarence Fernandez and Shailesh Kuber) ((Jessica.Jaganathan@thomsonreuters.com; +65 6870 3822; Reuters Messaging: jessica.jaganathan.thomsonreuters.com@reuters.net; Twitter: https://twitter.com/j3ssi3)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds details SINGAPORE, July 21 (Reuters) - GAIL (India) Ltd GAIL.NS has issued a swap tender offering liquefied natural gas (LNG) cargoes for loading in the United States and seeking cargoes for delivery into India over August to December, three industry sources said on Wednesday. The Indian importer has 20-year deals to buy 5.8 million tonnes a year of U.S. LNG, split between Dominion Energy's D.N Cove Point plant and Cheniere Energy's LNG.AS Sabine Pass site in Louisiana. GAIL has a separate tender seeking a LNG cargo for delivery into Dahej over Aug. 9 to 13, the sources said, adding that the tender closes on July 22.
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Adds details SINGAPORE, July 21 (Reuters) - GAIL (India) Ltd GAIL.NS has issued a swap tender offering liquefied natural gas (LNG) cargoes for loading in the United States and seeking cargoes for delivery into India over August to December, three industry sources said on Wednesday. Four of the cargoes are for loading from the Cove Point plant in the United States while one is for loading from Sabine Pass export terminal, one of the sources said. GAIL has a separate tender seeking a LNG cargo for delivery into Dahej over Aug. 9 to 13, the sources said, adding that the tender closes on July 22.
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Adds details SINGAPORE, July 21 (Reuters) - GAIL (India) Ltd GAIL.NS has issued a swap tender offering liquefied natural gas (LNG) cargoes for loading in the United States and seeking cargoes for delivery into India over August to December, three industry sources said on Wednesday. Four of the cargoes are for loading from the Cove Point plant in the United States while one is for loading from Sabine Pass export terminal, one of the sources said. GAIL has a separate tender seeking a LNG cargo for delivery into Dahej over Aug. 9 to 13, the sources said, adding that the tender closes on July 22.
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698907.0
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2021-07-19 00:00:00 UTC
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Is Dominion Energy (NYSE:D) Using Too Much Debt?
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D
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https://www.nasdaq.com/articles/is-dominion-energy-nyse%3Ad-using-too-much-debt-2021-07-19
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nan
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David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the permanent loss of capital.' So it might be obvious that you need to consider debt, when you think about how risky any given stock is, because too much debt can sink a company. As with many other companies Dominion Energy, Inc. (NYSE:D) makes use of debt. But should shareholders be worried about its use of debt?
Why Does Debt Bring Risk?
Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. In the worst case scenario, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity capital at a low price, thus permanently diluting shareholders. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. The first step when considering a company's debt levels is to consider its cash and debt together.
How Much Debt Does Dominion Energy Carry?
The image below, which you can click on for greater detail, shows that Dominion Energy had debt of US$38.0b at the end of March 2021, a reduction from US$41.2b over a year. Net debt is about the same, since the it doesn't have much cash.
NYSE:D Debt to Equity History July 19th 2021
How Healthy Is Dominion Energy's Balance Sheet?
Zooming in on the latest balance sheet data, we can see that Dominion Energy had liabilities of US$11.8b due within 12 months and liabilities of US$57.8b due beyond that. Offsetting these obligations, it had cash of US$477.0m as well as receivables valued at US$2.08b due within 12 months. So its liabilities outweigh the sum of its cash and (near-term) receivables by US$67.1b.
Given this deficit is actually higher than the company's massive market capitalization of US$62.2b, we think shareholders really should watch Dominion Energy's debt levels, like a parent watching their child ride a bike for the first time. In the scenario where the company had to clean up its balance sheet quickly, it seems likely shareholders would suffer extensive dilution.
We use two main ratios to inform us about debt levels relative to earnings. The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio).
With a net debt to EBITDA ratio of 5.9, it's fair to say Dominion Energy does have a significant amount of debt. However, its interest coverage of 2.6 is reasonably strong, which is a good sign. Another concern for investors might be that Dominion Energy's EBIT fell 14% in the last year. If things keep going like that, handling the debt will about as easy as bundling an angry house cat into its travel box. There's no doubt that we learn most about debt from the balance sheet. But ultimately the future profitability of the business will decide if Dominion Energy can strengthen its balance sheet over time. So if you're focused on the future you can check out this free report showing analyst profit forecasts.
But our final consideration is also important, because a company cannot pay debt with paper profits; it needs cold hard cash. So it's worth checking how much of that EBIT is backed by free cash flow. Over the last three years, Dominion Energy recorded negative free cash flow, in total. Debt is far more risky for companies with unreliable free cash flow, so shareholders should be hoping that the past expenditure will produce free cash flow in the future.
Our View
To be frank both Dominion Energy's conversion of EBIT to free cash flow and its track record of managing its debt, based on its EBITDA, make us rather uncomfortable with its debt levels. And furthermore, its interest cover also fails to instill confidence. It's also worth noting that Dominion Energy is in the Integrated Utilities industry, which is often considered to be quite defensive. After considering the datapoints discussed, we think Dominion Energy has too much debt. While some investors love that sort of risky play, it's certainly not our cup of tea. The balance sheet is clearly the area to focus on when you are analysing debt. But ultimately, every company can contain risks that exist outside of the balance sheet. Case in point: We've spotted 2 warning signs for Dominion Energy you should be aware of, and 1 of them doesn't sit too well with us.
When all is said and done, sometimes its easier to focus on companies that don't even need debt. Readers can access a list of growth stocks with zero net debt 100% free, right now.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. By replacing dilution, though, debt can be an extremely good tool for businesses that need capital to invest in growth at high rates of return. The image below, which you can click on for greater detail, shows that Dominion Energy had debt of US$38.0b at the end of March 2021, a reduction from US$41.2b over a year.
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The first is net debt divided by earnings before interest, tax, depreciation, and amortization (EBITDA), while the second is how many times its earnings before interest and tax (EBIT) covers its interest expense (or its interest cover, for short). The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio). Over the last three years, Dominion Energy recorded negative free cash flow, in total.
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The first step when considering a company's debt levels is to consider its cash and debt together. The advantage of this approach is that we take into account both the absolute quantum of debt (with net debt to EBITDA) and the actual interest expenses associated with that debt (with its interest cover ratio). Our View To be frank both Dominion Energy's conversion of EBIT to free cash flow and its track record of managing its debt, based on its EBITDA, make us rather uncomfortable with its debt levels.
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Generally speaking, debt only becomes a real problem when a company can't easily pay it off, either by raising capital or with its own cash flow. The first step when considering a company's debt levels is to consider its cash and debt together. Another concern for investors might be that Dominion Energy's EBIT fell 14% in the last year.
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698908.0
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2021-07-16 00:00:00 UTC
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Infra fund GIP puts Freeport LNG stake up for sale -sources
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D
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https://www.nasdaq.com/articles/infra-fund-gip-puts-freeport-lng-stake-up-for-sale-sources-2021-07-16
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nan
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By David French
July 16 (Reuters) - Global Infrastructure Partners has put up for sale its 26% stake in the limited partnership behind Freeport LNG, the second-largest export facility for liquefied natural gas (LNG) in the United States, sources familiar with the matter said on Friday.
The infrastructure investor is working with an investment bank to solicit buyer interest, according to the sources.
The price which GIP is seeking for its stake could not be learned. It paid $850 million for the stake in 2014, before the Freeport LNG site began exporting gas and generating revenue.
There is no guarantee that a sale will happen, and GIP could ultimately keep hold of the stake, cautioned the sources, who spoke on condition of anonymity as the information is private.
GIP declined to comment when contacted by Reuters and Freeport LNG did not respond to a comment request.
Stakes in large energy projects often change hands once operational, as early-stage investors who backed the scheme - often when there is still considerable risk as to whether the project will be completed - book profits and other investors drawn by steady returns step in.
Last year, Brookfield Asset Management BAMa.TO bought a stake in Cheniere Energy Inc's LNG.A limited partnership from Blackstone Group Inc BX.N. This came after a unit of the Canadian investment firm paid north of $2 billion in 2019 for a 25% stake in Cove Point, an LNG terminal in Maryland predominantly owned by Dominion Energy Inc D.N.
Originally envisioned as an import terminal, Freeport LNG was converted into an export facility once the U.S. shale gas boom took off. Situated on Quintana Island off the Texas coast, exports began in 2019, with its three production units providing 15 million metric tonnes per year of liquefaction capacity. A fourth unit is planned, according to Freeport LNG's website.
Freeport LNG Development LP is majority owned by founder Michael Smith. Osaka Gas Co 9532.T is also an investor.
(Reporting by David French in New York; Editing by Toby Chopra)
((davidj.french@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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There is no guarantee that a sale will happen, and GIP could ultimately keep hold of the stake, cautioned the sources, who spoke on condition of anonymity as the information is private. This came after a unit of the Canadian investment firm paid north of $2 billion in 2019 for a 25% stake in Cove Point, an LNG terminal in Maryland predominantly owned by Dominion Energy Inc D.N. Situated on Quintana Island off the Texas coast, exports began in 2019, with its three production units providing 15 million metric tonnes per year of liquefaction capacity.
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By David French July 16 (Reuters) - Global Infrastructure Partners has put up for sale its 26% stake in the limited partnership behind Freeport LNG, the second-largest export facility for liquefied natural gas (LNG) in the United States, sources familiar with the matter said on Friday. It paid $850 million for the stake in 2014, before the Freeport LNG site began exporting gas and generating revenue. Originally envisioned as an import terminal, Freeport LNG was converted into an export facility once the U.S. shale gas boom took off.
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By David French July 16 (Reuters) - Global Infrastructure Partners has put up for sale its 26% stake in the limited partnership behind Freeport LNG, the second-largest export facility for liquefied natural gas (LNG) in the United States, sources familiar with the matter said on Friday. It paid $850 million for the stake in 2014, before the Freeport LNG site began exporting gas and generating revenue. This came after a unit of the Canadian investment firm paid north of $2 billion in 2019 for a 25% stake in Cove Point, an LNG terminal in Maryland predominantly owned by Dominion Energy Inc D.N.
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By David French July 16 (Reuters) - Global Infrastructure Partners has put up for sale its 26% stake in the limited partnership behind Freeport LNG, the second-largest export facility for liquefied natural gas (LNG) in the United States, sources familiar with the matter said on Friday. It paid $850 million for the stake in 2014, before the Freeport LNG site began exporting gas and generating revenue. The infrastructure investor is working with an investment bank to solicit buyer interest, according to the sources.
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698909.0
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2021-07-16 00:00:00 UTC
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Dominion Energy (D) Shares Cross Above 200 DMA
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D
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https://www.nasdaq.com/articles/dominion-energy-d-shares-cross-above-200-dma-2021-07-16
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nan
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In trading on Friday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $76.44, changing hands as high as $76.89 per share. Dominion Energy Inc shares are currently trading up about 0.7% on the day. The chart below shows the one year performance of D shares, versus its 200 day moving average:
Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $86.95 as the 52 week high point — that compares with a last trade of $76.58. The D DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other energy stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $76.44, changing hands as high as $76.89 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $86.95 as the 52 week high point — that compares with a last trade of $76.58. The D DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other energy stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $76.44, changing hands as high as $76.89 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $86.95 as the 52 week high point — that compares with a last trade of $76.58. The D DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other energy stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $76.44, changing hands as high as $76.89 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $86.95 as the 52 week high point — that compares with a last trade of $76.58. The D DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other energy stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Friday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $76.44, changing hands as high as $76.89 per share. Dominion Energy Inc shares are currently trading up about 0.7% on the day. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $86.95 as the 52 week high point — that compares with a last trade of $76.58.
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698910.0
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2021-07-16 00:00:00 UTC
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XLU, DUK, SO, D: Large Outflows Detected at ETF
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D
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https://www.nasdaq.com/articles/xlu-duk-so-d%3A-large-outflows-detected-at-etf-2021-07-16
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $85.3 million dollar outflow -- that's a 0.7% decrease week over week (from 182,370,000 to 181,070,000). Among the largest underlying components of XLU, in trading today Duke Energy Corp (Symbol: DUK) is up about 0.6%, Southern Company (Symbol: SO) is up about 0.4%, and Dominion Energy Inc (Symbol: D) is higher by about 0.8%. For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average:
Looking at the chart above, XLU's low point in its 52 week range is $56.72 per share, with $68.05 as the 52 week high point — that compares with a last trade of $66.12. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $85.3 million dollar outflow -- that's a 0.7% decrease week over week (from 182,370,000 to 181,070,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $56.72 per share, with $68.05 as the 52 week high point — that compares with a last trade of $66.12. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Click here to find out which 9 other ETFs experienced notable outflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $85.3 million dollar outflow -- that's a 0.7% decrease week over week (from 182,370,000 to 181,070,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $56.72 per share, with $68.05 as the 52 week high point — that compares with a last trade of $66.12. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $85.3 million dollar outflow -- that's a 0.7% decrease week over week (from 182,370,000 to 181,070,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $56.72 per share, with $68.05 as the 52 week high point — that compares with a last trade of $66.12. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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698911.0
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2021-07-12 00:00:00 UTC
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Dominion Energy, Berkshire to terminate Questar Pipelines deal
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D
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https://www.nasdaq.com/articles/dominion-energy-berkshire-to-terminate-questar-pipelines-deal-2021-07-12
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nan
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Adds deal details and background
July 12 (Reuters) - Dominion Energy Inc D.N and a unit of Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday they had agreed to terminate the planned sale of Questar Pipelines, citing uncertainty associated with regulatory clearance.
Berkshire Hathaway Energy last year agreed to buy Dominion's natural gas transmission and storage network for $4 billion, to get access to more than 7,700 miles (12,390 km) of natural gas transmission lines and 900 billion cubic feet of gas storage.
The Berkshire energy unit had completed the purchase of Dominion's natural gas transmission and storage business, exclusive of Questar Pipeline Group, in November last year and Monday's deal termination had no impact on that deal, the companies said.
The sale of gas transmission and storage assets represented about 80% of the original transaction value.
Dominion said it would continue to account for Questar Pipelines as discontinued operations and that it was starting a process for its sale, with a target close of year-end 2021.
The company will use proceeds from a loan to repay the about $1.3 billion transaction deposit made by Berkshire Hathaway Energy. That loan is expected to be repaid by year-end 2021 with proceeds from the sale of Questar Pipelines.
(Reporting by Arunima Kumar in Bengaluru; Editing by Maju Samuel)
((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94 ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds deal details and background July 12 (Reuters) - Dominion Energy Inc D.N and a unit of Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday they had agreed to terminate the planned sale of Questar Pipelines, citing uncertainty associated with regulatory clearance. Dominion said it would continue to account for Questar Pipelines as discontinued operations and that it was starting a process for its sale, with a target close of year-end 2021. The company will use proceeds from a loan to repay the about $1.3 billion transaction deposit made by Berkshire Hathaway Energy.
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Adds deal details and background July 12 (Reuters) - Dominion Energy Inc D.N and a unit of Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday they had agreed to terminate the planned sale of Questar Pipelines, citing uncertainty associated with regulatory clearance. Berkshire Hathaway Energy last year agreed to buy Dominion's natural gas transmission and storage network for $4 billion, to get access to more than 7,700 miles (12,390 km) of natural gas transmission lines and 900 billion cubic feet of gas storage. The Berkshire energy unit had completed the purchase of Dominion's natural gas transmission and storage business, exclusive of Questar Pipeline Group, in November last year and Monday's deal termination had no impact on that deal, the companies said.
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Adds deal details and background July 12 (Reuters) - Dominion Energy Inc D.N and a unit of Warren Buffett's Berkshire Hathaway Inc BRKa.N said on Monday they had agreed to terminate the planned sale of Questar Pipelines, citing uncertainty associated with regulatory clearance. Berkshire Hathaway Energy last year agreed to buy Dominion's natural gas transmission and storage network for $4 billion, to get access to more than 7,700 miles (12,390 km) of natural gas transmission lines and 900 billion cubic feet of gas storage. The Berkshire energy unit had completed the purchase of Dominion's natural gas transmission and storage business, exclusive of Questar Pipeline Group, in November last year and Monday's deal termination had no impact on that deal, the companies said.
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Berkshire Hathaway Energy last year agreed to buy Dominion's natural gas transmission and storage network for $4 billion, to get access to more than 7,700 miles (12,390 km) of natural gas transmission lines and 900 billion cubic feet of gas storage. The Berkshire energy unit had completed the purchase of Dominion's natural gas transmission and storage business, exclusive of Questar Pipeline Group, in November last year and Monday's deal termination had no impact on that deal, the companies said. That loan is expected to be repaid by year-end 2021 with proceeds from the sale of Questar Pipelines.
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698912.0
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2021-07-12 00:00:00 UTC
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Dominion Energy, Berkshire to terminate sale of Questar Pipelines
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D
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https://www.nasdaq.com/articles/dominion-energy-berkshire-to-terminate-sale-of-questar-pipelines-2021-07-12
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nan
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nan
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July 12 (Reuters) - Dominion Energy Inc D.N and Berkshire Hathaway Inc BRKa.N on Monday agreed to terminate the planned sale of Questar Pipelines to Berkshire Hathaway Energy, a unit of Berkshire Hathaway.
(Reporting by Arunima Kumar in Bengaluru; Editing by Maju Samuel)
((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94 ;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 12 (Reuters) - Dominion Energy Inc D.N and Berkshire Hathaway Inc BRKa.N on Monday agreed to terminate the planned sale of Questar Pipelines to Berkshire Hathaway Energy, a unit of Berkshire Hathaway. (Reporting by Arunima Kumar in Bengaluru; Editing by Maju Samuel) ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94 ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 12 (Reuters) - Dominion Energy Inc D.N and Berkshire Hathaway Inc BRKa.N on Monday agreed to terminate the planned sale of Questar Pipelines to Berkshire Hathaway Energy, a unit of Berkshire Hathaway. (Reporting by Arunima Kumar in Bengaluru; Editing by Maju Samuel) ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94 ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 12 (Reuters) - Dominion Energy Inc D.N and Berkshire Hathaway Inc BRKa.N on Monday agreed to terminate the planned sale of Questar Pipelines to Berkshire Hathaway Energy, a unit of Berkshire Hathaway. (Reporting by Arunima Kumar in Bengaluru; Editing by Maju Samuel) ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94 ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 12 (Reuters) - Dominion Energy Inc D.N and Berkshire Hathaway Inc BRKa.N on Monday agreed to terminate the planned sale of Questar Pipelines to Berkshire Hathaway Energy, a unit of Berkshire Hathaway. (Reporting by Arunima Kumar in Bengaluru; Editing by Maju Samuel) ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94 ;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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698913.0
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2021-07-11 00:00:00 UTC
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3 Dividend Stocks to Buy on Sale
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https://www.nasdaq.com/articles/3-dividend-stocks-to-buy-on-sale-2021-07-11
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Every investor should have a shopping list in mind for where to put spare cash when markets turn down. Corrections and bear markets can happen very quickly, and many investors are frozen either in fear or surprise when they occur. Having a set plan in place allows you to put money to work at the best prices.
Dividend stocks are particularly appealing to buy at sale prices since there can be an outsized return forever on that capital. These three stocks are positioned to continue to prosper in the future regardless of stock market swings. Each would make a great investment, especially if you can get at least some shares at bargain prices.
Image source: Getty Images.
Target: The newest Dividend King
2020 will likely be looked at as an inflection point for retailer Target (NYSE: TGT). Both its business and its stock proved the company is a major force. And as if to put an exclamation point on those results, Target just raised its quarterly dividend a hefty 32%, which will make 2021 the 50th consecutive year with an increase in the dividend. Assuming nothing related to the dividend changes, the company will become the latest on the elite list of Dividend Kings at the end of the year.
But investing in Target isn't just about a growing dividend. Target benefited greatly from demand boosted by the pandemic in 2020. Full-year revenue grew by $15 billion compared to 2019. For perspective, that was more than the company's sales increased over the prior 11 years combined. And the company expects that to continue. Target management estimates that for the balance of 2021, comparable-store sales will still increase on top of the 20% growth it experienced in 2020's pandemic-enhanced second half.
With a price-to-earnings (P/E) ratio of around 20, Target shares aren't overly expensive right now. But historically, the stock traded at a P/E in the mid-teens. If the valuation gets back to that level, Target stock would be on sale and worth adding to an existing position.
Image source: Garmin.
Garmin: Growing the business, and the cash pile
Shares of outdoor recreation GPS device maker Garmin (NASDAQ: GRMN) have been trading a bit pricier than Target. Its P/E is hovering around 27, which is well above its typical range for the past five years of near 20. But Garmin's already growing business got a boost of its own from COVID-19, as people flocked to the outdoors for recreation amid the pandemic.
Garmin used to be known for its automotive personal navigation devices. But its fitness, outdoor, aviation, and marine segments now make up almost 90% of sales. The shift away from automotive didn't hold back growth. Total revenue has grown about 45% in the past five years. That growth doesn't seem to be slowing down. Boat and recreational vehicle (RV) manufacturers are reporting record backlogs these days, and Garmin devices will grow with those sales.
Garmin's dividend currently only yields about 1.7%. But that's a reflection of the increasing share price. The company has plenty of cash -- and free cash flow -- to continue paying and increasing its dividend. For the fourth quarter of 2020, Garmin paid $117 million in dividends while generating $387 million of free cash flow. The first quarter of 2021 brought $331 million in free cash flow to cover that same dividend payment.
Revenue grew 25% year over year in the first quarter as well. And as of March 27, 2021, Garmin had $3.2 billion in cash and marketable securities with no debt. For those who want a reliable dividend, a growing business, and a safe balance sheet, Garmin would make a fine stock to buy on sale.
Image source: Getty Images.
NextEra Energy: Utility-like, with a boost
NextEra Energy (NYSE: NEE) offers the benefit of diversity within a single investment. It is the parent of electric utilities Florida Power & Light and Gulf Power, and it also has a growth segment in its renewable energy subsidiary, NextEra Energy Resources. NextEra's dividend is utility-like in reliability, but the 2% yield is lower than what a typical utility offers. The trade-off comes in the form of the growing renewables segment.
In the first quarter of 2021, NextEra grew adjusted earnings per share by 14% year over year, far higher than what investors typically expect from utilities. The company has guided investors for annual earnings growth that should average between 6% and 8% through 2023, after growing 10.5% in 2020. As far as the dividend, NextEra said it expects to continue to increase its annual dividend per share by about 10% through at least 2022.
Right now, however, investors have to pay up for the combination of growing earnings and the increasing dividend. The P/E of 30 times forward earnings is significantly higher than true utility peers like Dominion Energy (NYSE: D) and Consolidated Edison (NYSE: ED). But for investors looking for both income and growth, NextEra Energy is one to keep high on the shopping list when it goes on sale.
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Howard Smith owns shares of Garmin and NextEra Energy. The Motley Fool recommends Dominion Energy, Inc, Garmin, and NextEra Energy. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Target management estimates that for the balance of 2021, comparable-store sales will still increase on top of the 20% growth it experienced in 2020's pandemic-enhanced second half. Boat and recreational vehicle (RV) manufacturers are reporting record backlogs these days, and Garmin devices will grow with those sales. For those who want a reliable dividend, a growing business, and a safe balance sheet, Garmin would make a fine stock to buy on sale.
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Garmin: Growing the business, and the cash pile Shares of outdoor recreation GPS device maker Garmin (NASDAQ: GRMN) have been trading a bit pricier than Target. NextEra Energy: Utility-like, with a boost NextEra Energy (NYSE: NEE) offers the benefit of diversity within a single investment. In the first quarter of 2021, NextEra grew adjusted earnings per share by 14% year over year, far higher than what investors typically expect from utilities.
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And as if to put an exclamation point on those results, Target just raised its quarterly dividend a hefty 32%, which will make 2021 the 50th consecutive year with an increase in the dividend. Garmin: Growing the business, and the cash pile Shares of outdoor recreation GPS device maker Garmin (NASDAQ: GRMN) have been trading a bit pricier than Target. For those who want a reliable dividend, a growing business, and a safe balance sheet, Garmin would make a fine stock to buy on sale.
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But investing in Target isn't just about a growing dividend. For those who want a reliable dividend, a growing business, and a safe balance sheet, Garmin would make a fine stock to buy on sale. In the first quarter of 2021, NextEra grew adjusted earnings per share by 14% year over year, far higher than what investors typically expect from utilities.
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698914.0
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2021-07-09 00:00:00 UTC
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S&P 500 Analyst Moves: D
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https://www.nasdaq.com/articles/sp-500-analyst-moves%3A-d-2021-07-09
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The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Dominion Energy is now the #173 analyst pick, moving up by 60 spots.
This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values.
Looking at the stock price movement year to date, Dominion Energy is lower by about 0.1%.
VIDEO: S&P 500 Analyst Moves: D
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Dominion Energy is now the #173 analyst pick, moving up by 60 spots. This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values. Looking at the stock price movement year to date, Dominion Energy is lower by about 0.1%.
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The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Dominion Energy is now the #173 analyst pick, moving up by 60 spots. This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values. VIDEO: S&P 500 Analyst Moves: D The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Dominion Energy is now the #173 analyst pick, moving up by 60 spots. This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values. VIDEO: S&P 500 Analyst Moves: D The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The latest tally of analyst opinions from the major brokerage houses shows that among the components of the S&P 500 index, Dominion Energy is now the #173 analyst pick, moving up by 60 spots. This rank is formed by averaging the analyst opinions for each component from each broker, and then ranking the 500 components by those average opinion values. Looking at the stock price movement year to date, Dominion Energy is lower by about 0.1%.
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698915.0
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2021-07-09 00:00:00 UTC
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Energy Sector Update for 07/09/2021: BTU, E, D
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https://www.nasdaq.com/articles/energy-sector-update-for-07-09-2021%3A-btu-e-d-2021-07-09
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Energy stocks were up rising ahead of Friday's opening bell as the Energy Select Sector SPDR (XLE) was up by 1.29%.
The United States Oil Fund (USO) was 0.91% higher and the United States Natural Gas Fund (UNG) was up 1.09% recently.
Front-month global benchmarks West Texas Intermediate crude oil was up $0.99 at $73.93 per barrel at the New York Mercantile Exchange while Brent crude gained $0.48 to $74.83 per barrel. Natural gas futures were off $0.030 at $3.718 per 1 million British Thermal Units.
In company news, Peabody Energy (BTU) is moving forward a cash purchase offer of up to $13.3 million of its 8.5% senior secured notes due 2024. Shares of the coal miner were up 1.2%.
Eni (E) was up by 1.1% after it reached an agreement to acquire a portfolio of 13 onshore wind farms for a total capacity of 315 MW already in operation from Glennmont Partners and PGGM Infrastructure Fund.
Dominion Energy (D) was down 0.5% after it entered into an instrumentation and control contract with Westinghouse Electric to implement a digital modernization program at the Sally Power Plant.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In company news, Peabody Energy (BTU) is moving forward a cash purchase offer of up to $13.3 million of its 8.5% senior secured notes due 2024. Eni (E) was up by 1.1% after it reached an agreement to acquire a portfolio of 13 onshore wind farms for a total capacity of 315 MW already in operation from Glennmont Partners and PGGM Infrastructure Fund. Dominion Energy (D) was down 0.5% after it entered into an instrumentation and control contract with Westinghouse Electric to implement a digital modernization program at the Sally Power Plant.
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The United States Oil Fund (USO) was 0.91% higher and the United States Natural Gas Fund (UNG) was up 1.09% recently. Front-month global benchmarks West Texas Intermediate crude oil was up $0.99 at $73.93 per barrel at the New York Mercantile Exchange while Brent crude gained $0.48 to $74.83 per barrel. Energy stocks were up rising ahead of Friday's opening bell as the Energy Select Sector SPDR (XLE) was up by 1.29%.
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Energy stocks were up rising ahead of Friday's opening bell as the Energy Select Sector SPDR (XLE) was up by 1.29%. The United States Oil Fund (USO) was 0.91% higher and the United States Natural Gas Fund (UNG) was up 1.09% recently. In company news, Peabody Energy (BTU) is moving forward a cash purchase offer of up to $13.3 million of its 8.5% senior secured notes due 2024.
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Energy stocks were up rising ahead of Friday's opening bell as the Energy Select Sector SPDR (XLE) was up by 1.29%. The United States Oil Fund (USO) was 0.91% higher and the United States Natural Gas Fund (UNG) was up 1.09% recently. Front-month global benchmarks West Texas Intermediate crude oil was up $0.99 at $73.93 per barrel at the New York Mercantile Exchange while Brent crude gained $0.48 to $74.83 per barrel.
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698916.0
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2021-07-06 00:00:00 UTC
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Tuesday Sector Leaders: Utilities, Technology & Communications
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https://www.nasdaq.com/articles/tuesday-sector-leaders%3A-utilities-technology-communications-2021-07-06
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The best performing sector as of midday Tuesday is the Utilities sector, losing just 0.3%. Within that group, American Water Works Co, Inc. (Symbol: AWK) and Dominion Energy Inc (Symbol: D) are two large stocks leading the way, showing a gain of 0.8% and 0.7%, respectively. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is down 0.2% on the day, and up 3.44% year-to-date. American Water Works Co, Inc., meanwhile, is up 3.80% year-to-date, and Dominion Energy Inc is up 1.06% year-to-date. Combined, AWK and D make up approximately 9.9% of the underlying holdings of XLU.
The next best performing sector is the Technology & Communications sector, losing just 0.3%. Among large Technology & Communications stocks, NortonLifeLock Inc (Symbol: NLOK) and Oracle Corp (Symbol: ORCL) are the most notable, showing a gain of 2.3% and 1.8%, respectively. One ETF closely tracking Technology & Communications stocks is the Technology Select Sector SPDR ETF (XLK), which is up 0.1% in midday trading, and up 15.83% on a year-to-date basis. NortonLifeLock Inc, meanwhile, is up 35.11% year-to-date, and Oracle Corp is up 29.65% year-to-date. Combined, NLOK and ORCL make up approximately 1.6% of the underlying holdings of XLK.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Tuesday. As you can see, none of the sectors are up on the day, while nine sectors are down.
SECTOR % CHANGE
Utilities -0.3%
Technology & Communications -0.3%
Healthcare -0.4%
Industrial -1.0%
Consumer Products -1.3%
Services -1.3%
Financial -1.3%
Materials -1.6%
Energy -3.3%
25 Dividend Giants Widely Held By ETFs »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Combined, NLOK and ORCL make up approximately 1.6% of the underlying holdings of XLK. Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom: Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Tuesday. Utilities -0.3% Technology & Communications -0.3% Healthcare -0.4% Industrial -1.0% Consumer Products -1.3% Services -1.3% Financial -1.3% Materials -1.6% Energy -3.3% 25 Dividend Giants Widely Held By ETFs » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is down 0.2% on the day, and up 3.44% year-to-date. Among large Technology & Communications stocks, NortonLifeLock Inc (Symbol: NLOK) and Oracle Corp (Symbol: ORCL) are the most notable, showing a gain of 2.3% and 1.8%, respectively. One ETF closely tracking Technology & Communications stocks is the Technology Select Sector SPDR ETF (XLK), which is up 0.1% in midday trading, and up 15.83% on a year-to-date basis.
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Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is down 0.2% on the day, and up 3.44% year-to-date. One ETF closely tracking Technology & Communications stocks is the Technology Select Sector SPDR ETF (XLK), which is up 0.1% in midday trading, and up 15.83% on a year-to-date basis. Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom: Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Tuesday.
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Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is down 0.2% on the day, and up 3.44% year-to-date. Among large Technology & Communications stocks, NortonLifeLock Inc (Symbol: NLOK) and Oracle Corp (Symbol: ORCL) are the most notable, showing a gain of 2.3% and 1.8%, respectively. One ETF closely tracking Technology & Communications stocks is the Technology Select Sector SPDR ETF (XLK), which is up 0.1% in midday trading, and up 15.83% on a year-to-date basis.
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698917.0
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2021-07-01 00:00:00 UTC
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U.S. to review proposed Dominion Energy wind farm off Virginia
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https://www.nasdaq.com/articles/u.s.-to-review-proposed-dominion-energy-wind-farm-off-virginia-2021-07-01
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By Timothy Gardner
WASHINGTON, July 1 (Reuters) - The U.S. government will conduct an environmental review of a potential wind power project off the coast of Virginia, the Biden administration said on Thursday, part of an effort to create tens of thousands of jobs in the business by 2030.
Dominion Energy's D.N Coastal Virginia Offshore Wind project calls for construction and operation of up to 205 wind turbines capable of generating up to 3,000 megawatts of electricity by 2026. The turbines would be located more than 20 nautical miles off the Virginia coast.
Dominion says the project, when fully built, could power up to 660,000 homes.
The Biden administration wants to develop 30 gigawatts of offshore wind power by 2030, creating nearly 80,000 jobs.
"Recent technological advances, falling costs, and tremendous economic potential make offshore wind a promising avenue for diversifying our national energy portfolio, creating good-paying union jobs, and tackling climate change," Interior Department Secretary Deb Haaland said in a release.
If approved the project would generation during development and construction, an average of about 900 jobs from 2020 to 2026, with a peak of about 1,500 jobs in 2024 and 2025, the Bureau of Ocean Energy Management (BOEM) said. The project would support about 1,100 long-term jobs.
On Friday, Interior will publish a notice of intent to prepare an environmental impact statement (EIS), which will open a public comment period until August 2. BOEM will hold three virtual public scoping meetings which will help it figure out what to analyze in the EIS.
The U.S. fishing industry has raised concerns about other offshore wind projects, causing some delays.
In May, the Biden administration said it had approved the country's first major offshore wind farm, Vineyard Wind, off Massachusetts, billing it as the launch of a domestic industry that will help reach a goal to make the power grid carbon-free by 2035.
(Reporting by Timothy Gardner; Editing by David Gregorio)
((timothy.gardner@thomsonreuters.com; +1 202 898-8360 (Twitter @timogard); Reuters Messaging: timothy.gardner.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Timothy Gardner WASHINGTON, July 1 (Reuters) - The U.S. government will conduct an environmental review of a potential wind power project off the coast of Virginia, the Biden administration said on Thursday, part of an effort to create tens of thousands of jobs in the business by 2030. "Recent technological advances, falling costs, and tremendous economic potential make offshore wind a promising avenue for diversifying our national energy portfolio, creating good-paying union jobs, and tackling climate change," Interior Department Secretary Deb Haaland said in a release. On Friday, Interior will publish a notice of intent to prepare an environmental impact statement (EIS), which will open a public comment period until August 2.
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By Timothy Gardner WASHINGTON, July 1 (Reuters) - The U.S. government will conduct an environmental review of a potential wind power project off the coast of Virginia, the Biden administration said on Thursday, part of an effort to create tens of thousands of jobs in the business by 2030. Dominion Energy's D.N Coastal Virginia Offshore Wind project calls for construction and operation of up to 205 wind turbines capable of generating up to 3,000 megawatts of electricity by 2026. The Biden administration wants to develop 30 gigawatts of offshore wind power by 2030, creating nearly 80,000 jobs.
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By Timothy Gardner WASHINGTON, July 1 (Reuters) - The U.S. government will conduct an environmental review of a potential wind power project off the coast of Virginia, the Biden administration said on Thursday, part of an effort to create tens of thousands of jobs in the business by 2030. Dominion Energy's D.N Coastal Virginia Offshore Wind project calls for construction and operation of up to 205 wind turbines capable of generating up to 3,000 megawatts of electricity by 2026. "Recent technological advances, falling costs, and tremendous economic potential make offshore wind a promising avenue for diversifying our national energy portfolio, creating good-paying union jobs, and tackling climate change," Interior Department Secretary Deb Haaland said in a release.
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Dominion Energy's D.N Coastal Virginia Offshore Wind project calls for construction and operation of up to 205 wind turbines capable of generating up to 3,000 megawatts of electricity by 2026. The Biden administration wants to develop 30 gigawatts of offshore wind power by 2030, creating nearly 80,000 jobs. In May, the Biden administration said it had approved the country's first major offshore wind farm, Vineyard Wind, off Massachusetts, billing it as the launch of a domestic industry that will help reach a goal to make the power grid carbon-free by 2035.
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698918.0
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2021-07-01 00:00:00 UTC
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U.S. natgas companies put hydrogen to the test
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https://www.nasdaq.com/articles/u.s.-natgas-companies-put-hydrogen-to-the-test-2021-07-01
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By Stephanie Kelly and Scott DiSavino
NEW YORK, July 1 (Reuters) - At least two dozen U.S. energy firms, including Dominion Energy Inc D.N and Sempra Energy SRE.N, have started producing hydrogen or testing its viability in natural gas pipes to take advantage of existing infrastructure as the world prioritizes lower-carbon fuels.
Nations worldwide are trying to reach net-zero carbon emissions by 2050, but that will rely heavily on technology - like hydrogen - that is in developmental stages. Utilities have a potential advantage if they find that clean-burning hydrogen can be successfully transported in existing gas pipes and power plants.
But governments need legislation and regulation to encourage energy companies to spend billions in order to reduce production costs for green hydrogen, analysts said, before it can displace fossil fuels. Almost all of the world's hydrogen production is currently through fossil fuels, and large utilities are currently mostly testing blends of natural gas and hydrogen in their pipelines.
The companies experimenting with hydrogen are in early stages. Canada's Enbridge Inc ENB.TO is blending up to 2% hydrogen into its natural gas distribution systems in Ontario, and just received approval to blend hydrogen in Quebec.
“We are looking to understand the potential either with the existing system or, as we're continuing to modernize the gas pipeline system, to ensure that new construction is hydrogen-ready," said Pete Sheffield, Enbridge’s chief sustainability officer.
Sempra's Southern California Gas (SoCalGas) utility, which supplies gas to 22 million consumers, is working on pilot programs to test the fuel in its pipelines and see how a blend with natural gas affects the company's pipes, as well as appliances and other equipment.
The first project would blend hydrogen in a mostly residential area that SoCalGas can isolate from the rest of its distribution system, said Jawaad Malik, chief environmental officer.
Virginia-based Dominion is testing a 5% hydrogen blend in a training facility in Utah and recently proposed a similar pilot in North Carolina, said Dominion spokesperson Aaron Ruby.
Hydrogen is only considered clean if it is produced using low- or no-carbon emitting energy sources like biomass, nuclear, renewables or fossil fuels paired with carbon capture technology.
"These types of proposals have not yet shown a path to a deeply decarbonized gas system," said Julie McNamara, senior energy analyst for the Union of Concerned Scientists.
Almost every gas turbine used to produce power can burn fuels containing about 5% to 10% hydrogen, said Jeff Goldmeer, General Electric's GE.N emergent technologies director for decarbonization. That would cut carbon dioxide emissions from natural gas from the power sector, which has been one of the fastest growing sources of demand for gas.
Roughly 36% of energy-related carbon emissions come from fossil fuel-fired electricity generation, according to the International Energy Agency (IEA).
A RISE IN PILOT PROGRAMS
To reach net-zero emissions by 2050, global hydrogen use needs to expand to more than 200 million tonnes in 2030 from less than 90 million tonnes in 2020, according to the IEA.
Reaching that goal will be difficult. Hydrogen production and transport costs more than natural gas, for now. Evercore ISI analysts said in a report this week that green hydrogen could become cost-competitive with less clean versions by 2030.
GE has more than 75 turbines worldwide that use or have used fuels containing hydrogen, which have produced more than 450 terawatt-hours (TWh) of power. U.S. utility-scale facilities generated about 4,009 TWh of electricity in 2020, according to U.S. federal data.
Technology will have to advance further to burn hydrogen as a viable fuel rather than just as a small percentage of a natural gas blend.
"Clean hydrogen will be constrained in supply for the foreseeable future," said McNamara of the Union of Concerned Scientists. "Blending it at a low level into a gas pipeline that should be transitioned to electrification is just not the right pathway to be taken today.
FACTBOX-Hydrogen's rainbow of variants
ANALYSIS-Europe faces high hurdles to make hydrogen hype reality
ANALYSIS-Green hydrogen's time has come, say advocates eying post-pandemic world
CORRECTED-ANALYSIS-A lot of hot air? Investors snap up hydrogen stocks in green frenzy (Jan 20)
(Reporting by Stephanie Kelly and Scott DiSavino in New York and Nia Williams in Calgary Editing by Marguerita Choy)
((Stephanie.Kelly@thomsonreuters.com; 646-223-4471; Reuters Messaging: stephanie.kelly.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But governments need legislation and regulation to encourage energy companies to spend billions in order to reduce production costs for green hydrogen, analysts said, before it can displace fossil fuels. Hydrogen is only considered clean if it is produced using low- or no-carbon emitting energy sources like biomass, nuclear, renewables or fossil fuels paired with carbon capture technology. "These types of proposals have not yet shown a path to a deeply decarbonized gas system," said Julie McNamara, senior energy analyst for the Union of Concerned Scientists.
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By Stephanie Kelly and Scott DiSavino NEW YORK, July 1 (Reuters) - At least two dozen U.S. energy firms, including Dominion Energy Inc D.N and Sempra Energy SRE.N, have started producing hydrogen or testing its viability in natural gas pipes to take advantage of existing infrastructure as the world prioritizes lower-carbon fuels. Almost all of the world's hydrogen production is currently through fossil fuels, and large utilities are currently mostly testing blends of natural gas and hydrogen in their pipelines. "These types of proposals have not yet shown a path to a deeply decarbonized gas system," said Julie McNamara, senior energy analyst for the Union of Concerned Scientists.
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By Stephanie Kelly and Scott DiSavino NEW YORK, July 1 (Reuters) - At least two dozen U.S. energy firms, including Dominion Energy Inc D.N and Sempra Energy SRE.N, have started producing hydrogen or testing its viability in natural gas pipes to take advantage of existing infrastructure as the world prioritizes lower-carbon fuels. Almost all of the world's hydrogen production is currently through fossil fuels, and large utilities are currently mostly testing blends of natural gas and hydrogen in their pipelines. Canada's Enbridge Inc ENB.TO is blending up to 2% hydrogen into its natural gas distribution systems in Ontario, and just received approval to blend hydrogen in Quebec.
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By Stephanie Kelly and Scott DiSavino NEW YORK, July 1 (Reuters) - At least two dozen U.S. energy firms, including Dominion Energy Inc D.N and Sempra Energy SRE.N, have started producing hydrogen or testing its viability in natural gas pipes to take advantage of existing infrastructure as the world prioritizes lower-carbon fuels. Nations worldwide are trying to reach net-zero carbon emissions by 2050, but that will rely heavily on technology - like hydrogen - that is in developmental stages. Almost all of the world's hydrogen production is currently through fossil fuels, and large utilities are currently mostly testing blends of natural gas and hydrogen in their pipelines.
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698919.0
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2021-06-28 00:00:00 UTC
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Insiders Bullish on Certain Holdings of EMLP
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D
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https://www.nasdaq.com/articles/insiders-bullish-on-certain-holdings-of-emlp-2021-06-28
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nan
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nan
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A look at the weighted underlying holdings of the First Trust North American Energy Infrastructure Fund (EMLP) shows an impressive 14.3% of holdings on a weighted basis have experienced insider buying within the past six months.
Dominion Energy Inc (Symbol: D), which makes up 1.36% of the First Trust North American Energy Infrastructure Fund (EMLP), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $28,209,225 worth of D, making it the #26 largest holding. The table below details the recent insider buying activity observed at D:
D — last trade: $75.11 — Recent Insider Buys:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
03/03/2021 Robert M. Blue President and CEO 14,402 $69.44 $999,998
03/04/2021 Mark J. Kington Director 2,000 $69.29 $138,578
10 ETFs With Stocks That Insiders Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A look at the weighted underlying holdings of the First Trust North American Energy Infrastructure Fund (EMLP) shows an impressive 14.3% of holdings on a weighted basis have experienced insider buying within the past six months. Dominion Energy Inc (Symbol: D), which makes up 1.36% of the First Trust North American Energy Infrastructure Fund (EMLP), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. 03/03/2021 Robert M. Blue President and CEO 14,402 $69.44 $999,998 03/04/2021 Mark J. Kington Director 2,000 $69.29 $138,578 10 ETFs With Stocks That Insiders Are Buying » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A look at the weighted underlying holdings of the First Trust North American Energy Infrastructure Fund (EMLP) shows an impressive 14.3% of holdings on a weighted basis have experienced insider buying within the past six months. Dominion Energy Inc (Symbol: D), which makes up 1.36% of the First Trust North American Energy Infrastructure Fund (EMLP), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at D: D — last trade: $75.11 — Recent Insider Buys:
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A look at the weighted underlying holdings of the First Trust North American Energy Infrastructure Fund (EMLP) shows an impressive 14.3% of holdings on a weighted basis have experienced insider buying within the past six months. Dominion Energy Inc (Symbol: D), which makes up 1.36% of the First Trust North American Energy Infrastructure Fund (EMLP), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. 03/03/2021 Robert M. Blue President and CEO 14,402 $69.44 $999,998 03/04/2021 Mark J. Kington Director 2,000 $69.29 $138,578 10 ETFs With Stocks That Insiders Are Buying » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A look at the weighted underlying holdings of the First Trust North American Energy Infrastructure Fund (EMLP) shows an impressive 14.3% of holdings on a weighted basis have experienced insider buying within the past six months. The table below details the recent insider buying activity observed at D: D — last trade: $75.11 — Recent Insider Buys: 03/03/2021 Robert M. Blue President and CEO 14,402 $69.44 $999,998 03/04/2021 Mark J. Kington Director 2,000 $69.29 $138,578 10 ETFs With Stocks That Insiders Are Buying » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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698920.0
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2021-06-24 00:00:00 UTC
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XLU, DUK, SO, D: ETF Inflow Alert
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D
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https://www.nasdaq.com/articles/xlu-duk-so-d%3A-etf-inflow-alert-2021-06-24
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $275.5 million dollar inflow -- that's a 2.5% increase week over week in outstanding units (from 172,470,000 to 176,820,000). Among the largest underlying components of XLU, in trading today Duke Energy Corp (Symbol: DUK) is up about 0.1%, Southern Company (Symbol: SO) is trading flat, and Dominion Energy Inc (Symbol: D) is relatively unchanged. For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average:
Looking at the chart above, XLU's low point in its 52 week range is $54.81 per share, with $68.05 as the 52 week high point — that compares with a last trade of $63.43. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $275.5 million dollar inflow -- that's a 2.5% increase week over week in outstanding units (from 172,470,000 to 176,820,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of XLU, in trading today Duke Energy Corp (Symbol: DUK) is up about 0.1%, Southern Company (Symbol: SO) is trading flat, and Dominion Energy Inc (Symbol: D) is relatively unchanged. For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $54.81 per share, with $68.05 as the 52 week high point — that compares with a last trade of $63.43. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $275.5 million dollar inflow -- that's a 2.5% increase week over week in outstanding units (from 172,470,000 to 176,820,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $54.81 per share, with $68.05 as the 52 week high point — that compares with a last trade of $63.43. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $275.5 million dollar inflow -- that's a 2.5% increase week over week in outstanding units (from 172,470,000 to 176,820,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $54.81 per share, with $68.05 as the 52 week high point — that compares with a last trade of $63.43. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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698921.0
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2021-06-14 00:00:00 UTC
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Monday Sector Leaders: Technology & Communications, Utilities
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https://www.nasdaq.com/articles/monday-sector-leaders%3A-technology-communications-utilities-2021-06-14
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nan
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nan
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The best performing sector as of midday Monday is the Technology & Communications sector, higher by 0.1%. Within that group, Etsy Inc (Symbol: ETSY) and Adobe Inc (Symbol: ADBE) are two of the day's stand-outs, showing a gain of 3.7% and 2.7%, respectively. Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is up 0.5% on the day, and up 10.05% year-to-date. Etsy Inc, meanwhile, is down 3.34% year-to-date, and Adobe Inc is up 11.10% year-to-date. ADBE makes up approximately 2.8% of the underlying holdings of XLK.
The next best performing sector is the Utilities sector, losing just 0.3%. Among large Utilities stocks, Edison International (Symbol: EIX) and Dominion Energy Inc (Symbol: D) are the most notable, showing a gain of 1.2% and 0.7%, respectively. One ETF closely tracking Utilities stocks is the Utilities Select Sector SPDR ETF (XLU), which is down 0.2% in midday trading, and up 5.94% on a year-to-date basis. Edison International, meanwhile, is down 5.57% year-to-date, and Dominion Energy Inc is up 5.24% year-to-date. Combined, EIX and D make up approximately 9.4% of the underlying holdings of XLU.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday. As you can see, one sector is up on the day, while eight sectors are down.
SECTOR % CHANGE
Technology & Communications +0.1%
Utilities -0.3%
Healthcare -0.3%
Services -0.9%
Financial -0.9%
Industrial -0.9%
Consumer Products -1.3%
Energy -1.3%
Materials -1.9%
10 ETFs With Stocks That Insiders Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Combined, EIX and D make up approximately 9.4% of the underlying holdings of XLU. Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom: Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday. Technology & Communications +0.1% Utilities -0.3% Healthcare -0.3% Services -0.9% Financial -0.9% Industrial -0.9% Consumer Products -1.3% Energy -1.3% Materials -1.9% 10 ETFs With Stocks That Insiders Are Buying » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is up 0.5% on the day, and up 10.05% year-to-date. Among large Utilities stocks, Edison International (Symbol: EIX) and Dominion Energy Inc (Symbol: D) are the most notable, showing a gain of 1.2% and 0.7%, respectively. One ETF closely tracking Utilities stocks is the Utilities Select Sector SPDR ETF (XLU), which is down 0.2% in midday trading, and up 5.94% on a year-to-date basis.
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Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is up 0.5% on the day, and up 10.05% year-to-date. One ETF closely tracking Utilities stocks is the Utilities Select Sector SPDR ETF (XLU), which is down 0.2% in midday trading, and up 5.94% on a year-to-date basis. Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom: Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday.
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The best performing sector as of midday Monday is the Technology & Communications sector, higher by 0.1%. Within that group, Etsy Inc (Symbol: ETSY) and Adobe Inc (Symbol: ADBE) are two of the day's stand-outs, showing a gain of 3.7% and 2.7%, respectively. Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is up 0.5% on the day, and up 10.05% year-to-date.
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698922.0
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2021-06-13 00:00:00 UTC
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Dominion Energy, Inc. (NYSE:D) Has A ROE Of 10%
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https://www.nasdaq.com/articles/dominion-energy-inc.-nyse%3Ad-has-a-roe-of-10-2021-06-13
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. To keep the lesson grounded in practicality, we'll use ROE to better understand Dominion Energy, Inc. (NYSE:D).
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Put another way, it reveals the company's success at turning shareholder investments into profits.
How Is ROE Calculated?
ROE can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Dominion Energy is:
10% = US$2.8b ÷ US$27b (Based on the trailing twelve months to March 2021).
The 'return' is the income the business earned over the last year. That means that for every $1 worth of shareholders' equity, the company generated $0.10 in profit.
Does Dominion Energy Have A Good ROE?
Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. If you look at the image below, you can see Dominion Energy has a similar ROE to the average in the Integrated Utilities industry classification (9.3%).
NYSE:D Return on Equity June 13th 2021
That's neither particularly good, nor bad. Even if the ROE is respectable when compared to the industry, its worth checking if the firm's ROE is being aided by high debt levels. If so, this increases its exposure to financial risk. To know the 2 risks we have identified for Dominion Energy visit our risks dashboard for free.
Why You Should Consider Debt When Looking At ROE
Most companies need money -- from somewhere -- to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
Dominion Energy's Debt And Its 10% ROE
Dominion Energy does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.41. Its ROE is quite low, even with the use of significant debt; that's not a good result, in our opinion. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
Summary
Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. Companies that can achieve high returns on equity without too much debt are generally of good quality. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
But when a business is high quality, the market often bids it up to a price that reflects this. The rate at which profits are likely to grow, relative to the expectations of profit growth reflected in the current price, must be considered, too. So I think it may be worth checking this free report on analyst forecasts for the company.
But note: Dominion Energy may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
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ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Dominion Energy is: 10% = US$2.8b ÷ US$27b (Based on the trailing twelve months to March 2021). That means that for every $1 worth of shareholders' equity, the company generated $0.10 in profit. Dominion Energy's Debt And Its 10% ROE Dominion Energy does use a high amount of debt to increase returns.
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ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Dominion Energy is: 10% = US$2.8b ÷ US$27b (Based on the trailing twelve months to March 2021). Dominion Energy's Debt And Its 10% ROE Dominion Energy does use a high amount of debt to increase returns. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE.
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Dominion Energy's Debt And Its 10% ROE Dominion Energy does use a high amount of debt to increase returns. Companies that can achieve high returns on equity without too much debt are generally of good quality. But note: Dominion Energy may not be the best stock to buy.
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698923.0
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2021-06-11 00:00:00 UTC
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Investing in the Pipeline Industry
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https://www.nasdaq.com/articles/investing-in-the-pipeline-industry-2021-06-11
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nan
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nan
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In this episode of Industry Focus: Energy, The Motley Fool Canada's Nate Parmelee joins the show to break down the pipeline industry and look at an ongoing bidding war between Pembina Pipeline (NYSE: PBA) and Brookfield Infrastructure (NYSE: BIP) for ownership of the pipeline assets of Inter Pipeline.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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See the 10 stocks
*Stock Advisor returns as of June 7, 2021
This video was recorded on June 3, 2021.
Nick Sciple: Welcome to Industry Focus. I'm Nick Sciple. This week, we're taking a look at the pipeline industry. Historically, these businesses have been reliable, steady dividend payers. However, with the rise of ESG investing, they become less loved by the market. Motley Fool Candidate Analyst Nate Parmelee joins me this week to share his thoughts on the pipeline business and its potential for investors. Nate, thanks so much for joining me today.
Nate Parmelee: Great to be here.
Sciple: Great to have you. For folks who've been listening to podcasts for a long time, this is Nate's first time on the show, so I want to welcome Nate on the podcast. Could you tell our listeners what you do at The Motley Fool? How long have you been here? What kind of companies interest you?
Parmelee: I'm a generalist since I've been here, which means I invest everywhere and look at everything. That's partly because in most of the 17 years I've been at The Motley Fool, I've been focused on international investing. By nature, you fall into more of a generalist than industry-specific sphere. But I also invest across styles, so growth, dividends, value, etc. Currently within the fall, I'm one of the co-advisors on our FinTech Fortune service. I also help out with our Dividend Investor Canada service and across really all the products we have in Canada.
Sciple: Very exciting. You mentioned the Dividend Investor Canada work, where we're talking about the pipeline industry today. Historically, it has been very much a dividend-paying industry. What do you look for in a dividend stock? You're picking stocks for Dividend Investor Canada, what are the trends you're looking for?
Parmelee: Cash flow. It really comes down to cash flow with valuation if you want a big yield now. If you're looking further how to switch the cash flow growth and what can that dividend growth be. I tend to prefer the dividend growth stories myself.
Sciple: You need to have that cash coming in the door and hopefully you got more cash coming in the doors, so you can pay me more and more. I mentioned off the top that historically these pipeline businesses have been these steady, reliable cash flow businesses that make for decent dividend payers. Why do you think these have historically been good dividend stocks?
Parmelee: I live in New England and I've got heat in my house and I use natural gas and a lot of my neighbors use natural gas really out here. You can either use natural gas for the most part, or you have a truck pull up once a month or so and you have a big tank in your basement and they fill it with heating fuel, which is essentially diesel, that's color differently so people don't try to resell it. But that's really the option. It's either that or go cold, and you can't really have your pipes first, so nobody goes cold.
Sciple: This is a pretty steady demand here. People like to be warm, they will pay what they need to pay to get warm and then to go to where the pipeline business plays in. These companies have a stranglehold, if you will, on the supply, getting to your house as they go through their pipes to get there.
Parmelee: Exactly, and it's not just to the houses, it's also good to power plants which have increasingly been shutdown over the last decade from that recall, and new plants have been built that use natural gas and those are expected to last decades, not just a few years. There's consistent demand. It's not just heat, it's also electricity. People use it for cooking, other industrial uses and it's also pipelines aren't just natural gas. There's oil sands, gasoline, all sorts of things run through pipelines.
Sciple: Absolutely, and so when you think about yet, you have this pipeline in place, you own the pipe, you have a monopoly on that transportation source. Once you have this pipe in place, it doesn't really make sense to put a parallel pipe in there until the first one is at full production. When you talk about competition with other forms of transportation, it's cheaper to throw it in a pipe than it is to put it on a truck, or railroad, or any of those sorts of things.
Parmelee: Safer?
Sciple: Safer, that as well. We mentioned earlier how you need to turn your house on, these things are systemically important. We just learned in the past few months with the Colonial Pipeline Incident, you turn this thing off for a weekend or half a week, I think it turned out and you have people across the country lining up to get gasoline. These things are super important. One thing I mentioned off the top, there's the rise of ESG, and you mentioned the hazardous nature of these things. These are highly regulated entities.
Parmelee: Yes, absolutely. That's part of the reason you don't have parallel pipelines, is never mind the economics and capacity. Nobody wants another pipeline running through unless it's absolutely necessary, just because everything running through there is technically toxic. Nobody wants that leaching into groundwater or anything else.
Sciple: Nobody wants their house right next door to the pipeline, even though everybody wants to have the pipeline running and operating smoothly, because this is what allows the whole economy and those sorts of things to run smoothly. Again, to go back to the Colonial Pipeline example, and we've seen because of these regulatory issues and stronger and stronger attitudes against having these things constructed, it's becoming more and more difficult to build pipelines. One example is right at the start of the Biden administration, the new presidency shutdown, the prevention of the Dakota Access Pipeline. You talk about difficulty building a pipeline, it's been three presidents. They've had to figure out whether they are going to be able to build this thing or not. It's getting harder and harder to build these, which in a way makes this existing infrastructure that much more valuable.
Parmelee: It does. It also limits the ways we can move things around without building new pipelines and how we go about it. Its longer-term area probably does make the alternatives of wind and solar and other means of power generation, whether it be hydro or other things more important. But these are things that will take decades to roll out, and you can't just switch from one to the other cleanly, we need pipelines, we need those other technologies as well.
Sciple: That's an important point to make, so that the higher the transportation costs is to get whatever the commodity is from the well or wherever it comes out of the ground to the end-user, that's going to get baked into the end price, and the end-users looks at those substitutes and sooner or later folks switch away. One thing we've seen as it's become harder to build pipelines, there's also fewer people interested in owning pipelines, and we're seeing some continued consolidation in the space. A lot of folks might be familiar with about a year ago, Berkshire Hathaway bought up Dominion Energy's pipeline business, natural gas pipeline business for, I think it's about $10 billion enterprise value. This is a utility getting out of the pipeline business. Earlier this week, we had a similar deal with Kinder Morgan buying up the natural gas pipeline distribution from Stagecoach Services, which is a joint venture between Con Edison and another company. What do you make of this consolidation in the pipeline industry more broadly?
Parmelee: I think some of it comes down to COVID and a lot of folks who didn't have expansion projects going on cash piled up, and a lot of these stocks are somewhat cheap. Now they're looking at, do we buy the assets that are in place or do we look at expansion projects? I think what they're finding is assets in place are more attractive than lower risk because they are already in place. You don't have to deal with a lot of the extra hurdles you have to go through with expansion separate from costs or factored in the cost, I guess I would say. I think that's part of what's going on. I also just think there's fewer and fewer opportunities. As the bigger folks use their scale to their advantage, they are going to look to buy up attractive assets where they can.
Sciple: What you're talking about, so maybe a month or two ago, we talked about the Kansas City Southern deal about how there's not that many railroads out there, and if you're in the industry and you want to go make a deal happen, there's not that many deals out there, and I think it's obviously significantly less consolidated in pipelines than it is in railroads. Well, there is that dynamic a little bit. There's only so much out there. When a deal comes open, there's going to be lots of people bidding on it, potentially which ties us into maybe our main story that we want to talk about today, which is this week we've got to continue bidding war for pipeline assets. Inter Pipeline is up for sale and there are two different companies bidding on this asset. We've got Pembina Pipeline, which folks may or may not be familiar with, but folks are definitely familiar with if they listen to the show is Brookfield Infrastructure, the infrastructure arm of Brookfield Asset Management. Nate, can you frame up what's going on here in this bidding war and what's Brookfield doing and where we're going here?
Parmelee: Brookfield is always just, where can I find an undervalued asset? Can I still get it at a good price? I'll buy it. That's how they operate and they are everywhere. It's not just in infrastructure, they're on property, they're on everything. Pembina is pipelines pretty much, it is its business. With the combination with Inter Pipeline, they have a potentially interesting relationship in that they have propane supply, and Inter Pipeline has built a new pipeline or is building a new pipeline and your petrochemical facility that needs propane supply. Pembina has it. There's a nice integration possibility there. What Pembina doesn't have is the balance sheet strength or the same access to capital as Brookfield. They have good access to capital, but almost nobody has the same access to capital as Brookfield except for maybe Berkshire and some few others in the state. I think it comes down to, in a sense, what does Brookfield want to pay? Because they can outbid if they want to and then how much do Inter Pipeline shareholders value what Pembina brings to the table as far as propane assets and the integration, and is the sum of the two greater than they are individually, because Pembina's deal is an all stock deal. In theory, you would see that appreciation if you're an Inter Pipeline shareholder whereas the majority of Brookfield deals are cash. Do you want cash now or do you want to hold out and see that bigger return in the future? That's another thing shareholders need to weigh.
Sciple: Yes, so you got one group that has synergies and no cash, and another one that has a bucket of cash and arguably less synergies. Now, Brookfield sophisticated operators, I'm sure they see some ways that they can bring efficiency out of here but these are the challenges. Why do they have so much access to capital? What makes them such a big player in this industry and such a formidable person to face.
Parmelee: Great capital allocators that have been added for decades. I mean, that's how you prove yourself, you do it for decades. You amass your own capital, never mind people who are willing to give you a capital to invest or lend you capital. But that's really what it comes down to.
Sciple: I think another factor layered in here is the Brookfield offer can close much more quickly.
Parmelee: That is the cash aspect.
Sciple: If you're a shareholder in Inter Pipeline, which would you prefer here and why?
Parmelee: I tend to lean toward where is the long term return I can get. A lot of times when my small caps get bought out, I'm disappointed because I feel like it could have achieved so much more, and a lot of time you get cash and you wish you could have gotten stock. With Pipeline it's a little bit tougher, I think I would lean toward Pembina but I could see going either way. I think a lot of investors prefer if they're getting bought out, just get the cash and go, what's my next investment?
Sciple: I guess when you think about pipelines, this is a cash flow stream at the end of the day. Brookfield is essentially discounting this existing cash flow stream you would think with the price that they're going to pay for this acquisition. With the Pembina deal, you can tell a story that it's not just what we have today, it's something that we can have in the future. We can go down market both ways I guess become more vertically integrated with how we sell our products. Perhaps there's more margin they can capture. We'll see what happens. How do you think it ends up playing out? I think you said privately that if Brookfield had this, do you think they can have it?
Parmelee: Pretty much. I mean, they really can't be outbid. I'm sure Pembina can bring some cash to the table if they work at it. By the same token, if I were an Inter Pipeline shareholder and I could have Brookfield stock, which they're probably not going to give you a lot of because that's expensive capital they get good returns, then I would probably take Brookfield stock. I think it could really go either way. I'm really curious to see if Inter Pipeline sweetens their offer again.
Sciple: It comes back to one of these other themes that we were talking about earlier, there's only so many pipes out here left. It's very difficult to construct a new pipeline, should we expect more consolidation? In the cases where it becomes clear that some things are up for bid, more and more of these bidding wars.
Parmelee: I think now our assets are reasonably priced. I think we will see consolidation because you've got Kinder Morgan, Brookfield and some other players. There are a number of folks in the industry who've been pretty good at allocating capital and growing. Some of that has been, they've had a tailwind of sorts from gas and shale oil and other things. But they've done well and there's some smart people out there. As long as they can get assets at reasonable prices, I think we'll see consolidation.
Sciple: In any of those things about assets at reasonable prices you see these companies, you could think of Brookfield as a private equity business. When you see these folks come in, it's because there's some reason in the public market that these things maybe aren't being adequately valued or are not getting as much valuation. We mentioned off the top that there's more and more of the ESG pushing more and more folks who don't want to own assets like pipelines. Do you think that's structurally creating an opportunity that these stocks are undervalued for a reason?
Parmelee: I think in the near term, yes, I've seen this before with pipelines. Nobody wanted to own pipelines into the financial crisis. It happened again with COVID, but in between there was a period where pipelines were expensive. Everybody wanted to have them because of all the gas and other things that were going into the expansion projects and the growth etc. I think when you see it slow down, you see people lose interest. For now, yes, but I'm not sure pipelines are as far as investor interests are gone forever.
Sciple: Okay, which raises my question as we start to tie things up a little bit. What are you watching as we look out into the next, say five to 10 years? You've laid out this theme of more difficult regulatory pressure, consolidation things like that, what are you paying attention to going forward?
Parmelee: I think who has expansion projects still out there and what they can add to the businesses. I also think it's curious, I've read about some cities starting to say, no new construction with natural gas, and some states saying that and trying to pre-empt their cities from enacting similar legislation. To meet that probably hurts the utilities that provide natural gas more than the pipeline folks, because still going to be making electricity using natural gas, and we still have all those other assets. Folks don't need to keep their homes things like that, so I don't see them going away, but that is a dynamic that I think is worth watching over the next few years and how it evolves.
Sciple: If we move away from natural gas for heating there's going to be a substitution effect, because people aren't going to stop heating their houses. I don't think we're all going to start sleeping in the cold anytime soon. In theory, you are going to go to some type of electric based heat pump something like that, well that takes electricity to power it, and so you can tell a story where you're not taking natural gas straight into your house anymore or heating oil or what have you through small pipes, but instead, you're using the same amount of energy to heat your home but it's going to a big pipe to the utility, and then the utility is having to charge, it's to charges you more for power. Can you foresee a world where there's less at the home use of natural gas or some of these heating oil, but yet the net use of it and energy goes up?
Parmelee: It's really tough, because electric heat is also less efficient. I think the heat pumps to a little bit better than the baseboard electric heat. But it's more expensive in general to use electric heat. You are usually better off using natural gas then oil and then electric.
Sciple: Cut out the middleman?
Parmelee: Yes, exactly in a sense, but I think you'd have to see electricity prices change and it would be great to have solar or wind or something like that. But on a cloudy day in New England, you need something else solar that is not going to work for you. It's going to be somewhere and shifting over the grid or something else.
Sciple: What do those substitutions look like over the next few years? Because this political trend is probably not going to reverse, I guess in the super near term. One last thing, Nate, so we've talked about pipelines, we've talked about various companies here. There's probably folks who want to say, hey man, maybe I want to go look at some pipelines to invest in and I think there's industry is interesting. What would be on the short list of if you wanted to make, these are the places I would start looking in the pipeline space for stocks to consider buying. What are the companies that come to mind for you?
Parmelee: I'm always keeping an eye on Kinder Morgan, that's one. Pembina's is one that I have kept an eye on and thought about in the past. They've got a great monthly dividend which is attractive. If you're an income investor it's great to get that payment coming in every month as opposed to two times, four times a year. That's always great. Trying to think outside of that, some of the MLPs are interesting but then you're dealing with the extra forms on your taxes. So, depending on how much of that bothers you, having to deal with the extra, I think it's the K-1 forms on your taxes and jumping through those extra hoops. Enterprise Products Partners in New York, some of the others are interesting as well. But my preference is to simplify my taxes. I've done the MLPs in the past, and if I'm getting a great deal, I'm happy to do them but I have to make a lot of money to put in the extra time, plug in all the data into my taxes which never seems to go right.
Sciple: The return on brain damage thing?
Parmelee: Exactly.
Sciple: Yes. We'll throw those tickers in the description of the show for everybody. Nate, thank you so much for joining me, I look forward to having you on again soon.
Parmelee: Great to be here. Thanks for having me.
Sciple: As always, people on the program may own companies discussed on the show and The Motley Fool may have formal recommendations for or against the stocks discussed, so don't buy or sell anything based solely on what you hear. Thanks to Tim Sparks for mixing the show, for Nate Parmelee, I'm Nick Sciple, thanks for listening and Fool on!
Nate Parmelee has no position in any of the stocks mentioned. Nick Sciple owns shares of Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Kinder Morgan. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS, Brookfield Infrastructure Partners, Dominion Energy, Inc, Enterprise Products Partners, and PEMBINA PIPELINE CORPORATION and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Motley Fool Candidate Analyst Nate Parmelee joins me this week to share his thoughts on the pipeline business and its potential for investors. You can either use natural gas for the most part, or you have a truck pull up once a month or so and you have a big tank in your basement and they fill it with heating fuel, which is essentially diesel, that's color differently so people don't try to resell it. Earlier this week, we had a similar deal with Kinder Morgan buying up the natural gas pipeline distribution from Stagecoach Services, which is a joint venture between Con Edison and another company.
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In this episode of Industry Focus: Energy, The Motley Fool Canada's Nate Parmelee joins the show to break down the pipeline industry and look at an ongoing bidding war between Pembina Pipeline (NYSE: PBA) and Brookfield Infrastructure (NYSE: BIP) for ownership of the pipeline assets of Inter Pipeline. A lot of folks might be familiar with about a year ago, Berkshire Hathaway bought up Dominion Energy's pipeline business, natural gas pipeline business for, I think it's about $10 billion enterprise value. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS, Brookfield Infrastructure Partners, Dominion Energy, Inc, Enterprise Products Partners, and PEMBINA PIPELINE CORPORATION and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares).
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In this episode of Industry Focus: Energy, The Motley Fool Canada's Nate Parmelee joins the show to break down the pipeline industry and look at an ongoing bidding war between Pembina Pipeline (NYSE: PBA) and Brookfield Infrastructure (NYSE: BIP) for ownership of the pipeline assets of Inter Pipeline. With the combination with Inter Pipeline, they have a potentially interesting relationship in that they have propane supply, and Inter Pipeline has built a new pipeline or is building a new pipeline and your petrochemical facility that needs propane supply. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS, Brookfield Infrastructure Partners, Dominion Energy, Inc, Enterprise Products Partners, and PEMBINA PIPELINE CORPORATION and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares).
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In this episode of Industry Focus: Energy, The Motley Fool Canada's Nate Parmelee joins the show to break down the pipeline industry and look at an ongoing bidding war between Pembina Pipeline (NYSE: PBA) and Brookfield Infrastructure (NYSE: BIP) for ownership of the pipeline assets of Inter Pipeline. One thing we've seen as it's become harder to build pipelines, there's also fewer people interested in owning pipelines, and we're seeing some continued consolidation in the space. By the same token, if I were an Inter Pipeline shareholder and I could have Brookfield stock, which they're probably not going to give you a lot of because that's expensive capital they get good returns, then I would probably take Brookfield stock.
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698924.0
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2021-06-10 00:00:00 UTC
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D Crosses Above Key Moving Average Level
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D
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https://www.nasdaq.com/articles/d-crosses-above-key-moving-average-level-2021-06-10
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nan
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nan
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In trading on Thursday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $76.81, changing hands as high as $77.27 per share. Dominion Energy Inc shares are currently trading up about 0.8% on the day. The chart below shows the one year performance of D shares, versus its 200 day moving average:
Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $86.95 as the 52 week high point — that compares with a last trade of $77.10. The D DMA information above was sourced from TechnicalAnalysisChannel.com
Free Report: Top 7%+ Dividends (paid monthly)
Click here to find out which 9 other energy stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $76.81, changing hands as high as $77.27 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $86.95 as the 52 week high point — that compares with a last trade of $77.10. The D DMA information above was sourced from TechnicalAnalysisChannel.com Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other energy stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $76.81, changing hands as high as $77.27 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $86.95 as the 52 week high point — that compares with a last trade of $77.10. The D DMA information above was sourced from TechnicalAnalysisChannel.com Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other energy stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $76.81, changing hands as high as $77.27 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $86.95 as the 52 week high point — that compares with a last trade of $77.10. The D DMA information above was sourced from TechnicalAnalysisChannel.com Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other energy stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $76.81, changing hands as high as $77.27 per share. Dominion Energy Inc shares are currently trading up about 0.8% on the day. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $86.95 as the 52 week high point — that compares with a last trade of $77.10.
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698925.0
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2021-06-03 00:00:00 UTC
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Notable ETF Outflow Detected - IGF, DUK, SO, D
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D
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https://www.nasdaq.com/articles/notable-etf-outflow-detected-igf-duk-so-d-2021-06-03
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nan
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nan
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global Infrastructure ETF (Symbol: IGF) where we have detected an approximate $80.6 million dollar outflow -- that's a 2.5% decrease week over week (from 67,700,000 to 66,000,000). Among the largest underlying components of IGF, in trading today Duke Energy Corp (Symbol: DUK) is up about 0.4%, Southern Company (Symbol: SO) is up about 0.2%, and Dominion Energy Inc (Symbol: D) is up by about 0.6%. For a complete list of holdings, visit the IGF Holdings page » The chart below shows the one year price performance of IGF, versus its 200 day moving average:
Looking at the chart above, IGF's low point in its 52 week range is $37.33 per share, with $47.86 as the 52 week high point — that compares with a last trade of $47.08. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the IGF Holdings page » The chart below shows the one year price performance of IGF, versus its 200 day moving average: Looking at the chart above, IGF's low point in its 52 week range is $37.33 per share, with $47.86 as the 52 week high point — that compares with a last trade of $47.08. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the IGF Holdings page » The chart below shows the one year price performance of IGF, versus its 200 day moving average: Looking at the chart above, IGF's low point in its 52 week range is $37.33 per share, with $47.86 as the 52 week high point — that compares with a last trade of $47.08. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Click here to find out which 9 other ETFs experienced notable outflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global Infrastructure ETF (Symbol: IGF) where we have detected an approximate $80.6 million dollar outflow -- that's a 2.5% decrease week over week (from 67,700,000 to 66,000,000). For a complete list of holdings, visit the IGF Holdings page » The chart below shows the one year price performance of IGF, versus its 200 day moving average: Looking at the chart above, IGF's low point in its 52 week range is $37.33 per share, with $47.86 as the 52 week high point — that compares with a last trade of $47.08. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global Infrastructure ETF (Symbol: IGF) where we have detected an approximate $80.6 million dollar outflow -- that's a 2.5% decrease week over week (from 67,700,000 to 66,000,000). For a complete list of holdings, visit the IGF Holdings page » The chart below shows the one year price performance of IGF, versus its 200 day moving average: Looking at the chart above, IGF's low point in its 52 week range is $37.33 per share, with $47.86 as the 52 week high point — that compares with a last trade of $47.08. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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698926.0
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2021-06-02 00:00:00 UTC
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Dominion Energy, Inc. (D) Ex-Dividend Date Scheduled for June 03, 2021
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D
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https://www.nasdaq.com/articles/dominion-energy-inc.-d-ex-dividend-date-scheduled-for-june-03-2021-2021-06-02
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nan
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nan
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Dominion Energy, Inc. (D) will begin trading ex-dividend on June 03, 2021. A cash dividend payment of $0.63 per share is scheduled to be paid on June 20, 2021. Shareholders who purchased D prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 3rd quarter that D has paid the same dividend. At the current stock price of $75.55, the dividend yield is 3.34%.
The previous trading day's last sale of D was $75.55, representing a -13.5% decrease from the 52 week high of $87.34 and a 11.35% increase over the 52 week low of $67.85.
D is a part of the Public Utilities sector, which includes companies such as NextEra Energy, Inc. (NEE) and American Electric Power Company, Inc. (AEP). D's current earnings per share, an indicator of a company's profitability, is $1.05. Zacks Investment Research reports D's forecasted earnings growth in 2021 as 8.69%, compared to an industry average of 6.8%.
For more information on the declaration, record and payment dates, visit the D Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to D through an Exchange Traded Fund [ETF]?
The following ETF(s) have D as a top-10 holding:
VanEck Vectors Uranium & Nuclear Energy ETF (NLR)
SPDR Select Sector Fund - Utilities (XLU)
Vanguard Utilities ETF (VPU)
iShares U.S. Utilities ETF (IDU)
Fidelity MSCI Utilities Index ETF (FUTY).
The top-performing ETF of this group is NLR with an increase of 8.94% over the last 100 days. It also has the highest percent weighting of D at 7.64%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased D prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports D's forecasted earnings growth in 2021 as 8.69%, compared to an industry average of 6.8%. For more information on the declaration, record and payment dates, visit the D Dividend History page.
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Shareholders who purchased D prior to the ex-dividend date are eligible for the cash dividend payment. Interested in gaining exposure to D through an Exchange Traded Fund [ETF]? The following ETF(s) have D as a top-10 holding: VanEck Vectors Uranium & Nuclear Energy ETF (NLR) SPDR Select Sector Fund - Utilities (XLU) Vanguard Utilities ETF (VPU) iShares U.S. Utilities ETF (IDU) Fidelity MSCI Utilities Index ETF (FUTY).
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A cash dividend payment of $0.63 per share is scheduled to be paid on June 20, 2021. Shareholders who purchased D prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have D as a top-10 holding: VanEck Vectors Uranium & Nuclear Energy ETF (NLR) SPDR Select Sector Fund - Utilities (XLU) Vanguard Utilities ETF (VPU) iShares U.S. Utilities ETF (IDU) Fidelity MSCI Utilities Index ETF (FUTY).
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A cash dividend payment of $0.63 per share is scheduled to be paid on June 20, 2021. Shareholders who purchased D prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have D as a top-10 holding: VanEck Vectors Uranium & Nuclear Energy ETF (NLR) SPDR Select Sector Fund - Utilities (XLU) Vanguard Utilities ETF (VPU) iShares U.S. Utilities ETF (IDU) Fidelity MSCI Utilities Index ETF (FUTY).
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698927.0
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2021-06-01 00:00:00 UTC
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Ex-Dividend Reminder: Acushnet Holdings, Avangrid and Dominion Energy
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D
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-acushnet-holdings-avangrid-and-dominion-energy-2021-06-01
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel, on 6/3/21, Acushnet Holdings Corp (Symbol: GOLF), Avangrid Inc (Symbol: AGR), and Dominion Energy Inc (Symbol: D) will all trade ex-dividend for their respective upcoming dividends. Acushnet Holdings Corp will pay its quarterly dividend of $0.165 on 6/18/21, Avangrid Inc will pay its quarterly dividend of $0.44 on 7/1/21, and Dominion Energy Inc will pay its quarterly dividend of $0.63 on 6/20/21. As a percentage of GOLF's recent stock price of $53.52, this dividend works out to approximately 0.31%, so look for shares of Acushnet Holdings Corp to trade 0.31% lower — all else being equal — when GOLF shares open for trading on 6/3/21. Similarly, investors should look for AGR to open 0.84% lower in price and for D to open 0.83% lower, all else being equal.
Below are dividend history charts for GOLF, AGR, and D, showing historical dividends prior to the most recent ones declared.
Acushnet Holdings Corp (Symbol: GOLF):
Avangrid Inc (Symbol: AGR):
Dominion Energy Inc (Symbol: D):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.23% for Acushnet Holdings Corp, 3.36% for Avangrid Inc, and 3.32% for Dominion Energy Inc .
In Tuesday trading, Acushnet Holdings Corp shares are currently up about 0.6%, Avangrid Inc shares are off about 0.5%, and Dominion Energy Inc shares are off about 0.4% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a percentage of GOLF's recent stock price of $53.52, this dividend works out to approximately 0.31%, so look for shares of Acushnet Holdings Corp to trade 0.31% lower — all else being equal — when GOLF shares open for trading on 6/3/21. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. If they do continue, the current estimated yields on annualized basis would be 1.23% for Acushnet Holdings Corp, 3.36% for Avangrid Inc, and 3.32% for Dominion Energy Inc .
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Looking at the universe of stocks we cover at Dividend Channel, on 6/3/21, Acushnet Holdings Corp (Symbol: GOLF), Avangrid Inc (Symbol: AGR), and Dominion Energy Inc (Symbol: D) will all trade ex-dividend for their respective upcoming dividends. Acushnet Holdings Corp will pay its quarterly dividend of $0.165 on 6/18/21, Avangrid Inc will pay its quarterly dividend of $0.44 on 7/1/21, and Dominion Energy Inc will pay its quarterly dividend of $0.63 on 6/20/21. Acushnet Holdings Corp (Symbol: GOLF): Avangrid Inc (Symbol: AGR): Dominion Energy Inc (Symbol: D): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel, on 6/3/21, Acushnet Holdings Corp (Symbol: GOLF), Avangrid Inc (Symbol: AGR), and Dominion Energy Inc (Symbol: D) will all trade ex-dividend for their respective upcoming dividends. Acushnet Holdings Corp will pay its quarterly dividend of $0.165 on 6/18/21, Avangrid Inc will pay its quarterly dividend of $0.44 on 7/1/21, and Dominion Energy Inc will pay its quarterly dividend of $0.63 on 6/20/21. Acushnet Holdings Corp (Symbol: GOLF): Avangrid Inc (Symbol: AGR): Dominion Energy Inc (Symbol: D): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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As a percentage of GOLF's recent stock price of $53.52, this dividend works out to approximately 0.31%, so look for shares of Acushnet Holdings Corp to trade 0.31% lower — all else being equal — when GOLF shares open for trading on 6/3/21. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.23% for Acushnet Holdings Corp, 3.36% for Avangrid Inc, and 3.32% for Dominion Energy Inc .
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698928.0
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2021-05-27 00:00:00 UTC
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INSIGHT-Headwinds: Offshore wind will take time to carry factory jobs to U.S.
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https://www.nasdaq.com/articles/insight-headwinds%3A-offshore-wind-will-take-time-to-carry-factory-jobs-to-u.s.-2021-05-27
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By Isla Binnie, Susanna Twidale and Nichola Groom
May 27 (Reuters) - When U.S. President Joe Biden's administration approved the country’s first major offshore wind farm this month, it billed the move as the start of a new clean energy industry that by the end of the decade will create over 75,000 U.S. jobs.
Industry executives and analysts do not contest that claim, but they make a clarification: For the first several years at least, most of the manufacturing jobs stemming from the U.S. offshore wind industry will be in Europe.
Offshore wind project developers plan to ship massive blades, towers and other components for at least the initial wave of U.S. projects from factories in France, Spain and elsewhere before potentially opening up manufacturing plants on U.S. shores, according to Reuters interviews with executives from three of the world’s leading wind turbine makers.
That is because suppliers need to see a deep pipeline of approved U.S. projects, along with a clear set of regulatory incentives like federal and state tax breaks, before committing to siting and building new American factories, they say – a process that could take years.
"For the first projects, it's probably necessary" to ship across the Atlantic, said Martin Gerhardt, head of offshore wind product management at Siemens Gamesa SGREN.MC, the global offshore wind market leader in a comment typical of the group.
That underscores an uncomfortable truth for the Biden administration as it seeks to show political opponents that a transition away from fossil fuels to fight climate change can be good for the economy: many of the clean energy jobs he aims to create to offset losses in drilling and mining may not materialize until well after his time in the White House ends.
The administration has unveiled a goal to install 30 gigawatts (GW) of offshore wind power capacity in U.S. waters by 2030 – roughly the amount that already exists in Europe’s two-decade old industry – a plan that it estimates will create 77,000 U.S.-based jobs while combating global climate change.
More than 2,000 turbines will be needed to meet the 30-GW target, according to Shashi Barla, an analyst at consultancy Wood Mackenzie. But U.S.-based factories probably will not materialize until 2024 or 2025, he said.
After that, Barla said he expects the U.S. supply chain to develop rapidly and to make around 70% of major components for the industry by 2030.
A White House official did not immediately respond to a request for comment.
A FACTORY IN EVERY STATE
This month, Washington took a big step toward its goal of launching the offshore wind industry by approving the Vineyard Wind project off the coast of Massachusetts, jointly owned by Avangrid Inc AGR.N and Copenhagen Infrastructure Partners.
That project, the first major offshore wind farm to get federal approval in the United States after more than a decade of stops and starts, is expected to produce enough electricity to power 400,000 homes in New England by 2023.
Vineyard Wind alone will create 3,600 U.S. jobs, according to company officials, though most of the project’s components will be manufactured in Europe due to the lack of an existing domestic supply chain.
U.S. company General Electric's GE.Nrenewable division, GE Renewable Energy, will supply Vineyard Wind with 62 turbines. The major parts for those turbines, which are twice the height of the Statue of Liberty, including rotor blades and gear boxes, will be made in its factories in France.
Iberdrola IBE.MC, Avangrid’s Spanish parent company, says the contract to make the turbine foundations, meanwhile, will create around 400 jobs at the Windar Renovables factory in Spain.
Several other U.S. offshore wind project proposals have also been preparing orders from companies like GE and Siemens Gamesa, but they are awaiting federal regulatory approval before moving forward.
The manufacturers told Reuters they need those orders to become solid and reliable before contemplating investments in a U.S.-based supply chain for offshore wind.
Opening a factory is costly and time-consuming: they require permits and large amounts of space near the coast, said Christy Guthman, GE Renewables commercial leader of U.S. offshore.
"We definitely want to maximize our local content wherever possible, but we need to have that sustained volume year over year to look at potential investments in the U.S," Guthman said.
Developers also need to navigate complex state-level demands on the industry, as governors compete to ensure that any future factories supplying the offshore wind industry are built within their borders.
New Jersey, for example, has asked bidders on its offshore wind supply contracts to specify how they will help the state become an industry hub, while a recent New York solicitation said investments that create sustainable in-state jobs would be given preference.
"We cannot have a factory in every state, that is not economic," Siemens Gamesa Chief Executive Andreas Nauen said in an interview.
Nauen’s company is still deliberating over whether to open a specialized facility on the East Coast to service a proposed project for Dominion Energy D.N in Virginia, having been named preferred supplier back in January 2020.
Siemens Gamesa, GE and Vestas VWS.COalready produce parts for smaller, onshore turbines in the United States, but locations including landlocked Kansas, Iowa, North Dakota and Colorado put them too far from the windy coasts to be of much use for larger offshore pieces.
Orsted ORSTED.CO and Equinor EQNR.OL, meanwhile, have said they plan to open manufacturing for some parts to service U.S. offshore projects they have proposed, though many major parts would likely still be derived from established plants in Europe.
POLITICAL TURBULENCE
Suppliers have reason to be cautious. Clean energy expansion in the United States relies heavily on political will – which can shift from administration to administration.
Federal incentives for renewable energy projects have expired or experienced eleventh-hour extensions in Congress multiple times over the last decade. Biden’s predecessor, Donald Trump, meanwhile, had cancelled Vineyard Wind's permit application during his term, throwing the entire industry into doubt until Biden revived the process.
That turbulence resounded in the supply chain. Vineyard Wind initially chose Vestas as its turbine supplier in 2018, but that contract expired as federal permitting dragged on.
The Biden White House has said it is aware that suppliers need airtight commitments to make investments in local manufacturing, and points out the administration has pledged $3 billion in public financing for offshore wind and transmission developers and component suppliers. It will also fund $230 million of port infrastructure projects to help encourage the industry.
The U.S. International Trade Commission, meanwhile, has imposed tariffs on imported wind towers from certain countries including Spain. While the move came at the request of two domestic producers of towers for the U.S. onshore wind industry, the tariffs would apply to offshore towers as well, increasing the economic incentive to open U.S. factories.
"We know that we need to create greater certainty for offshore wind projects," U.S. Bureau of Ocean Energy Management Director Amanda Lefton said on a call with reporters on May 11.
Lefton has also acknowledged that competing state demands could be an obstacle for the industry.
"There's been this healthy competition among states for who is the most aggressive," Lefton said in an interview with Reuters. "But we stand to gain a lot more now by... rowing in the same direction on establishing the supply chain here."
(Reporting by Isla Binnie in Madrid, Nichola Groom in Los Angeles, Susanna Twidale in London; editing by Richard Valdmanis and Marguerita Choy)
((isla.binnie@thomsonreuters.com; +39 06 8522 4392; Reuters Messaging: isla.binnie.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Isla Binnie, Susanna Twidale and Nichola Groom May 27 (Reuters) - When U.S. President Joe Biden's administration approved the country’s first major offshore wind farm this month, it billed the move as the start of a new clean energy industry that by the end of the decade will create over 75,000 U.S. jobs. That underscores an uncomfortable truth for the Biden administration as it seeks to show political opponents that a transition away from fossil fuels to fight climate change can be good for the economy: many of the clean energy jobs he aims to create to offset losses in drilling and mining may not materialize until well after his time in the White House ends. The administration has unveiled a goal to install 30 gigawatts (GW) of offshore wind power capacity in U.S. waters by 2030 – roughly the amount that already exists in Europe’s two-decade old industry – a plan that it estimates will create 77,000 U.S.-based jobs while combating global climate change.
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By Isla Binnie, Susanna Twidale and Nichola Groom May 27 (Reuters) - When U.S. President Joe Biden's administration approved the country’s first major offshore wind farm this month, it billed the move as the start of a new clean energy industry that by the end of the decade will create over 75,000 U.S. jobs. "For the first projects, it's probably necessary" to ship across the Atlantic, said Martin Gerhardt, head of offshore wind product management at Siemens Gamesa SGREN.MC, the global offshore wind market leader in a comment typical of the group. Siemens Gamesa, GE and Vestas VWS.COalready produce parts for smaller, onshore turbines in the United States, but locations including landlocked Kansas, Iowa, North Dakota and Colorado put them too far from the windy coasts to be of much use for larger offshore pieces.
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By Isla Binnie, Susanna Twidale and Nichola Groom May 27 (Reuters) - When U.S. President Joe Biden's administration approved the country’s first major offshore wind farm this month, it billed the move as the start of a new clean energy industry that by the end of the decade will create over 75,000 U.S. jobs. Offshore wind project developers plan to ship massive blades, towers and other components for at least the initial wave of U.S. projects from factories in France, Spain and elsewhere before potentially opening up manufacturing plants on U.S. shores, according to Reuters interviews with executives from three of the world’s leading wind turbine makers. "For the first projects, it's probably necessary" to ship across the Atlantic, said Martin Gerhardt, head of offshore wind product management at Siemens Gamesa SGREN.MC, the global offshore wind market leader in a comment typical of the group.
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Offshore wind project developers plan to ship massive blades, towers and other components for at least the initial wave of U.S. projects from factories in France, Spain and elsewhere before potentially opening up manufacturing plants on U.S. shores, according to Reuters interviews with executives from three of the world’s leading wind turbine makers. After that, Barla said he expects the U.S. supply chain to develop rapidly and to make around 70% of major components for the industry by 2030. Vineyard Wind alone will create 3,600 U.S. jobs, according to company officials, though most of the project’s components will be manufactured in Europe due to the lack of an existing domestic supply chain.
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698929.0
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2021-05-24 00:00:00 UTC
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Monday Sector Laggards: Utilities, Consumer Products
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D
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https://www.nasdaq.com/articles/monday-sector-laggards%3A-utilities-consumer-products-2021-05-24
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Looking at the sectors faring worst as of midday Monday, shares of Utilities companies are underperforming other sectors, higher by 0.2%. Within that group, Dominion Energy Inc (Symbol: D) and NRG Energy Inc (Symbol: NRG) are two of the day's laggards, showing a loss of 0.8% and 0.5%, respectively. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 0.1% on the day, and up 6.37% year-to-date. Dominion Energy Inc , meanwhile, is up 3.98% year-to-date, and NRG Energy Inc, is down 8.67% year-to-date. Combined, D and NRG make up approximately 7.7% of the underlying holdings of XLU.
The next worst performing sector is the Consumer Products sector, higher by 0.6%. Among large Consumer Products stocks, Ford Motor Co. (Symbol: F) and Whirlpool Corp (Symbol: WHR) are the most notable, showing a loss of 1.4% and 0.7%, respectively. One ETF closely tracking Consumer Products stocks is the iShares U.S. Consumer Goods ETF (IYK), which is up 1.2% in midday trading, and up 4.11% on a year-to-date basis. Ford Motor Co. , meanwhile, is up 49.60% year-to-date, and Whirlpool Corp is up 31.82% year-to-date. Combined, F and WHR make up approximately 2.1% of the underlying holdings of IYK.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday. As you can see, nine sectors are up on the day, while none of the sectors are down.
SECTOR % CHANGE
Technology & Communications +1.6%
Materials +1.0%
Services +0.8%
Industrial +0.8%
Consumer Products +0.6%
Healthcare +0.6%
Financial +0.6%
Energy +0.6%
Utilities +0.2%
10 ETFs With Stocks That Insiders Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Combined, F and WHR make up approximately 2.1% of the underlying holdings of IYK. Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom: Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday. Technology & Communications +1.6% Materials +1.0% Services +0.8% Industrial +0.8% Consumer Products +0.6% Healthcare +0.6% Financial +0.6% Energy +0.6% Utilities +0.2% 10 ETFs With Stocks That Insiders Are Buying » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 0.1% on the day, and up 6.37% year-to-date. The next worst performing sector is the Consumer Products sector, higher by 0.6%. Among large Consumer Products stocks, Ford Motor Co. (Symbol: F) and Whirlpool Corp (Symbol: WHR) are the most notable, showing a loss of 1.4% and 0.7%, respectively.
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Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 0.1% on the day, and up 6.37% year-to-date. One ETF closely tracking Consumer Products stocks is the iShares U.S. Consumer Goods ETF (IYK), which is up 1.2% in midday trading, and up 4.11% on a year-to-date basis. Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom: Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday.
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Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (Symbol: XLU), which is up 0.1% on the day, and up 6.37% year-to-date. The next worst performing sector is the Consumer Products sector, higher by 0.6%. Among large Consumer Products stocks, Ford Motor Co. (Symbol: F) and Whirlpool Corp (Symbol: WHR) are the most notable, showing a loss of 1.4% and 0.7%, respectively.
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698930.0
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2021-05-21 00:00:00 UTC
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7 Best Stocks to Buy as Soon as You Get Your Tax Refund
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https://www.nasdaq.com/articles/7-best-stocks-to-buy-as-soon-as-you-get-your-tax-refund-2021-05-21
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
One of the least favorite federal agencies, the Internal Revenue Service (IRS) is not known for its friendly posture. Nevertheless, let’s give credit where it’s due. The IRS had the good sense to know that many Americans were hurting. Therefore, it decided to extend its tax filing deadline to May 17. If you’re a procrastinator, you’ll soon get your tax refund, which brings up the idea of best stocks to buy with it.
First, let me just say the obvious. A tax refund is really just a beautiful American euphemism for giving Uncle Sam an interest-free loan. But that’s the mentality that you find yourself in if you’re a worker bee: You wait for that one day of the year when you get a special treat. Instead, if you were in business for yourself, you could hustle for multiple special days to buy all the best stocks.
Still, working for a major corporation has its advantages, such as paid time off, health insurance and income stability, among many other benefits. Therefore, I can appreciate why many Americans eagerly wait for the “refund.” According to CNBC, the average refund size is a hefty $2,893. That amounts to $241 a month, money that you could have put to work through consistent contributions toward the best stocks to buy instead of loaning it to the federal government.
It’s just something to think about. Even if you don’t make the leap from a W2 employee to, say, a 1099 contractor, you should consult with your professional tax or financial advisor — which is not me, to be clear — to streamline your finances in the future. You want your money to benefit you, not anyone else and certainly not a giant bureaucracy.
Anyways, if you’re the average tax payer, you have roughly $3,000 to play with. And if you kept some of your stimulus checks (assuming you were eligible), you have even more funds at your disposal. Here then are seven best stocks to buy with your newfound riches.
The Top 7 Ways to Invest In Semiconductors Now
Based on the volatile circumstances in the market, I’m leaning more on the cautious side. However, on this list of stocks to buy, you’ll find some speculative ideas if that’s more of your flavor.
McDonald’s (NYSE:MCD)
Archer Daniels Midland (NYSE:ADM)
Dominion Energy (NYSE:D)
Kratos Defense & Security Solutions (NASDAQ:KTOS)
H&R Block (NYSE:HRB)
Smith & Wesson Brands (NASDAQ:SWBI)
Cinemark (NYSE:CNK)
Stocks to Buy: McDonald’s (MCD)
MCD) building with logo at sunset" width="300" height="169">
Source: ATIKAN PORNCHAIPRASIT / Shutterstock.com
Unsurprisingly, one of the worst-hit sectors from the novel coronavirus outbreak was the restaurant industry. Specifically, the mom-and-pops that have far fewer resources suffered immeasurably, leading to organizations starting initiatives to encourage the public to support local small businesses. While noble, I must say that from a personal perspective, I’m not seeing much evidence of traction.
Every time I pass by a McDonald’s, I see the drive-thru packed to the hilt. Having visited McDonald’s pre-pandemic to check out the company’s rebranding campaign, I must say that its drive-thru lanes move very quickly. Still, it’s a bit alarming that American consumers would seemingly rather support big business than small.
Whatever. When it comes to seeking out the best stocks to buy, you can’t rely on sentiment. Instead, the hard facts speak for themselves. In its quarter ended March 31, 2021, McDonald’s generated revenue of $5.12 billion. That’s up 2% from the same quarter two years ago, and just under parity from three years ago.
This suggests the Golden Arches could be on the mend, which would be very good for MCD stock.
Archer Daniels Midland (ADM)
Source: Shutterstock.com
Arguably the least exciting name on this list of best stocks to buy, I wouldn’t ordinarily be so bullish on Archer Daniels Midland if indeed we were in a decidedly optimistic phase in the market. Right now, though, it seems the overriding mood is to deleverage from risk-on assets to risk-off plays. If so, I don’t think you could get any more risk-off in the equities space than ADM stock.
As a food-processing giant, Archer Daniels Midland represents one of the prime places to put your tax refund to work. Here’s the philosophy. Just prior to the pandemic, most Americans used their refund to pay down debt. Therefore, if you’re going to invest the money instead, you want to get into high-quality names with a high probability of upside movement.
Since we all have to eat, that right there makes ADM worth considering as one of the best stocks to buy as a long-term consideration.
7 Industrial Stocks to Buy for a Rock-Solid Foundation
But specific to our circumstances, Archer Daniels is putting up great numbers. In the first quarter of 2021, the company posted revenue of $18.9 billion, up 5% from Q4 2020.
Dominion Energy (D)
Source: ying / Shutterstock.com
With the global markets turning shaky over recent sessions, the best stocks to buy are what many analysts consider the safest ones. Under this context, you could do a lot worse than Dominion Energy. A power and energy company — and not to be confused with that other company of the same name — Dominion Energy has an irreplaceable advantage: When people flip the switch, they expect the lights to turn on.
Indeed, bad stuff happens when the lights stay off for an extended period. Beyond that, we live in a technologically dependent world. We cannot live without power, and therefore, people will do anything to keep those lights on. It’s somewhat cynical, but it supports the case for D stock.
Another reason why Dominion is one of the best stocks to buy with your tax refund is that utilities tend to perform relatively well during a deflationary environment. I’d argue that’s exactly what we’re seeing. Our national gross domestic product (GDP) is back up to $22 trillion, yet our employment level is still down about 5%. Productivity up but worker base down translates to deflation.
Kratos Defense & Security Solutions (KTOS)
KTOS) office in Silicon Valley." width="300" height="169">
Source: Michael Vi / Shutterstock.com
As a defense contractor, Kratos Defense & Security Solutions is a tricky beast. Ordinarily, you wouldn’t expect a left-leaning presidential administration to be supportive of an investment like KTOS stock. Certainly, the comparison to the very pro-military administration under former President Donald Trump isn’t favorable for Kratos. However, you’d have to be living under a rock not to notice multiple geopolitical rumblings.
First, you have the tense relationship between President Joe Biden and Russian President Vladimir Putin. Further, both confirmed and suspected Russian-backed cyberattacks put a dark cloud over U.S.-Russia relations, which may bolster military related names like KTOS stock.
Second, our continued rivalry with China, along with the ever-present threat of nuclear-armed North Korea demonstrates that we must direct resources into maintaining our military advantage. Specifically, Kratos’ specialty in advanced war machines such as drones might make it one of the best stocks to buy.
7 High Quality Industrial Stocks to Buy Now
Nevertheless, KTOS is a stock you want to trickle your way into. Financially, Kratos’ revenue growth has started to sag. That said, if tensions heat up with our adversaries — and that looks to be the case — KTOS at current prices may be a viable discount.
H&R Block (HRB)
HRB) logo" width="300" height="169">
Source: Ken Wolter / Shutterstock.com
I’d be remiss not to mention H&R Block in an article about best stocks to buy with your tax refund. Now, time for a confession. Over the past two years or so, I’ve supported the bullish narrative of HRB stock, only to be disappointed. Finally, though, the tax-preparation company is rewarding its longsuffering shareholders.
On a year-to-date basis, HRB stock is up 59%. Better yet, momentum remains strong, with shares up nearly 15% over the trailing month. Part of the reason is a factor I’ve long discussed: the transition to the gig economy. Prior to the pandemic, many young folks wanted to live life on their terms. During the lockdowns, many more people got a taste of the gig worker’s culture.
As the New York Times pointed out, worker bees want to keep the benefits of telecommuting. Undoubtedly, some will make the plunge. But tax preparation for 1099 contractors is far different from W2s, which bolsters HRB.
Also, several investors got rich off cryptocurrencies in 2021. That, too, is a serious taxation concern, one that the IRS will prosecute with extreme prejudice. So, how’s H&R Block looking now?
Smith & Wesson Brands (SWBI)
Source: Supakorn Pe / Shutterstock.com
Another difficult name to figure out among best stocks to buy with your tax refund is Smith & Wesson Brands. I include it because there’s a chance SWBI stock could fly higher from here due to a compelling mix of the unprecedented pandemic and political catalysts. Still, it’s a risky one, so don’t go too overboard.
Let’s start with some hard data. According to FBI background checks for firearm sales, the industry has sold just under 16 million guns between January through April. That’s on pace for yet another record-breaking year for gun sales. Still, April sales slipped 25% from March. Is that a sign that SWBI stock is in trouble?
It’s not the most encouraging statistic. But we should note that April sales historically tend to be weak relative to March. Further, while the pandemic sparked gun sales in 2020, this year, the Democrats could do the same in 2021.
After some ugly incidents following the 2020 election results, some fractures have opened within the Republican party. That sets the possibility that Democrats may retain power, which is fundamentally bad news for firearm advocates due to the threat of increased gun control.
7 Cheap Stocks to Buy Now Under $3
But this could also spark panicked purchasing. Therefore, you should watch this space.
Cinemark (CNK)
Source: LukeandKarla.Travel/Shutterstock.com
With Cinemark, I’ve saved the riskiest idea for last. While CNK has the comeback narrative to be among the best stocks to buy period, it could also fall flat on its face. Therefore, you only want to spare a tiny portion of your refund on this cineplex operator.
While so many industries suffered from the pandemic, companies like Cinemark were on the brink of absolute catastrophe. That’s because without people flowing into their movie theaters, there was really no way to generate any revenue. But now that several states are loosening their Covid-19 protocol, CNK stock pinged signs of life.
On a year-to-date basis, shares are up 28%. In the trailing month, momentum continues to be strong, up nearly 9%. But can the cineplex industry harness these gains into something sustainably substantive?
I think it comes down to whether people can remember what it was like to be normal and human again. Clearly, some cities are doing much better than others. But should a sense of decency and civility return, the pent-up demand for the big-screen experience could swing the needle favorably for CNK stock.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 7 Best Stocks to Buy as Soon as You Get Your Tax Refund appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Specifically, the mom-and-pops that have far fewer resources suffered immeasurably, leading to organizations starting initiatives to encourage the public to support local small businesses. Dominion Energy (D) Source: ying / Shutterstock.com With the global markets turning shaky over recent sessions, the best stocks to buy are what many analysts consider the safest ones. That sets the possibility that Democrats may retain power, which is fundamentally bad news for firearm advocates due to the threat of increased gun control.
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McDonald’s (NYSE:MCD) Archer Daniels Midland (NYSE:ADM) Dominion Energy (NYSE:D) Kratos Defense & Security Solutions (NASDAQ:KTOS) H&R Block (NYSE:HRB) Smith & Wesson Brands (NASDAQ:SWBI) Cinemark (NYSE:CNK) Stocks to Buy: McDonald’s (MCD) MCD) building with logo at sunset" width="300" height="169"> Source: ATIKAN PORNCHAIPRASIT / Shutterstock.com Unsurprisingly, one of the worst-hit sectors from the novel coronavirus outbreak was the restaurant industry. Kratos Defense & Security Solutions (KTOS) KTOS) office in Silicon Valley." width="300" height="169"> Source: Michael Vi / Shutterstock.com As a defense contractor, Kratos Defense & Security Solutions is a tricky beast.
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McDonald’s (NYSE:MCD) Archer Daniels Midland (NYSE:ADM) Dominion Energy (NYSE:D) Kratos Defense & Security Solutions (NASDAQ:KTOS) H&R Block (NYSE:HRB) Smith & Wesson Brands (NASDAQ:SWBI) Cinemark (NYSE:CNK) Stocks to Buy: McDonald’s (MCD) MCD) building with logo at sunset" width="300" height="169"> Source: ATIKAN PORNCHAIPRASIT / Shutterstock.com Unsurprisingly, one of the worst-hit sectors from the novel coronavirus outbreak was the restaurant industry. 7 High Quality Industrial Stocks to Buy Now Nevertheless, KTOS is a stock you want to trickle your way into. H&R Block (HRB) HRB) logo" width="300" height="169"> Source: Ken Wolter / Shutterstock.com I’d be remiss not to mention H&R Block in an article about best stocks to buy with your tax refund.
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We cannot live without power, and therefore, people will do anything to keep those lights on. H&R Block (HRB) HRB) logo" width="300" height="169"> Source: Ken Wolter / Shutterstock.com I’d be remiss not to mention H&R Block in an article about best stocks to buy with your tax refund. Further, while the pandemic sparked gun sales in 2020, this year, the Democrats could do the same in 2021.
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698931.0
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2021-05-20 00:00:00 UTC
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Notable ETF Outflow Detected - XLU, DUK, SO, D
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https://www.nasdaq.com/articles/notable-etf-outflow-detected-xlu-duk-so-d-2021-05-20
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $355.6 million dollar outflow -- that's a 2.9% decrease week over week (from 185,570,000 to 180,120,000). Among the largest underlying components of XLU, in trading today Duke Energy Corp (Symbol: DUK) is up about 1%, Southern Company (Symbol: SO) is up about 0.1%, and Dominion Energy Inc (Symbol: D) is higher by about 0.7%. For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average:
Looking at the chart above, XLU's low point in its 52 week range is $54.81 per share, with $68.05 as the 52 week high point — that compares with a last trade of $65.80. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $355.6 million dollar outflow -- that's a 2.9% decrease week over week (from 185,570,000 to 180,120,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $54.81 per share, with $68.05 as the 52 week high point — that compares with a last trade of $65.80. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Click here to find out which 9 other ETFs experienced notable outflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $355.6 million dollar outflow -- that's a 2.9% decrease week over week (from 185,570,000 to 180,120,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $54.81 per share, with $68.05 as the 52 week high point — that compares with a last trade of $65.80. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $355.6 million dollar outflow -- that's a 2.9% decrease week over week (from 185,570,000 to 180,120,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $54.81 per share, with $68.05 as the 52 week high point — that compares with a last trade of $65.80. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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698932.0
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2021-05-18 00:00:00 UTC
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Notable Two Hundred Day Moving Average Cross - D
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https://www.nasdaq.com/articles/notable-two-hundred-day-moving-average-cross-d-2021-05-18
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In trading on Tuesday, shares of Dominion Energy Inc (Symbol: D) crossed below their 200 day moving average of $77.04, changing hands as low as $76.81 per share. Dominion Energy Inc shares are currently trading down about 0.9% on the day. The chart below shows the one year performance of D shares, versus its 200 day moving average:
Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $87.34 as the 52 week high point — that compares with a last trade of $76.95. The D DMA information above was sourced from TechnicalAnalysisChannel.com
Free Report: Top 7%+ Dividends (paid monthly)
Click here to find out which 9 other energy stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Dominion Energy Inc (Symbol: D) crossed below their 200 day moving average of $77.04, changing hands as low as $76.81 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $87.34 as the 52 week high point — that compares with a last trade of $76.95. The D DMA information above was sourced from TechnicalAnalysisChannel.com Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other energy stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Dominion Energy Inc (Symbol: D) crossed below their 200 day moving average of $77.04, changing hands as low as $76.81 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $87.34 as the 52 week high point — that compares with a last trade of $76.95. The D DMA information above was sourced from TechnicalAnalysisChannel.com Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other energy stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Dominion Energy Inc (Symbol: D) crossed below their 200 day moving average of $77.04, changing hands as low as $76.81 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $87.34 as the 52 week high point — that compares with a last trade of $76.95. The D DMA information above was sourced from TechnicalAnalysisChannel.com Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other energy stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of Dominion Energy Inc (Symbol: D) crossed below their 200 day moving average of $77.04, changing hands as low as $76.81 per share. Dominion Energy Inc shares are currently trading down about 0.9% on the day. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $87.34 as the 52 week high point — that compares with a last trade of $76.95.
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698933.0
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2021-05-14 00:00:00 UTC
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What Kind Of Shareholders Hold The Majority In Dominion Energy, Inc.'s (NYSE:D) Shares?
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https://www.nasdaq.com/articles/what-kind-of-shareholders-hold-the-majority-in-dominion-energy-inc.s-nyse%3Ad-shares-2021-05
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The big shareholder groups in Dominion Energy, Inc. (NYSE:D) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.
With a market capitalization of US$63b, Dominion Energy is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below, we can see that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Dominion Energy.
NYSE:D Ownership Breakdown May 14th 2021
What Does The Institutional Ownership Tell Us About Dominion Energy?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Dominion Energy does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Dominion Energy's historic earnings and revenue below, but keep in mind there's always more to the story.
NYSE:D Earnings and Revenue Growth May 14th 2021
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in Dominion Energy. The Vanguard Group, Inc. is currently the company's largest shareholder with 8.4% of shares outstanding. With 6.8% and 5.1% of the shares outstanding respectively, BlackRock, Inc. and State Street Global Advisors, Inc. are the second and third largest shareholders.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Dominion Energy
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our data suggests that insiders own under 1% of Dominion Energy, Inc. in their own names. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own US$89m worth of shares (at current prices). Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
The general public holds a 32% stake in Dominion Energy. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Dominion Energy you should be aware of, and 1 of them is concerning.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NYSE:D Earnings and Revenue Growth May 14th 2021 Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest. The big shareholder groups in Dominion Energy, Inc. (NYSE:D) have power over the company.
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The big shareholder groups in Dominion Energy, Inc. (NYSE:D) have power over the company. We can see that Dominion Energy does have institutional investors; and they hold a good portion of the company's stock. General Public Ownership The general public holds a 32% stake in Dominion Energy.
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NYSE:D Ownership Breakdown May 14th 2021 What Does The Institutional Ownership Tell Us About Dominion Energy? We can see that Dominion Energy does have institutional investors; and they hold a good portion of the company's stock. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance.
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NYSE:D Ownership Breakdown May 14th 2021 What Does The Institutional Ownership Tell Us About Dominion Energy? We can see that Dominion Energy does have institutional investors; and they hold a good portion of the company's stock. Our data suggests that insiders own under 1% of Dominion Energy, Inc. in their own names.
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698934.0
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2021-05-10 00:00:00 UTC
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Stem Stock Is Falling, but Its First-Mover Advantage Is Worth Remembering
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https://www.nasdaq.com/articles/stem-stock-is-falling-but-its-first-mover-advantage-is-worth-remembering-2021-05-10
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Back in December when stock markets could not get enough special purpose acquisition companies (SPACs), Stem (NYSE:STEM) stock rallied to new highs.
Source: Shutterstock
The euphoria dissipated within two months of 2021.
STEM stock, a way to play the artificial intelligence-driven clean energy storage system, didn’t do enough to prove its worth.
The business combination of then-named Star Peak Energy Transition was $1.35 billion. As STEM trades around $20 after peaking at nearly $50 in February, the market is reevaluating the post-SPAC company’s transaction value.
7 Stocks to Buy Right Now With All Eyes on Crypto
What is STEM worth? Let’s take a look.
STEM Stock Looks Volatile
After the stock’s ticker changed from STPK to STEM, the share price remains volatile. Citron Research, which is best known for short-selling calls, posted a $100 price target on the stock in January.
The firm cited the disruptive leader as having more than a $1 trillion total addressable market (TAM). The bad news for hopeful investors is that TAM is an estimate. The market is highly competitive and is constantly changing. The TAM may shrink as more companies vie for a piece of the pie.
On its “About Us” page, STEM claimed it had identified several trends of interest in the electric vehicle space. Identifying companies that have a business strategy likely to benefit from the energy transition implies a large TAM ahead. Star Peak supplied the liquidity to get the company started.
At a fireside chat on April 27, the company focused primarily on the merger and investment highlights. It discussed using smart batteries in power infrastructure.
The skeptical investors should ask what STEM will offer that current utilities are not. For example, Vistra (NYSE:VST) pays a dividend that yields around 3.5%. The stock trades at a forward price-to-earnings ratio of below 10 times.
Dominion Energy (NYSE:D) is a multi-billion company by market cap and pays a dividend with a similar yield.
Buying STEM stock now is a leap of faith. The company plans to capitalize on the power grid shifting to renewable sources. Yet the established utilities will also embark on a clean energy shift. Those firms have an existing business that generates healthy free cash flow. They will re-invest the cash generated to renewable solutions.
Opportunity With Smart Energy Storage
Intermittent electricity generated from wind and solar energy farms is problematic. The grid will need a smart energy solution to collect that energy. STEM supplies smart energy battery storage already. It has over a decade of pioneering the experience of AI-driven energy storage, as described here.
STEM’s Athena Smart Energy software promises to give customers more value from their energy investments. The company has more than 950 projects operating or contracted with Athena. Around 1 GWh is under Athena management generating more than 20 million runtime hours.
In its investor presentation on Jan. 2021, the company identified $1.2 trillion in new revenue opportunities (or TAM) for integrated storage. Since this will be deployed by 2050, the full upside potential for STEM will take 30 years. Furthermore, by 2030, battery storage capacity will increase by 25 times.
STEM will capture much of the market by being the first mover AI platform. Thanks to a net cash balance of around 525 million, it will target the high growth markets first.
Its forecasted upside is fully financed, so it is unlikely to disappoint investors in the years ahead. According to its hardware deliveries forecast (slide 28), STEM stock will post hardware gross margins of 10-30%, software gross margin of 80%, and market participation gross margin of 80%.
Your Takeaway
Forecasting revenue growth of 51% CAGR from 2021 to 2026, STEM shares look very compelling. The company is an AI, software, and clean energy battery play all in one.
It has dozens of customers in the utility space (as slide 11 shows). This includes Alliant Energy, Duke Energy, and Avista. Investors may bet safely that Stem will deploy the most storage capacity in the foreseeable future.
Disclosure: On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post Stem Stock Is Falling, but Its First-Mover Advantage Is Worth Remembering appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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STEM stock, a way to play the artificial intelligence-driven clean energy storage system, didn’t do enough to prove its worth. Dominion Energy (NYSE:D) is a multi-billion company by market cap and pays a dividend with a similar yield. Disclosure: On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Back in December when stock markets could not get enough special purpose acquisition companies (SPACs), Stem (NYSE:STEM) stock rallied to new highs. STEM supplies smart energy battery storage already. According to its hardware deliveries forecast (slide 28), STEM stock will post hardware gross margins of 10-30%, software gross margin of 80%, and market participation gross margin of 80%.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Back in December when stock markets could not get enough special purpose acquisition companies (SPACs), Stem (NYSE:STEM) stock rallied to new highs. STEM Stock Looks Volatile After the stock’s ticker changed from STPK to STEM, the share price remains volatile. Source: Shutterstock The euphoria dissipated within two months of 2021.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Back in December when stock markets could not get enough special purpose acquisition companies (SPACs), Stem (NYSE:STEM) stock rallied to new highs. In its investor presentation on Jan. 2021, the company identified $1.2 trillion in new revenue opportunities (or TAM) for integrated storage. Source: Shutterstock The euphoria dissipated within two months of 2021.
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2021-05-05 00:00:00 UTC
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Dominion Energy, Inc (D) Q1 2021 Earnings Call Transcript
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https://www.nasdaq.com/articles/dominion-energy-inc-d-q1-2021-earnings-call-transcript-2021-05-05
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Image source: The Motley Fool.
Dominion Energy, Inc (NYSE: D)
Q1 2021 Earnings Call
May 04, 2021, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Ladies and gentlemen, welcome to the Dominion Energy first-quarter 2021earnings conference call [Operator instructions] I would now like to turn the conference over to Mr. Steven Ridge, vice president, investor relations.
Steven Ridge -- Vice President, Investor Relations
Thank you, David, and thanks to everyone for joining today's call. Earnings materials, including today's prepared remarks, may contain forward-looking statements and estimates that are subject to various risks and uncertainties. Please refer to our SEC filings, including our most recent annual reports on Form 10-K and our quarterly reports on Form 10-Q for a discussion of factors that may cause results to differ from management's estimates and expectations. This morning, we'll discuss some measures of our company's performance that differ from those recognized by GAAP.
Reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measures, which we can calculate, are contained in the earnings release kit. I encourage you to visit our investor relations website to review webcast slides, as well as the earnings release kit. Joining today's call are Bob Blue, chairman, president, and chief executive officer; Jim Chapman, executive vice president, chief financial officer, and treasurer; and other members of the executive management team. I'll turn the call over to Bob.
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Bob Blue -- Chairman, President, and Chief Executive Officer
Thank you, Steven. Before we provide our business update, I'd like to take a moment to remember our friend, Tom Farrell. Tom's passing on April 2 was heartbreaking to those of us who loved, admired, and respected him. We've heard from so many people, including many of you, about Tom's impact on the industry and the people who work in and around it.
It's quite clear that while Tom's list of professional accomplishments was long, the list of people whose lives he touched was much, much longer. He can be gruff occasionally, many of us participating on this call may have experienced that from time to time. But much more often, we experienced his generosity, his loyalty, his dry sense of humor, and his focus on improving our company, our community, and our industry. We should all seek to emulate his example, a consistent commitment to ethics and integrity, to excellence, and perhaps most of all, to the safety of our colleagues.
He cherished his friends and family, most of all. We can't think of a better example of a leader, and we will miss him dearly. With that, I'll turn it over to Jim.
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
Good morning. Thank you for those words, Bob. I'd also like to express my thanks for the messages of condolence that we've received from across the country and from around the world. Thank you all.
As Bob said, we will very much miss Tom. Let me now turn to our business update. Following the in-depth review and roll forward of our capital spending outlook we provided last quarter, our prepared remarks today will be relatively brief. We are very focused on overall execution, including extending our track record of meeting or exceeding our quarterly guidance midpoints as we did again this quarter.
I'll start my review on Slide 4, with a reminder of Dominion Energy's compelling total shareholder return proposition. We expect to grow our earnings per share by 6.5% per year through at least 2025, supported by our updated $32 billion five-year growth capital plan. Keep in mind that over 80% of that capital investment is emissions reduction enabling and that over 70% is rider eligible. We offer an attractive dividend yield of approximately 3.2%, reflecting a target payout ratio of 65% and an expected long-term dividend per share growth rate of 6%.
This resulting approximately 10% total shareholder return proposition is combined with an attractive pure-play, state-regulated utility profile characterized by industry-leading ESG credentials and the largest regulated decarbonization investment opportunity in the country, as shown on the next slide. Our 15-year opportunity is estimated to be over $70 billion, with multiple programs that extend well beyond our five-year plan and skew meaningfully toward rider-style regulated cost of service recovery. We believe we offer the largest, the broadest in scope, the longest in duration, and the most visible regulated decarbonization opportunity among U.S. utilities.
The successful execution of this plan will benefit our customers, communities, employees, and the environment. Turning now to earnings. Our first-quarter 2021 operating earnings, as shown on Slide 6, were $1.09 per share, which included a $0.01 hurt from worse than normal weather in our utility service territories. This represents our 21st consecutive quarter, so over five years now, of delivering weather-normal quarterly results that meet or exceed the midpoint of our quarterly guidance range.
GAAP earnings for the quarter were $1.23 per share. The difference between GAAP and operating earnings for the three months ended March 31 was primarily attributable to a net benefit associated with nuclear decommissioning trusts and economic hedging activities, partially offset by other charges. A summary of such adjustments between operating and reported results is, as usual, included in Schedule 2 of the earnings release kit. Turning on to guidance on Slide 7.
As usual, we're providing a quarterly guidance range, which is designed primarily to account for variations from normal weather. For the second quarter of 2021, we expect operating earnings to be between $0.70 and $0.80 per share. We are affirming our existing full-year and long-term operating earnings and dividend guidance, as well. No changes here from prior guidance.
Turning to Slide 8 and briefly on financing. Since January, we've issued $1.3 billion of long-term debt, consistent with our 2021 financing plan guidance at a weighted average cost of 2.4%. Thanks to all who participated in these important offerings and as a reminder, we'll have additional fixed income issuance at Dominion Energy, Virginia, at gas distribution at Dominion Energy South Carolina, and at our parent company during the remainder of the year. For avoiding some doubt, there's no change to our prior common equity issuance guidance.
Wrapping up my remarks, let me touch briefly on potential changes to the Federal Tax Code. Obviously, it's still early days with a lot of unknowns. But at a high level, we see an increase in the corporate tax rate as being close to neutral on operating earnings based on, as is the case for all regulated entities, the assumed pass-through for cost of service operations, an increase in parent level interest tax shield and the extension and expansion of clean or green tax credits, all of which will be offset by higher taxes on our contracted assets segment earnings. We also expect modest improvement in credit metrics.
We're monitoring the contemplated minimum tax rules closely and we'd note the administration's support for renewable development suggests the ability to use renewable credits to offset any such minimum tax rule. More to come over time on that front. With that, I'll turn the call back over to Bob.
Bob Blue -- Chairman, President, and Chief Executive Officer
Thank you, Jim. I'll begin with safety. As shown on Slide 9, through the first three months of 2021, we're tracking closely to the record-setting OSHA rate that we achieved in 2020. In addition, we're seeing record low levels of lost time and restricted duty cases, which measure more severe incidents.
Of course, the only acceptable number of safety incidents is zero, and we will continue to work toward that critical goal. Let me provide a few updates around our execution across the strategy. We're pleased that the 2.6-gigawatt Coastal Virginia offshore wind project has been declared a covered project under Title 41 of the Fixing America's Surface Transportation Act program, also known as FAST 41. The federal permitting targets now published under that program are consistent with the project schedule that we shared on the fourth-quarter call in February.
Key schedule milestones are shown side by side on Slide 10. We continue to be encouraged by the current administration's efforts to provide a pathway to timely processing of offshore wind projects. In the meantime, we're advancing the project as follows: we're processing competitive solicitations for equipment and services to achieve the best possible value for customers and in accordance with the prudency requirements of the VCEA. Interest in those RFPs has been robust.
We're analyzing performance data from our test turbines, which have been operational for several months now and are, to date, generating at capacity factors that are higher than our initial expectations. Recall, we had assumed a lifetime capacity factor of around 41% for the full-scale deployment. Further evaluation of turbine design and wind resource, in addition to the data we're gathering in real time, suggest that our original assumption is too low. Higher generation would result in lower energy costs for customers.
We're monitoring raw material costs, and it seems to be the case across a number of industries right now, we're observing higher prices. In the case of steel, for example, the return of pandemic-idled steelmaking capacity hasn't yet caught up to global demand. We'll continue to monitor raw material cost trends as we move toward procurement later in the project timeline. We're moving into the detailed design phase for onshore transmission.
As we observed within the industry recently, utility systems are only as good as they are resilient, which is one of the reasons that we made the decision in 2019 to go the extra distance to connect to our 500 kV transmission system to ensure that the project's power will be available when our customers need it most. We believe that decisions we're making around the onshore engineering configurations will ultimately result in the best value for customers. And finally, our Jones Act-compliant wind turbine installation vessel is being constructed and is on track for delivery in late 2023. We expect the vessel will be an invaluable resource to DEV, as well as to the U.S.
offshore wind industry. We expect to announce further details on nonaffiliate vessel charters in the near term. In summary, lots of very exciting progress, which will continue through the summer, including our expected notice of intent from BOEM in June. As is typical for a project of this size at this phase of development, there will be some puts and takes as work continues.
Taken as a whole, there's no change to our confidence around the project's expected LCOE range of $80 to $90 per megawatt-hour. Near the end of the year, we'll file our CPCN and rider applications with the Virginia State Corporation Commission and we'll be in a position at that time to provide additional details around contractor selection and terms, project components, transmission routing, project costs, capacity factors and permitting. Turning to updates around other select emissions reduction programs. On solar, on Friday, the Virginia State Corporation Commission approved our most recent clean energy filing, which included 500 megawatts of solar capacity across nine projects, including over 80 megawatts of utility-owned solar, the fourth consecutive such approval.
We also recently issued an RFP for an additional 1,000 megawatts of solar and onshore wind, as well as 100 megawatts of energy storage and 100 megawatts of small-scale solar projects, and eight megawatts of solar to support our community solar program. Our next clean energy filing, which we expect to include solar and battery storage projects, will take place later this year. Since our last call, we've continued to derisk our plan to meet the VCEA solar milestone by putting another 30,000 acres of land under option, bringing the total to nearly 100,000 acres of options or exclusive land agreements, which is enough to support the approximately 10 gigawatts of utility-owned solar as called for by the Virginia Clean Economy Act. On nuclear life extension, just this morning, the NRC authorized 20-year life extensions for our two Surry units in Virginia.
The Surry station provides around 15% of the state's total electricity and around 45% of the state's zero-carbon generation. This authorization is a critical step in ensuring the plant will continue to provide significant environmental and economic benefits for many years to come. We expect to file with the SEC for rider recovery of relicensing spend late this year for both Surry and North Anna stations. Our gas distribution business, as we've discussed in the past, our gas utility operations are enhancing sustainability and working to reduce scope on and three emissions, with focused efforts around energy efficiency, renewable natural gas and hydrogen blending, operational modifications, and potential changes around procurement practices.
For example, as part of our recently filed natural gas rate case in North Carolina, we asked the North Carolina Utilities Commission to approve five new sustainability-oriented programs: hydrogen blending pilot, that's part of our goal to be able to blend hydrogen across our entire gas utility footprint by 2030; a new option to allow our customers to purchase RNG attributes; and three new energy efficiency programs. Finally, in South Carolina. The South Carolina Office of Regulatory Staff recently filed a report finding that our revised IRP met the requirements of the law and the Public Service Commission's order requiring the modified filing. As a reminder, the preferred plan and the revised filing calls for the retirement of all coal-fired generation in our South Carolina system by the end of the decade, which helps to drive a projected carbon reduction of nearly 60% by 2030 as compared to 2005.
While the IRP is an informational filing, it does not provide approval or disapproval for any specific capital project. We look forward to continuing to talk with stakeholders, including the commission, about an increasingly low-carbon future. An order is expected from the Public Service Commission by June 18. Turning to the regulatory landscape, let me provide a brief update on our Virginia triennial review filing, which we submitted at the end of March.
As shown on Slide 12, the filing highlights Dominion Energy Virginia's exceptionally reliable and affordable service. The state's careful and thoughtful approach to utility regulation has resulted in a model that prioritizes long-term planning that protects customers from service disruptions and bill shocks. Consider these facts, 99.9% average reliability delivered at rates that are between 8% and 35% lower than comparable peer groups. We're proud of our record and the work we do to serve customers every single day.
Our filing also reflects over $200 million of customer arrears forgiveness as directed by the general assembly, relief that is helping our most vulnerable customers address the financial impacts of COVID-19. The filing also identifies nearly $5 billion of investment in rate base on behalf of our customers over the four-year review period, including $300 million of capital investment in renewable energy and grid transformation projects that we believe meet the eligibility criteria for reinvestment credits for customers. The commission's procedural schedule is shown here. We've included additional details regarding the case as filed in the appendix for your review and look forward to engaging with stakeholders in coming months.
It's clear to us that the existing regulatory model is working exceptionally well for customers, communities, and the environment in Virginia. We're delivering increasingly clean energy while protecting reliability and safeguarding affordability. In South Carolina, we continue to engage in settlement discussions with the other parties as highlighted in our monthly filings before the commission. We aren't able to discuss specifics of that process but can report that all parties appear committed to working toward a mutually agreeable resolution.
Finally, let me highlight noteworthy developments in the legislative landscape for our company. In Virginia, during the now adjourned session, the Virginia General Assembly passed House Bill 1965, which adopts low and zero-emissions vehicle programs that mirror vehicle emission standards in California. The law, which has been signed by the governor, ensures that more electric vehicles are manufactured and sold in Virginia. It will likely take a few years before we see the significant and inevitable ramp-up in electric vehicle adoption in our service territory, but we're taking steps today to be prepared for the incremental electric demand and associated infrastructure.
That includes regional coordination with other utilities to ensure highway corridors that ensure seamless charging networks, support for in-territory EV charging infrastructure, which includes a significant investment in a variety of grid transformation projects, as well as the rollout of time-of-use programs. At the federal level, we're encouraged by the support we're seeing for our offshore wind project. We applaud efforts to increase funding for the research and development of technologies that will allow the utility industry to drive further carbon emissions reductions. We're philosophically aligned with the current administration in wanting to accelerate decarbonization across the utility value chain, while also recognizing that the energy we deliver must remain reliable and affordable.
It's still early, but we're engaging in the process of policy formation and monitoring developments closely and continue to believe we are well-positioned to succeed in an increasingly decarbonized world. I'll conclude the call with the summary on Slide 13. Our safety performance year to date is tracking closely to our record-setting achievement from last year. We reported our 21st consecutive quarterly result that normalized for weather, meets or exceeds the midpoint of our guidance range.
We affirmed our existing long-term earnings and dividend guidance. We're focused on executing across the largest regulated decarbonization investment opportunity in the nation for the benefit of our customers. And we're aggressively pursuing our vision to be the most sustainable energy company in America. With that, we're ready to take your questions.
Questions & Answers:
Operator
Thank you. Ladies and gentlemen, at this time the floor is open for your questions. [Operator instructions] Our first question comes from Shar Pourreza with Guggenheim Partners.
Shar Pourreza -- Guggenheim Partners -- Analyst
Hey, good morning, guys. Just a couple of quick questions here. First, we've seen others' revised estimates on Uri. Any update on how kind of how Uri impacted your customers and fuel costs? Are you still OK there? And how are you sort of thinking about maybe resiliency spend for renewables based on maybe some of what you've observed as a result of your any incremental spend associated with that, that we could be -- that we should be thinking about there?
Bob Blue -- Chairman, President, and Chief Executive Officer
Shar, it's Bob. I'll let Jim take the first part of that question, and then I'll answer the second.
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
Good morning, Shar. So yeah, good question. We're hearing a lot about this topic across the industry this quarter, of course. For us, let me walk through it.
So there's no impact for us at all in our electric operations, of course, given our geographic location. On the gas side, very minimal cost impact in Ohio, West Virginia, North Carolina. Those businesses kind of leveraged their storage assets to minimize purchasing during that week. In Utah, it's interesting, though, we did see increased gas purchases.
We saw price spikes in the Rockies region for gas during that week, of course. And we saw -- we had increased gas purchases of our own during that period in the range of about $60 million, six-zero. Now as a reminder, those costs are covered by customers, but we think it's a modest cost to customers, so no financial impact to the company from that. But what's interesting is the strength of the operational and the regulatory design there really saved customers very significant costs during that period.
And those are twofold. One is Wexpro, the regulated fuel supply arm. So during that week, customers got the benefit of that cost of service supply, so insulated from price spikes. And then second, contracting.
Questar Gas is, I think, it's the largest contractor for a storage capacity for Clay Basin there in the Rockies region. So without those features, that $60 million would have been multiples to many multiples higher. So pretty positive reflection of the operational and regulatory profile there. But overall, big picture, pretty manageable and scale for us.
Bob?
Bob Blue -- Chairman, President, and Chief Executive Officer
Yeah. [Inaudible]. Shar, as we're looking forward, I think it's important to remember that the regulatory models in the states where we do business and particularly our electric states in Virginia and South Carolina are very well suited to operate a reliable system for our customers. And that is absolutely the No.
1 priority for our customers, is keeping the lights on. And so on the generation side, that means things like having diverse fuel mix, making sure the design basis for equipment is right for the circumstances under which it's going to operate, considerations for fuel security, firm transportation for natural gas. And on the T&D side, it would be advanced simulations of the effect of events on the grid, innovative equipment, and engineering new voltage control devices, for example. And it means a robust communications infrastructure.
And in Virginia, all of those types of investments that I was just describing are contemplated in both the Clean Economy Act and the Grid Transformation and Security Act from 2018, things like grid mod, strategic undergrounding storage. So, we feel very good about that now, but we're reviewing to see whether any of our resiliency efforts need to be expanded or we need to add new resiliency programs. And we do that all the time, by the way. We learn from experiences on our own system and other systems.
So I'd just sum up by saying nothing changes on the clean energy capital investment front. We're confident we will continue that investment and operate reliably. And the scope of any additional reliability investments and resiliency investments remains to be seen, but we're studying what is best for our customers right now as we've been doing for decades.
Shar Pourreza -- Guggenheim Partners -- Analyst
Got it. And then just two very super quick ones on South Carolina. First, you know, obviously, Santee, NextEra pulled their offer, you know, the standard past to build that's more focused, you know, on internal restructuring. Do you -- does Dominion have any stance remaining here, including maybe an MSA opportunity? Or is that sort of behind us?
Bob Blue -- Chairman, President, and Chief Executive Officer
Yeah. Our position on that hasn't changed. It's the same. We've offered -- we've worked cooperatively with Santee.
We continue to work cooperatively with Santee, and we look forward to other opportunities to work cooperatively with Santee Cooper. So no – no change there, Shar. We're – where we want to do what is best for South Carolina.
Shar Pourreza -- Guggenheim Partners -- Analyst
Perfect. And then just the GRC, I appreciate the comments that you made. But is there any sort of sense of timing, maybe just some of the puts and takes, is there kind of a point of an overturn we should be thinking about as we think about maybe a breakdown of settlement talks? Just maybe a little bit more visibility, and then that concludes. Thank you.
Bob Blue -- Chairman, President, and Chief Executive Officer
Yeah. So the pause was for six months from January, so it comes to an end on the 12th of July, I believe. And so the case would resume on July 12. So a little more than two months from now.
But as we said in our prepared remarks, everyone appears to be approaching this, looking for a constructive outcome, and that's what we're focused on.
Shar Pourreza -- Guggenheim Partners -- Analyst
Terrific. Thank you, guys, and I echo your comments around Tom. He's going to be greatly missed, and he was a true gentleman. So I appreciate your comments.
Thanks, guys.
Bob Blue -- Chairman, President, and Chief Executive Officer
Thank you, Shar.
Operator
Thank you. Our next question comes from Jeremy Tonet with J.P. Morgan.
Jeremy Tonet -- J.P. Morgan -- Analyst
Good morning. So, you know, I just want to start with the caveat, granted we're very early innings here and things will change. But are there any thoughts you could share on how the current version of the Biden infrastructure plan might impact D, such as the tax credit front? Could this potentially impact wider-spread deployment of storage in Virginia?
Bob Blue -- Chairman, President, and Chief Executive Officer
Yeah. Your preface to the question was exactly right. It is indeed early days. So we don't know what's going to come out in the final analysis.
So I think the best way to think about it is we're just very well positioned, very -- we think the approach to decarbonize as quickly as we can reliably and affordably makes all the sense in the world. We're very well positioned to do that. This is not something that's new for us. And we see -- to the extent we see opportunities with the Biden plan, we'll take advantage of them.
But at this point, we don't exactly know. We just know the atmosphere is really good. We think it's smart for customers. We're excited about it.
Jeremy Tonet -- J.P. Morgan -- Analyst
Got it. That makes sense. And then also, I guess, under the new administration, you kind of touched on this a bit, but maybe you could just comment a bit more on your interaction with BOEM here and how you kind of feel about things progressing moving forward, you know, through the process now versus before?
Bob Blue -- Chairman, President, and Chief Executive Officer
Sure. We've had the opportunity to be involved in a couple of different industry conversations with BOEM leadership and other leadership in the administration. I think it's very clear that they see the advantages to offshore wind development. And I think the best evidence when it comes to us is, as we mentioned earlier, the schedule for the notice of intent and for the record of decision line up exactly with what we talked about on our fourth-quarter call.
So we have a very good sense that the professionals at BOEM, as they always have, are going to move forward efficiently. The leadership and the administration clearly thinks offshore wind is good economically and to meet carbon goals. And we're looking forward to sort of taking advantage of the experience that we have with the only wind farm operating in Federal waters off the coast of the United States today as we expand that to something much bigger.
Jeremy Tonet -- J.P. Morgan -- Analyst
Got it. And just one last one, if I could. And I think you've touched on this a bit, but just wondering what you're learning from initial hydrogen efforts here. How does this inform the relative opportunity between hydrogen and RNG for your gas distribution system, you know, going -- going into the future?
Diane Leopold -- Chief Operating Officer
Hi, good morning. This is Diane Leopold. So just as a reminder on our hydrogen pilot, we're in our very early stages as in days. Our gas distribution business is implementing some blending programs at a training facility, starting in Utah.
And we just commissioned it, and it started testing just a couple of weeks ago. So we're really moving forward with that. We're looking to expand that, if it's successful, to a small customer use application and then follow the pilots in our other service territories. In fact, we requested a similar pilot at a training facility as part of our North Carolina rate case.
So we're starting small, very important on hydrogen blending. So we see a combination of moving forward with continued pilots and testings of hydrogen blending throughout our LDC system, including putting it into the LDC, production, and even methanation in the future, as well as an increased percentage of RNG into the system, which is really one-for-one offset with methane. So increased RNG, increased hydrogen blending possibly toward methanation as we move to continue to decarbonize the LVC system.
Jeremy Tonet -- J.P. Morgan -- Analyst
Got it. That makes sense. Tom will be missed. Thank you very much
Bob Blue -- Chairman, President, and Chief Executive Officer
Thanks.
Operator
Thank you. Our next question comes from Steve Fleishman with Wolfe Research.
Steve Fleishman -- Wolfe Research -- Analyst
Yeah. Hey. And best to Tom's family and all of you.
Bob Blue -- Chairman, President, and Chief Executive Officer
Thank you, Steve.
Steve Fleishman -- Wolfe Research -- Analyst
Love you, guys. While we heard from Diane there, just you – you have been kind of early investor in RNG projects. And I think -- I'd just be curious kind of where that stands, and do you see a lot more coming over the next few years?
Diane Leopold -- Chief Operating Officer
Hi, good morning, Steve, Diane again. So, yes, we have been an early investor. We announced our intention to spend about $650 million on two main partnerships. We've been focusing on the agricultural RNG.
So the hog farms with Smithfield and the dairy farms with Vanguard Renewables. We have one project that's in service as of the second half of last year. We have three projects under construction now and expect to have about five more under construction later this year. So we're really ramping up on actually bringing forward the projects.
On the demand side, we really see a significant strong demand right now from a variety of customers. You can see the people like the refiners that have LCFS obligations to make, and we see more states looking to implement LCFS standards. We see utilities, both on the power generation side and direct customer use side. And then we see a lot of colleges and universities and other corporations that are kind of carbon-conscious buyers that are looking to offset their fossil usage.
So we really see a lot of demand starting to pick up for multiyear contract terms at attractive prices. So long term, we're still looking at these projects as critical supply sources for our LDCs as an important tool for customers to achieve net-zero. And so starting to access through our green therm tariff that we already have in Utah now and have requested in North Carolina and will continue to do so. But we're really continuing to see strong demand, and our projects are ramping up.
Bob Blue -- Chairman, President, and Chief Executive Officer
Hey, Steve, it's Bob. I will mention that I had the opportunity last week to actually visit our operating site in Utah. It's quite something with the scale of the farming operation. It's also interesting that it happens to be not too far from one of our solar farms, as well as there's a wind farm there, too.
So it's become a center of renewable energy. And we just think that in the scope of what we're doing in our decarbonization investment, there are a lot of opportunities, as Diane described, in RNG that will serve us well for the long term.
Steve Fleishman -- Wolfe Research -- Analyst
OK. And then just one quick question. Just sales trends in Virginia, South Carolina, any quick thoughts there?
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
Good morning. Steve, it's Jim. Sales trends are occurring kind of like we expected. I'll share a few stats.
In Virginia, year-to-date, still pretty resilient like we saw most of last year. So year to date, up a little over 2%. Residential is still strong, up almost 4%. C&I also up almost 5%.
So pretty good. Keep in mind that one underlying trend, I know we mentioned this a lot, is the continuation of data center growth. That number is up like 25%. Of course, it's small but growing, as a third of our commercial segment is data centers.
We expect to connect another 20 or so data centers in our service territory this year. We connected 19 last year. So that trend is very supportive of overall sales and continues to be strong.
Steve Fleishman -- Wolfe Research -- Analyst
Great. Thank you very much.
Operator
Thank you. Our next question comes from Julien Dumoulin-Smith with Bank of America.
Julien Dumoulin-Smith -- Bank of America Merrill Lynch -- Analyst
Hey, good morning, team. Thanks for the opportunity.
Bob Blue -- Chairman, President, and Chief Executive Officer
Morning, Julien.
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
Hi, Julien.
Julien Dumoulin-Smith -- Bank of America Merrill Lynch -- Analyst
Hey, excellent. Perhaps if I can pivot off that last question on sales, perhaps, can we talk about the next clean energy filing later this year? Should we be expecting more of the same in terms of -- on resources versus PPAs? But also, how are you thinking about that filing against sales trends and also against some of these other headlines from independent IPPs, just looking at accelerating their procurement efforts in and around your service territory maybe by, shall we say, corporate procurements of various flavors and sorts? If you can speak to sort of the overall backdrop, if you mind.
Bob Blue -- Chairman, President, and Chief Executive Officer
Yeah. Thanks, Julien. So I think the answer, should it look similar to the filing that we just got approved, the answer to that is, know in that this next filing will be larger in scale. And I think you particularly asked the split between PPA and utility-owned, and that will be different going forward.
That's what the Clean Economy Act is, it's quite specific on this point that for the new solar build, 65% is to be utility in and 35% is to be third-party or PPA and sort of the total amount of that is on the order of 1,000 megawatts a year for the next 15. So that's what you should be thinking about, really long term for us is we will match the VCEA proportions and the magnitude going forward. The sort of second part of your question, where our focus, our growth is in regulated renewables to the extent that we -- and if I'm understanding correctly, to the extent we have, you know, customers, important customers who are looking for contracted approaches, we expect to do some of that. But our focus on growing our solar portfolio is on the regulated side.
Julien Dumoulin-Smith -- Bank of America Merrill Lynch -- Analyst
All right. Fair enough. And then with respect to South Carolina here, I know that you're coming up on the July time frame, you know, at least we're broadly approaching it. I know we got some updates here in the interim.
But feel confident that perhaps by that point in time, we can reach some sort of resolution, if you will? Is that – is that fair as far as it goes?
Bob Blue -- Chairman, President, and Chief Executive Officer
Julien, I used to be a lawyer and, as a profession, we seem to be procrastinators. So I wouldn't read too much into the fact that there's two months left. You can get a lot of work done in two months. And as we said in the script, everyone is approaching this constructively.
So yes, we think we can get it done.
Julien Dumoulin-Smith -- Bank of America Merrill Lynch -- Analyst
Got it. And if I could squeeze in one last one. Just LNG. I know you guys, obviously, have sold on a chunk here, but you've seen some pretty elevated valuations here in the space of late.
Any comments, reactions to that? Just wanted to throw that in there quickly.
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
Julien, it's Jim. Yeah, we -- I'll repeat what I think what we've said many times before, we very much like our new look and our asset mix. The dynamics you're speaking to, we're not blind to that, that someday, that could be an opportunity to raise capital in a place what we have in our plan for modest continued equity issuance, but no current focus on that topic. We're aware, following, but that -- we're focusing on executing our plan with our current asset mix.
Julien Dumoulin-Smith -- Bank of America Merrill Lynch -- Analyst
Excellent. All right. All the best. And I echo your sentiments with respect to Tom.
Operator
Thank you. Our next question comes from Durgesh Chopra with Evercore ISI.
Durgesh Chopra -- Evercore ISI -- Analyst
Hey, good morning, team. Thank you for taking my question. Just a quick clarification, Jim, on 2021 guidance. What are we assuming in terms of the timing on the South Carolina rate case, if you could just clarify that, please?
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
Good morning. Yeah. Durgesh, so on the South Carolina rate case, we've been, again, here consistently saying a couple of things. One is that given the size of that business in relation to Dominion, of course, that's just the electric part of DESC, we're talking about base rates on the electric side.
Any reasonable outcome is not -- is going to be within our guidance range within -- so no material impact. And then as far as the impact of the delay, we've seen some folks suggesting that a delay of a year would be kind of in the $0.05 range. So take half of that for six months. You're talking about a couple of pennies.
That's probably in the ballpark, but still not material and within our guidance.
Durgesh Chopra -- Evercore ISI -- Analyst
Got it. OK. So basically, regardless of the timing of a final decision there, you saw the guidance -- '21 guidance is intact?
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
Any reasonable outcome should lead to that. That's right.
Durgesh Chopra -- Evercore ISI -- Analyst
OK. Perfect. And just a quick one on the nuclear plant extensions. Does that change or give you an opportunity to deploy more capex? Or kind of this is in line with your thinking when you sort of develop the capex plan four, five years out?
Bob Blue -- Chairman, President, and Chief Executive Officer
It's in line with our thinking when we developed the capex plan.
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
There's $1.3 billion of spend related to the nuclear license in our five-year plan that we went through in the fourth quarter.
Durgesh Chopra -- Evercore ISI -- Analyst
Understood. Thanks, guys. And it's really a lost, losing tom. So my best for Tom and his family.
Bob Blue -- Chairman, President, and Chief Executive Officer
Thanks for your thought.
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
Thank you, Durgesh.
Operator
Thank you. Our next question comes from Michael Weinstein with Credit Suisse.
Michael Weinstein -- Credit Suisse -- Analyst
Hey, guys. Good morning, and good morning, everyone.
Bob Blue -- Chairman, President, and Chief Executive Officer
Good morning.
Michael Weinstein -- Credit Suisse -- Analyst
You know, on the triennial filing, the revenue deficiency that you guys have identified, is that mostly related to rate base and service? Or is it a new investment? Or is it more operationally related?
Bob Blue -- Chairman, President, and Chief Executive Officer
So I think you're asking about the '22 test year and our measurement versus a 10.8% ROE. And the answer is just with the way the law works, we project forward sort of known and notables for year '22. And we calculate what the return is, and in this case, that return is slightly below the 10.8% that we believe is the appropriate authorized ROE. So I don't know that I can identify any one specific thing.
There's a number of sort of components that go into that. But it's -- you do that analysis, compare it against what we believe is an appropriate ROE, and that's how we end up with that slight revenue deficiency in the regulatory speak.
Michael Weinstein -- Credit Suisse -- Analyst
Gotcha. So a combination of everything. Diane, on RNG, just one other question on that subject. Do you anticipate a time when blending RNG, and maybe even hydrogen too, into the system would enable a utility and your utilities specifically to say that they are greenhouse gas neutral or greenhouse gas, you know, zero or even negative? And when do you think that will happen? And how many years do you think in the future would you have to wait for that?
Diane Leopold -- Chief Operating Officer
Well, absolutely. In fact, it was part of our thinking when we committed to net-zero by 2050 across both our gas and electric businesses, was blending renewable natural gas and hydrogen into the system as part of a component of that. So it certainly already worked into the plans, I believe, of numerous utilities in their net-zero plans, especially RNG and the agricultural RNG, which is why we're trying to attract so much of it into our LDC systems, and working with regulators and investing in it to get it in the networks is because it's so much more carbon negative than a lot of other forms. So instead of just being carbon neutral, you just get a lot of bang for the buck out of smaller quantities of it to help meet those net-zero goals.
Michael Weinstein -- Credit Suisse -- Analyst
Gotcha. One last question. On the solar business, are you seeing any impact from -- as a result of supply -- global supply demand tightness in that segment and also shipping logistics issues, chip shortages. You know, we're hearing in the solar industry that, you know, the supply is tight and prices are up just wondering if it's affecting you at all.
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
Yeah, Michael, it's Jim. We're seeing the same, not in a material way. And the shipping and logistics issue, we're not seeing as much. There's just some upward price pressure on poly, on glass, on steel.
But it's something we're watching, but it's not – you know, for our business, it's not a material issue, but, certainly, there is upward pressure on costs right now.
Michael Weinstein -- Credit Suisse -- Analyst
OK. Thanks a lot, guys.
Bob Blue -- Chairman, President, and Chief Executive Officer
Thank you.
Operator
[Operator signoff]
Duration: 46 minutes
Call participants:
Steven Ridge -- Vice President, Investor Relations
Bob Blue -- Chairman, President, and Chief Executive Officer
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
Shar Pourreza -- Guggenheim Partners -- Analyst
Jeremy Tonet -- J.P. Morgan -- Analyst
Diane Leopold -- Chief Operating Officer
Steve Fleishman -- Wolfe Research -- Analyst
Julien Dumoulin-Smith -- Bank of America Merrill Lynch -- Analyst
Durgesh Chopra -- Evercore ISI -- Analyst
Michael Weinstein -- Credit Suisse -- Analyst
More D analysis
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Bob Blue -- Chairman, President, and Chief Executive Officer Yeah. Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer Good morning. This resulting approximately 10% total shareholder return proposition is combined with an attractive pure-play, state-regulated utility profile characterized by industry-leading ESG credentials and the largest regulated decarbonization investment opportunity in the country, as shown on the next slide.
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Bob Blue -- Chairman, President, and Chief Executive Officer Yeah. Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer Good morning. Joining today's call are Bob Blue, chairman, president, and chief executive officer; Jim Chapman, executive vice president, chief financial officer, and treasurer; and other members of the executive management team.
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Bob Blue -- Chairman, President, and Chief Executive Officer Yeah. Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer Good morning. Joining today's call are Bob Blue, chairman, president, and chief executive officer; Jim Chapman, executive vice president, chief financial officer, and treasurer; and other members of the executive management team.
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Bob Blue -- Chairman, President, and Chief Executive Officer Yeah. Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer Good morning. For the second quarter of 2021, we expect operating earnings to be between $0.70 and $0.80 per share.
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Dominion Energy Secure Approval for 9 Solar Projects; Largest In Virginia
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https://www.nasdaq.com/articles/dominion-energy-secure-approval-for-9-solar-projects-largest-in-virginia-2021-05-04
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Dominion Energy (D) Virginia customers have secured approval for nine solar projects in the state. It is the largest group of solar projects to be approved by the Virginia State Corporation Commission, with a capacity of about 500 megawatts.The nine solar projects will have the capacity to power some 125,000 homes during peak hours. The approval also marks an important milestone amid the ongoing push for renewable energy. Dominion Energy will own and operate three projects expected to create 750 jobs. The other six projects came into being as a result of a power purchase agreement selected from a competitive solicitation process. The projects in total are also expected to realize up to $100 million in economic benefits to the state."Our customers deserve reliable and affordable energy, and they also deserve a clean environment. These projects will help us deliver on that promise," said President Ed Baine, Dominion Energy Virginia.The approval of the nine solar projects marks an important milestone for Dominion Energy's goal of net-zero emissions under the Virginia Clean Economy Act. The act calls for up to 16,100 megawatts of solar or onshore wind energy by 2035. (See Dominion Energy stock analysis on TipRanks)In April, Credit Suisse analyst Michael Weinstein reiterated a Buy rating on Dominion Energy. According to the analyst, the company is on course to deliver adjusted earnings per share of $1.07, in line with the consensus estimate. It should also align with the company’s earnings guidance of between $1.00 and $1.15 a share.The analyst increased his price target on the stock from $80 to $90, implying 11.98% upside potential to current levels.Consensus among analysts is a Moderate Buy based on 2 Buy and 1 Hold rating. The average analyst price target of $86.33 implies 7.42% upside potential to current levels.Dominion Energy scores 9 out of 10 on TipRanks’ Smart Score rating system, implying it is likely to outperform the overall market.Related News: Estee Lauder’s 1Q Results Exceed Expectations; Shares Fall 8%AON Delivers Double-Digit Growth In 1QIntel Announces Massive Investments In Improving Its Products
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dominion Energy (D) Virginia customers have secured approval for nine solar projects in the state. These projects will help us deliver on that promise," said President Ed Baine, Dominion Energy Virginia.The approval of the nine solar projects marks an important milestone for Dominion Energy's goal of net-zero emissions under the Virginia Clean Economy Act. The average analyst price target of $86.33 implies 7.42% upside potential to current levels.Dominion Energy scores 9 out of 10 on TipRanks’ Smart Score rating system, implying it is likely to outperform the overall market.Related News: Estee Lauder’s 1Q Results Exceed Expectations; Shares Fall 8%AON Delivers Double-Digit Growth In 1QIntel Announces Massive Investments In Improving Its Products The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These projects will help us deliver on that promise," said President Ed Baine, Dominion Energy Virginia.The approval of the nine solar projects marks an important milestone for Dominion Energy's goal of net-zero emissions under the Virginia Clean Economy Act. It should also align with the company’s earnings guidance of between $1.00 and $1.15 a share.The analyst increased his price target on the stock from $80 to $90, implying 11.98% upside potential to current levels.Consensus among analysts is a Moderate Buy based on 2 Buy and 1 Hold rating. The average analyst price target of $86.33 implies 7.42% upside potential to current levels.Dominion Energy scores 9 out of 10 on TipRanks’ Smart Score rating system, implying it is likely to outperform the overall market.Related News: Estee Lauder’s 1Q Results Exceed Expectations; Shares Fall 8%AON Delivers Double-Digit Growth In 1QIntel Announces Massive Investments In Improving Its Products The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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These projects will help us deliver on that promise," said President Ed Baine, Dominion Energy Virginia.The approval of the nine solar projects marks an important milestone for Dominion Energy's goal of net-zero emissions under the Virginia Clean Economy Act. (See Dominion Energy stock analysis on TipRanks)In April, Credit Suisse analyst Michael Weinstein reiterated a Buy rating on Dominion Energy. The average analyst price target of $86.33 implies 7.42% upside potential to current levels.Dominion Energy scores 9 out of 10 on TipRanks’ Smart Score rating system, implying it is likely to outperform the overall market.Related News: Estee Lauder’s 1Q Results Exceed Expectations; Shares Fall 8%AON Delivers Double-Digit Growth In 1QIntel Announces Massive Investments In Improving Its Products The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dominion Energy (D) Virginia customers have secured approval for nine solar projects in the state. These projects will help us deliver on that promise," said President Ed Baine, Dominion Energy Virginia.The approval of the nine solar projects marks an important milestone for Dominion Energy's goal of net-zero emissions under the Virginia Clean Economy Act. It should also align with the company’s earnings guidance of between $1.00 and $1.15 a share.The analyst increased his price target on the stock from $80 to $90, implying 11.98% upside potential to current levels.Consensus among analysts is a Moderate Buy based on 2 Buy and 1 Hold rating.
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698937.0
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2021-05-04 00:00:00 UTC
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Dominion Energy, Inc. Q1 adjusted earnings of $1.09 per share
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https://www.nasdaq.com/articles/dominion-energy-inc.-q1-adjusted-earnings-of-%241.09-per-share-2021-05-04
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(RTTNews) - Below are the earnings highlights for Dominion Energy, Inc. (D):
-Earnings: $1.01 billion in Q1 vs. -$0.27 billion in the same period last year. -EPS: $1.23 in Q1 vs. -$0.34 in the same period last year. -Excluding items, Dominion Energy, Inc. reported adjusted earnings of $893 million or $1.09 per share for the period. -Revenue: $3.87 billion in Q1 vs. $3.94 billion in the same period last year.
-Guidance: Next quarter EPS guidance: $0.70 to $0.80 Full year EPS guidance: $3.70 to $4.00
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Below are the earnings highlights for Dominion Energy, Inc. (D): -Earnings: $1.01 billion in Q1 vs. -$0.27 billion in the same period last year. -Excluding items, Dominion Energy, Inc. reported adjusted earnings of $893 million or $1.09 per share for the period. -Guidance: Next quarter EPS guidance: $0.70 to $0.80 Full year EPS guidance: $3.70 to $4.00 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Below are the earnings highlights for Dominion Energy, Inc. (D): -Earnings: $1.01 billion in Q1 vs. -$0.27 billion in the same period last year. -Excluding items, Dominion Energy, Inc. reported adjusted earnings of $893 million or $1.09 per share for the period. -Guidance: Next quarter EPS guidance: $0.70 to $0.80 Full year EPS guidance: $3.70 to $4.00 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Below are the earnings highlights for Dominion Energy, Inc. (D): -Earnings: $1.01 billion in Q1 vs. -$0.27 billion in the same period last year. -Revenue: $3.87 billion in Q1 vs. $3.94 billion in the same period last year. -Guidance: Next quarter EPS guidance: $0.70 to $0.80 Full year EPS guidance: $3.70 to $4.00 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Below are the earnings highlights for Dominion Energy, Inc. (D): -Earnings: $1.01 billion in Q1 vs. -$0.27 billion in the same period last year. -Excluding items, Dominion Energy, Inc. reported adjusted earnings of $893 million or $1.09 per share for the period. -Guidance: Next quarter EPS guidance: $0.70 to $0.80 Full year EPS guidance: $3.70 to $4.00 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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698938.0
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2021-05-03 00:00:00 UTC
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Pre-Market Earnings Report for May 4, 2021 : PFE, CVS, COP, D, GPN, ETN, IDXX, TRI, SYY, DD, RACE, CMI
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-may-4-2021-%3A-pfe-cvs-cop-d-gpn-etn-idxx-tri-syy-dd-race-cmi
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The following companies are expected to report earnings prior to market open on 05/04/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Pfizer, Inc. (PFE) is reporting for the quarter ending March 31, 2021. The large cap pharmaceutical company's consensus earnings per share forecast from the 5 analysts that follow the stock is $0.79. This value represents a 1.25% decrease compared to the same quarter last year. PFE missed the consensus earnings per share in the 4th calendar quarter of 2020 by -8.7%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for PFE is 11.71 vs. an industry ratio of 14.10.
CVS Health Corporation (CVS) is reporting for the quarter ending March 31, 2021. The drug store company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.72. This value represents a 9.95% decrease compared to the same quarter last year. In the past year CVS has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 4.84%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CVS is 10.12 vs. an industry ratio of 11.50.
ConocoPhillips (COP) is reporting for the quarter ending March 31, 2021. The oil company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.57. This value represents a 26.67% increase compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for COP is 16.99 vs. an industry ratio of 28.10.
Dominion Energy, Inc. (D) is reporting for the quarter ending March 31, 2021. The electric power utilities company's consensus earnings per share forecast from the 4 analysts that follow the stock is $1.08. This value represents a 0.92% decrease compared to the same quarter last year. D missed the consensus earnings per share in the 1st calendar quarter of 2020 by -0.91%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for D is 20.75 vs. an industry ratio of 13.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Global Payments Inc. (GPN) is reporting for the quarter ending March 31, 2021. The financial transactions company's consensus earnings per share forecast from the 13 analysts that follow the stock is $1.67. This value represents a 11.33% increase compared to the same quarter last year. In the past year GPN has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 1.81%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for GPN is 28.43 vs. an industry ratio of 49.60.
Eaton Corporation, PLC (ETN) is reporting for the quarter ending March 31, 2021. The machinery company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.25. This value represents a 14.68% increase compared to the same quarter last year. In the past year ETN has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 4.92%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for ETN is 25.12 vs. an industry ratio of 16.40, implying that they will have a higher earnings growth than their competitors in the same industry.
IDEXX Laboratories, Inc. (IDXX) is reporting for the quarter ending March 31, 2021. The medical instruments company's consensus earnings per share forecast from the 5 analysts that follow the stock is $1.72. This value represents a 33.33% increase compared to the same quarter last year. In the past year IDXX has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 40.56%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for IDXX is 72.71 vs. an industry ratio of 67.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Thomson Reuters Corp (TRI) is reporting for the quarter ending March 31, 2021. The technology services company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.40. This value represents a 16.67% decrease compared to the same quarter last year. TRI missed the consensus earnings per share in the 1st calendar quarter of 2020 by -4%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TRI is 50.66 vs. an industry ratio of -26.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Sysco Corporation (SYY) is reporting for the quarter ending March 31, 2021. The food company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.20. This value represents a 55.56% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2021 Price to Earnings ratio for SYY is 58.43 vs. an industry ratio of 40.20, implying that they will have a higher earnings growth than their competitors in the same industry.
DuPont de Nemours, Inc. (DD) is reporting for the quarter ending March 31, 2021. The chemical company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.77. This value represents a 8.33% decrease compared to the same quarter last year. In the past year DD has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 3.26%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for DD is 22.35 vs. an industry ratio of 23.70.
Ferrari N.V. (RACE) is reporting for the quarter ending March 31, 2021. The auto (truck) company's consensus earnings per share forecast from the 3 analysts that follow the stock is $1.33. This value represents a 34.34% increase compared to the same quarter last year. RACE missed the consensus earnings per share in the 2nd calendar quarter of 2020 by -33.33%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for RACE is 43.02 vs. an industry ratio of 10.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Cummins Inc. (CMI) is reporting for the quarter ending March 31, 2021. The engines company's consensus earnings per share forecast from the 9 analysts that follow the stock is $3.46. This value represents a 8.81% increase compared to the same quarter last year. In the past year CMI has beat the expectations every quarter. The highest one was in the 4th calendar quarter where they beat the consensus by 22.63%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CMI is 17.90 vs. an industry ratio of 14.50, implying that they will have a higher earnings growth than their competitors in the same industry.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The drug store company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.72. The following companies are expected to report earnings prior to market open on 05/04/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
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Zacks Investment Research reports that the 2021 Price to Earnings ratio for ETN is 25.12 vs. an industry ratio of 16.40, implying that they will have a higher earnings growth than their competitors in the same industry. Zacks Investment Research reports that the 2021 Price to Earnings ratio for IDXX is 72.71 vs. an industry ratio of 67.90, implying that they will have a higher earnings growth than their competitors in the same industry. Zacks Investment Research reports that the 2021 Price to Earnings ratio for TRI is 50.66 vs. an industry ratio of -26.40, implying that they will have a higher earnings growth than their competitors in the same industry.
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Zacks Investment Research reports that the 2021 Price to Earnings ratio for ETN is 25.12 vs. an industry ratio of 16.40, implying that they will have a higher earnings growth than their competitors in the same industry. Zacks Investment Research reports that the 2021 Price to Earnings ratio for IDXX is 72.71 vs. an industry ratio of 67.90, implying that they will have a higher earnings growth than their competitors in the same industry. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CMI is 17.90 vs. an industry ratio of 14.50, implying that they will have a higher earnings growth than their competitors in the same industry.
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The following companies are expected to report earnings prior to market open on 05/04/2021. Visit our Earnings Calendar for a full list of expected earnings releases. Pfizer, Inc. (PFE) is reporting for the quarter ending March 31, 2021.
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698939.0
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2021-04-30 00:00:00 UTC
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North Carolina again denies permit for Mountain Valley gas pipe extension
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https://www.nasdaq.com/articles/north-carolina-again-denies-permit-for-mountain-valley-gas-pipe-extension-2021-04-30-0
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Adds company comment
April 30 (Reuters) - The North Carolina Department of Environmental Quality (DEQ) again denied Mountain Valley Pipeline's (MVP) request for a water permit for its proposed Southgate natural gas pipeline project from Virginia to North Carolina.
The DEQ first denied the request in August 2020. MVP appealed that decision to the U.S. Court of Appeals for the Fourth Circuit, which remanded the case back to the DEQ to "explain why the Department chose denial over conditional certification."
DEQ said in its second denial on Thursday that conditional approval "does not provide the reasonable assurance of compliance with water quality requirements."
"A conditional approval, as the state’s hearing officer recommended, would have satisfied the (DEQ's) concerns ... while meeting North Carolinians’ demand for natural gas," MVP Southgate said in response.
On its website, MVP says construction of the 75-mile (121-kilometer), 0.4-billion cubic feet per day (bcfd) Southgate extension was targeted to start in 2021 for completion in 2022.
Part of Southgate's problem is that the $5.8-$6.0 billion MVP mainline from West Virginia to Virginia is still under construction and there is no guarantee it will enter service after Dominion Energy Inc D.N canceled its $8 billion Atlantic Coast gas pipe from West Virginia to Virginia and North Carolina in 2020.
MVP has said it expects to complete the 303-mile, 2.0-bcfd mainline by the end of 2021. Many analysts, however, expect it will be delayed until 2022.
MVP and Atlantic Coast are just two of several U.S. pipelines delayed by regulatory and legal fights with environmental and local groups that found problems with federal permits issued by the Trump administration.
When MVP started construction in February 2018, it estimated the project would cost about $3.5 billion and enter service by late 2018.
MVP is owned by units of Equitrans Midstream ETRN.N, NextEra Energy NEE.N, Consolidated Edison ED.N, AltaGas ALA.TO and RGC Resources RGCO.O.
UPDATE 1 --U.S. Mountain Valley gas pipeline facing more delays
UPDATE 1-MVP Southgate natgas pipe startup seen in 2021 despite N.Carolina permit denial
(Reporting by Scott DiSavino. Editing by Mark Potter and Alistair Bell)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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DEQ said in its second denial on Thursday that conditional approval "does not provide the reasonable assurance of compliance with water quality requirements." "A conditional approval, as the state’s hearing officer recommended, would have satisfied the (DEQ's) concerns ... while meeting North Carolinians’ demand for natural gas," MVP Southgate said in response. MVP and Atlantic Coast are just two of several U.S. pipelines delayed by regulatory and legal fights with environmental and local groups that found problems with federal permits issued by the Trump administration.
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Adds company comment April 30 (Reuters) - The North Carolina Department of Environmental Quality (DEQ) again denied Mountain Valley Pipeline's (MVP) request for a water permit for its proposed Southgate natural gas pipeline project from Virginia to North Carolina. Part of Southgate's problem is that the $5.8-$6.0 billion MVP mainline from West Virginia to Virginia is still under construction and there is no guarantee it will enter service after Dominion Energy Inc D.N canceled its $8 billion Atlantic Coast gas pipe from West Virginia to Virginia and North Carolina in 2020. UPDATE 1 --U.S. Mountain Valley gas pipeline facing more delays UPDATE 1-MVP Southgate natgas pipe startup seen in 2021 despite N.Carolina permit denial (Reporting by Scott DiSavino.
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Adds company comment April 30 (Reuters) - The North Carolina Department of Environmental Quality (DEQ) again denied Mountain Valley Pipeline's (MVP) request for a water permit for its proposed Southgate natural gas pipeline project from Virginia to North Carolina. "A conditional approval, as the state’s hearing officer recommended, would have satisfied the (DEQ's) concerns ... while meeting North Carolinians’ demand for natural gas," MVP Southgate said in response. Part of Southgate's problem is that the $5.8-$6.0 billion MVP mainline from West Virginia to Virginia is still under construction and there is no guarantee it will enter service after Dominion Energy Inc D.N canceled its $8 billion Atlantic Coast gas pipe from West Virginia to Virginia and North Carolina in 2020.
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Adds company comment April 30 (Reuters) - The North Carolina Department of Environmental Quality (DEQ) again denied Mountain Valley Pipeline's (MVP) request for a water permit for its proposed Southgate natural gas pipeline project from Virginia to North Carolina. On its website, MVP says construction of the 75-mile (121-kilometer), 0.4-billion cubic feet per day (bcfd) Southgate extension was targeted to start in 2021 for completion in 2022. MVP has said it expects to complete the 303-mile, 2.0-bcfd mainline by the end of 2021.
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698940.0
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2021-04-30 00:00:00 UTC
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North Carolina again denies permit for Mountain Valley gas pipe extension
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https://www.nasdaq.com/articles/north-carolina-again-denies-permit-for-mountain-valley-gas-pipe-extension-2021-04-30
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April 30 (Reuters) - The North Carolina Department of Environmental Quality (DEQ) again denied Mountain Valley Pipeline's (MVP) request for a water permit for its proposed Southgate natural gas pipeline project from Virginia to North Carolina.
The DEQ first denied MVP's request in August 2020. MVP appealed that decision to the U.S. Court of Appeals for the Fourth Circuit, which remanded the case back to the DEQ to "explain why the Department chose denial over conditional certification."
The DEQ said in its second denial on Thursday that conditional approval "does not provide the reasonable assurance of compliance with water quality requirements."
Officials at MVP were not immediately available for comment. On its website, MVP says construction of the 75-mile (121-kilometer), 0.4-billion cubic feet per day (bcfd) Southgate extension is targeted to start in 2021 for completion in 2022.
One billion cubic feet is enough gas to supply about five million U.S. homes for a day.
Part of Southgate's problem is the $5.8-$6.0 billion MVP mainline from West Virginia to Virginia is still under construction and there is no guarantee it will ever enter service after Dominion Energy Inc D.N canceled its $8 billion Atlantic Coast gas pipe from West Virginia to Virginia and North Carolina in 2020.
MVP has said it expects to complete the 303-mile, 2.0-bcfd mainline by the end of 2021. Many analysts, however, expect it will be delayed until 2022.
MVP and Atlantic Coast are just two of several U.S. pipelines delayed by regulatory and legal fights with environmental and local groups that found problems with federal permits issued by the Trump administration.
When MVP started construction in February 2018, it estimated the project would cost about $3.5 billion and enter service by late 2018.
MVP is owned by units of Equitrans Midstream ETRN.N, NextEra Energy NEE.N, Consolidated Edison ED.N, AltaGas ALA.TO and RGC Resources RGCO.O.
UPDATE 1 --U.S. Mountain Valley gas pipeline facing more delays
UPDATE 1-MVP Southgate natgas pipe startup seen in 2021 despite N.Carolina permit denial
(Reporting by Scott DiSavino. Editing by Mark Potter)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The DEQ said in its second denial on Thursday that conditional approval "does not provide the reasonable assurance of compliance with water quality requirements." MVP and Atlantic Coast are just two of several U.S. pipelines delayed by regulatory and legal fights with environmental and local groups that found problems with federal permits issued by the Trump administration. MVP is owned by units of Equitrans Midstream ETRN.N, NextEra Energy NEE.N, Consolidated Edison ED.N, AltaGas ALA.TO and RGC Resources RGCO.O.
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April 30 (Reuters) - The North Carolina Department of Environmental Quality (DEQ) again denied Mountain Valley Pipeline's (MVP) request for a water permit for its proposed Southgate natural gas pipeline project from Virginia to North Carolina. Part of Southgate's problem is the $5.8-$6.0 billion MVP mainline from West Virginia to Virginia is still under construction and there is no guarantee it will ever enter service after Dominion Energy Inc D.N canceled its $8 billion Atlantic Coast gas pipe from West Virginia to Virginia and North Carolina in 2020. UPDATE 1 --U.S. Mountain Valley gas pipeline facing more delays UPDATE 1-MVP Southgate natgas pipe startup seen in 2021 despite N.Carolina permit denial (Reporting by Scott DiSavino.
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April 30 (Reuters) - The North Carolina Department of Environmental Quality (DEQ) again denied Mountain Valley Pipeline's (MVP) request for a water permit for its proposed Southgate natural gas pipeline project from Virginia to North Carolina. Part of Southgate's problem is the $5.8-$6.0 billion MVP mainline from West Virginia to Virginia is still under construction and there is no guarantee it will ever enter service after Dominion Energy Inc D.N canceled its $8 billion Atlantic Coast gas pipe from West Virginia to Virginia and North Carolina in 2020. MVP and Atlantic Coast are just two of several U.S. pipelines delayed by regulatory and legal fights with environmental and local groups that found problems with federal permits issued by the Trump administration.
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April 30 (Reuters) - The North Carolina Department of Environmental Quality (DEQ) again denied Mountain Valley Pipeline's (MVP) request for a water permit for its proposed Southgate natural gas pipeline project from Virginia to North Carolina. The DEQ said in its second denial on Thursday that conditional approval "does not provide the reasonable assurance of compliance with water quality requirements." On its website, MVP says construction of the 75-mile (121-kilometer), 0.4-billion cubic feet per day (bcfd) Southgate extension is targeted to start in 2021 for completion in 2022.
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698941.0
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2021-04-23 00:00:00 UTC
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Pembina pauses development of Oregon Jordan Cove LNG plant
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https://www.nasdaq.com/articles/pembina-pauses-development-of-oregon-jordan-cove-lng-plant-2021-04-23
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April 23 (Reuters) - Canadian energy company Pembina Pipeline Corp PPL.TO paused development of its proposed Jordan Cove liquefied natural gas (LNG) export plant in Oregon, according to an appeals court filing.
In the filing, on Thursday, Pembina said it was assessing "the impact of recent regulatory decisions involving denial of permits or authorizations necessary for the project to move forward."
The company asked the U.S. Court of Appeals for the District of Columbia Circuit to place the case in abeyance pending the outcome of that re-assessment.
Officials at Pembina were not immediately available for comment.
The US$8 billion Jordan Cove is one of several major energy projects that received strong support from former U.S. President Donald Trump but have since failed to move forward.
Others examples include TC Energy Corp's TRP.TO $8 billion Keystone XL crude pipeline, Williams Cos Inc's WMB.N roughly $1 billion Constitution natural gas pipeline and Dominion Energy Inc's D.N $8 billion Atlantic Coast gas pipeline.
The U.S. Federal Energy Regulatory Commission approved construction of Jordan Cove and its Pacific Connector gas pipeline in March 2020, but the project failed to receive water permits from Oregon.
Jordan Cove's backers emphasized that its position on the U.S. West Coast put it closer to fast-growing Asian markets than Gulf Coast terminals, which have to send LNG through the sometimes-congested Panama Canal. They had hoped the project would be operational by 2025.
Jordan Cove was designed to produce around 7.5 million tonnes per annum of LNG, equivalent to about 1 billion cubic feet per day of gas, or enough to supply about 5 million U.S. homes for a day.
Jordan Cove is one of more than three dozen LNG export projects under development in the United States, Canada and Mexico.
Analysts, however, expect only a handful of those projects to enter service over the next decade.
The Jordan Cove news followed an announcement from Annova LNG, another LNG developer, last month that it stopped development of its proposed Brownsville export plant in Texas due to changes in the LNG market.
UPDATE 2-U.S. approves Pembina's proposed Jordan Cove LNG export plant in Oregon
U.S. FERC delivers blow to Oregon LNG terminal, upholds state's permit denial
FACTBOX-U.S. new natural gas pipeline projects
Pembina Pipeline Corporation Reports Results for the Fourth Quarter and Full Year 2020
Pembina can no longer predict start date for Oregon Jordan Cove LNG
(Reporting by Scott DiSavino; editing by David Evans and Steve Orlofsky)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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April 23 (Reuters) - Canadian energy company Pembina Pipeline Corp PPL.TO paused development of its proposed Jordan Cove liquefied natural gas (LNG) export plant in Oregon, according to an appeals court filing. The U.S. Federal Energy Regulatory Commission approved construction of Jordan Cove and its Pacific Connector gas pipeline in March 2020, but the project failed to receive water permits from Oregon. UPDATE 2-U.S. approves Pembina's proposed Jordan Cove LNG export plant in Oregon U.S. FERC delivers blow to Oregon LNG terminal, upholds state's permit denial FACTBOX-U.S. new natural gas pipeline projects Pembina Pipeline Corporation Reports Results for the Fourth Quarter and Full Year 2020 Pembina can no longer predict start date for Oregon Jordan Cove LNG (Reporting by Scott DiSavino; editing by David Evans and Steve Orlofsky) ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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April 23 (Reuters) - Canadian energy company Pembina Pipeline Corp PPL.TO paused development of its proposed Jordan Cove liquefied natural gas (LNG) export plant in Oregon, according to an appeals court filing. Others examples include TC Energy Corp's TRP.TO $8 billion Keystone XL crude pipeline, Williams Cos Inc's WMB.N roughly $1 billion Constitution natural gas pipeline and Dominion Energy Inc's D.N $8 billion Atlantic Coast gas pipeline. UPDATE 2-U.S. approves Pembina's proposed Jordan Cove LNG export plant in Oregon U.S. FERC delivers blow to Oregon LNG terminal, upholds state's permit denial FACTBOX-U.S. new natural gas pipeline projects Pembina Pipeline Corporation Reports Results for the Fourth Quarter and Full Year 2020 Pembina can no longer predict start date for Oregon Jordan Cove LNG (Reporting by Scott DiSavino; editing by David Evans and Steve Orlofsky) ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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April 23 (Reuters) - Canadian energy company Pembina Pipeline Corp PPL.TO paused development of its proposed Jordan Cove liquefied natural gas (LNG) export plant in Oregon, according to an appeals court filing. The Jordan Cove news followed an announcement from Annova LNG, another LNG developer, last month that it stopped development of its proposed Brownsville export plant in Texas due to changes in the LNG market. UPDATE 2-U.S. approves Pembina's proposed Jordan Cove LNG export plant in Oregon U.S. FERC delivers blow to Oregon LNG terminal, upholds state's permit denial FACTBOX-U.S. new natural gas pipeline projects Pembina Pipeline Corporation Reports Results for the Fourth Quarter and Full Year 2020 Pembina can no longer predict start date for Oregon Jordan Cove LNG (Reporting by Scott DiSavino; editing by David Evans and Steve Orlofsky) ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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April 23 (Reuters) - Canadian energy company Pembina Pipeline Corp PPL.TO paused development of its proposed Jordan Cove liquefied natural gas (LNG) export plant in Oregon, according to an appeals court filing. Officials at Pembina were not immediately available for comment. The U.S. Federal Energy Regulatory Commission approved construction of Jordan Cove and its Pacific Connector gas pipeline in March 2020, but the project failed to receive water permits from Oregon.
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698942.0
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2021-04-14 00:00:00 UTC
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Dominion Energy, Inc.'s (NYSE:D) P/E Still Appears To Be Reasonable
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D
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https://www.nasdaq.com/articles/dominion-energy-inc.s-nyse%3Ad-p-e-still-appears-to-be-reasonable-2021-04-14
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Dominion Energy, Inc.'s (NYSE:D) price-to-earnings (or "P/E") ratio of 45.6x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 22x and even P/E's below 12x are quite common. However, the P/E might be quite high for a reason and it requires further investigation to determine if it's justified.
Recent times have been advantageous for Dominion Energy as its earnings have been rising faster than most other companies. The P/E is probably high because investors think this strong earnings performance will continue. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
NYSE:D Price Based on Past Earnings April 14th 2021
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Dominion Energy.
How Is Dominion Energy's Growth Trending?
The only time you'd be truly comfortable seeing a P/E as steep as Dominion Energy's is when the company's growth is on track to outshine the market decidedly.
Retrospectively, the last year delivered an exceptional 116% gain to the company's bottom line. Still, incredibly EPS has fallen 64% in total from three years ago, which is quite disappointing. Accordingly, shareholders would have felt downbeat about the medium-term rates of earnings growth.
Turning to the outlook, the next three years should generate growth of 37% per year as estimated by the nine analysts watching the company. With the market only predicted to deliver 15% per year, the company is positioned for a stronger earnings result.
In light of this, it's understandable that Dominion Energy's P/E sits above the majority of other companies. It seems most investors are expecting this strong future growth and are willing to pay more for the stock.
The Final Word
While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations.
As we suspected, our examination of Dominion Energy's analyst forecasts revealed that its superior earnings outlook is contributing to its high P/E. At this stage investors feel the potential for a deterioration in earnings isn't great enough to justify a lower P/E ratio. Unless these conditions change, they will continue to provide strong support to the share price.
Having said that, be aware Dominion Energy is showing 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable.
If these risks are making you reconsider your opinion on Dominion Energy, explore our interactive list of high quality stocks to get an idea of what else is out there.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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NYSE:D Price Based on Past Earnings April 14th 2021 If you'd like to see what analysts are forecasting going forward, you should check out our free report on Dominion Energy. The Final Word While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations. If these risks are making you reconsider your opinion on Dominion Energy, explore our interactive list of high quality stocks to get an idea of what else is out there.
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Dominion Energy, Inc.'s (NYSE:D) price-to-earnings (or "P/E") ratio of 45.6x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 22x and even P/E's below 12x are quite common. As we suspected, our examination of Dominion Energy's analyst forecasts revealed that its superior earnings outlook is contributing to its high P/E. However, the P/E might be quite high for a reason and it requires further investigation to determine if it's justified.
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Dominion Energy, Inc.'s (NYSE:D) price-to-earnings (or "P/E") ratio of 45.6x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 22x and even P/E's below 12x are quite common. Recent times have been advantageous for Dominion Energy as its earnings have been rising faster than most other companies. As we suspected, our examination of Dominion Energy's analyst forecasts revealed that its superior earnings outlook is contributing to its high P/E.
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How Is Dominion Energy's Growth Trending? Turning to the outlook, the next three years should generate growth of 37% per year as estimated by the nine analysts watching the company. Dominion Energy, Inc.'s (NYSE:D) price-to-earnings (or "P/E") ratio of 45.6x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 22x and even P/E's below 12x are quite common.
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698943.0
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2021-04-12 00:00:00 UTC
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Dominion Energy Breaks Above 200-Day Moving Average - Bullish for D
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D
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https://www.nasdaq.com/articles/dominion-energy-breaks-above-200-day-moving-average-bullish-for-d-2021-04-12
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In trading on Monday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $77.03, changing hands as high as $77.05 per share. Dominion Energy Inc shares are currently trading up about 0.5% on the day. The chart below shows the one year performance of D shares, versus its 200 day moving average:
Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $87.34 as the 52 week high point — that compares with a last trade of $76.71. The D DMA information above was sourced from TechnicalAnalysisChannel.com
Free Report: Top 7%+ Dividends (paid monthly)
Click here to find out which 9 other energy stocks recently crossed above their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $77.03, changing hands as high as $77.05 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $87.34 as the 52 week high point — that compares with a last trade of $76.71. The D DMA information above was sourced from TechnicalAnalysisChannel.com Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other energy stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $77.03, changing hands as high as $77.05 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $87.34 as the 52 week high point — that compares with a last trade of $76.71. The D DMA information above was sourced from TechnicalAnalysisChannel.com Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other energy stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $77.03, changing hands as high as $77.05 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $87.34 as the 52 week high point — that compares with a last trade of $76.71. The D DMA information above was sourced from TechnicalAnalysisChannel.com Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other energy stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Monday, shares of Dominion Energy Inc (Symbol: D) crossed above their 200 day moving average of $77.03, changing hands as high as $77.05 per share. Dominion Energy Inc shares are currently trading up about 0.5% on the day. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $67.85 per share, with $87.34 as the 52 week high point — that compares with a last trade of $76.71.
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698944.0
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2021-04-09 00:00:00 UTC
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Energy Sector Update for 04/09/2021: IO, D, SWX, XLE, USO, UNG
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https://www.nasdaq.com/articles/energy-sector-update-for-04-09-2021%3A-io-d-swx-xle-uso-ung-2021-04-09
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Energy stocks were trading mostly lower before markets open on Friday as the Energy Select Sector SPDR (XLE) declined 0.2%. The United States Natural Oil Fund (USO) was down 0.5%, while the United States Gas Fund (UNG) gained 0.9%.
The West Texas Intermediate crude oil lost $0.28 to $59.32 per barrel at the New York Mercantile Exchange. The global benchmark Brent crude decreased $0.39 per barrel to $62.81 and the natural gas futures were 2 cents higher to $2.54 per 1 million BTU.
Ion Geophysical (IO) was trading down 1.5%. Late Thursday, the company said it has been awarded an exclusive agreement for 3D multi-client programs offshore Kenya.
In other sector news, Dominion Energy (D) was down 0.1% after announcing Thursday it has secured a 22-year, $47.9 million utility energy service contract for Marine Corps Base Quantico.
Southwest Gas (SWX) was unchanged after filing on Thursday an "at-the-market" equity offering for sales of common stock totaling up to $500 million.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The global benchmark Brent crude decreased $0.39 per barrel to $62.81 and the natural gas futures were 2 cents higher to $2.54 per 1 million BTU. Late Thursday, the company said it has been awarded an exclusive agreement for 3D multi-client programs offshore Kenya. Southwest Gas (SWX) was unchanged after filing on Thursday an "at-the-market" equity offering for sales of common stock totaling up to $500 million.
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Energy stocks were trading mostly lower before markets open on Friday as the Energy Select Sector SPDR (XLE) declined 0.2%. The United States Natural Oil Fund (USO) was down 0.5%, while the United States Gas Fund (UNG) gained 0.9%. The global benchmark Brent crude decreased $0.39 per barrel to $62.81 and the natural gas futures were 2 cents higher to $2.54 per 1 million BTU.
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Energy stocks were trading mostly lower before markets open on Friday as the Energy Select Sector SPDR (XLE) declined 0.2%. The United States Natural Oil Fund (USO) was down 0.5%, while the United States Gas Fund (UNG) gained 0.9%. In other sector news, Dominion Energy (D) was down 0.1% after announcing Thursday it has secured a 22-year, $47.9 million utility energy service contract for Marine Corps Base Quantico.
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Energy stocks were trading mostly lower before markets open on Friday as the Energy Select Sector SPDR (XLE) declined 0.2%. The United States Natural Oil Fund (USO) was down 0.5%, while the United States Gas Fund (UNG) gained 0.9%. The West Texas Intermediate crude oil lost $0.28 to $59.32 per barrel at the New York Mercantile Exchange.
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698945.0
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2021-04-05 00:00:00 UTC
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Noteworthy ETF Outflows: XLU, NEE, SO, D
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https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-xlu-nee-so-d-2021-04-05
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $243.1 million dollar outflow -- that's a 2.0% decrease week over week (from 190,720,000 to 186,920,000). Among the largest underlying components of XLU, in trading today NextEra Energy Inc (Symbol: NEE) is up about 1.7%, Southern Company (Symbol: SO) is up about 0.5%, and Dominion Energy Inc (Symbol: D) is higher by about 0.6%. For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average:
Looking at the chart above, XLU's low point in its 52 week range is $53.66 per share, with $67.93 as the 52 week high point — that compares with a last trade of $64.67. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $243.1 million dollar outflow -- that's a 2.0% decrease week over week (from 190,720,000 to 186,920,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $53.66 per share, with $67.93 as the 52 week high point — that compares with a last trade of $64.67. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Click here to find out which 9 other ETFs experienced notable outflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $243.1 million dollar outflow -- that's a 2.0% decrease week over week (from 190,720,000 to 186,920,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $53.66 per share, with $67.93 as the 52 week high point — that compares with a last trade of $64.67. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $243.1 million dollar outflow -- that's a 2.0% decrease week over week (from 190,720,000 to 186,920,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $53.66 per share, with $67.93 as the 52 week high point — that compares with a last trade of $64.67. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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698946.0
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2021-04-02 00:00:00 UTC
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Former Dominion Energy Chairman Thomas Farrell Passes Away
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https://www.nasdaq.com/articles/former-dominion-energy-chairman-thomas-farrell-passes-away-2021-04-02
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(RTTNews) - Dominion Energy, Inc. (D) said Friday that Former Executive and Board Chairman, Thomas Farrell, passed away.
Farrell, who served as the company's chairman, president and chief executive officer from 2007 to 2020, was 66. He had been battling cancer, which took a sudden turn in recent weeks.
Farrell was named president and chief operating officer in 2004, and president and chief executive officer in 2006, and was elected chairman in 2007 - a post he held until April 1, 2021.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc. (D) said Friday that Former Executive and Board Chairman, Thomas Farrell, passed away. Farrell, who served as the company's chairman, president and chief executive officer from 2007 to 2020, was 66. Farrell was named president and chief operating officer in 2004, and president and chief executive officer in 2006, and was elected chairman in 2007 - a post he held until April 1, 2021.
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(RTTNews) - Dominion Energy, Inc. (D) said Friday that Former Executive and Board Chairman, Thomas Farrell, passed away. Farrell, who served as the company's chairman, president and chief executive officer from 2007 to 2020, was 66. Farrell was named president and chief operating officer in 2004, and president and chief executive officer in 2006, and was elected chairman in 2007 - a post he held until April 1, 2021.
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He had been battling cancer, which took a sudden turn in recent weeks. Farrell was named president and chief operating officer in 2004, and president and chief executive officer in 2006, and was elected chairman in 2007 - a post he held until April 1, 2021. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc. (D) said Friday that Former Executive and Board Chairman, Thomas Farrell, passed away. Farrell, who served as the company's chairman, president and chief executive officer from 2007 to 2020, was 66. He had been battling cancer, which took a sudden turn in recent weeks.
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698947.0
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2021-03-27 00:00:00 UTC
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Got $1,400? Here Are 3 Stocks to Boost Your Stimulus Check
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https://www.nasdaq.com/articles/got-%241400-here-are-3-stocks-to-boost-your-stimulus-check-2021-03-27
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Stimulus checks are showing up in bank accounts across the country this month. At as much as $1,400 apiece, they're the largest ones so far. While the checks are designed to stimulate the economy by giving Americans cash to pay their bills, many people have the money they need to meet their needs, giving them the freedom to use their stimulus funds on other things. One of those options is to invest that money, provided they have an adequate emergency fund, have paid off their credit cards, and won't need the money for a few years.
Given that backdrop, we asked some of our contributors for their stock ideas for those planning to invest their stimulus checks. They chose Dominion Energy (NYSE: D), Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A), and Brookfield Renewable Partners (NYSE: BEP)(NYSE: BEPC). Here's why they believe this trio of stocks could stimulate long-term wealth creation.
Image source: Getty Images.
Dividend growth on tap
Reuben Gregg Brewer (Dominion Energy): Giant U.S. utility Dominion Energy sold most of its midstream business to Berkshire Hathaway in 2020, leading to a 33% dividend cut. That's the bad news, but it has to be juxtaposed against the benefits of this transaction.
First off, Dominion has now completely transformed itself into a boring old regulated utility, removing the riskiest portion of its business. Second, the dividend cut brings its payout ratio from the high end of the industry to a very reasonable 65% or so. And, third, it sets the government-regulated company up for highly predictable 6.5% or so earnings growth through 2025, with dividend growth expected to trail closely behind at 6%. Previously dividend growth was expected to be in the low single digits, at best. So, all in, Dominion's asset sale has arguably improved the outlook for long-term dividend investors.
Right now the stock has a 3.4% yield, which is more than twice what you can get from an S&P 500 index fund and roughly in line with the average utility, using the Vanguard Utility Index ETF as a proxy. But it is telegraphing generous dividend growth secured by $32 billion in capital investment plans over the next five years. So, if you use your stimulus check to buy into this story, you'll be adding a fast-growing, utility-backed income stream to your portfolio. Talk about a stimulus boost!
Turn your stimulus check into a renewable income stream
Matt DiLallo (Clearway Energy): There's a well-known saying that "If you give a man a fish, you feed him for a day. If you teach a man to fish, you feed him for a lifetime." Receiving a one-time windfall like a stimulus check is a lot like the first part of that quote. Once spent, it's gone. However, if you invest that money, it can provide a lifetime of income and grow it into an even bigger windfall in the future.
An excellent investment option for those looking to turn their stimulus check into a longer-lasting income stream is renewable energy producer Clearway Energy. Clearway pays a cash dividend that yields 5%. In other words, an investment in Clearway would turn a stimulus check into an income stream that currently amounts to $70 per year. That might not seem like much, but it could offset one minor expense, which is better than working hard to cover that cost each year. Moreover, Clearway expects to grow its dividend at a 5% to 8% annual rate for the next several years, meaning that the income stream should steadily head higher. Powering that growth is the company's ability to continue expanding its renewable energy portfolio by acquiring or developing additional wind and solar energy projects.
The company's growth should help propel Clearway's stock price in the coming years. As it does, the initial $1,400 investment could grow into an even bigger windfall. Given the enormous growth potential of renewable energy, it could be life-changing money for those who hold for the long haul. That potential of earning a nice income stream with lots of upside potential makes Clearway a great way to put your stimulus payment to work.
Image source: Getty Images.
Buy and forget this stock for decades
Neha Chamaria (Brookfield Renewable Partners): Brookfield Renewable shares are down roughly 7% so far this year. That may not seem not a big drop, but any dip in this stock should be seen as an opportunity; and there's nothing like it when such an opportunity pops its head just as you have some surplus cash to park somewhere.
The strongest bull argument for Brookfield Renewable is the ongoing global shift from fossil fuels to renewable energy. As one of the world's largest renewable energy companies, Brookfield is incredibly well placed to ride the wave. To its credit, the company's pipeline of roughly 23 gigawatts is already larger than its currently installed capacity. Also, Brookfield is aggressively branching out from hydropower to solar and wind, making it one of the most diversified renewable energy companies in the making.
Brookfield also has a solid financial standing and delivered a record year in 2020, growing its funds from operations by 6% and increasing its dividend by 5%. With management targeting 5% to 9% annual growth in the dividend and 12% to 15% total annualized shareholder returns, investors can bank on Brookfield Renewable to generate market-trumping returns for years to come. In fact, I consider Brookfield to be one of the top stocks to hold for the next 20 years, so you might want to put your stimulus check to work already.
10 stocks we like better than Brookfield Renewable Partners L.P.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Brookfield Renewable Partners L.P. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 24, 2021
Matthew DiLallo owns shares of Berkshire Hathaway (B shares), Brookfield Renewable Inc., Brookfield Renewable Partners L.P., and Clearway Energy, Inc. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer owns shares of Dominion Energy, Inc. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Dominion Energy, Inc and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares) and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Turn your stimulus check into a renewable income stream Matt DiLallo (Clearway Energy): There's a well-known saying that "If you give a man a fish, you feed him for a day. Moreover, Clearway expects to grow its dividend at a 5% to 8% annual rate for the next several years, meaning that the income stream should steadily head higher. Brookfield also has a solid financial standing and delivered a record year in 2020, growing its funds from operations by 6% and increasing its dividend by 5%.
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They chose Dominion Energy (NYSE: D), Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A), and Brookfield Renewable Partners (NYSE: BEP)(NYSE: BEPC). See the 10 stocks *Stock Advisor returns as of February 24, 2021 Matthew DiLallo owns shares of Berkshire Hathaway (B shares), Brookfield Renewable Inc., Brookfield Renewable Partners L.P., and Clearway Energy, Inc. Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool recommends Dominion Energy, Inc and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares) and long January 2023 $200 calls on Berkshire Hathaway (B shares).
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An excellent investment option for those looking to turn their stimulus check into a longer-lasting income stream is renewable energy producer Clearway Energy. Buy and forget this stock for decades Neha Chamaria (Brookfield Renewable Partners): Brookfield Renewable shares are down roughly 7% so far this year. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Matthew DiLallo owns shares of Berkshire Hathaway (B shares), Brookfield Renewable Inc., Brookfield Renewable Partners L.P., and Clearway Energy, Inc. Neha Chamaria has no position in any of the stocks mentioned.
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Moreover, Clearway expects to grow its dividend at a 5% to 8% annual rate for the next several years, meaning that the income stream should steadily head higher. 10 stocks we like better than Brookfield Renewable Partners L.P. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Matthew DiLallo owns shares of Berkshire Hathaway (B shares), Brookfield Renewable Inc., Brookfield Renewable Partners L.P., and Clearway Energy, Inc. Neha Chamaria has no position in any of the stocks mentioned.
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698948.0
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2021-03-25 00:00:00 UTC
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3 Dividend Stocks That Are Perfect for Retirement
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https://www.nasdaq.com/articles/3-dividend-stocks-that-are-perfect-for-retirement-2021-03-25
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In retirement, you have to balance your costs with the income you generate, but generally without the benefit of a full salary. This is why adding dividend-paying stocks to your portfolio can be the perfect investment choice if you're entering or enjoying your retirement years. If you are looking to boost your retirement income, dividend payers Realty Income (NYSE: O), Kellogg (NYSE: K), and Dominion Energy (NYSE: D) are three stocks that you should be looking at today.
1. Old faithful
Realty Income is a net lease real estate investment trust (REIT) with a focus on freestanding, single-tenant retail properties (about 85% of rents). Net lease REITs own properties, but their lessees are responsible for most of the operating costs of the assets they occupy. It's generally considered a low-risk approach in the REIT sector. And Realty Income is an industry bellwether in the space, with a massive 6,500-property portfolio.
Image source: Getty Images.
The company pays dividends monthly and has increased the payment every year for more than 25 consecutive years, making it a Dividend Aristocrat. It has an investment-grade balance sheet and gets roughly half of its rents from investment-grade tenants. Add in a 4.5% yield, which is well above the 1.5% or so you'd get from an S&P 500 Index fund, and there's a lot to like here today. The dividend has historically increased at a low-to-mid-single-digit pace, more than keeping up with inflation. All in all, if you are looking for a reliable dividend payer, Realty Income will fit nicely in your portfolio.
That said, the yield is roughly in the middle of Realty Income's historical dividend range over the past decade. So you'll be paying full price for the stock -- which isn't a bad choice, but value investors will probably be turned off.
2. Out of favor
This is where Kellogg comes in, as its 3.7% yield is toward the high end of its historical yield range. That suggests, using dividend yield as a proxy for valuation, that the food maker's stock is relatively cheap right now. And while it hasn't increased its dividend every single year for decades like Realty Income, it has a long history of the dividend moving steadily higher over time. It just announced another increase along with its full-year 2020 earnings.
The thing with Kellogg is that it has just completed a major business overhaul in which it sold off slow-growth businesses and bulked up in areas with more opportunity. Today its portfolio of food products is broken down between snacks (about 55% of revenues), cereal (33%), and frozen foods (the remainder). Foreign sales make up about 30% of the company's segment operating profits, with a notable focus on emerging markets. The problem is that Kellogg is projecting organic sales will fall 1% in 2021.
That sounds bad, but there's some nuance here. The coronavirus pandemic led to a huge spike in organic sales in 2020 that isn't going to be sustainable as life gets back to normal. When management takes that into account, it believes that the two-year annualized growth rate is more like 2.5%, which is pretty solid for a food company. The market doesn't appear to appreciate the improvement here, and that's an opportunity for investors seeking out relatively cheap stocks with solid dividends.
3. A dividend cutter?
The last name on the list, Dominion Energy, is a bit more controversial from a dividend standpoint. The utility actually cut its dividend in 2020, taking the quarterly payout down by about 33%. That, however, is roughly the size of the pipeline business the company sold during the year, as it looked to refocus its business on regulated utility assets. At this point it is pretty much a boring utility serving 7 million customers across 16 states.
O Dividend Yield data by YCharts
And while that dividend cut hurt, it's water under the bridge at this point. The future is what's important, and that's expected to include a long period of generous dividend growth backed by investments in the company's government-regulated businesses. But it helps to put some numbers on all of this. Dominion's five-year spending plan is a whopping $32 billion, which will allow it to support calls for higher rates over time. It believes this will lead to earnings growth of around 6.5% a year through to 2025. That, in turn, will support dividend growth of roughly 6% a year with a solid payout ratio of around 65%.
Before the dividend cut and asset sale, Dominion's payout ratio was among the highest in the industry, and it was looking at meager earnings growth rates. So, for investors seeking out a dividend growth stock to add to their retirement portfolios, Dominion's repositioning transaction looks like it has opened up a good opportunity. The yield is a generous 3.4% today.
One of the above
"Perfect" is a tough call on Wall Street, since every company comes with some warts. However, if you are looking for a reliable dividend payer, Realty Income is a great place to start even if you are paying full price. Kellogg is a bit out of favor today, which should entice value investors. And Dominion is getting ready to ramp up its dividend growth engine, which is something that will interest dividend growth investors. All in all, it's likely that one or more of these stocks could be perfect for your retirement portfolio if you take the time for some deep dives.
10 stocks we like better than Realty Income
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Realty Income wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of February 24, 2021
Reuben Gregg Brewer owns shares of Dominion Energy, Inc and Kellogg. The Motley Fool recommends Dominion Energy, Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Old faithful Realty Income is a net lease real estate investment trust (REIT) with a focus on freestanding, single-tenant retail properties (about 85% of rents). The future is what's important, and that's expected to include a long period of generous dividend growth backed by investments in the company's government-regulated businesses. So, for investors seeking out a dividend growth stock to add to their retirement portfolios, Dominion's repositioning transaction looks like it has opened up a good opportunity.
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If you are looking to boost your retirement income, dividend payers Realty Income (NYSE: O), Kellogg (NYSE: K), and Dominion Energy (NYSE: D) are three stocks that you should be looking at today. That, in turn, will support dividend growth of roughly 6% a year with a solid payout ratio of around 65%. Before the dividend cut and asset sale, Dominion's payout ratio was among the highest in the industry, and it was looking at meager earnings growth rates.
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If you are looking to boost your retirement income, dividend payers Realty Income (NYSE: O), Kellogg (NYSE: K), and Dominion Energy (NYSE: D) are three stocks that you should be looking at today. And while it hasn't increased its dividend every single year for decades like Realty Income, it has a long history of the dividend moving steadily higher over time. And Dominion is getting ready to ramp up its dividend growth engine, which is something that will interest dividend growth investors.
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The company pays dividends monthly and has increased the payment every year for more than 25 consecutive years, making it a Dividend Aristocrat. So you'll be paying full price for the stock -- which isn't a bad choice, but value investors will probably be turned off. That, in turn, will support dividend growth of roughly 6% a year with a solid payout ratio of around 65%.
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698949.0
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2021-03-18 00:00:00 UTC
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Analysts See 10% Gains Ahead For The Holdings of DEF
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https://www.nasdaq.com/articles/analysts-see-10-gains-ahead-for-the-holdings-of-def-2021-03-18
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco Defensive Equity ETF (Symbol: DEF), we found that the implied analyst target price for the ETF based upon its underlying holdings is $65.49 per unit.
With DEF trading at a recent price near $59.73 per unit, that means that analysts see 9.64% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of DEF's underlying holdings with notable upside to their analyst target prices are Procter & Gamble Company (Symbol: PG), Dominion Energy Inc (Symbol: D), and AbbVie Inc (Symbol: ABBV). Although PG has traded at a recent price of $128.42/share, the average analyst target is 17.58% higher at $151.00/share. Similarly, D has 11.20% upside from the recent share price of $73.17 if the average analyst target price of $81.36/share is reached, and analysts on average are expecting ABBV to reach a target price of $116.73/share, which is 11.13% above the recent price of $105.04. Below is a twelve month price history chart comparing the stock performance of PG, D, and ABBV:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco Defensive Equity ETF DEF $59.73 $65.49 9.64%
Procter & Gamble Company PG $128.42 $151.00 17.58%
Dominion Energy Inc D $73.17 $81.36 11.20%
AbbVie Inc ABBV $105.04 $116.73 11.13%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although PG has traded at a recent price of $128.42/share, the average analyst target is 17.58% higher at $151.00/share. Invesco Defensive Equity ETF DEF $59.73 $65.49 9.64% Procter & Gamble Company PG $128.42 $151.00 17.58% Dominion Energy Inc D $73.17 $81.36 11.20% AbbVie Inc ABBV $105.04 $116.73 11.13% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments?
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Three of DEF's underlying holdings with notable upside to their analyst target prices are Procter & Gamble Company (Symbol: PG), Dominion Energy Inc (Symbol: D), and AbbVie Inc (Symbol: ABBV). Similarly, D has 11.20% upside from the recent share price of $73.17 if the average analyst target price of $81.36/share is reached, and analysts on average are expecting ABBV to reach a target price of $116.73/share, which is 11.13% above the recent price of $105.04. Invesco Defensive Equity ETF DEF $59.73 $65.49 9.64% Procter & Gamble Company PG $128.42 $151.00 17.58% Dominion Energy Inc D $73.17 $81.36 11.20% AbbVie Inc ABBV $105.04 $116.73 11.13% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, D has 11.20% upside from the recent share price of $73.17 if the average analyst target price of $81.36/share is reached, and analysts on average are expecting ABBV to reach a target price of $116.73/share, which is 11.13% above the recent price of $105.04. A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past.
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. With DEF trading at a recent price near $59.73 per unit, that means that analysts see 9.64% upside for this ETF looking through to the average analyst targets of the underlying holdings. Invesco Defensive Equity ETF DEF $59.73 $65.49 9.64% Procter & Gamble Company PG $128.42 $151.00 17.58% Dominion Energy Inc D $73.17 $81.36 11.20% AbbVie Inc ABBV $105.04 $116.73 11.13% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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698950.0
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2021-03-10 00:00:00 UTC
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3 Stocks Flashing Signs of Strong Insider Buying
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https://www.nasdaq.com/articles/3-stocks-flashing-signs-of-strong-insider-buying-2021-03-10
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Say ‘insider trading,’ and most people will immediately think of shady market moves and dishonest salesmen, or, perhaps, Martha Stewart, who was famously convicted of illegal insider trading after getting a stock tip on a biopharma company.
But there is plenty of insider trading that can be conducted based on information in the public realm, even if it is generally known mainly by corporate officers or company directors. In that case, as long as the insiders publish their trades in timely fashion, in accordance with SEC rules, the insider trades are perfectly legal.
The SEC rules don’t make the insiders’ knowledge more readily available, but they do make the insiders’ trades easy to follow. And following corporate officers, to see what trades they make and when, can make a viable strategy for retail investors.
Bearing this in mind, we’ve used data from the TipRanks Insiders’ Hot Stocks tool to find three stocks that are showing recent – and informative – insider buys. A dive into the stock data and the analyst commentary may provide some additional insight.
Dominion Energy, Inc. (D)
We’re starting in the energy industry, with a power utility company. Richmond, Virginia-based Dominion has its hands in the electricity and natural gas sectors, with electric utility customers in Virginia and both Carolinas, and natural gas customers in West Virginia, Ohio, Pennsylvania, the Carolinas, and Georgia, along with parts of Utah out west.
The past year has not been kind to Dominion, and EPS is down from 2019. In the recently reported Q4, the company reported GAAP earnings of 82 cents per share, down a significant 32% from the $1.21 reported in 4Q19. Full year earnings showed a worse picture, with a 57-cent net loss per share compared the $1.62 EPS profit in 2019.
While 2020 showed losses for Dominion, the company did not attribute those losses to the corona crisis. Rather, the company noted several business factors that depressed earnings: charges due to planned retirement of electricity generation plants in Virginia; cancellation of the Atlantic Coast Pipeline project; and lost operations due to the sale of the company’s Gas Transmission and Storage segment. These are all one-time charges, and in some respects offer the long-term benefit of streamlining business. Dominion guided 2021 full-year earnings to the range of $3.70 to $4.00 per share.
Despite the mixed results of 2020, Dominion has seen some recent insider purchases that are pushing the insider sentiment needle into positive territory. President and CEO Robert Blue spent nearly $1 million on 14,442 shares of Dominion, while Board of Directors member Mark Kington made a smaller purchase of 2,000 shares, paying $138,578.
Dominion has scored fans within the analyst community as well. Analyst Jeremy Tonet, from JPMorgan, covers Dominion Energy, and sees strength ahead for the company, in light of its ability to tack the political winds and shift to non-fossil fuel operations.
“With 52% of Dominion growth allocated to zero-carbon investments, D’s leverage to ‘green rate of change’ leads most peer utilities and should drive a multiple re-rating over time. Importantly, the VA regulatory construct limits D’s offshore wind project risk relative to other industry participants given cost prudency presumption,” Tonet wrote.
To this end, Tonet rates D an Overweight (i.e. Buy) and puts an $87 price target on the stock, implying an upside of 15% for the coming year. (To watch Tonet’s track record, click here)
The 6 to 2 breakdown on recent stock reviews, in favor of Buy versus Hold, shows that Wall Street generally agrees with Tonet here, and makes the analyst consensus rating a Strong Buy. Shares in D are priced at $73.21, and their $81.50 average price target suggests an 11% upside from that level. (See Dominion stock analysis on TipRanks)
Keurig Dr. Pepper (KDP)
In these corona days, we should check in with a Doctor. Dr. Pepper, actually – a long-known brand in the food and beverage industry. The company owns over 55 brands of coffee, along with 20 flavored soda brands – including Dr. Pepper, 7Up, and A&W Root Beer – as well as an array of bottled waters, teas, juices, and mixers. Keurig Dr. Pepper is the 8th largest food and beverage company in the US, and saw more than $11 billion in total sales in 2020.
While the company’s top-line revenues grew year-over-year in every quarter of 2020, earnings missed expectations in 4Q20 (EPS came in at 30 cents, against a 39-cent forecast). Yet, the company showed its confidence by increasing the regularly quarterly dividend by 25%, to 75 cents per share. At $3 per share annualized, this gives a yield of 2.27%.
In early March, Board member – and corporate insider – Robert Singer made 4 informative purchases of KDP shares. Singer paid nearly $500,000 for a total of 9,500 shares.
5-star analyst Nik Modi appears to echo the Director’s sentiment. Providing key takeaways from the fourth-quarter, Modi noted: “Strong quarter for KDP with continued momentum in coffee and gains in packaged beverages. This quarter is another data point suggesting KDP is well positioned for 2021 and beyond. The dividend was also very positive news. We believe KDP has a very unique combination of strong underlying growth and significant balance sheet optionality."
Based on the above, Modi rates KDP an Outperform (i.e. Buy) along with a $37 price target. This figure indicates a 10% upside potential from current levels. (To watch Modi’s track record, click here)
Wall Street’s analyst corps are somewhat divided here, as shown by the Moderate Buy consensus rating based on 3 Buys and 2 Holds. KDP shares are priced at $33.56, and the $36.75 average price target implies a 9.5% upside for the year ahead. (See KDP stock analysis on TipRanks)
Dentsply Sirona, Inc. (XRAY)
We’ll conclude in the medical supply sector, where Dentsply is a major maker of dental equipment and dental health consumable. The company boasts annual revenues near $4 billion, based on equipment sales and educational services, and also has an active research program in the dental health field. Dentsply Sirona has global reach, with manufacturing facilities in 21 countries and marketing reach more than 120.
The Q4 results showed $1.08 billion at the top line, compared to $1.11 billion in the prior year quarter, with EPS of 45 cents just 1-cent down from the year-ago quarter.
Turning to the inside trades, Board member Gregory Lucier bought 5,000 shares of the stock on Mach 4, paying $294,750. Following the purchase, the Director now holds 23,142 shares, which are valued at $1.43 million.
On the analyst front, Piper Sandler analyst Jason Bednar sums up the bull case for XRAY in his recent note on the stock: “[The] stock isn't getting enough credit for the visibility that management is providing... With a solid financial path to now follow and with management continuing to execute methodically towards its intermediate- to long-term financial targets, the ownership case for shares of XRAY remains attractive, in our opinion..."
Taking all of this into consideration, Bednar stays with the bulls. The analyst rates XRAY an Overweight (i.e. Buy) along with a $70 price target, which implies ~12% upside from current levels. (To watch Bednar’s track record, click here)
As for the rest of the Street, the bulls have it. XRAY's Moderate Buy consensus rating breaks down into 8 Buys, 4 Holds and 1 Sell received in the last three months. However, shares are selling for $62.06 and their recent appreciation has pushed them almost to the $63.67 average price target. (See XRAY 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 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Analyst Jeremy Tonet, from JPMorgan, covers Dominion Energy, and sees strength ahead for the company, in light of its ability to tack the political winds and shift to non-fossil fuel operations. Importantly, the VA regulatory construct limits D’s offshore wind project risk relative to other industry participants given cost prudency presumption,” Tonet wrote. On the analyst front, Piper Sandler analyst Jason Bednar sums up the bull case for XRAY in his recent note on the stock: “[The] stock isn't getting enough credit for the visibility that management is providing... With a solid financial path to now follow and with management continuing to execute methodically towards its intermediate- to long-term financial targets, the ownership case for shares of XRAY remains attractive, in our opinion..." Taking all of this into consideration, Bednar stays with the bulls.
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Richmond, Virginia-based Dominion has its hands in the electricity and natural gas sectors, with electric utility customers in Virginia and both Carolinas, and natural gas customers in West Virginia, Ohio, Pennsylvania, the Carolinas, and Georgia, along with parts of Utah out west. (To watch Tonet’s track record, click here) The 6 to 2 breakdown on recent stock reviews, in favor of Buy versus Hold, shows that Wall Street generally agrees with Tonet here, and makes the analyst consensus rating a Strong Buy. In early March, Board member – and corporate insider – Robert Singer made 4 informative purchases of KDP shares.
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Bearing this in mind, we’ve used data from the TipRanks Insiders’ Hot Stocks tool to find three stocks that are showing recent – and informative – insider buys. (To watch Tonet’s track record, click here) The 6 to 2 breakdown on recent stock reviews, in favor of Buy versus Hold, shows that Wall Street generally agrees with Tonet here, and makes the analyst consensus rating a Strong Buy. On the analyst front, Piper Sandler analyst Jason Bednar sums up the bull case for XRAY in his recent note on the stock: “[The] stock isn't getting enough credit for the visibility that management is providing... With a solid financial path to now follow and with management continuing to execute methodically towards its intermediate- to long-term financial targets, the ownership case for shares of XRAY remains attractive, in our opinion..." Taking all of this into consideration, Bednar stays with the bulls.
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Bearing this in mind, we’ve used data from the TipRanks Insiders’ Hot Stocks tool to find three stocks that are showing recent – and informative – insider buys. Based on the above, Modi rates KDP an Outperform (i.e. Buy) along with a $37 price target. It is very important to do your own analysis before making any investment.
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698951.0
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2021-03-09 00:00:00 UTC
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10.3% of DVY Holdings Seeing Recent Insider Buys
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https://www.nasdaq.com/articles/10.3-of-dvy-holdings-seeing-recent-insider-buys-2021-03-09
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A look at the weighted underlying holdings of the iShares Select Dividend ETF (Symbol: DVY) shows an impressive 10.3% of holdings on a weighted basis have experienced insider buying within the past six months.
Exxon Mobil Corp (Symbol: XOM), which makes up 2.14% of the iShares Select Dividend ETF (Symbol: DVY), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $355,974,852 worth of XOM, making it the #8 largest holding. The table below details the recent insider buying activity observed at XOM:
XOM — last trade: $60.87 — Recent Insider Buys:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
03/01/2021 Michael J. Angelakis Director 25,000 $57.16 $1,429,120
03/02/2021 Jeffrey W. Ubben Director 177,000 $56.26 $9,958,020
And Dominion Energy Inc (Symbol: D), the #50 largest holding among components of the iShares Select Dividend ETF (Symbol: DVY), shows 2 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $136,729,356 worth of D, which represents approximately 0.82% of the ETF's total assets at last check. The recent insider buying activity observed at D is detailed in the table below:
D — last trade: $72 — Recent Insider Buys:
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
03/03/2021 Robert M. Blue President and CEO 14,402 $69.44 $999,998
03/04/2021 Mark J. Kington Director 2,000 $69.29 $138,578
10 ETFs With Stocks That Insiders Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A look at the weighted underlying holdings of the iShares Select Dividend ETF (Symbol: DVY) shows an impressive 10.3% of holdings on a weighted basis have experienced insider buying within the past six months. Exxon Mobil Corp (Symbol: XOM), which makes up 2.14% of the iShares Select Dividend ETF (Symbol: DVY), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. 03/03/2021 Robert M. Blue President and CEO 14,402 $69.44 $999,998 03/04/2021 Mark J. Kington Director 2,000 $69.29 $138,578 10 ETFs With Stocks That Insiders Are Buying » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Exxon Mobil Corp (Symbol: XOM), which makes up 2.14% of the iShares Select Dividend ETF (Symbol: DVY), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at XOM: XOM — last trade: $60.87 — Recent Insider Buys: 03/01/2021 Michael J. Angelakis Director 25,000 $57.16 $1,429,120 03/02/2021 Jeffrey W. Ubben Director 177,000 $56.26 $9,958,020 And Dominion Energy Inc (Symbol: D), the #50 largest holding among components of the iShares Select Dividend ETF (Symbol: DVY), shows 2 directors and officers as recently filing Form 4's indicating purchases.
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A look at the weighted underlying holdings of the iShares Select Dividend ETF (Symbol: DVY) shows an impressive 10.3% of holdings on a weighted basis have experienced insider buying within the past six months. The table below details the recent insider buying activity observed at XOM: XOM — last trade: $60.87 — Recent Insider Buys: 03/01/2021 Michael J. Angelakis Director 25,000 $57.16 $1,429,120 03/02/2021 Jeffrey W. Ubben Director 177,000 $56.26 $9,958,020 And Dominion Energy Inc (Symbol: D), the #50 largest holding among components of the iShares Select Dividend ETF (Symbol: DVY), shows 2 directors and officers as recently filing Form 4's indicating purchases.
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Exxon Mobil Corp (Symbol: XOM), which makes up 2.14% of the iShares Select Dividend ETF (Symbol: DVY), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $355,974,852 worth of XOM, making it the #8 largest holding. The table below details the recent insider buying activity observed at XOM: XOM — last trade: $60.87 — Recent Insider Buys:
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698952.0
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2021-03-05 00:00:00 UTC
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Top Buys by Directors: Blue's $1000K Bet on D
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https://www.nasdaq.com/articles/top-buys-by-directors%3A-blues-%241000k-bet-on-d-2021-03-05
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The directors of a company tend to have a unique inside view into the business, so when directors make major buys, investors are wise to take notice. Presumably the only reason a director of a company would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by company directors over the trailing six month period, one of which was a total of $1000K by Robert M. Blue, CEO at Dominion Energy Inc (Symbol: D).
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
03/03/2021 Robert M. Blue President and CEO 14,402 $69.44 $999,998.00
Blue's average cost works out to $69.44/share. In trading on Friday, bargain hunters could buy shares of Dominion Energy Inc (Symbol: D) and achieve a cost basis lower than Blue, with shares changing hands as low as $67.89 per share. It should be noted that Blue has collected $0.63/share in dividends since the time of their purchase, so they are currently down 1.3% on their purchase from a total return basis. Shares of Dominion Energy Inc were changing hands at $68.36 at last check, trading up about 0.5% on Friday. The chart below shows the one year performance of D shares, versus its 200 day moving average:
Looking at the chart above, D's low point in its 52 week range is $57.79 per share, with $87.34 as the 52 week high point — that compares with a last trade of $68.36.
Free Report: Top 7%+ Dividends (paid monthly)
Click here to find out which other top insider buys by company directors you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So in this series we look at the largest insider buys by company directors over the trailing six month period, one of which was a total of $1000K by Robert M. Blue, CEO at Dominion Energy Inc (Symbol: D). The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $57.79 per share, with $87.34 as the 52 week high point — that compares with a last trade of $68.36. Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which other top insider buys by company directors you need to know about » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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03/03/2021 Robert M. Blue President and CEO 14,402 $69.44 $999,998.00 Blue's average cost works out to $69.44/share. In trading on Friday, bargain hunters could buy shares of Dominion Energy Inc (Symbol: D) and achieve a cost basis lower than Blue, with shares changing hands as low as $67.89 per share. Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which other top insider buys by company directors you need to know about » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So in this series we look at the largest insider buys by company directors over the trailing six month period, one of which was a total of $1000K by Robert M. Blue, CEO at Dominion Energy Inc (Symbol: D). In trading on Friday, bargain hunters could buy shares of Dominion Energy Inc (Symbol: D) and achieve a cost basis lower than Blue, with shares changing hands as low as $67.89 per share. Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which other top insider buys by company directors you need to know about » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The directors of a company tend to have a unique inside view into the business, so when directors make major buys, investors are wise to take notice. So in this series we look at the largest insider buys by company directors over the trailing six month period, one of which was a total of $1000K by Robert M. Blue, CEO at Dominion Energy Inc (Symbol: D). In trading on Friday, bargain hunters could buy shares of Dominion Energy Inc (Symbol: D) and achieve a cost basis lower than Blue, with shares changing hands as low as $67.89 per share.
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698953.0
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2021-03-05 00:00:00 UTC
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Friday 3/5 Insider Buying Report: TDY, D
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https://www.nasdaq.com/articles/friday-3-5-insider-buying-report%3A-tdy-d-2021-03-05
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Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
At Teledyne Technologies, a filing with the SEC revealed that on Thursday, Executive Chairman Robert Mehrabian bought 10,000 shares of TDY, for a cost of $361.54 each, for a total investment of $3.62M. So far Mehrabian is in the green, up about 3.9% on their purchase based on today's trading high of $375.70. Teledyne Technologies Inc is trading up about 0.7% on the day Friday. Before this latest buy, Mehrabian made one other purchase in the past year, buying $3.66M shares for a cost of $366.05 each.
And on Wednesday, CEO Robert M. Blue purchased $999,998 worth of Dominion Energy, purchasing 14,402 shares at a cost of $69.44 each. Dominion Energy is trading up about 0.1% on the day Friday. Investors can buy D even cheaper than Blue did, with shares changing hands as low as $67.89 in trading on Friday -- that's 2.2% under Blue's purchase price.
VIDEO: Friday 3/5 Insider Buying Report: TDY, D
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. At Teledyne Technologies, a filing with the SEC revealed that on Thursday, Executive Chairman Robert Mehrabian bought 10,000 shares of TDY, for a cost of $361.54 each, for a total investment of $3.62M. So far Mehrabian is in the green, up about 3.9% on their purchase based on today's trading high of $375.70.
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At Teledyne Technologies, a filing with the SEC revealed that on Thursday, Executive Chairman Robert Mehrabian bought 10,000 shares of TDY, for a cost of $361.54 each, for a total investment of $3.62M. And on Wednesday, CEO Robert M. Blue purchased $999,998 worth of Dominion Energy, purchasing 14,402 shares at a cost of $69.44 each. VIDEO: Friday 3/5 Insider Buying Report: TDY, D The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. Before this latest buy, Mehrabian made one other purchase in the past year, buying $3.66M shares for a cost of $366.05 each. Investors can buy D even cheaper than Blue did, with shares changing hands as low as $67.89 in trading on Friday -- that's 2.2% under Blue's purchase price.
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Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that they expect to make money. At Teledyne Technologies, a filing with the SEC revealed that on Thursday, Executive Chairman Robert Mehrabian bought 10,000 shares of TDY, for a cost of $361.54 each, for a total investment of $3.62M. And on Wednesday, CEO Robert M. Blue purchased $999,998 worth of Dominion Energy, purchasing 14,402 shares at a cost of $69.44 each.
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698954.0
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2021-03-05 00:00:00 UTC
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Top Buys by Top Brass: CEO Blue's $1000K Bet on D
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https://www.nasdaq.com/articles/top-buys-by-top-brass%3A-ceo-blues-%241000k-bet-on-d-2021-03-05
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A company's own top management tend to have the best inside view into the business, so when company officers make major buys, investors are wise to take notice. Presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by the ''top brass'' over the trailing six month period, one of which was a total of $1000K by Robert M. Blue, CEO at Dominion Energy Inc (Symbol: D).
PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE
03/03/2021 Robert M. Blue President and CEO 14,402 $69.44 $999,998.00
Blue's average cost works out to $69.44/share. In trading on Friday, bargain hunters could buy shares of Dominion Energy Inc (Symbol: D) and achieve a cost basis lower than Blue, with shares changing hands as low as $67.85 per share. It should be noted that Blue has collected $0.63/share in dividends since the time of their purchase, so they are currently down 1.4% on their purchase from a total return basis. Shares of Dominion Energy Inc were changing hands at $68.08 at last check, trading down about 1.4% on Friday. The chart below shows the one year performance of D shares, versus its 200 day moving average:
Looking at the chart above, D's low point in its 52 week range is $57.79 per share, with $87.34 as the 52 week high point — that compares with a last trade of $68.08.
Click here to find out which other top insider buys by the ''top brass'' you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So in this series we look at the largest insider buys by the ''top brass'' over the trailing six month period, one of which was a total of $1000K by Robert M. Blue, CEO at Dominion Energy Inc (Symbol: D). Shares of Dominion Energy Inc were changing hands at $68.08 at last check, trading down about 1.4% on Friday. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $57.79 per share, with $87.34 as the 52 week high point — that compares with a last trade of $68.08.
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So in this series we look at the largest insider buys by the ''top brass'' over the trailing six month period, one of which was a total of $1000K by Robert M. Blue, CEO at Dominion Energy Inc (Symbol: D). 03/03/2021 Robert M. Blue President and CEO 14,402 $69.44 $999,998.00 Blue's average cost works out to $69.44/share. In trading on Friday, bargain hunters could buy shares of Dominion Energy Inc (Symbol: D) and achieve a cost basis lower than Blue, with shares changing hands as low as $67.85 per share.
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So in this series we look at the largest insider buys by the ''top brass'' over the trailing six month period, one of which was a total of $1000K by Robert M. Blue, CEO at Dominion Energy Inc (Symbol: D). In trading on Friday, bargain hunters could buy shares of Dominion Energy Inc (Symbol: D) and achieve a cost basis lower than Blue, with shares changing hands as low as $67.85 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $57.79 per share, with $87.34 as the 52 week high point — that compares with a last trade of $68.08.
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A company's own top management tend to have the best inside view into the business, so when company officers make major buys, investors are wise to take notice. So in this series we look at the largest insider buys by the ''top brass'' over the trailing six month period, one of which was a total of $1000K by Robert M. Blue, CEO at Dominion Energy Inc (Symbol: D). In trading on Friday, bargain hunters could buy shares of Dominion Energy Inc (Symbol: D) and achieve a cost basis lower than Blue, with shares changing hands as low as $67.85 per share.
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698955.0
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2021-03-04 00:00:00 UTC
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The President of Dominion Energy, Inc. (NYSE:D), Robert Blue, Just Bought 11% More Shares
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https://www.nasdaq.com/articles/the-president-of-dominion-energy-inc.-nyse%3Ad-robert-blue-just-bought-11-more-shares-2021
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Those following along with Dominion Energy, Inc. (NYSE:D) will no doubt be intrigued by the recent purchase of shares by Robert Blue, President of the company, who spent a stonking US$1m on stock at an average price of US$69.43. Not only is that a big swing, but it increased their holding size by 11%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At Dominion Energy
In fact, the recent purchase by Robert Blue was the biggest purchase of Dominion Energy shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$68.00. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Robert Blue.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
NYSE:D Insider Trading Volume March 5th 2021
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Dominion Energy insiders own about US$139m worth of shares (which is 0.3% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Dominion Energy Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Dominion Energy. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 3 warning signs for Dominion Energy (1 can't be ignored) you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Those following along with Dominion Energy, Inc. (NYSE:D) will no doubt be intrigued by the recent purchase of shares by Robert Blue, President of the company, who spent a stonking US$1m on stock at an average price of US$69.43. The Last 12 Months Of Insider Transactions At Dominion Energy In fact, the recent purchase by Robert Blue was the biggest purchase of Dominion Energy shares made by an insider individual in the last twelve months, according to our records. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels.
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The Last 12 Months Of Insider Transactions At Dominion Energy In fact, the recent purchase by Robert Blue was the biggest purchase of Dominion Energy shares made by an insider individual in the last twelve months, according to our records. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! A high insider ownership often makes company leadership more mindful of shareholder interests.
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The Last 12 Months Of Insider Transactions At Dominion Energy In fact, the recent purchase by Robert Blue was the biggest purchase of Dominion Energy shares made by an insider individual in the last twelve months, according to our records. NYSE:D Insider Trading Volume March 5th 2021 There are always plenty of stocks that insiders are buying. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Dominion Energy.
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That means that an insider was happy to buy shares at above the current price of US$68.00. What Might The Insider Transactions At Dominion Energy Tell Us? Once you factor in the high insider ownership, it certainly seems like insiders are positive about Dominion Energy.
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2021-03-02 00:00:00 UTC
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8 Reliable Energy Stocks Even in the Worst Weather
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https://www.nasdaq.com/articles/8-reliable-energy-stocks-even-in-the-worst-weather-2021-03-02
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
You can’t help but wonder if there’s a higher power trying to tell us Americans something. From the novel coronavirus to the social and political unrest to now the raging disaster that was (and still is) the Texas winter storm, the series of terrible events doesn’t seem like a coincidence. But whatever the case, there’s now growing scrutiny and attention toward energy stocks.
First and foremost, no discussion about the Texas cold snap is complete without discussing its terrible human cost. From the most recent available information, nearly 80 people have succumbed to incidents associated with the storm, either directly from the freezing temperatures or from mitigation efforts gone awry, such as carbon monoxide poisoning.
To be clear, the Wall Street Journal warns that the total death count could take months to determine. And during that course of time, we’ll find out the extent of the economic damage that the storm caused. According to the Texas Tribune, this could be the costliest disaster in state history. Therefore, energy stocks that are tied to the Texas market are not necessarily in a good place right now.
Of course, this being the U.S., the focus has shifted toward who to blame. Predictably, some conservative pundits have blasted renewable energy and the thesis of climate change as contributors to the disaster. While it’s true that renewable power is intermittent, I think this is a bad take because multiple negative catalysts converged to set the fire. Still, clean energy stocks did take a hit from the optics.
7 Penny Stocks Close to Busting Through the $5 Mark
In reality, I don’t think any political party looks good here. Consider that America’s infrastructure was crumbling before this crisis and the pandemic. Moreover, a 2016 npr.org report revealed that this nation’s power grid was aging and unstable. Nevertheless, there may be some opportunities with these energy stocks:
Duke Energy (NYSE:DUK)
Dominion Energy (NYSE:D)
Sempra Energy (NYSE:SRE)
Chevron (NYSE:CVX)
Total (NYSE:TOT)
Bloom Energy (NYSE:BE)
NextEra Energy (NYSE:NEE)
Ocean Power Technologies (NASDAQ:OPTT)
Despite the contrarian appeal of the energy sector right now, do take note that the broader market has flashed significantly red. Therefore, you may want to gradually build into your position with these energy stocks rather than going all-in at one price.
Duke Energy (DUK)
Source: Shutterstock
Over the years, I’ve consistently cited Duke Energy as one of the safer energy stocks to buy. For one thing, the company consistently pays a dividend, which is not something to ignore in this environment. Yes, the cheap money ecosystem has artificially spiked up many growth firms but slow and steady often wins the race.
Fundamentally, of course, the narrative for DUK stock is simple – when people flip the switch, they expect the lights to turn on. When it doesn’t, bad things happen. Typically, I’m thinking about crime and unrest. However, as we’ve seen with the tragedy in Texas, not having access to power can be fatal.
Fortunately, Duke Energy gets it. In early February, management stated that it has a “detailed plan to manage the power grid in extreme conditions.” Further, Duke Energy’s coverage map includes states with variable weather conditions so it’s less likely that the company will be caught off guard. Therefore, you can reasonably sleep well with DUK stock.
Dominion Energy (D)
Source: Shutterstock
Before we talk about the next company on this list of energy stocks, I want to make a 100% clear that I’m referring to Dominion Energy, not Dominion Voting Systems. And no, the two have nothing to do with each other, as far as I’m aware. Any suggestions to the contrary could lead you to big trouble, so don’t do it!
Now that I’ve got that caveat out of the way, DOM stock is another energy investment you’ll want to take a close look at. Aside from the core importance of power in our digitalized economy, Dominion has optics on its side. Its coverage area is predominantly located in the East Coast so the company has a long history of serving through cold weather events.
7 Penny Stocks Close to Busting Through the $5 Mark
And like Duke, DOM stock pays a nice dividend yield, which you don’t want to dismiss. No, Dominion shares probably aren’t going to make you rich. But it’s a name you can rely on and that has its own fundamental premium.
Sempra Energy (SRE)
Source: zhao jiankang / Shutterstock.com
One of the main reasons why energy stocks levered to the Texas market have been hit hard was because the meltdown there apparently wasn’t necessary. Sure, right-leaning politicians blamed frozen windmills, which optically makes some sense. Frankly, if you’re dependent entirely on an intermittent energy source, bad things can happen.
However, as the Washington Post detailed, it’s not impossible to produce energy during extremely cold weather. The Post’s Will Englund bluntly stated that “Operators in Alaska, Canada, Maine, Norway and Siberia do it all the time.” Well, that’s why I bring up Sempra Energy and SRE stock.
Headquartered in San Diego and with most of its coverage map in the Southwest, it’s unlikely – though not impossible – that this area will suffer the kind of extreme weather that Texas did.
That said, SRE stock has some exposure to the Texas energy market. However, with most of the underlying company’s coverage levered to one of the most temperate places in the world, you can probably rest easy with Sempra.
Chevron (CVX)
CVX) logo on blue sign in front of skyscraper building" width="300" height="169">
Source: Jeff Whyte / Shutterstock.com
With the administration of President Joe Biden, it seems almost anachronistic to mention Chevron. However, it’s important to realize that while Biden and the Democrats are planning for a clean energy future, when that future is remains a big mystery. Shifting from fossil fuels to renewables will require extensive infrastructural investments and cash outlays – money that we don’t necessarily have.
That’s why I think investors should consider Chevron. Yes, it’s one of the dirty energy stocks, if you will. But until electric vehicles represent more than a fraction of total vehicle sales, CVX stock will be relevant. Indeed, it could be relevant for a much longer time than you might anticipate.
In large part, the Texas winter storm demonstrated the case that fossil fuels may be with us for the remainder of our lifetimes. When the grid goes down for several days like it did in the Lone Star State, that dampens the economic viability of EVs, whether you charge at home or at a charging station.
7 Penny Stocks Close to Busting Through the $5 Mark
If anything, fossil fuels provide backup energy source. That’s reason enough to consider CVX stock.
Total (TOT)
Source: Shutterstock
To widen your scope of energy stocks, you may want to go international with Total. Headquartered in Paris, France, TOT stock may not initially make sense. After all, the European Union really takes its climate change agenda very seriously.
Additionally, some European countries have embraced EVs like no other. In particular, Norway has become EV heaven – and I would argue that this is mostly because the Norwegian government provides very generous incentivizes for EV owners. Basically, it doesn’t make economic sense to drive a petrol care in that country.
Whatever. The point is that for the rest of us who may not live in jurisdictions where a government body writes checks for us to overtly influence our purchasing behaviors, EVs represent an expensive proposition for households with average means.
That’s just not going to cut it during a difficult economic recovery process. Therefore, I anticipate that TOT stock will move higher as the world recovers from the pandemic.
Bloom Energy (BE)
Source: Shutterstock
Since Feb. 8, Bloom Energy has really taken it on the chin, with BE stock dropping about 36%. Thus, on paper, Bloom doesn’t immediately attract as one of the energy stocks to wager on. Likely, a major contributor to the red ink is the company’s ties to clean energy solutions.
Presently, few people want to discuss renewable power as it’s the convenient scapegoat. As evidence, we saw the same accusations flying during the California rolling blackouts of last year.
Why this narrative impacts BE stock heavily, though, is that it makes sense at a superficial level. When the sun goes down and the wind stops blowing, solar and wind energy infrastructures are basically useless. But if we can harvest the energy from renewable sources for peak-demand usage, that changes the discussion dramatically.
7 Penny Stocks Close to Busting Through the $5 Mark
And that’s exactly what Bloom Energy offers with its microgrid system to protect its clients from traditional grid disruptions. From a longer-term perspective, BE is the solution that we need – it’s just that the market isn’t recognizing it at the moment.
NextEra Energy (NEE)
Source: madamF / Shutterstock.com
When you go to NextEra Energy’s website, you’re greeted with the message that the company is the world’s largest producer of wind and solar energy. Additionally, you see a giant photograph of a windmill, with a worker who looks miniscule in comparison standing on top of it.
In other words, optically, NEE stock doesn’t strike you with confidence given the persecution of clean energy infrastructure among some political circles. Like other renewable energy stocks, NextEra has taken a hit, down double-digit percentage points over the trailing month.
However, this might be an opportunity, especially for those with a patient outlook. Although fossil fuels will be viable for many decades in my opinion, you can’t ignore that renewable power certainly has its place in a diversified energy portfolio.
Moreover, the Texas winter storm is a one-off event in all likelihood. But as policymakers know, going green will be a multigenerational undertaking. Therefore, it may be wise to advantage the red ink in NEE stock.
Ocean Power Technologies (OPTT)
Source: Shutterstock
Out of the energy stocks on this list, Ocean Power Technologies is easily the riskiest; hence, I saved it for last. But it may be a happy middle ground in the heated political debate about renewable energy.
Even before the Texas cold snap, many politicians criticized renewable energy sources, in particular wind. Let’s face it, whether you agree with former President Donald Trump’s attacks on wind turbines – “monsters” that “kill many bald eagles” and which “look like hell” after a decade, to name but a few – there are nuggets of truths in his criticisms.
Fortunately, Ocean Power Technologies may offer a solution. Specializing in wave energy, Ocean Power’s energy system has the advantage of being tucked away in bodies of water. Arguably, such solutions are better for the environment because they don’t seriously impact the surrounding marine environment. It’s no surprise, then, that OPTT stock has been a big winner over the trailing year.
7 Penny Stocks Close to Busting Through the $5 Mark
Still, you want to be careful. Many components of the wave energy industry are aspirational. We’ve still got to figure out how to make this platform economically practical. Still, if you want to advantage a possibly massive gamechanger on discount, you should consider OPTT stock.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The post 8 Reliable Energy Stocks Even in the Worst Weather appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The point is that for the rest of us who may not live in jurisdictions where a government body writes checks for us to overtly influence our purchasing behaviors, EVs represent an expensive proposition for households with average means. 7 Penny Stocks Close to Busting Through the $5 Mark And that’s exactly what Bloom Energy offers with its microgrid system to protect its clients from traditional grid disruptions. Let’s face it, whether you agree with former President Donald Trump’s attacks on wind turbines – “monsters” that “kill many bald eagles” and which “look like hell” after a decade, to name but a few – there are nuggets of truths in his criticisms.
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Nevertheless, there may be some opportunities with these energy stocks: Duke Energy (NYSE:DUK) Dominion Energy (NYSE:D) Sempra Energy (NYSE:SRE) Chevron (NYSE:CVX) Total (NYSE:TOT) Bloom Energy (NYSE:BE) NextEra Energy (NYSE:NEE) Ocean Power Technologies (NASDAQ:OPTT) Despite the contrarian appeal of the energy sector right now, do take note that the broader market has flashed significantly red. In early February, management stated that it has a “detailed plan to manage the power grid in extreme conditions.” Further, Duke Energy’s coverage map includes states with variable weather conditions so it’s less likely that the company will be caught off guard. Ocean Power Technologies (OPTT) Source: Shutterstock Out of the energy stocks on this list, Ocean Power Technologies is easily the riskiest; hence, I saved it for last.
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Nevertheless, there may be some opportunities with these energy stocks: Duke Energy (NYSE:DUK) Dominion Energy (NYSE:D) Sempra Energy (NYSE:SRE) Chevron (NYSE:CVX) Total (NYSE:TOT) Bloom Energy (NYSE:BE) NextEra Energy (NYSE:NEE) Ocean Power Technologies (NASDAQ:OPTT) Despite the contrarian appeal of the energy sector right now, do take note that the broader market has flashed significantly red. Duke Energy (DUK) Source: Shutterstock Over the years, I’ve consistently cited Duke Energy as one of the safer energy stocks to buy. Dominion Energy (D) Source: Shutterstock Before we talk about the next company on this list of energy stocks, I want to make a 100% clear that I’m referring to Dominion Energy, not Dominion Voting Systems.
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Duke Energy (DUK) Source: Shutterstock Over the years, I’ve consistently cited Duke Energy as one of the safer energy stocks to buy. Now that I’ve got that caveat out of the way, DOM stock is another energy investment you’ll want to take a close look at. InvestorPlace - Stock Market News, Stock Advice & Trading Tips You can’t help but wonder if there’s a higher power trying to tell us Americans something.
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698957.0
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2021-03-01 00:00:00 UTC
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Warren Buffett Annual Letter Takeaway: Berkshire Is Cheap, Underappreciated
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https://www.nasdaq.com/articles/warren-buffett-annual-letter-takeaway%3A-berkshire-is-cheap-underappreciated-2021-03-01
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Saturday, Feb. 27, brought with it the latest annual letter from Warren Buffett, whose wisdom investors have been following for the past 56 years. Over that time, his conglomerate Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), has compounded wealth at a stunning 20% rate, versus a 10.2% rate for the S&P 500.
That track record is perhaps even more incredible than you might suspect. By compounding at nearly double the rate of the market every year for over a half-century, $1 invested in Berkshire in 1965 would be worth $27,173 by year-end 2020, versus just $230 if invested in the S&P 500.
Still, Berkshire's relative record used to be even better. In fact, Berkshire has lagged the market over the past one-, three-, five-, and 10-year periods:
BRK.A 1 Year Total Returns (Daily) data by YCharts
While Buffett didn't directly address Berkshire's relative underperformance over the past decade, he did acknowledge that Berkshire may not be appropriate for every type of investor. At the same time, Buffett seemed to hint that the market may be vastly underrating Berkshire's prospects, and that the stock is quite cheap at the moment, at a time when most stocks seem pretty expensive.
Buffett likened Berkshire to a hamburger and soda stand that investors are shunning for exotic French fare. Image source: Getty Images.
Hamburgers and Coke vs. French cuisine and exotic wines
In the letter, Buffett paraphrased Phil Fisher, one of his biggest investing influences:
In 1958, Phil Fisher wrote a superb book on investing. In it, he analogized running a public company to managing a restaurant. If you are seeking diners, he said, you can attract a clientele and prosper featuring either hamburgers served with a Coke or a French cuisine accompanied by exotic wines. But you must not, Fisher warned, capriciously switch from one to the other: Your message to potential customers must be consistent with what they will find upon entering your premises. ... At Berkshire, we have been serving hamburgers and Coke for 56 years. We cherish the clientele this fare has attracted.
Here, Buffett seems to be hinting that Berkshire's process, the types of investments it makes, and its extreme risk aversion will not change with the times, whatever the market is doing. Certainly, the market has gravitated toward "French cuisine and exotic wine" fare over the past decade. High-growth, emerging-technology stocks have dominated, and the risk-off, non-tech-oriented, and value-based Berkshire has largely steered clear of those types of investments.
Yet Buffett appears to think the market's tastes for hamburgers and Cokes may come back in fashion eventually, judging by the actions he took in 2020.
An all-time record for repurchases
Berkshire's largest acquisition in 2020 was... itself. In 2020, it spent $24.7 billion on share repurchases -- by far the most in Berkshire's history, and good enough for retiring 5.2% of the company's shares. Buffett also said Berkshire has continued to repurchase shares at a strong pace since year-end. While he didn't say it directly, it appears Buffett believes Berkshire repurchased its shares at a very cheap price and a good discount to intrinsic value:
Following criteria Charlie [Munger] and I have long recommended, we made those purchases because we believed they would both enhance the intrinsic value per share for continuing shareholders and would leave Berkshire with more than ample funds for any opportunities or problems it might encounter. In no way do we think that Berkshire shares should be repurchased at simply any price. I emphasize that point because American CEOs have an embarrassing record of devoting more company funds to repurchases when prices have risen than when they have tanked. Our approach is exactly the reverse.
That Buffett, a famous value investor, spent $24.7 billion on Berkshire is telling. The next largest 2020 Berkshire investment was the $8.6 billion Verizon (NYSE: VZ) purchase in the fourth quarter, or, if you include debt, the $10 billion acquisition of natural gas assets from Dominion Energy (NYSE: D).
Berkshire's largest investment in 2020 was in itself. Image source: The Motley Fool.
Berkshire doesn't get any respect
Buffett then elaborated why Berkshire is a terrific business that investors may be underappreciating.
First, Berkshire is a conglomerate, and Buffett acknowledges that conglomerates have a bad reputation, often for good reason. Buffett cites two ways Berkshire is better than a typical conglomerate. First, a typical conglomerate often seeks to own and, importantly, control, a collection of hodgepodge businesses.
While Berkshire also seeks to own great businesses, it doesn't particularly feel the need to control entire businesses, though Berkshire is perfectly fine owning non-controlling stakes of public companies just as much as owning an entire business itself. That greatly increases the pool of potential acquisitions, which means Berkshire can be more discerning.
Buffett also accuses other conglomerates of promoting their stock and using "imaginative" accounting maneuvers to make their results look better than they actually are. After pumping their stock up, these CEOs then use stock as currency to make acquisitions that are also wildly overvalued.
Basically, Buffett understands why others dislike conglomerates, but he also explains why Berkshire is vastly different and doesn't deserve a "conglomerate discount" applied to other similar enterprises.
The big four
Buffett then goes through great lengths in the letter to explain why Berkshire's "big four" businesses are each wonderful, competitively advantaged, durable assets. The four are Berkshire's insurance operations, Burlington Northern Santa Fe railroad, Berkshire Hathaway Energy, and Apple (NASDAQ: AAPL).
First up, Berkshire's insurance operations are far more well capitalized than those of their competitors, and they afford Berkshire the ability to buy higher-return equities, rather than bonds, which yield very little these days. Berkshire's insurance underwriting has been remarkably profitable most years, a rare feat among insurance companies that often operate at an underwriting loss to generate investment income.
Second, BNSF is the largest part of a U.S. railroad oligopoly that is hard, if not impossible, to displace. Even in the downturn last year, management found a way to increase BNSF's margin. "After 150 years or so of frenzied construction, skullduggery, overbuilding, bankruptcies, reorganizations, and mergers, the railroad industry finally emerged a few decades ago as mature and rationalized," Buffett said.
Berkshire Hathaway Energy is also competitively advantaged because of its sterling balance sheet and lack of a dividend, the latter of which allows it to invest in extremely capital-intense, long-term building projects other utilities won't undertake. Buffett gives the example of BHE's ongoing reconstruction of the western U.S. electricity grid, a badly needed infrastructure investment BHE began in 2006 and won't complete until 2030. With energy infrastructure projects badly needed for the foreseeable future, BHE looks like a strong long-term grower in an essential industry.
And public stock holding Apple is, well, Apple.
Image source: Getty Images.
Buffett appreciates long-term, loyal shareholders
Toward the end of the letter, Buffett noted the "special affection" he and Munger have for investors who stick with Berkshire for the long term. Buffett noted 100-year-old Stan Truhlsen, an Omaha doctor who first invested with Buffett in 1959 and has held Buffett partnership/Berkshire shares ever since. Buffett added:
Two of Stan's comrades from Emdee [Investment Group] are now in their high 90s and continue to hold Berkshire shares. This group's startling durability -- along with the fact that Charlie and I are 97 and 90, respectively -- serves up an interesting question: Could it be that Berkshire ownership fosters longevity?
Buffett seems to think "hamburgers and Cokes" are a fine diet for long-term investors, even if the cuisine has been out of style for a while. He also just backed up the sentiment by buying out $24.7 billion worth of his partners' shares. Perhaps, as the economy opens back up, Berkshire is in for a better-performing decade than the past one. Its founder and CEO seems to think so.
10 stocks we like better than Berkshire Hathaway (A shares)
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (A shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of February 24, 2021
Billy Duberstein owns shares of Apple and Berkshire Hathaway (B shares). His clients may own shares of the companies mentioned. The Motley Fool owns shares of and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends Dominion Energy, Inc and Verizon Communications and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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If you are seeking diners, he said, you can attract a clientele and prosper featuring either hamburgers served with a Coke or a French cuisine accompanied by exotic wines. "After 150 years or so of frenzied construction, skullduggery, overbuilding, bankruptcies, reorganizations, and mergers, the railroad industry finally emerged a few decades ago as mature and rationalized," Buffett said. Berkshire Hathaway Energy is also competitively advantaged because of its sterling balance sheet and lack of a dividend, the latter of which allows it to invest in extremely capital-intense, long-term building projects other utilities won't undertake.
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While he didn't say it directly, it appears Buffett believes Berkshire repurchased its shares at a very cheap price and a good discount to intrinsic value: Following criteria Charlie [Munger] and I have long recommended, we made those purchases because we believed they would both enhance the intrinsic value per share for continuing shareholders and would leave Berkshire with more than ample funds for any opportunities or problems it might encounter. While Berkshire also seeks to own great businesses, it doesn't particularly feel the need to control entire businesses, though Berkshire is perfectly fine owning non-controlling stakes of public companies just as much as owning an entire business itself. The Motley Fool recommends Dominion Energy, Inc and Verizon Communications and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares).
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In fact, Berkshire has lagged the market over the past one-, three-, five-, and 10-year periods: BRK.A 1 Year Total Returns (Daily) data by YCharts While Buffett didn't directly address Berkshire's relative underperformance over the past decade, he did acknowledge that Berkshire may not be appropriate for every type of investor. While he didn't say it directly, it appears Buffett believes Berkshire repurchased its shares at a very cheap price and a good discount to intrinsic value: Following criteria Charlie [Munger] and I have long recommended, we made those purchases because we believed they would both enhance the intrinsic value per share for continuing shareholders and would leave Berkshire with more than ample funds for any opportunities or problems it might encounter. The Motley Fool recommends Dominion Energy, Inc and Verizon Communications and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares).
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An all-time record for repurchases Berkshire's largest acquisition in 2020 was... itself. In 2020, it spent $24.7 billion on share repurchases -- by far the most in Berkshire's history, and good enough for retiring 5.2% of the company's shares. The Motley Fool owns shares of and recommends Apple and Berkshire Hathaway (B shares).
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698958.0
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2021-02-26 00:00:00 UTC
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Pembina can no longer predict start date for Oregon Jordan Cove LNG
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https://www.nasdaq.com/articles/pembina-can-no-longer-predict-start-date-for-oregon-jordan-cove-lng-2021-02-26
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Feb 26 (Reuters) - Canadian energy company Pembina Pipeline Corp PPL.TO said it could no longer specify a future start date for the proposed Jordan Cove liquefied natural gas (LNG) export plant in Oregon.
Pembina said late Thursday in its fourth-quarter earnings report that it recognized a C$1.6 billion impairment in the value of certain assets, including a petrochemical project, investments in the Wyoming-to-Oregon Ruby gas pipe and Jordan Cove.
"We believe the time for these projects may come; however, we can sadly no longer predict with certainty when that time will be," the company said.
The US$8 billion Jordan Cove is one of several major energy projects that received strong support from former U.S. President Donald Trump but have since failed to move forward.
Others examples include TC Energy Corp's TRP.TO $8 billion Keystone XL crude pipe, Williams Cos Inc's WMB.N roughly $1 billion Constitution gas pipe and Dominion Energy Inc's D.N $8 billion Atlantic Coast gas pipe.
Federal energy regulators approved construction of Jordan Cove in March 2020, but the project failed to receive water permits from Oregon amid opposition from Native American tribes and environmental and local groups.
Backers of Jordan Cove emphasized that its position on the U.S. West Coast puts it closer to fast-growing Asian markets than Gulf Coast terminals, which have to send LNG through the recently-congested Panama Canal. They had hoped the project would be operational by 2025.
Jordan Cove is designed to produce around 7.5 million tonnes per annum of LNG, equivalent to about 1 billion cubic feet per day of gas, or enough to supply about five million U.S. homes for a day.
Jordan Cove is one of more than three dozen LNG export projects under development in the United States, Canada and Mexico.
Analysts, however, expect only a handful of those projects to enter service over the next decade.
UPDATE 2-U.S. approves Pembina's proposed Jordan Cove LNG export plant in Oregon
U.S. FERC delivers blow to Oregon LNG terminal, upholds state's permit denial
FACTBOX-U.S. new natural gas pipeline projects
Pembina Pipeline Corporation Reports Results for the Fourth Quarter and Full Year 2020
(Reporting by Scott DiSavino; editing by David Evans)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Feb 26 (Reuters) - Canadian energy company Pembina Pipeline Corp PPL.TO said it could no longer specify a future start date for the proposed Jordan Cove liquefied natural gas (LNG) export plant in Oregon. Federal energy regulators approved construction of Jordan Cove in March 2020, but the project failed to receive water permits from Oregon amid opposition from Native American tribes and environmental and local groups. UPDATE 2-U.S. approves Pembina's proposed Jordan Cove LNG export plant in Oregon U.S. FERC delivers blow to Oregon LNG terminal, upholds state's permit denial FACTBOX-U.S. new natural gas pipeline projects Pembina Pipeline Corporation Reports Results for the Fourth Quarter and Full Year 2020 (Reporting by Scott DiSavino; editing by David Evans) ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Feb 26 (Reuters) - Canadian energy company Pembina Pipeline Corp PPL.TO said it could no longer specify a future start date for the proposed Jordan Cove liquefied natural gas (LNG) export plant in Oregon. Others examples include TC Energy Corp's TRP.TO $8 billion Keystone XL crude pipe, Williams Cos Inc's WMB.N roughly $1 billion Constitution gas pipe and Dominion Energy Inc's D.N $8 billion Atlantic Coast gas pipe. UPDATE 2-U.S. approves Pembina's proposed Jordan Cove LNG export plant in Oregon U.S. FERC delivers blow to Oregon LNG terminal, upholds state's permit denial FACTBOX-U.S. new natural gas pipeline projects Pembina Pipeline Corporation Reports Results for the Fourth Quarter and Full Year 2020 (Reporting by Scott DiSavino; editing by David Evans) ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Feb 26 (Reuters) - Canadian energy company Pembina Pipeline Corp PPL.TO said it could no longer specify a future start date for the proposed Jordan Cove liquefied natural gas (LNG) export plant in Oregon. Others examples include TC Energy Corp's TRP.TO $8 billion Keystone XL crude pipe, Williams Cos Inc's WMB.N roughly $1 billion Constitution gas pipe and Dominion Energy Inc's D.N $8 billion Atlantic Coast gas pipe. UPDATE 2-U.S. approves Pembina's proposed Jordan Cove LNG export plant in Oregon U.S. FERC delivers blow to Oregon LNG terminal, upholds state's permit denial FACTBOX-U.S. new natural gas pipeline projects Pembina Pipeline Corporation Reports Results for the Fourth Quarter and Full Year 2020 (Reporting by Scott DiSavino; editing by David Evans) ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Feb 26 (Reuters) - Canadian energy company Pembina Pipeline Corp PPL.TO said it could no longer specify a future start date for the proposed Jordan Cove liquefied natural gas (LNG) export plant in Oregon. Pembina said late Thursday in its fourth-quarter earnings report that it recognized a C$1.6 billion impairment in the value of certain assets, including a petrochemical project, investments in the Wyoming-to-Oregon Ruby gas pipe and Jordan Cove. The US$8 billion Jordan Cove is one of several major energy projects that received strong support from former U.S. President Donald Trump but have since failed to move forward.
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698959.0
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2021-02-21 00:00:00 UTC
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3 Cheap Renewable Energy Stocks to Buy Now
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https://www.nasdaq.com/articles/3-cheap-renewable-energy-stocks-to-buy-now-2021-02-21
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Renewable energy remains red-hot even after a scorching 2020 where renewables trounced the broader market's gains. From small pure-play wind and solar stocks to large companies looking to diversify their revenue mix, now seems to be a great time to look for premium renewable energy stocks. But there's a problem. Many of the industry's leading companies are now trading near record highs -- which can be off-putting for investors looking for a lower entry point.
With that, we asked some of our contributors which renewable energy stocks they thought were cheap now. They came up with American Electric Power (NYSE: AEP), Dominion Energy (NYSE: D), and Hubbell (NYSE: HUBB).
Image source: Getty Images.
Power your portfolio with a utility player
Scott Levine (American Electric Power): While politicians debate the role that green energy has played in the Texas power outages, smart investors recognize that the political wrangling doesn't detract from the fact that renewable energy stocks represent significant growth opportunities. The challenge for clean-energy-minded investors, though, is where to turn. Although solar, wind, and geothermal stocks all represent viable options from which investors can choose, American Electric Power (AEP) provides a less obvious approach. And fortunately for investors, they can currently find shares in the bargain bin.
Branding itself as "the premier regulated energy company," AEP has a presence in 11 states and provides electricity to about 5.5 million customers, making it one of the largest regulated utilities in the United States. Management has articulated a clear commitment to environmental, social, and corporate governance (ESG) values. For example, the company is targeting a 42% reduction in its coal capacity by 2030, and it plans on supplanting this, in part, with ample green energy additions. Over the next 10 years, AEP expects to add 3.8 gigawatts (GW) of solar power to its power portfolio and 4.2 GW of wind power.
Unlike the majority of renewable energy stocks that don't reward shareholders by way of a dividend, AEP has demonstrated consistent interest in returning capital to investors. Over the past decade, AEP -- currently offering investors an attractive 3.8% dividend yield on its stock -- has steadily raised its distribution, and it seems intent on continuing that trend.
AEP Dividend data by YCharts.
Management expects to return $2.96 per share to investors in 2021 -- about 4.2% more than it dished out in 2020. Allaying concerns that the company is jeopardizing its financial well-being to please investors with the dividend, management has targeted a payout ratio of 60% to 70% -- a range that seems reasonable considering the company's average payout ratio over the past three years has been 62%.
Currently, shares of AEP appear attractively priced from a couple of different angles. For one, the stock is trading at 20.3 times earnings, representing a discount to its five-year average multiple of 27.3. Similarly, the stock is trading at 2.6 times sales. While this is slightly higher than its five-year average ratio of 2.4, the valuation is still reasonable considering the S&P 500 P/S ratio is 2.9.
Transitioning from natural gas to renewables
Daniel Foelber (Dominion Energy): Dominion energy is the latest utility stock to launch an aggressive push into renewable energy. The company is a leading energy provider in Utah, Ohio, Virginia, North Carolina, and South Carolina. Although Dominion's portfolio is still mostly fossil fuels, it has done a good job of moving away from coal toward natural gas over the past 15 years. Its sale of the Atlantic Coast Pipeline and other gas transmission and distribution assets to Warren Buffett-led Berkshire Hathaway last year marked the first major step in its push to transition away from gas and toward renewables.
That push accelerated further when the company reported fourth-quarter results. Bigger than the numbers themselves was the company's brand new $32 billion five-year capital spending program, 52% of which is devoted toward zero-carbon through offshore wind, solar, energy storage, and nuclear relicensing. Offshore wind, in particular, is a big catalyst for Dominion's growth, led by the company's 2.6 GW megaproject that is expected to go into service in 2024.
Impressively enough, Dominion is confident that even with the hefty spending plan it will be able to grow earnings per share by at least 6.5% over the next five years. This forecast should be fairly accurate considering 88% of Dominion's existing portfolio is state-regulated. The company also plans to grow its dividend at 6% over the long term. In an effort to fund its renewable aspirations, Dominion cut its quarterly dividend from $0.94 per share to $0.63 in December of last year. Even with the cut, Dominion yields an impressive 3.5% -- much higher than the current market average of 1.5%.
Given the company's strong existing portfolio, aggressive and profitable renewable investments, and the fact that shares are on sale for 20% less than a year ago, Dominion looks to be a worthwhile renewable energy stock to buy now.
Renewable energy provides growth for Hubbell
Lee Samaha (Hubbell): The words "cheap" and "renewable energy stock" don't often fit together these days. Therefore, if you are looking for a value option you will have to think outside the box, or rather outside the sweep of a wind power turbine.
In this context, what about buying a highly cash generative value stock with some exposure to renewable energy related spending? That's where electrical and electronic products company Hubbell comes into play. If you are going to have investment in renewable energy farms, you are going to need investment in the transmission and distribution (T&D) network, as well.
Hubbell's exposure comes through its utility solutions segment, responsible for 57% of adjusted operating profit in 2020 with electrical solutions making up the rest. Commenting on the fourth-quarter performance on the earnings release, CEO Gerben Bakker said, "In the fourth quarter, utility facing markets remained resilient, with grid modernization and renewable energy trends driving ongoing strength in demand for T&D components and mid single digit growth in Power Systems."
Looking ahead, management expects its utility T&D components end market to grow 2% to 4% and utility communications and controls to grow 4% to 6%. Coupled with a recovery in the electrical solutions end market, management expects Hubbell's sales to grow 6% to 8% with organic sales up 3% to 5%. Management's guidance implies around $495 million in free cash flow (FCF) putting Hubbell on a forward price-to-FCF multiple of 18.5 times.
That's a good value, particularly if growth in spending on utility T&D will support mid-single-digit revenue growth over the medium term.
10 stocks we like better than American Electric Power
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Electric Power wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 20, 2020
Daniel Foelber owns shares of Dominion Energy, Inc and has the following options: short January 2022 $80 calls on Dominion Energy, Inc. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Dominion Energy, Inc and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Unlike the majority of renewable energy stocks that don't reward shareholders by way of a dividend, AEP has demonstrated consistent interest in returning capital to investors. Bigger than the numbers themselves was the company's brand new $32 billion five-year capital spending program, 52% of which is devoted toward zero-carbon through offshore wind, solar, energy storage, and nuclear relicensing. Commenting on the fourth-quarter performance on the earnings release, CEO Gerben Bakker said, "In the fourth quarter, utility facing markets remained resilient, with grid modernization and renewable energy trends driving ongoing strength in demand for T&D components and mid single digit growth in Power Systems."
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They came up with American Electric Power (NYSE: AEP), Dominion Energy (NYSE: D), and Hubbell (NYSE: HUBB). Transitioning from natural gas to renewables Daniel Foelber (Dominion Energy): Dominion energy is the latest utility stock to launch an aggressive push into renewable energy. The Motley Fool recommends Dominion Energy, Inc and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares).
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Power your portfolio with a utility player Scott Levine (American Electric Power): While politicians debate the role that green energy has played in the Texas power outages, smart investors recognize that the political wrangling doesn't detract from the fact that renewable energy stocks represent significant growth opportunities. Transitioning from natural gas to renewables Daniel Foelber (Dominion Energy): Dominion energy is the latest utility stock to launch an aggressive push into renewable energy. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Daniel Foelber owns shares of Dominion Energy, Inc and has the following options: short January 2022 $80 calls on Dominion Energy, Inc. Lee Samaha has no position in any of the stocks mentioned.
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The company also plans to grow its dividend at 6% over the long term. Given the company's strong existing portfolio, aggressive and profitable renewable investments, and the fact that shares are on sale for 20% less than a year ago, Dominion looks to be a worthwhile renewable energy stock to buy now. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares).
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698960.0
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2021-02-17 00:00:00 UTC
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XLU, DUK, SO, D: Large Inflows Detected at ETF
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https://www.nasdaq.com/articles/xlu-duk-so-d%3A-large-inflows-detected-at-etf-2021-02-17
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $442.7 million dollar inflow -- that's a 3.7% increase week over week in outstanding units (from 191,120,000 to 198,270,000). Among the largest underlying components of XLU, in trading today Duke Energy Corp (Symbol: DUK) is down about 0.2%, Southern Company (Symbol: SO) is off about 0.5%, and Dominion Energy Inc (Symbol: D) is up by about 0.6%. For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average:
Looking at the chart above, XLU's low point in its 52 week range is $43.435 per share, with $71.10 as the 52 week high point — that compares with a last trade of $61.76. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs had notable inflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $442.7 million dollar inflow -- that's a 3.7% increase week over week in outstanding units (from 191,120,000 to 198,270,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Among the largest underlying components of XLU, in trading today Duke Energy Corp (Symbol: DUK) is down about 0.2%, Southern Company (Symbol: SO) is off about 0.5%, and Dominion Energy Inc (Symbol: D) is up by about 0.6%. For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $43.435 per share, with $71.10 as the 52 week high point — that compares with a last trade of $61.76. Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $442.7 million dollar inflow -- that's a 3.7% increase week over week in outstanding units (from 191,120,000 to 198,270,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $43.435 per share, with $71.10 as the 52 week high point — that compares with a last trade of $61.76. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $442.7 million dollar inflow -- that's a 3.7% increase week over week in outstanding units (from 191,120,000 to 198,270,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $43.435 per share, with $71.10 as the 52 week high point — that compares with a last trade of $61.76. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand.
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698961.0
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2021-02-17 00:00:00 UTC
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Dominion Energy Q2 21 Earnings Conference Call At 11:00 AM ET
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https://www.nasdaq.com/articles/dominion-energy-q2-21-earnings-conference-call-at-11%3A00-am-et-2021-02-17
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(RTTNews) - Dominion Energy, Inc.. (D) will host a conference call at 11:00 AM ET on February 17, 2021, to discuss Q2 21 earnings results.
To access the live webcast, log on to http://www.palatin.com
To listen to the call, dial 1-866-248-8441 (US) or 1-856-344-9206 (International) with passcode 2203098.
For a replay call, dial 1-888-203-1112 (US) or 1-719-457-0820 (International) with passcode2203098.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc.. (D) will host a conference call at 11:00 AM ET on February 17, 2021, to discuss Q2 21 earnings results. To access the live webcast, log on to http://www.palatin.com To listen to the call, dial 1-866-248-8441 (US) or 1-856-344-9206 (International) with passcode 2203098. For a replay call, dial 1-888-203-1112 (US) or 1-719-457-0820 (International) with passcode2203098.
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To access the live webcast, log on to http://www.palatin.com To listen to the call, dial 1-866-248-8441 (US) or 1-856-344-9206 (International) with passcode 2203098. For a replay call, dial 1-888-203-1112 (US) or 1-719-457-0820 (International) with passcode2203098. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc.. (D) will host a conference call at 11:00 AM ET on February 17, 2021, to discuss Q2 21 earnings results. To access the live webcast, log on to http://www.palatin.com To listen to the call, dial 1-866-248-8441 (US) or 1-856-344-9206 (International) with passcode 2203098. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc.. (D) will host a conference call at 11:00 AM ET on February 17, 2021, to discuss Q2 21 earnings results. To access the live webcast, log on to http://www.palatin.com To listen to the call, dial 1-866-248-8441 (US) or 1-856-344-9206 (International) with passcode 2203098. For a replay call, dial 1-888-203-1112 (US) or 1-719-457-0820 (International) with passcode2203098.
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698962.0
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2021-02-16 00:00:00 UTC
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This Energy Company Plans to Invest Up to $72 Billion to Clean Up Its Act
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https://www.nasdaq.com/articles/this-energy-company-plans-to-invest-up-to-%2472-billion-to-clean-up-its-act-2021-02-16
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Dominion Energy (NYSE: D) recently unveiled a bold plan to decarbonize its portfolio. The utility company could invest up to $72 billion through 2035 to transition its primary power source from fossil fuels to emissions-free alternatives. It represents the country's largest decarbonization investment and a massive spending plan for Dominion, especially considering that its enterprise value currently stands just shy of $100 billion.
The utility believes this investment could pay big dividends for shareholders over the long term. It should clean up its emissions profile while helping it generate powerful total returns.
Image source: Getty Images.
A bold bet on clean energy
Dominion outlined its massive decarbonization plan on its recent fourth-quarter conference call. The company expects to invest $32 billion through 2025 to clean up its emissions profile. That's a $10 billion, or 43%, increase from its initial five-year plan that it unveiled in early 2019 after adjusting for last year's sale of its natural gas transmission and storage assets to Berkshire Hathaway.
The utility plans to allocate that capital into the following initiatives:
$17 billion for zero-carbon generation -- offshore wind, nuclear power life extensions, and solar energy -- and energy storage
$6 billion on electricity transmission and distribution projects such as making its system more resilient to cyber and climate threats
$6 billion on customer growth and other related activities
$3 billion on natural gas distribution modernization and renewable natural gas systems
More than 80% of those investments will reduce emissions.
Dominion estimates that this investment level should grow its earnings per share at around a 6.5% annual rate through 2025. That should give it the fuel to increase its 3.5%-yielding dividend by 6% per year. As a result, its dividend payout ratio would remain around the industry average of roughly 65% of its earnings. That combination of dividend yield and earnings growth should power a total shareholder return of about 10% annualized, which is strong for a utility.
Image source: Getty Images.
An even bigger long-term opportunity awaits
Looking further out, Dominion sees an even larger decarbonization opportunity. Executive chairman Thomas Farrell said on the call that the company has:
Identified over $70 billion of green investment opportunity between 2020 and 2035, nearly all of which will qualify for regulated cost of service recovery. This is, as far as we can tell, the largest regulated decarbonization investment opportunity in the industry. And the accelerating electrification of the transportation sector promises to drive growing demand for utility-scale, zero and low-carbon generation for many years to come.
The company ran through this opportunity set on the call, noting that it could invest up to:
$17 billion for offshore wind projects, including an estimated $8 billion to build a 2.6 gigawatt (GW) offshore wind project in Virginia that it hopes to complete by the end of 2026
$20 billion on solar projects, with the company anticipating expanding its capacity from 2.2 GW to 13.4 GW by 2035
$7 billion for energy storage projects
$4 billion to extend the life of its zero-emission nuclear power plants
$15 billion on electric grid transformation projects
$9 billion on natural gas distribution modernization projects and renewable natural gas
Add it all up, and the total investment opportunity comes to around $72 billion by 2035. That would increase its zero-carbon power sources (renewable energy and nuclear) from 45% last year to 70% by 2035 while improving its zero- and low-carbon sources (which include natural gas) from 90% to 95%. Dominion is also investing in early-stage hydrogen projects to see whether that emission-free fuel could replace natural gas in its gas distribution network and for power generation.
Assuming Dominion earns similar returns on these investments, the utility could continue delivering around mid-single-digit earnings per share and dividend growth each year. That would give the company the power to continue generating double-digit total annual shareholder returns.
An intriguing utility stock for long-term investors
Dominion Energy plans to pour as much as $72 billion into cleaning up its generation profile and modernizing its distribution networks over the next decade and a half. It believes that these investments will produce attractive returns, enabling it to grow its earnings and high-yielding dividend at healthy rates. That increases the attractiveness of Dominion's stock, especially for investors seeking dividend growth powered by clean energy.
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Matthew DiLallo owns shares of Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Dominion Energy, Inc and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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That's a $10 billion, or 43%, increase from its initial five-year plan that it unveiled in early 2019 after adjusting for last year's sale of its natural gas transmission and storage assets to Berkshire Hathaway. Executive chairman Thomas Farrell said on the call that the company has: Identified over $70 billion of green investment opportunity between 2020 and 2035, nearly all of which will qualify for regulated cost of service recovery. An intriguing utility stock for long-term investors Dominion Energy plans to pour as much as $72 billion into cleaning up its generation profile and modernizing its distribution networks over the next decade and a half.
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The utility plans to allocate that capital into the following initiatives: $17 billion for zero-carbon generation -- offshore wind, nuclear power life extensions, and solar energy -- and energy storage $6 billion on electricity transmission and distribution projects such as making its system more resilient to cyber and climate threats $6 billion on customer growth and other related activities $3 billion on natural gas distribution modernization and renewable natural gas systems More than 80% of those investments will reduce emissions. The company ran through this opportunity set on the call, noting that it could invest up to: $17 billion for offshore wind projects, including an estimated $8 billion to build a 2.6 gigawatt (GW) offshore wind project in Virginia that it hopes to complete by the end of 2026 $20 billion on solar projects, with the company anticipating expanding its capacity from 2.2 GW to 13.4 GW by 2035 $7 billion for energy storage projects $4 billion to extend the life of its zero-emission nuclear power plants $15 billion on electric grid transformation projects $9 billion on natural gas distribution modernization projects and renewable natural gas Add it all up, and the total investment opportunity comes to around $72 billion by 2035. The Motley Fool recommends Dominion Energy, Inc and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares).
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The utility plans to allocate that capital into the following initiatives: $17 billion for zero-carbon generation -- offshore wind, nuclear power life extensions, and solar energy -- and energy storage $6 billion on electricity transmission and distribution projects such as making its system more resilient to cyber and climate threats $6 billion on customer growth and other related activities $3 billion on natural gas distribution modernization and renewable natural gas systems More than 80% of those investments will reduce emissions. The company ran through this opportunity set on the call, noting that it could invest up to: $17 billion for offshore wind projects, including an estimated $8 billion to build a 2.6 gigawatt (GW) offshore wind project in Virginia that it hopes to complete by the end of 2026 $20 billion on solar projects, with the company anticipating expanding its capacity from 2.2 GW to 13.4 GW by 2035 $7 billion for energy storage projects $4 billion to extend the life of its zero-emission nuclear power plants $15 billion on electric grid transformation projects $9 billion on natural gas distribution modernization projects and renewable natural gas Add it all up, and the total investment opportunity comes to around $72 billion by 2035. The Motley Fool recommends Dominion Energy, Inc and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares).
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That would increase its zero-carbon power sources (renewable energy and nuclear) from 45% last year to 70% by 2035 while improving its zero- and low-carbon sources (which include natural gas) from 90% to 95%. An intriguing utility stock for long-term investors Dominion Energy plans to pour as much as $72 billion into cleaning up its generation profile and modernizing its distribution networks over the next decade and a half. That increases the attractiveness of Dominion's stock, especially for investors seeking dividend growth powered by clean energy.
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698963.0
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2021-02-12 00:00:00 UTC
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Dominion Energy, Inc (D) Q4 2020 Earnings Call Transcript
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https://www.nasdaq.com/articles/dominion-energy-inc-d-q4-2020-earnings-call-transcript-2021-02-13
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Image source: The Motley Fool.
Dominion Energy, Inc (NYSE: D)
Q4 2020 Earnings Call
Feb 12, 2021, 10:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Welcome to the Dominion Energy fourth-quarter 2020earnings conference call [Operator instructions] I would now like to turn the call over to Steven Ridge, vice president, investor relations.
Steven Ridge -- Vice President, Investor Relations
Good morning, and thank you for joining today's call. Earnings materials, including today's prepared remarks, may contain forward-looking statements and estimates that are subject to various risks and uncertainties. Please refer to our SEC filings, including our most recent annual reports on Form 10-K and our quarterly reports on Form 10-Q, for a discussion of factors that may cause results to differ from management's estimates and expectations. This morning, we'll discuss some measures of our company's performance that differ from those recognized by GAAP.
Reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measures which we can calculate are contained in the earnings release kit. I encourage you to visit our investor relations website to review webcast slides, as well as, the earnings release kit. Joining today's call are Tom Farrell, executive chairman; Bob Blue, president and chief executive officer; Jim Chapman, executive vice president and chief financial officer; and other members of the executive management team. I will now turn the call over to Tom.
10 stocks we like better than Dominion Energy, Inc
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Tom Farrell -- Executive Chairman
Thank you, Steve, and good morning, everyone. I want to start by outlining Dominion Energy's compelling shareholder return proposition. We expect to grow our earnings per share by 6.5% per year through at least 2025, supported by our updated $32 billion five-year capital growth plan. We offer an attractive dividend yield of approximately 3.5%, reflecting a target payout ratio of 65% and an expected long-term dividend per share growth rate of 6%.
This resulting 10% total shareholder return proposition is combined with an industry-leading ESG profile, characterized by what we believe is the largest regulated decarbonization investment opportunity in the country. We plan to invest tens of billions of dollars over the next several years to the benefit of the environment, our customers, our communities, and our local economies. Our strategy is anchored on a pure-play, state-regulated utility operating profile that centers around five premier states as shown on Slide 5. I'll share the philosophy with a common sense approach to energy policy and regulation puts a priority on safety, reliability, affordability, and increasingly sustainability.
These states also strive to create environments that promote sensible economic growth, which like the rising tide, lifts all boats. For instance, three of these state jurisdictions rank consistently in the top 4 best states for business as determined by independent analysis carried out by CNBC and by Forbes. Our state-regulated utility model offers investors increased predictability and is enhanced by our concentration in these fast-growing, constructive, and business-friendly states. Turning to Slide 6.
Dominion is a purpose-driven company and has adopted a comprehensive stakeholder approach. We are driven by the belief that the world's best companies consider the interest, not just of investors, but also employees, customers and communities, and the well-being of the environment. Our actions are grounded in adherence to our five core values and we embrace transparency and stakeholder engagement, as hallmarks of responsible corporate citizenship. The well-being of our over 17,000 employees is critical to our long-term success and there is no measure more important to our company than the safety performance of our employees.
2020 represented, by a wide margin, the safest year of operations in the history of our company, as depicted on Slide 7. This result did not happen overnight. As you can see, it takes years of dedicated effort to drive sustainable improvement. I congratulate my colleagues on this significant achievement.
Turning now to our customers and communities. We believe that it is not enough that we provide energy safely. We must also provide energy that is affordable. We are pleased the residential rates at our two electric utilities compare favorably to state, national, and where applicable, RGGI state averages.
Looking forward, we expect our customers to be very competitive, even as we invest heavily to transform our system's carbon footprint. Bob will address this more comprehensively in his remarks. With regard to our community initiatives during 2020 which are described on Slide 8. First, the impact of COVID-19 on our customers during 2020 was obviously significant which is why we voluntarily took immediate action at the onset of the pandemic to suspend service disconnections.
In doing this, we avoided what otherwise would have been disconnection of over 255,000 customer accounts. We also developed extended and flexible payment plans, resulting in over 330,000 enrollments and we contributed $18 million toward direct energy assistance for our most vulnerable customers. In Virginia, we supported special session legislation which gave customers a fresh start by forgiving over $125 million of customer arrears. We also agreed to a pause in our South Carolina rate case proceeding, ensuring that the results of that case will not impact customers until late this year.
Second, we've built on our long-standing legacy of supporting social equity by committing $25 million to 11 historically Black colleges and universities, funding an additional $10 million for scholarships for underrepresented minority groups and creating a $5 million social justice fund that supports community efforts to address the impacts of racism. This is in addition to the diversity and inclusion initiatives within our company that Bob will address. As you can tell, we are extremely proud of these accomplishments and I thank all of my Dominion Energy colleagues who contributed to these successes in what was obviously an extraordinarily challenging year. Turning now to Slide 9.
We have rolled forward our five-year capital growth plan to capture the years 2021 through 2025. This has resulted in a $10 billion or 43% increase to the plan we shared with you in the spring of 2019 as adjusted for the gas transmission & storage sale. We now project $32 billion of growth capital investment on behalf of our customers, over 80% of which reduces or enables emissions reductions. We plan to invest $17 billion in zero-carbon generation and energy storage, including regulated offshore wind, solar and nuclear relicensing.
Another $6 billion in electric grid enhancements, such as electric transmission and grid modernization which will enable our system to be more resilient to cyber and climate threats and more responsive to increasing intermittent generation. And we plan to invest $3 billion on the modernization of our LDC networks, as well as, on renewable natural gas development, thereby, increasing safety and reliability while driving emissions down. Jim and Bob will provide more color on these industry-leading investment programs in a moment. As meaningful as these near-term plans are, consider on Slide 10, how they compare to the long-term scope and duration of our overall decarbonization opportunity.
Our initiatives extend well beyond our five-year plan. We have identified over $70 billion of green investment opportunity between 2020 and 2035, nearly all of which will qualify for regulated cost of service recovery. This is, as far as we can tell, the largest regulated decarbonization investment opportunity in the industry. And the accelerating electrification of the transportation sector promises to drive growing demand for utility-scale, zero and low-carbon generation for many years to come.
The company's long-term transformation has multiple beneficiaries. Our customers, who want more sustainable energy; our local communities which benefit from the economic growth and tax revenue to the company's investments; our employees, who develop the best practices of the transition to a low-carbon future, and the environment via the emissions reductions we illustrate on Slide 11. Through 2019, inclusive of asset divestitures, we have successfully reduced our enterprisewide, CO2-equivalent emissions by around 55%. This is great progress but we have more to do.
By 2035, we expect to improve that reduction to between 70% and 80% versus baseline on our way to net zero by 2050. As shown on the right side of the slide, by 2035, we expect that approximately 95% of our company-owned generation will be, either zero or low emitting, a remarkable transformation from our 2005 dispatch mix. Before turning it over to Jim, I will summarize the actions and events of 2020 that have positioned Dominion to thrive for years to come. We took care of one another and in so doing, we achieved an all-time safety record.
We took quick action to work with our customers to address the impact of the COVID-19 pandemic. We announced our ambition to be net zero by 2050. The Virginia Clean Economy Act was adopted by the general assembly which puts the state on a cutting-edge path to decarbonization and positions the state as a hub for the global green economy transition. We advanced our strategic positioning by selling our gas transmission & storage assets to focus on our premier state-regulated utility operations.
We simultaneously initiated best-in-class earnings and dividend growth rates. We reported our 20th consecutive quarter of weather-normal results that met or exceeded the midpoint of our quarterly guidance and we transitioned both our CEO and lead director roles. With that, I will turn it over to Jim.
Jim Chapman -- Executive Vice President and Chief Financial Officer
Thank you, Tom, and good morning. Our fourth-quarter 2020 operating earnings, as shown on Slide 14, were $0.81 per share which included a $0.01 hurt from worse-than-normal weather in our utility service territories. Both actual and weather-normalized results were above the midpoint of our quarterly guidance range. Full-year 2020 operating earnings per share were $3.54, above the midpoint of our guidance range and included a $0.09 hurt from weather.
Weather-normalized results of $3.63 were at the top of our annual guidance range. Note that our fourth-quarter and 2020 GAAP and operating earnings, together with comparative periods, are adjusted to account for discontinued operations, including those associated with the sale of assets to Berkshire Hathaway Energy. And then a summary of such adjustments between operating and reported results is, as usual, included in Schedule 2 of our earnings release kit. As shown on Slide 15, this represents our 20th consecutive quarter, so five years now of delivering weather-normal results that meet or exceed the midpoint of our quarterly guidance range.
We've highlighted here the July 5th gas transmission & storage sale announcement on the chart as this was obviously has had an impact on our original annual guidance which is, of course, set prior to that transaction. But regardless, we believe the historic consistency across our quarterly results is worth highlighting and it's a track record we are absolutely focused on extending. Turning now to Slide -- to guidance on Slide 16. As usual, we are providing a range for the year which is designed primarily to account for variations from normal weather.
We are initiating 2021 operating EPS guidance of $3.70 to $4 per share. The midpoint of this range is in line with the indicative guidance midpoint range we provided in July. Measured midpoint to midpoint, we expect approximately 10% growth in 2021, also consistent with our July guidance. Looking longer-term, we expect operating EPS to grow off the 2021 base at around 6.5% per year through 2025.
Finally, we expect first-quarter 2021 operating earnings per share to be between $1 and $1.15. Turning to Slide 17. We expect our 2021 full-year dividend to be $2.52, reflecting our target payout ratio of approximately 65%. We're also extending the long-range dividend per share growth rate of 6% off that '21 base through 2025.
Slide 18 provides a breakdown of the five-year growth capex roll-forward which Tom introduced. For more details on this, I would point to the very comprehensive appendix materials. We've really put some effort into providing all the more granular detail which we expect will be useful for understanding and modeling each part of this growth profile. But just a few items I'll highlight here.
We are forecasting a total five-year rate base CAGR of around 9%, broken out here by segment and by major driver. I would note that nearly three quarters of this planned growth capex is eligible for rider recovery. That nomenclature varies but capital invested under riders, rate adjustment clauses or trackers, as they're called in various jurisdictions, allows for more timely recovery of prudently incurred investments and costs. They're filed and trued up at least annually in single-issue proceedings, so outside of the more time-consuming and less frequent general base rate proceedings.
In some of our jurisdictions, including Virginia, rider recovery mechanisms utilize a forward-looking or projected test period and/or allows for a construction work in progress, all of which minimizes traditional regulatory lag that, in other cases, can prevent utilities from earning at their authorized return levels. Rider-eligible capex programs varies a little by state, but prominent examples for us include offshore wind, solar, energy storage, nuclear relicensing, electric transmission, strategic undergrounding, grid transformation, rural broadband and gas distribution, infrastructure, integrity, and modernization spending. On that theme and turning to Slide 19, we illustrate how base investments and rider investments are expected to trend at Dominion Energy Virginia through the five-year plan. You'll note that the Virginia-base investment balance is growing at about 6% annually, driven primarily by new customer connections and maintenance spending.
By contrast, the rider investment balance in Virginia which comprises half of DEV's investment base today, is expected to grow at nearly 20% annually on average. Since the Virginia rider investment programs are reviewed and trued up annually, they are not included in the triennial review process, the first of which, of course, will commence next month. Based on these growth trends, the base investment balance as a percentage of total DEV declines from 37% to 27% by 2025. It also shrinks dramatically as a percentage of overall Dominion Energy.
On Slide 20, we refresh our outlook for sources and uses of cash. So on average, between '21 and '23, we expect to generate annual operating cash flow of around $6.6 billion, return about -- around $2.4 billion to our shareholders in the form of dividend, and invest nearly $8 billion a year on growth and maintenance capex on behalf of our customers. Our financing plan assumes we issue around $400 million of equity annually through our existing DRIP and ATM programs with the residual financing needs satisfied by net fixed income issuance. Again, and as shown on Slide 21, these are multiyear averages.
To be clear, in 2021, we don't expect any issuance under our ATM program. This equity guidance is consistent with our prior guidance for the '21 through '24 period. We view this level of steady equity issuance under existing programs as prudent, EPS-accretive, and in the context of our very sizable growth capital spending program, appropriate to keep our consolidated credit metrics within the guidelines for a strong credit ratings category. To that point, as shown on Slide 22, our consolidated credit metrics have continued their steady improvement as has our pension plan's funded status.
We're all very proud of these results. We continue to target high BBB range credit ratings for our parent company and single A range ratings for our regulated operating companies. Before I summarize my remarks, let me spend just a minute on O&M. As demonstrated by our 2020 results, we're focusing on driving O&M through improved processes, innovative use of technology, and other best practice cost initiatives to keep normalized O&M flat through the forecast period.
This reflects the successful continuation of our flat normalized O&M efforts we discussed in more detail at our last Investor Day. So with that, I'll summarize. We reported fourth-quarter and full-year 2020 operating EPS which were above the midpoint of our guidance, extending our track record to five years of meeting or exceeding the quarterly midpoint on a weather-normal basis. We initiated 2021 full-year operating EPS guidance that represents a 10% annual increase midpoint to midpoint.
We affirmed 6.5% operating EPS growth from '21 through '25. We introduced a $32 billion five-year growth capex plan that drives an approximately 9% rate base growth. We expect highly disproportionate rider investment spending across our segment and our balance sheet and credit profile remain in very good health. With that, I'll turn it over to Bob.
Bob Blue -- President and Chief Executive Officer
Thanks, Jim, and good morning, everyone. I'll begin on Slide 25 which provides an overview of the Virginia Clean Economy Act. The law mandates a renewable energy portfolio standard that over the next 25 years, moves toward a zero-carbon future. In order to achieve the RPS milestones, the law calls on the state's utilities to add significant amounts of wind and solar power generation, as well as, battery storage, ramps up energy efficiency and demand side management programs, requires the use of Virginia-based renewable energy credits, mandates that Virginia join the Regional Greenhouse Gas Initiative and requires the retirement of substantial coal-fired generation by 2025 and all fossil-fired units by 2046, subject to reliability and energy security considerations.
The largest single investment project come out of the passage of the VCEA is Dominion Energy's initial 2.6-gigawatt offshore wind deployment as described on Slide 26. I'm not going to go through every line item on this slide but will highlight the following: first, the project which is the largest of its kind in North America, is very much on track. This project will provide a boost to Virginia's growing green economy by creating hundreds of jobs, hundreds of millions of dollars of economic output and millions of dollars of tax revenue for the state and localities. It will also propel Virginia closer to achieving its goal to become a major hub for the burgeoning offshore wind value chain up and down the country's East Coast.
Second, as was contemplated in the VCEA, we intend this investment to be 100% regulated and eligible for rider recovery. Finally, the VCEA provides very specific requirements on the presumption of prudency for investment in the project as shown here which we are confident that we will meet. On Slide 27, we list the major project milestones. In December of last year, we submitted our construction and operations plan to BOEM.
We're encouraged by the incremental funding appropriated to BOEM late last year with a specific direction to augment the agency's resources to process offshore wind permits, as well as, BOEM's recent recommencement of processing the Vineyard Wind application. As you likely know by now, we are the only owner in the United States to have completed an offshore wind BOEM permitting process successfully. Our 12-megawatt test project which recently entered service, completed the BOEM permitting process in 2019 and we're applying lessons learned during that process to our present application. The other item I'll highlight is on the left-hand side of this slide.
The lease is positioned in shallow water, outside of major maritime shipping lanes, away from any other offshore wind leaseholds, and not in a region that supports a significant commercial fishing industry. We expect to receive final permits in mid-2023 and complete project construction around the end of 2026. The VCEA calls for another 2.6 gigawatts of offshore wind by 2036. While our near-term focus is on successfully executing on our initial deployment, we look forward to finding ways to support the state's additional offshore wind capacity goals.
The VCEA provides that the cost of any offshore wind project will be borne by our customers only in proportion to our ownership of the project. While offshore wind may be our largest single renewable energy project, the aggregate capacity of solar generation called for by the VCEA is over 3 times larger. In accordance with the law, 65% of the target amount is to be utility-owned. This is not new ground for us or for the commission.
To date, we've made four cost-of-service rider recovery filings for solar projects in Virginia. Three, representing around 400 megawatts have been approved and the most recent filing is pending approval. We expect to make additional filings annually as we work toward the over 10 gigawatts of regulated solar capacity called for by the law. Current solar technology requires around 10 acres for every megawatt of installed capacity.
Rough math suggests, therefore, that the utility-owned target of around 10,000 megawatts will require around 100,000 acres of land. We've been hard at work to secure enough land to support our long-range goal and I'm pleased to report that in less than a year, we've put 63,000 acres under option. Turning to Slide 29. What started with an 8-megawatt facility in Georgia in 2013 has today become a portfolio of over 2.2 gigawatts, representing over $5 billion of investment.
Our early focus was on the development of long-term contracted projects, mostly outside of Virginia that allowed us to develop the expertise and competency to undertake the substantial regulated solar build-out in Virginia that I just described. Going forward, you can see that our emphasis shifts and a very significant majority of our solar capacity investment will take place under regulated cost-of-service recovery mechanisms in Virginia. Growth in long-term contracted solar is limited and driven by large customer requests for bilateral, 100% renewable power supply. As increasing intermittent generation sources proliferate in our system, energy storage will be critical to maintaining reliable service.
We observed with keen interest, the recent example of the negative consequences that occur for customers when rapid changes in intermittent generation are not accommodated with sufficient storage and/or quick-start gas-fired generation. Hence, the VCEA prudently calls for the development of nearly 3 gigawatts of energy storage by 2036, 65% of which is to be utility-owned and rider-eligible. Admittedly, we're starting small when it comes to developing technologies in this area, 16 megawatts of pilot projects across three different sites and three different use case scenarios as shown on the right side of Slide 30. But starting small has its advantages as we saw in both our offshore wind and solar development strategies.
We're rapidly developing expertise that will ensure we're providing the maximum value to customers as we fulfill the targets of the VCEA. In our estimation, the success of greenhouse gas emission reduction targets requires the ongoing viability of existing nuclear facilities. That's why we filed for 20-year license extensions for our four Virginia-regulated units. Today, these facilities account for 30% of Virginia's total electric output and around 90% of Virginia's zero-carbon electricity.
Based on PJM's carbon intensity rate, the ongoing operation of these plants will effectively avoid CO2 emissions of 16 million tons per year. Key milestones for the relicensing process are shown on Slide 31. We expect to submit for rider cost recovery approval in the second half of this year. Our near-term focus is on the Virginia unit.
But under the appropriate circumstances, life extensions over the long-term at our other three units may be advisable. Successful nuclear life extension is a win for customers and the environment. The transition to a clean energy future means reduced reliance on coal-fired generation. As Tom showed, in 2005, more than half our company's power production was from coal-fired generation.
By 2035, we project that to be closer to 5%, perhaps lower, if the South Carolina Commission prefers an accelerated decarbonization plan as part of our IRP refiling. From an investment-based perspective which is a rough approximation of earnings contribution, you can see, on Slide 32, the diminished role coal-fired generation plays in our financial performance driven by facility retirements and non-coal investment. We're mindful that this shift has the potential to be disruptive to employees and communities and are being purposeful in our efforts to ameliorate any such negative consequences. You'll also note that zero-carbon generation grows significantly such that, by 2025, over 60% of our investment base will consist of electric wires and zero-carbon generation.
Turning to Slide 33. Let me address customer rates with a focus on Virginia. First, between 2008 and 2020, our typical residential customer rate increased, on average, by less than 1% per year which is much lower than average annual inflation over that period of closer to 2%. Second, based on EIA data, our typical customer rate is 13% lower than the national average and 36% lower than other states that, like Virginia, have joined RGGI.
And third, going forward, we see typical residential rates increasing by a compound annual growth rate of around 2.9% through 2030 which is a comprehensive estimate and includes, among other factors, the impact of the decarbonization investment programs we've discussed today. If we move the starting point back to 2008, that rate of increase falls to 2.1%, which is lower than projected inflation for 2021. It's incumbent upon us to deliver energy that is safe, reliable, increasingly sustainable, and affordable. Now on Slide 34, let me address the upcoming triennial review proceeding.
Note, we've developed detailed slides in the appendix that we believe will be helpful to you on this topic. First, the Triennial Review process will commence next month and conclude late this year. Second, this Triennial Review will cover four years of performance from 2017 through 2020 and compares our earned return to our allowed return of 9.9%, inclusive of a 70-basis point power. Third, and as Jim pointed out, the review applies only to the Virginia-based portion of our rate base.
Rider investments are outside the scope of the proceeding. And finally, to the extent the commission concludes that available revenues, inclusive of adjustments for impairments, weather, and other factors, are greater than customer credit reinvestments, it may order a refund, as well as, a forward-looking revenue reduction of up to $50 million. So let me point out just two factors that we know will be part of the first review process. First, we've invested nearly $300 million in the on-time and on-budget completion of the 12-megawatt offshore wind test project.
We've indicated we will not seek a revenue increase from customers associated with this project. Rather, we will apply that investment as needed, as a customer credit reinvestment offset. Second, we've provided over $125 million of arrears relief in Virginia to assist customers, many of whom have faced financial hardship as a result of COVID. Naturally, we're focused on the triennial review filing next month, but we also get questions from time to time regarding the second triennial review which is expected to conclude in almost four years.
A few observations there which are shown on Slide 35. First, we're in the very early days, 43 days, I think, of that review period. So obviously, we have quite a ways to go before being in a position to file the precise regulatory inputs for that proceeding. What we do know, however, is that the structure of the review will be similar to T1.
This includes the ability, for instance, to use customer credit reinvestment offsets which allow us to invest in projects for the benefit of customers. Second, as Jim described well, the robust growth of our asset base at DEV is concentrated around rider-recoverable investments that are outside the scope of triennial available earnings reviews. Combined with growth at our other state-regulated operating segments, the proportion of the company's earnings and cash flows which are subject to triennial earnings tests, will naturally diminish over the forecast and beyond. Third, the very nature of our business as a state-regulated utility company is working with regulators to deliver beneficial outcomes for both customers and investors.
It's something we've been doing for many years. We expect to continue to apply the experience we've gained to upcoming rate proceedings of all varieties, including the Triennial Reviews. We firmly believe that there are a number of paths that converge on a single objective: serving customers, employees, communities, the environment, and investors. On top of that, we're incredibly excited about what Dominion Energy is planning to accomplish well beyond the next two Triennial Reviews.
Specifically, over the next 15 years, the investment of upwards of $70 billion of green capital, nearly all of which will grow earnings under regulated rider mechanisms and significantly reduce emissions while maintaining competitive customer rates. We don't believe any other company in the United States offers the duration, visibility, and scope of regulated decarbonization growth that Dominion Energy now offers. Shifting gears a little on Slide 36, we summarize the status of the pending South Carolina general rate case proceeding which is presently in a six-month pause which we supported. As part of the pause, the commission ordered the parties to report on a monthly basis, on their progress toward reaching a settlement.
We cant reportto you this morning on the status of current negotiations, obviously, but we look forward to continuing to engage with parties to the case in hopes of finding a suitable resolution to bring before the commission for approval. In the meantime, our commitment to customers is unwavering. Over the last approximately 15 years, we've reduced average annual customer outage minutes or SAIDI by 40%. Investments made in prior periods, including the years covered by our recent rate case filing are critical to system reliability and the continuation of this trend to the benefit of our customers.
We're committed to meeting 100% of our merger commitments, establishing trust with our customers and communities, and working toward an increasingly sustainable future for South Carolinians. In that regard, let me provide an update on our integrated resource plan. Briefly, the commission asked us to refile the plan and consider, among other changes, accelerated renewable energy deployment and increased sensitivities to potential carbon pricing. In the table on the right-hand side, you can see how one of the cases we filed with our original IRP, called Plan 8 is indicative of the potential for accelerated decarbonization at only slightly higher customer cost as compared to the prior base plan.
Plan 8 would retire 1,300 megawatts of coal-fired generation in 2028 and add 300 megawatts of storage and 700 megawatts of new solar which would result in a nearly 60% reduction in CO2 emissions by 2030, and only cost approximately 3% more than the base plan. We look forward to engaging with all stakeholders on this planning process. On Slide 38, we provide key elements of our gas distribution segment growth and sustainability strategy. Our utilities operate in some of the fastest-growing areas of the country with annual customer growth rates approaching 3% in two of our three largest markets.
These customers simply prefer natural gas service for cooking, heating, and other residential, commercial, and industrial applications. We're also fortunate to operate in jurisdictions where regulation prioritizes safety and reliability. Decoupling mechanisms promote the implementation of increased efficiency measures which help to reduce customer bills. And infrastructure modernization and integrity trackers allow us to make critical investments and upgrades that both reduce emissions and raise the bar on safe and reliable service.
When it comes to natural gas distribution, location matters. We know that for natural gas to be relevant in the future, we must continue to focus on increasing the sustainability of our service. We've adopted an ambitious Scope 1 emission targets but that isn't enough. We're now looking at Scope 3 emissions in cutting-edge ways.
We formalized our support for federal methane regulation and we're working toward procurement practices that encourage enhanced disclosures by upstream counterparties on their emissions and methane-reduction programs. Further, we're considering a preference for suppliers and shippers who adopt a net zero commitment. For downstream emissions, we plan to increase our annual spend on energy efficiency by 45% over the next five years and provide our customers with access to a carbon calculator and carbon offsets. We're also developing plans which will require collaboration with policymakers and regulators to increase access to RNG for our customers, and ultimately, to initiate mandatory RNG blend levels that would act to offset our customers' carbon footprint.
And finally, we're pursuing innovative hydrogen use cases which we discuss in more detail in the appendix. This includes our participation as a founding member of the Low-Carbon Resources Initiative that just surpassed $100 million of funding from over 30 industry members. I'll conclude my remarks by addressing several important topics we took in 2020 that enhanced our industry-leading ESG profile. In February, we announced the goal of net zero-carbon and methane emissions by 2050.
Over the summer, as the nation began to reexamine important points around race, we built upon our existing legacy of social equity by committing $40 million to social justice and equity causes. In October, we published our latest Sustainability and Corporate Responsibility Report which conforms with the major best-in-class reporting standards, including the Global Reporting Initiative, the Sustainability Accounting Standards Board, and the UN Sustainable Development Goals framework. Also in October, we established a new commitment to increase our total workforce diversity by 1% each year. During 2020, we got up to a strong start with half of our company's new hires being diverse.
And in November, we announced our formal support for the Task Force on Climate-related Financial Disclosures or TCFD, making us one of only six utilities to adopt such support. Looking ahead on Slide 40, we have more to do. In January, as I mentioned, we publicly formalized our support for federal methane regulations. During the second quarter of this year, we'll publish an updated climate report that will reflect TCFD-recommended methodologies.
And throughout 2021, we'll advance our efforts to address Scope 3 emissions, firstly, in our gas distribution businesses as I previously described. These and other ESG-oriented efforts have been recognized by leading third-party assessment services as shown on Slide 41. By each measure, our performance exceeds the sector average. We've been recognized as part of the leadership band by CDP for our climate and water disclosure, as trendsetters for the third consecutive year by the CPA-Zicklin report on political accountability and transparency and as part of the Just 100 for the second consecutive year by JUST Capital for our actions to promote increased equity.
I'll conclude the call on Slide 42 which you saw in Tom's remarks as well. We are taking steps today to chart a course that over the next decades will put our company on a remarkable journey to becoming the most sustainable energy company in America. Our future is bright and we're focused on executing this plan for the benefit of our employees, customers and communities, the environment, and our investors. With that, we're ready to take questions.
Questions & Answers:
Operator
[Operator instructions] Our first question comes from Steve Fleishman with Wolfe Research.
Steve Fleishman -- Wolfe Research -- Analyst
Hi, thanks. Good morning. So just first question on the -- your growth rate now goes out to 2025 which would encompass, I guess, the 2024 triennial outcome in it. Can you talk a little bit about how you're kind of including that in your assumptions? What are you assuming for that?
Bob Blue -- President and Chief Executive Officer
Yeah. Thanks, Steve. Appreciate the question. You know, we're -- as I mentioned earlier, we're only 43 days into a three-year period that's going to be reviewed and we don't even file the case for more than three years.
So not surprisingly, lots of details to come. I do think it's important, though, when we look at developing a long-term growth rate, we look at a variety of planning scenarios. We don't assume a single outcome for the 2024 triennial or any other major planning assumption that far out in our plan. You know, I will say one theme that is certainly assumed in all of our forecasted outcomes, 2024 or any other years that Virginia regulation continues to be constructive.
Just the way it's worked over the years which has provided our customers with solid reliability rates more than 10% below the national average and a greener and greener generation portfolio. And then I think it's also important to remember, as Jim and I talked about earlier, that a portion of our base rates that -- the portion of our earnings that come from base rates in Virginia as we go through time and riders and other mechanisms outside Virginia grow in importance. Our growth between now and the '24 triennial and then after the '24 triennial is driven by rider investments that are outside the '24 triennial or any other triennial proceeding.
Steve Fleishman -- Wolfe Research -- Analyst
OK. So is the punchline then that you kind of feel like you've got ability to deal with a variety of outcomes for that or in the scheme of things? Or -- and that's kind of encompassed in there in your assumptions?
Bob Blue -- President and Chief Executive Officer
Yeah, this is what we do. It's what we've done over the years is, we work with regulators, policymakers on constructive outcomes for customers and the health of the utility, and we fully expect that we'll be able to continue that going forward.
Steve Fleishman -- Wolfe Research -- Analyst
OK. And then one other question related to that is, I did notice that it does seem like the base component of the rate base in Virginia and the percentages seemed lower than they have been in some of your other recent disclosures. Could you just explain maybe some of the changes there, I guess, maybe, Jim?
Jim Chapman -- Executive Vice President and Chief Financial Officer
OK. Good morning, let me take that and I'm not sure if everyone has the full deck in front of them. But for future references, it's set out on Page 60 in the appendix. But you're right, the total rate base in Virginia has not changed, other than the passage of time and the completion of the year.
But what we did do is we refined the calculation of the elements of total rate base. We've been showing the schedule since like 2019 when we started this, I guess, our last Investor Day, where we, at that time, the triennial was very far away. We were trying to make it simple, so we lumped some things together and now, we've refined that. And the refinement relates to about $4 billion of rate base, that previously, we had categorized as Virginia-based and other and the $4 billion is really the other.
And we've now reallocated that to other categories. So what's in the other? Those are contracts, where we serve various entities in the state, municipalities, the state of Virginia itself, the federal government, entities like that, where the contracts reflect different economic construct. Some of them are just sort of negotiated. Those are in the other category in our new -- I don't know, our new slide and others track more some of the riders, whether it's a transmission rider or legacy A6 riders.
So we've reallocated to be more precise. Now Virginia-based is not Virginia-based and other. It's just Virginia-based and it brings down that number to about $9 billion. So I think that's helpful to folks as they do math and sensitivities to have that more refined division on the various buckets of our total Virginia rate base.
Steve Fleishman -- Wolfe Research -- Analyst
OK. Yeah. Thank you very much.
Operator
Thank you. Our next question comes from Dan Ford with UBS.
Dan Ford -- UBS -- Analyst
Hi, good morning. Thanks very much for the time today.
Bob Blue -- President and Chief Executive Officer
Hi, Dan. Thanks for joining.
Dan Ford -- UBS -- Analyst
Thank you. So this question is for you, Bob. So the Virginia legislature has several live utility and energy economy-related bills still floating around and Governor Northam's asked for a special session. Can you put all the noise that this creates for investors into perspective for us?
Bob Blue -- President and Chief Executive Officer
Yeah, sure. You know what, I don't think I can remember a fourth-quarter call we've done, where we didn't get a question on the Virginia General Assembly. I guess that's a function of the timing of our fourth-quarter call and the session, so I'm glad you asked us. We would have been disappointed if we didn't get one this year.
It's been now, I guess, more than 15 years since I worked in the Governor's office in Virginia, but there are a few things about the legislative process that I think are probably still true. The first one, the legislature doesn't follow a script. The -- you make a mistake or you make predictions with certainty about the outcome of legislation at your peril and I think that is still true. The second is that bill for it to become law have to clear a number of hurdles.
It's not just one House or the other. It's both Houses and it's committees of both Houses. And an example of that from this year's session, would be the one bill introduced in the Senate that related to our regulatory model was defeated in committee on a pretty strong bipartisan vote. And then the last thing that is still true about the legislature in Virginia is, it moves quickly.
So I don't think we're going to have to wait a long time. This year, the timing has been a little bit different as you mentioned. The session went -- it's constitutionally mandated 30 days and then the governor called a special session, but the process is still moving pretty quickly. And so I think those bills that you're referring to will be resolved relatively soon because that's the way the Virginia General Assembly moves.
We'll keep an eye on them, but I think it's important to remember that they've got hurdles they would still have to clear before they could become law.
Dan Ford -- UBS -- Analyst
OK. Thanks very much and I guess one also for Jim. So Jim, thanks for all the detail on the capex going forward, as well as, what's rider-eligible versus not. I -- can you talk a little bit about the impact that the capex mix and the rider-eligible projects will have on cash flow conversion as we go through the next five years?
Jim Chapman -- Executive Vice President and Chief Financial Officer
Yeah. Thanks, Dan. Let me do that. So as I mentioned, almost -- well, over 70%, almost three quarters of our capital spending in this five-year plan is in rider format in Virginia and elsewhere.
So what that means is, as we invest that capital, there's no regulatory lag. There is a proportional increase in operating cash flow from that investment. So that's quite an assistance in our plan for the sources and uses of cash given the lack of regulatory lag and kind of the proportional advancement of our rider spend and our rider rate base growth and also our operating cash flow. We think it's quite a nifty feature of the structure.
Dan Ford -- UBS -- Analyst
Great. OK. Thanks very much guys.
Jim Chapman -- Executive Vice President and Chief Financial Officer
Thanks, Dan.
Operator
Our next question comes from Shar Pourreza with Guggenheim Partners.
Shar Pourreza -- Guggenheim Partners -- Analyst
Hey, good morning, guys.
Tom Farrell -- Executive Chairman
Good morning, Shar.
Jim Chapman -- Executive Vice President and Chief Financial Officer
Good morning.
Shar Pourreza -- Guggenheim Partners -- Analyst
Just a quick housekeeping and then I have a quick follow-up. Just maybe starting with the '21 guidance. I mean, obviously, you've highlighted an expectation for 10% or better growth off that 2020 base, but the bottom end sort of implies about 6% year-over-year growth. There's a lot of visibility with the plans, so just trying to get a sense on any scenarios outside of weather that could put you at that lower end.
And then I know the midpoint of the range is about $0.025 lower versus prior. Is that South Carolina GRC delay-related? Can you manage it? Is there sort of a conservatism built in there?
Jim Chapman -- Executive Vice President and Chief Financial Officer
Yeah. A lot of parts of that question as normal. Sorry -- so let me [Inaudible] back for it.
Bob Blue -- President and Chief Executive Officer
South Carolina had no impact on that guidance range, none.
Jim Chapman -- Executive Vice President and Chief Financial Officer
Well, let me walk through the elements of our guidance. So we have our long-term EPS growth guidance of 6.5%, which is intended to be more precise than our peers as opposed to a 200-basis point range. And what we do every year, as we go along that 6.5% long-term target rate, we choose a midpoint for our annual guidance. And around that midpoint, we have a range and every quarter, we mention that that range is intended primarily to capture different weather outcome.
Now going back a few years, that range was pretty wide. Within the last five years, it's $0.50, then it was $0.45, today, it's $0.30. But the primary reason for that range, this year included, is to incorporate -- to accommodate various weather outcomes. The midpoint of the range is 3.85 and we're very confident in making that number and continuing our track record of meeting or exceeding on a weather-normal basis, like we talked about for the last five years.
So there's a range. There's a midpoint. That midpoint, again, as I said in my prepared remarks, is consistent with the very narrow range of potential midpoint that we guided in July.
Shar Pourreza -- Guggenheim Partners -- Analyst
Got it.
Jim Chapman -- Executive Vice President and Chief Financial Officer
No, no [Inaudible] to the South Carolina process.
Shar Pourreza -- Guggenheim Partners -- Analyst
Got it. Got it. Thank you for that, Jim. And then just lastly, on the ratings.
Obviously, you're presenting a really healthy cash flow outlook. The business risk profile has obviously improved, 9% utility growth, a lot of it is rider treatment, single-issue rate making, 15% FFO to debt levels. Any sort of -- and agency, obviously, also has a positive outlook. I mean, metrics seem to point you closer to A minus.
Any sense on how the conversations are going with the rating agencies?
Jim Chapman -- Executive Vice President and Chief Financial Officer
Let me say it this way. I think, generally, across the three rating agencies, there's a recognition of the senior management focus on credit that's been a part of all the transactions and financings we've done in the last years and there's a recognition of the improvement that we've accomplished. So we're in a good spot.
OK.
Shar Pourreza -- Guggenheim Partners -- Analyst
Going forward, I wouldn't speculate on an upgrade but what I would expect, maybe -- I'm not trying to get ahead of the agencies. But what I'd hope for is increased recognition of the very material improvement in our business risk profile from a credit perspective overall in last years and we're just -- the dust has barely settled, right, on a last step of that with the sale of gas transmission & storage. But I would hope that that element would work its way more into the dialogue and even the thresholds that the various agencies apply to our company.
Terrific. All right. That's what I was trying to get at, Jim. I appreciate it.
Thank you guys.
Operator
Thank you. Our next question comes from Julien Dumoulin-Smith with Bank of America.
Julien Dumoulin-Smith -- Bank of America Merrill Lynch -- Analyst
Hey, good morning, team. Thanks for the time and opportunity. Um, perhaps to follow up on some of the last questions. I got a couple real quickly, if you can.
I believe you just said a second ago with respect to the 6.5% and the increased level of precision, I think Steve brought up earlier. Obviously, there's a lot baked into that five-year outlook through '25. How do you get yourself so confident around that 6.5% precision that you guys articulated? I mean, obviously, it's purposeful as you just said. If you can speak to it a little bit more narrowly about the level of confidence you have in these outcomes to drive that number, that would be great.
And then I have a quick follow-up, if you don't mind.
Jim Chapman -- Executive Vice President and Chief Financial Officer
Yeah. I mean, I think I'd answer it simply this way, Julien. You know, we were confident in July when we announced the 6.5% growth rate and nothing has changed since then. We're still confident.
We've outlined, as you've heard today, some roll forward of our capex. We've got a lot of clarity on rider recoverability of that capex and all of that contributes as we sort of develop our assumptions around our long-term growth rate to maintaining the confidence that we had last summer in that 6.5%.
Julien Dumoulin-Smith -- Bank of America Merrill Lynch -- Analyst
Got it. Fair enough. And then turning back to South Carolina quickly, if you can. Obviously, I heard what you said about '21 here.
How do you think about prospects for settlement timeline there, just difference of the generations? Then ultimately, capex, obviously, we're paying attention to what's going on with Duke in the Carolinas here, too. How do you think about capex opportunities as well?
Bob Blue -- President and Chief Executive Officer
Yeah. So on settlement, we're working through the pause that was ordered by the commission that we agreed to with monthly reports on that. And we're always optimistic about our prospects of selling cases because we think we're very creative in finding ways that we can resolve issues that are beneficial for customers and for the company. Ultimately, it requires all the parties to agree to settle and it's -- I can't tell you what's in the mind of the counterparties.
I can just tell you that we're working very hard toward that and we have an endpoint that the commission said, if you haven't settled, we'll start the case back up again. So we'll get there, either with a settlement or we'll finish the case and it's a strong case. We were very confident in the case that we filed. We haven't had a base rate case in eight years and we've invested substantially in the system and improved the system, and we're entitled to return on those -- to a return on those investments.
So we think it's a very strong case. Hopefully, we can settle it. If we can't, we're very comfortable with our ability to defend the position that we took in that case. As to potential future growth, I mean, obviously, we need to get through this rate case and see.
And that's our focus at the moment, along with making sure that we maintain our commitments that we made in the merger process. The IRP process, obviously suggests, that going forward, there may be some further investment opportunities and we'll certainly take advantage of those. But right now, what we're focused on is getting this first rate case resolved in a constructive manner.
Julien Dumoulin-Smith -- Bank of America Merrill Lynch -- Analyst
Got it. Thanks for that. Best of luck.
Bob Blue -- President and Chief Executive Officer
Thanks.
Operator
Thank you. Our next question comes from Michael Weinstein with Credit Suisse.
Michael Weinstein -- Credit Suisse -- Analyst
Hi, guys.
Jim Chapman -- Executive Vice President and Chief Financial Officer
Good morning.
Bob Blue -- President and Chief Executive Officer
Hey, Michael.
Michael Weinstein -- Credit Suisse -- Analyst
Do you guys -- I'm wondering if -- to what extent has additional tax credit extensions and some of the renewable stimulus planning that you're expecting to see from the Democrats over the next few months built into the plan? And is there potential for upside? Especially when I look at like the solar and maybe even in the -- just in terms of customer affordability. I mean, maybe you could afford to do some more work maybe in undergrounding or grid transformation?
Bob Blue -- President and Chief Executive Officer
Yeah. That's a great question, Michael. And you're right. For us, in the regulated environment that we're talking about, the extension of the ITCs and various tax credits is customer-rate beneficial and doesn't change the investment return, but definitely reduces the rate that customers pay.
So we'll look at whether there are opportunities. We have a pretty aggressive plan as you've seen in the Virginia Clean Economy Act last year passed an aggressive plan. So we're moving very quickly. If there are opportunities to advance, we'll take them.
But the main affect of ITC extension is going to be benefit to customers on rate.
Jim Chapman -- Executive Vice President and Chief Financial Officer
One thing, Michael, and I'll add to that, it's Jim, is when it comes to ITCs that we recognize the earnings benefit from outside of a regulatory context, that, just to be clear, is not really a growth industry for us. Most of what we do that relates to ITC is in a regulated format, where it benefits our customers, as Bob said. But two years ago at Investor Day, we gave some guidance that that ITC recognition and earnings would be somewhere in the up to $0.15 per year range and where we've been is really below that. In '18, we're at $0.09; in '19, we're $0.11; in '20, we were at $0.16.
But we still plan to trend within that run rate up to 15% -- $0.15 per year guidance. So not a big impact in that area, it's mostly on the regulated customer benefit side, as Bob described.
Michael Weinstein -- Credit Suisse -- Analyst
All right. And just to be clear, the ITC doesn't reduce the rate base in any of the projects that you're working on -- on regulated.
Bob Blue -- President and Chief Executive Officer
Yeah. That's exactly right.
Michael Weinstein -- Credit Suisse -- Analyst
And my understanding is the strategic undergrounding has driven -- the limit -- there's a limit to the amount you can invest there by law. Is there any talk of perhaps, maybe extending that, considering maybe things might be getting more affordable to the federal tax credits?
Bob Blue -- President and Chief Executive Officer
Yeah. So that's a legislative -- that cap is in legislation that you're referring to. It has to do with a percentage of overall rate base. There's no legislation pending in Virginia right now on that issue.
So if it were to be extended, it's unlikely that would happen this year.
Michael Weinstein -- Credit Suisse -- Analyst
OK. Great. Thanks very much.
Operator
Thank you. Our next question comes from Jeremy Tonet with J.P. Morgan.
Jeremy Tonet -- J.P. Morgan -- Analyst
Hi, good morning.
Jim Chapman -- Executive Vice President and Chief Financial Officer
Good morning.
Bob Blue -- President and Chief Executive Officer
Good morning.
Jeremy Tonet -- J.P. Morgan -- Analyst
You've outlined the decarbonization opportunity for 2035.
Bob Blue -- President and Chief Executive Officer
Jeremy, we can barely hear you.
Jeremy Tonet -- J.P. Morgan -- Analyst
Oh, sorry about that. Is that better?
Bob Blue -- President and Chief Executive Officer
That sounds better, much better.
Jeremy Tonet -- J.P. Morgan -- Analyst
You outlined the decarbonization opportunity through 2035 today. How do you think about customer growth and other investments for that period? And given the magnitude of your clean spend here, do you expect this to capture an increasing share going forward, absent large changes in customer growth?
Bob Blue -- President and Chief Executive Officer
I'm sorry. We can talk a little bit about customer growth. I mean, we've had pretty consistent growth in our electric utility over the course of the last decade or so that we would expect to continue. On the Virginia side, for example, 35,000 new customers connected a year or so.
On the gas side of our business, as we mentioned in our prepared remarks, strong -- very strong new customer growth, but I'm not sure I totally followed the second part of the question. I apologize.
Jeremy Tonet -- J.P. Morgan -- Analyst
Just the relative share, I guess, of the green capex is -- just wanted to see if that's going to continue to be a large portion of what you're doing going forward. Or are there other chunky investments in the non-clean side we should think about there?
Bob Blue -- President and Chief Executive Officer
Yeah. No. It's uh -- the outlook is very much -- and I think it's really reflected on the slide that shows that $72 billion opportunity. The -- that is all -- these are all decarbonization-related or enabling investments.
So that's going to be the absolute lion's share of our investment going out and we would expect that to continue even beyond that long-term period. Obviously, 15 years from now is a long time in this business.
Jeremy Tonet -- J.P. Morgan -- Analyst
Right. Great. Thanks. And then how much timing and recovery flexibility do you have with CCRO-eligible capex for the second Triennial Review period? Does your plan currently assume kind of baked-in recovery of any of this spend explicitly?
Bob Blue -- President and Chief Executive Officer
Yeah. As I mentioned, we have a variety of assumptions, not one single assumption related to the '24 triennial. We do have a slide that shows what's eligible and the total there and we'll sort of take advantage of that as circumstances warrant. It's too early for us to know how much of it we would expect to use in the '24 triennial.
We just know what we're likely to have available. You can see that on that slide.
Jeremy Tonet -- J.P. Morgan -- Analyst
Got it. Thanks and one last one, if I could.
Bob Blue -- President and Chief Executive Officer
Sure.
Jeremy Tonet -- J.P. Morgan -- Analyst
You talked about Virginia legislation and just want to see about South Carolina legislation and if securitization came through, how would you deal with that?
Bob Blue -- President and Chief Executive Officer
Yeah. We think securitization makes sense in certain circumstances. Storm recovery, for example, makes a lot of sense. Obviously, we didn't think it made sense with respect to new nuclear.
So we'll see if it passes. If it passes in a way that would be constructive, that's great. We'll just have to wait and see how it is. I know that bill has been introduced a number of times in South Carolina in the past and hasn't been enacted, but -- and circumstances like storm recovery makes a lot of sense.
Jeremy Tonet -- J.P. Morgan -- Analyst
Great. Thanks so much.
Operator
Thank you. Our next question comes from Durgesh Chopra with Evercore ISI.
Durgesh Chopra -- Evercore ISI -- Analyst
Hey, good morning, team. Thanks for taking my question.
Jim Chapman -- Executive Vice President and Chief Financial Officer
Good morning.
Durgesh Chopra -- Evercore ISI -- Analyst
Jim, on Slide 20, I'm just curious. The cash flow sources and uses go through '23 and the planned base through '25. Am I reading too much into it? Or are there differences in the kind of the combi -- the composition of cash sources and uses in '24 and '25 as you ramp up your offshore investment?
Jim Chapman -- Executive Vice President and Chief Financial Officer
Yeah, Durgesh. Durgesh, thanks. The reason we went to just a three-year average view here is that, over five years, the numbers get pretty big. And maybe a little bit more difficult to bridge from where we are now and where we were in '20, but -- you probably are reading too much into it.
We have elsewhere, of course, disclosed our equity financing plan through the end of the period on the next slide. So you can see that the financing is going to continue. What will change is the operating cash flow which will grow on a five-year basis and the investing cash flow which will grow slightly as it increased a little bit back dated in the five-year plan. But nothing more interesting than that, I'd say.
Durgesh Chopra -- Evercore ISI -- Analyst
Understood. I get it. OK. So more sort of granularity and conviction in your years and -- but no significant changes in the makeup of source and uses.
Jim Chapman -- Executive Vice President and Chief Financial Officer
Bigger numbers, that's not it.
Durgesh Chopra -- Evercore ISI -- Analyst
Yeah. OK. All right. And then just quickly following up.
Just on Slide 10 and maybe, Bob, this is for you or perhaps even Jim. Just the largest regulated decarbonization plan, love it. But in terms of when I'm thinking about any legislative support that you need, is it fair to assume that this opportunity of $72 billion sort of is -- you can accomplish this with the Virginia Clean Energy Act? Or do you need further legislative support so you can act on these [Inaudible] opportunities?
Bob Blue -- President and Chief Executive Officer
No, your assumption is correct. This is -- this is based upon the Virginia Clean Economy Act and the Grid Transformation & Security Act in 2018, so all of this is already legislatively authorized. Now we obviously have to seek approval from the commission for projects and we've demonstrated on solar. And as I mentioned in earlier remarks, we've had three solar filings approved by the commission already, and we've had our electric transmission spend and those kinds of things approved consistently over the years.
But we don't need additional -- we're not looking for additional legislative enactments to carry out this 15-year regulated book.
Durgesh Chopra -- Evercore ISI -- Analyst
Excellent. Thank you for the update today and much appreciate the added disclosures. Thanks a lot, guys.
Jim Chapman -- Executive Vice President and Chief Financial Officer
Thank you.
Bob Blue -- President and Chief Executive Officer
Thank you.
Operator
Thank you. Our next question comes from James Thalacker with BMO Capital Markets.
James Thalacker -- BMO Capital Markets -- Analyst
Good morning and thanks for the time guys.
Jim Chapman -- Executive Vice President and Chief Financial Officer
Good morning.
James Thalacker -- BMO Capital Markets -- Analyst
Just wanted to circle back on your comments just on bill affordability as you implement your capital plan and Mike Weinstein actually raised a good question. And you know, as we saw the extension of the ITC at 30% at the end of the year, could you potentially talk to how that's going to -- how do you maybe quantify or how it's going to impact customer rates and making things more affordable as you implement your capital plan?
Bob Blue -- President and Chief Executive Officer
Yeah. I don't think we've quantified that yet. So we filed an integrated resource plan earlier this year and or last year, I guess, we're in 2021. The 2020 integrated resource plan, we showed a 10-year look at 2.9% that we talked about.
Well, I'm confidently updating that. We certainly have an IRP update later this year in Virginia. And I would expect as part of that, we'll run the numbers on the customer rates, but we don't have -- we haven't quantified customer rate impacts of that ITC at this point.
James Thalacker -- BMO Capital Markets -- Analyst
That's great. But I would assume that it would give you a little bit more flexibility as we're looking down the road here?
Bob Blue -- President and Chief Executive Officer
That is absolutely true. It's going to have benefits to customers in rates and offers us flexibility as we go forward.
James Thalacker -- BMO Capital Markets -- Analyst
Great. And just, I guess, just to stay along that line. I know we're looking a little bit farther out. But like how -- maybe you could touch a little bit about some of the programs or I don't know if you're ready to quantify.
But how you're thinking about controlling costs to create more headroom to continue to implement your capital plan over the next, say, five to seven years?
Jim Chapman -- Executive Vice President and Chief Financial Officer
Yeah. Let me talk about that. It's Jim. ITC is one element which will benefit customers for sure, but the other is O&M.
And let me give some kind of high-level thoughts on that. We talked at our last Investor Day about flat normalized O&M. So normalized is normalizing for new riders that haven't associated acquired O&M or things like pension benefits which discount rates and the like, make that number go up and down. So we normalize for all that and then we keep it flat.
And in 2019, we gave an estimate that by keeping it flat for three years across our entire business, we were going to stay versus a 2% escalator like $200-ish million in cumulative basis and we did. So now it's still flat and we're rolling that out for the full five-year period. Now we did have some savings that actually went down a little bit in 2019 -- sorry, in 2020 from COVID, not all that's permanent. But our effort to keep that flat O&M, so negating inflation or wage increases and things like that, it's not easy.
But it's not through big things, like some of our peers have talked about, step changes in O&M discovered during COVID. We had some COVID savings for sure, but our approach is a little bit different. It's kind of programmatic. It's pushing cost savings as part of the system, the culture.
So finding ways to use technology and work smarter throughout the business. So we have examples of that that helps us keep that flat O&M. They're tiny in comparison to Dominion, electronic timesheets and electronic signatures and they've gone along this, they're all tiny, but they add up. And that the kind of thing, the small efforts throughout the company, every state, every location that allow us to keep that normalized OEM flat, and the reason we do that is, to make room in the customer bill.
Yeah, it helps out on the customer side and potentially also creates room in that bill for the capital spending that also benefits customers. So that's kind of our other lever we have in managing customer bill is continuing to manage that flat O&M.
James Thalacker -- BMO Capital Markets -- Analyst
Got it. Great. Thank you very much for the time.
Jim Chapman -- Executive Vice President and Chief Financial Officer
Thank you.
Operator
Thank you. Our next question comes from Michael Lapides with Goldman Sachs.
Michael Lapides -- Goldman Sachs -- Analyst
Hi, guys. Thank you for taking my question and great slide deck today, lots of detail. I have two questions. One, can you remind us, as a percent of rate base or dollar millions, what is the coal generation in rate base, both in Virginia and South Carolina?
Jim Chapman -- Executive Vice President and Chief Financial Officer
We set that out on a whole-company basis, Michael, on Page 32. And as a percentage of total investment base which is rate base plus the fixed assets, the PP&E for our smaller contracted assets business, is 7%, 7% of rate base effectively.
Michael Lapides -- Goldman Sachs -- Analyst
OK.
Bob Blue -- President and Chief Executive Officer
And just for the five-year plan, given obviously the spending on other areas, that goes to 4% by 2025 and down from there.
Michael Lapides -- Goldman Sachs -- Analyst
Got it. So if I think about it at the Virginia level, and you've done a significant amount of coal retirements in Virginia. If you wanted to retire facilities even earlier than planned in some of the coal facilities there, that would accrue or account as part of the CCRO in the 2021 to 2024 time frame? Am I thinking that that's also an alternative, not just investing new capital that would necessarily get a cash return, but the writedowns of some of the older coal plants might as well?
Bob Blue -- President and Chief Executive Officer
Yeah. A couple of things there, Michael. One is, obviously, we don't make decisions on fossil retirements based on the timing related to a regulatory proceeding. That's -- we make those decisions based on the sustainability of those plants going forward or if there's a change in the law or those kinds of things.
So I think that's an important thing to keep in mind. And then the other is that you are sort of conflating two different topics, I think. One is this customer credit reinvestment offset which is provided for by statute. Those are projects that are, either grid transformation projects or renewable projects, where that capital investment can be applied as essentially the customer benefit in an earnings sharing mechanism.
When you calculate what the -- when the Triennial Review is done and there are available earnings, there's an earnings sharing mechanism and then for the customer portion of that to, either be a refund or one of these renewable or grid transformation projects. I think what you're thinking of is if there is -- if we retire a plant early, there's a writedown and then that expense would be treated logically as an expense in the period if there are available earnings. That's the best for customers. It's what long-standing practice has been in Virginia.
So two sort of slightly different things you're talking about there. Both have some impact on the calculation and the triennial, but we're obviously a long ways away from the second triennial here.
Michael Lapides -- Goldman Sachs -- Analyst
Understood. And just coming back to the coal generation question, do you think your coal units in both states, given how much power prices have come down, given how much capex costs for renewables and storage have come down, do you think the coal units are currently economic still? The the existing operating coal units? And is there a dramatic difference between the ones in Virginia and the ones in South Carolina?
Bob Blue -- President and Chief Executive Officer
Yeah. I don't know that I'd say there's a dramatic difference. We obviously look at the economics of those plants regularly and make a determine -- make a determination whether they are viable in the future and whether they're properly valued. So we'll do that -- continue to do that on a regular basis.
Michael Lapides -- Goldman Sachs -- Analyst
Got it. Thank you, guys. Much appreciated for taking my questions.
Jim Chapman -- Executive Vice President and Chief Financial Officer
Thank you, Michael.
Operator
Thank you. Our final question comes from Srinjoy Banerjee with Barclays.
Srinjoy Banerjee -- Barclays -- Analyst
Hi, good morning, guys. Thanks for taking the questions. Just on thinking about FFO to debt metrics, as well as, the ratings. So obviously, you guys have seen a consistent improvement to those metrics, 15% in 2020.
If we look at the S&P and Moody's targets for high BBB, I guess S&P requires 15% and Moody's requires 17%. So, you know, how do you see your FFO to debt metrics evolve over the time period? Would you expect to stay around the 15% mark or expect an improvement given the riders that you have?
Jim Chapman -- Executive Vice President and Chief Financial Officer
Srinjoy, thanks a lot. Good to hear from you. Yeah, the way we think about that is we've -- it hasn't been easy to achieve the improvement that we show that one slide to get to the solidly mid-teens level and that's where we expect it to stay. So I think maybe you were suggesting, is there an upgrade in the air? Of course, not against that, but we -- what we really hope comes to pass, at some point is, again, further recognition of the business risk profile improvement.
So I wouldn't expect material changes in the metrics from where we are, from what we've achieved, and where we landed. I think that's in a good spot. Probably it will stay. But we'd love to have a little bit more headroom to that recognition I mentioned and we want that headroom not because we want to blow through it, but just because we think it's more the better.
So that's kind of where we are on credit.
Srinjoy Banerjee -- Barclays -- Analyst
OK. Thanks very much and I appreciate the time.
Jim Chapman -- Executive Vice President and Chief Financial Officer
Thank you.
Srinjoy Banerjee -- Barclays -- Analyst
Thanks a lot.
Operator
[Operator signoff]
Duration: 82 minutes
Call participants:
Steven Ridge -- Vice President, Investor Relations
Tom Farrell -- Executive Chairman
Jim Chapman -- Executive Vice President and Chief Financial Officer
Bob Blue -- President and Chief Executive Officer
Steve Fleishman -- Wolfe Research -- Analyst
Dan Ford -- UBS -- Analyst
Shar Pourreza -- Guggenheim Partners -- Analyst
Julien Dumoulin-Smith -- Bank of America Merrill Lynch -- Analyst
Michael Weinstein -- Credit Suisse -- Analyst
Jeremy Tonet -- J.P. Morgan -- Analyst
Durgesh Chopra -- Evercore ISI -- Analyst
James Thalacker -- BMO Capital Markets -- Analyst
Michael Lapides -- Goldman Sachs -- Analyst
Srinjoy Banerjee -- Barclays -- Analyst
More D analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Motley Fool Transcribing has no position in any of the stocks mentioned. The Motley Fool recommends Dominion Energy, Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Bob Blue -- President and Chief Executive Officer Yeah. Jim Chapman -- Executive Vice President and Chief Financial Officer Good morning. Jim Chapman -- Executive Vice President and Chief Financial Officer Yeah.
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Bob Blue -- President and Chief Executive Officer Yeah. Jim Chapman -- Executive Vice President and Chief Financial Officer Good morning. Jim Chapman -- Executive Vice President and Chief Financial Officer Yeah.
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Bob Blue -- President and Chief Executive Officer Yeah. Jim Chapman -- Executive Vice President and Chief Financial Officer Good morning. Jim Chapman -- Executive Vice President and Chief Financial Officer Yeah.
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Bob Blue -- President and Chief Executive Officer Yeah. Jim Chapman -- Executive Vice President and Chief Financial Officer Good morning. Jim Chapman -- Executive Vice President and Chief Financial Officer Yeah.
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698964.0
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2021-02-12 00:00:00 UTC
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The Implied Analyst 12-Month Target For FXU
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https://www.nasdaq.com/articles/the-implied-analyst-12-month-target-for-fxu-2021-02-12
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Utilities AlphaDEX Fund ETF (Symbol: FXU), we found that the implied analyst target price for the ETF based upon its underlying holdings is $31.43 per unit.
With FXU trading at a recent price near $28.45 per unit, that means that analysts see 10.48% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FXU's underlying holdings with notable upside to their analyst target prices are NiSource Inc. (Symbol: NI), American Electric Power Co Inc (Symbol: AEP), and Dominion Energy Inc (Symbol: D). Although NI has traded at a recent price of $22.75/share, the average analyst target is 22.34% higher at $27.83/share. Similarly, AEP has 17.74% upside from the recent share price of $78.95 if the average analyst target price of $92.96/share is reached, and analysts on average are expecting D to reach a target price of $81.36/share, which is 11.36% above the recent price of $73.06. Below is a twelve month price history chart comparing the stock performance of NI, AEP, and D:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
First Trust Utilities AlphaDEX Fund ETF FXU $28.45 $31.43 10.48%
NiSource Inc. NI $22.75 $27.83 22.34%
American Electric Power Co Inc AEP $78.95 $92.96 17.74%
Dominion Energy Inc D $73.06 $81.36 11.36%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although NI has traded at a recent price of $22.75/share, the average analyst target is 22.34% higher at $27.83/share. First Trust Utilities AlphaDEX Fund ETF FXU $28.45 $31.43 10.48% NiSource Inc. NI $22.75 $27.83 22.34% American Electric Power Co Inc AEP $78.95 $92.96 17.74% Dominion Energy Inc D $73.06 $81.36 11.36% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments?
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For the First Trust Utilities AlphaDEX Fund ETF (Symbol: FXU), we found that the implied analyst target price for the ETF based upon its underlying holdings is $31.43 per unit. Three of FXU's underlying holdings with notable upside to their analyst target prices are NiSource Inc. (Symbol: NI), American Electric Power Co Inc (Symbol: AEP), and Dominion Energy Inc (Symbol: D). First Trust Utilities AlphaDEX Fund ETF FXU $28.45 $31.43 10.48% NiSource Inc. NI $22.75 $27.83 22.34% American Electric Power Co Inc AEP $78.95 $92.96 17.74% Dominion Energy Inc D $73.06 $81.36 11.36% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, AEP has 17.74% upside from the recent share price of $78.95 if the average analyst target price of $92.96/share is reached, and analysts on average are expecting D to reach a target price of $81.36/share, which is 11.36% above the recent price of $73.06. A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past.
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. With FXU trading at a recent price near $28.45 per unit, that means that analysts see 10.48% upside for this ETF looking through to the average analyst targets of the underlying holdings. First Trust Utilities AlphaDEX Fund ETF FXU $28.45 $31.43 10.48% NiSource Inc. NI $22.75 $27.83 22.34% American Electric Power Co Inc AEP $78.95 $92.96 17.74% Dominion Energy Inc D $73.06 $81.36 11.36% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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698965.0
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2021-02-12 00:00:00 UTC
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Dominion Energy, Inc. Announces Decline In Q4 Profit
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https://www.nasdaq.com/articles/dominion-energy-inc.-announces-decline-in-q4-profit-2021-02-12
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(RTTNews) - Dominion Energy, Inc. (D) revealed a profit for fourth quarter that decreased from last year.
The company's earnings totaled $682 million, or $0.98 per share. This compares with $1.09 billion, or $0.99 per share, in last year's fourth quarter.
Analysts had expected the company to earn $0.8 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter fell 9.5% to $3.52 billion from $3.89 billion last year.
Dominion Energy, Inc. earnings at a glance:
-Earnings (Q4): $682 Mln. vs. $1.09 Bln. last year. -EPS (Q4): $0.98 vs. $0.99 last year. -Analysts Estimate: $0.8 -Revenue (Q4): $3.52 Bln vs. $3.89 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc. (D) revealed a profit for fourth quarter that decreased from last year. Analysts had expected the company to earn $0.8 per share, according to figures compiled by Thomson Reuters. The company's earnings totaled $682 million, or $0.98 per share.
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Dominion Energy, Inc. earnings at a glance: -Earnings (Q4): $682 Mln. (RTTNews) - Dominion Energy, Inc. (D) revealed a profit for fourth quarter that decreased from last year. The company's earnings totaled $682 million, or $0.98 per share.
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(RTTNews) - Dominion Energy, Inc. (D) revealed a profit for fourth quarter that decreased from last year. The company's earnings totaled $682 million, or $0.98 per share. Analysts had expected the company to earn $0.8 per share, according to figures compiled by Thomson Reuters.
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(RTTNews) - Dominion Energy, Inc. (D) revealed a profit for fourth quarter that decreased from last year. The company's earnings totaled $682 million, or $0.98 per share. Analysts had expected the company to earn $0.8 per share, according to figures compiled by Thomson Reuters.
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698966.0
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2021-02-12 00:00:00 UTC
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Dominion Energy Initiates Operating Earnings Guidance - Quick Facts
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https://www.nasdaq.com/articles/dominion-energy-initiates-operating-earnings-guidance-quick-facts-2021-02-12
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(RTTNews) - Dominion Energy (D) said the company expects 2021 operating earnings in the range of $3.70 to $4.00 per share. For the first quarter, the company anticipates operating earnings to be in the range of $1.00 to $1.15 per share.
Fourth quarter operating earnings was $0.81, compared to $1.02, a year ago. On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $0.80, for the quarter. Analysts' estimates typically exclude special items.
Fourth quarter operating revenue declined year-on-year to $3.52 billion from $3.90 billion. Analysts expected revenue of $4.24 billion, for the quarter.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy (D) said the company expects 2021 operating earnings in the range of $3.70 to $4.00 per share. On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $0.80, for the quarter. Fourth quarter operating earnings was $0.81, compared to $1.02, a year ago.
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(RTTNews) - Dominion Energy (D) said the company expects 2021 operating earnings in the range of $3.70 to $4.00 per share. Fourth quarter operating earnings was $0.81, compared to $1.02, a year ago. Fourth quarter operating revenue declined year-on-year to $3.52 billion from $3.90 billion.
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On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $0.80, for the quarter. Fourth quarter operating revenue declined year-on-year to $3.52 billion from $3.90 billion. (RTTNews) - Dominion Energy (D) said the company expects 2021 operating earnings in the range of $3.70 to $4.00 per share.
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On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $0.80, for the quarter. Analysts' estimates typically exclude special items. (RTTNews) - Dominion Energy (D) said the company expects 2021 operating earnings in the range of $3.70 to $4.00 per share.
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698967.0
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2021-02-12 00:00:00 UTC
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Dominion Energy Q4 20 Earnings Conference Call At 10:00 AM ET
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https://www.nasdaq.com/articles/dominion-energy-q4-20-earnings-conference-call-at-10%3A00-am-et-2021-02-12
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(RTTNews) - Dominion Energy, Inc. (D) will host a conference call at 10:00 AM ET on Feb. 12, 2021, to discuss Q4 20 earnings results.
To access the live webcast, log on to http://investors.dominionenergy.com
To listen to the call, dial 1-800-341-6228 (US) or 1-334-777-6993 (International) with passcode 26118983#.
For a replay call, dial 1-877-919-4059 (US) or 1-334-323-0140 (International) with pin 21194578.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc. (D) will host a conference call at 10:00 AM ET on Feb. 12, 2021, to discuss Q4 20 earnings results. To access the live webcast, log on to http://investors.dominionenergy.com To listen to the call, dial 1-800-341-6228 (US) or 1-334-777-6993 (International) with passcode 26118983#. For a replay call, dial 1-877-919-4059 (US) or 1-334-323-0140 (International) with pin 21194578.
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To access the live webcast, log on to http://investors.dominionenergy.com To listen to the call, dial 1-800-341-6228 (US) or 1-334-777-6993 (International) with passcode 26118983#. For a replay call, dial 1-877-919-4059 (US) or 1-334-323-0140 (International) with pin 21194578. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc. (D) will host a conference call at 10:00 AM ET on Feb. 12, 2021, to discuss Q4 20 earnings results. To access the live webcast, log on to http://investors.dominionenergy.com To listen to the call, dial 1-800-341-6228 (US) or 1-334-777-6993 (International) with passcode 26118983#. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc. (D) will host a conference call at 10:00 AM ET on Feb. 12, 2021, to discuss Q4 20 earnings results. To access the live webcast, log on to http://investors.dominionenergy.com To listen to the call, dial 1-800-341-6228 (US) or 1-334-777-6993 (International) with passcode 26118983#. For a replay call, dial 1-877-919-4059 (US) or 1-334-323-0140 (International) with pin 21194578.
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698968.0
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2021-02-11 00:00:00 UTC
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Pre-Market Earnings Report for February 12, 2021 : ENB, D, MCO, FTS, WPC, NWL, LECO, CAE, HUN, PRLB, AIMC, IMGN
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https://www.nasdaq.com/articles/pre-market-earnings-report-for-february-12-2021-%3A-enb-d-mco-fts-wpc-nwl-leco-cae-hun-prlb
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The following companies are expected to report earnings prior to market open on 02/12/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
Enbridge Inc (ENB) is reporting for the quarter ending December 31, 2020. The oil (production/pipeline) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.46. This value represents a no change for the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ENB is 18.89 vs. an industry ratio of 13.40, implying that they will have a higher earnings growth than their competitors in the same industry.
Dominion Energy, Inc. (D) is reporting for the quarter ending December 31, 2020. The electric power utilities company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.76. This value represents a 35.59% decrease compared to the same quarter last year. D missed the consensus earnings per share in the 1st calendar quarter of 2020 by -0.91%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for D is 20.36 vs. an industry ratio of 20.10, implying that they will have a higher earnings growth than their competitors in the same industry.
Moody's Corporation (MCO) is reporting for the quarter ending December 31, 2020. The financial services company's consensus earnings per share forecast from the 7 analysts that follow the stock is $1.97. This value represents a 1.50% decrease compared to the same quarter last year. In the past year MCO has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 22.83%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for MCO is 27.17 vs. an industry ratio of 19.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Fortis Inc. (FTS) is reporting for the quarter ending December 31, 2020. The electric power utilities company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.52. This value represents a 13.04% increase compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for FTS is 20.41 vs. an industry ratio of 20.10, implying that they will have a higher earnings growth than their competitors in the same industry.
W. P. Carey Inc. (WPC) is reporting for the quarter ending December 31, 2020. The reit company's consensus earnings per share forecast from the 1 analyst that follows the stock is $1.15. This value represents a 10.16% decrease compared to the same quarter last year. In the past year WPC has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 2.68%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for WPC is 14.88 vs. an industry ratio of 19.10.
Newell Brands Inc. (NWL) is reporting for the quarter ending December 31, 2020. The consumer company's consensus earnings per share forecast from the 7 analysts that follow the stock is $0.48. This value represents a 14.29% increase compared to the same quarter last year. In the past year NWL has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 90.91%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for NWL is 15.34 vs. an industry ratio of 28.90.
Lincoln Electric Holdings, Inc. (LECO) is reporting for the quarter ending December 31, 2020. The machinery company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.07. This value represents a 6.96% decrease compared to the same quarter last year. In the past year LECO has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2020 Price to Earnings ratio for LECO is 29.39 vs. an industry ratio of 28.50, implying that they will have a higher earnings growth than their competitors in the same industry.
CAE Inc (CAE) is reporting for the quarter ending December 31, 2020. The aerospace and defense company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.14. This value represents a 50.00% decrease compared to the same quarter last year. CAE missed the consensus earnings per share in the 2nd calendar quarter of 2020 by -300%. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CAE is 79.94 vs. an industry ratio of 38.80, implying that they will have a higher earnings growth than their competitors in the same industry.
Huntsman Corporation (HUN) is reporting for the quarter ending December 31, 2020. The chemical company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.44. This value represents a 51.72% increase compared to the same quarter last year. In the past year HUN has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 28%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for HUN is 31.09 vs. an industry ratio of 42.10.
Proto Labs, Inc. (PRLB) is reporting for the quarter ending December 31, 2020. The rubber & plastic company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.32. This value represents a 42.86% decrease compared to the same quarter last year. In the past year PRLB has beat the expectations every quarter. The highest one was in the 3rd calendar quarter where they beat the consensus by 37.5%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for PRLB is 112.92 vs. an industry ratio of 42.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Altra Industrial Motion Corp. (AIMC) is reporting for the quarter ending December 31, 2020. The machinery company's consensus earnings per share forecast from the 3 analysts that follow the stock is $0.70. This value represents a 6.06% increase compared to the same quarter last year. AIMC missed the consensus earnings per share in the 4th calendar quarter of 2019 by -1.49%. Zacks Investment Research reports that the 2020 Price to Earnings ratio for AIMC is 20.12 vs. an industry ratio of 7.70, implying that they will have a higher earnings growth than their competitors in the same industry.
ImmunoGen, Inc. (IMGN) is reporting for the quarter ending December 31, 2020. The drug company's consensus earnings per share forecast from the 7 analysts that follow the stock is $-0.04. This value represents a 233.33% decrease compared to the same quarter last year. IMGN missed the consensus earnings per share in the 1st calendar quarter of 2020 by -13.33%. The "days to cover" for this stock exceeds 13 days. Zacks Investment Research reports that the 2020 Price to Earnings ratio for IMGN is -16.56 vs. an industry ratio of -8.20.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The following companies are expected to report earnings prior to market open on 02/12/2021. Visit our Earnings Calendar for a full list of expected earnings releases. Enbridge Inc (ENB) is reporting for the quarter ending December 31, 2020.
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Zacks Investment Research reports that the 2020 Price to Earnings ratio for ENB is 18.89 vs. an industry ratio of 13.40, implying that they will have a higher earnings growth than their competitors in the same industry. The following companies are expected to report earnings prior to market open on 02/12/2021. Visit our Earnings Calendar for a full list of expected earnings releases.
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Zacks Investment Research reports that the 2020 Price to Earnings ratio for MCO is 27.17 vs. an industry ratio of 19.80, implying that they will have a higher earnings growth than their competitors in the same industry. Zacks Investment Research reports that the 2021 Price to Earnings ratio for CAE is 79.94 vs. an industry ratio of 38.80, implying that they will have a higher earnings growth than their competitors in the same industry. Zacks Investment Research reports that the 2020 Price to Earnings ratio for PRLB is 112.92 vs. an industry ratio of 42.50, implying that they will have a higher earnings growth than their competitors in the same industry.
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The following companies are expected to report earnings prior to market open on 02/12/2021. Visit our Earnings Calendar for a full list of expected earnings releases. Enbridge Inc (ENB) is reporting for the quarter ending December 31, 2020.
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698969.0
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2021-02-05 00:00:00 UTC
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Offshore Wind Is On at Dominion Energy!
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https://www.nasdaq.com/articles/offshore-wind-is-on-at-dominion-energy-2021-02-05
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To say that 2020 was an important year for giant U.S. utility Dominion Energy (NYSE: D) would be an understatement. It completely revamped its business, cut its dividend, and got a good head start on its next major growth initiative. Here's a little background on what's going on, with an update on the company's big offshore wind plans in Virginia.
Winds of change
Over the past decade or two, Dominion Energy has been working to reduce risk. That started with the sale of upstream energy assets (oil drilling) and culminated in 2020 with the sale of most of its midstream business (pipelines) to Berkshire Hathaway. What's left is basically a pure-play electric and natural gas distribution utility serving 7 million customers across 16 states. At this point, its utility operations are highly regulated and fairly predictable.
Image source: Getty Images.
That's the good news. The bad news is that this overhaul came with a 33% dividend cut. That, however, makes sense given that it sold a huge chunk of its business. But, going forward, Dominion is expecting to offer investors more robust dividend growth than it was capable of providing before the sale. There are two pieces to this. The company's payout ratio dropped from around 80% to what management expects to be about 65% in 2021. From this stronger dividend-paying position, the dividend should expand approximately 6% a year. That's pretty generous in the utility sector, and way better than the roughly 2% increase before it overhauled its business.
Backing that growth is the company's capital investment plan. As a largely regulated utility, Dominion must get its investments approved by the government. That's going to increasingly include renewable power options, like the offshore wind project Dominion has started in Virginia. It's a huge, long-term venture. And it's off to a great start.
The next big "dig"
On Oct. 14, 2020, Dominion announced that a two-turbine, 12-megawatt wind project 27 miles off of the coast of Virginia Beach had completed reliability testing and was ready to become a part of the grid. If you consider the amount of power being added here, this is a non-event. The company's Virginia business owned 21.1 gigawatts of generating capacity in 2019. Looking at this a different way, 12 megawatts is about enough to power just 3,000 homes. This project is barely a rounding error for Dominion, but don't underestimate its importance.
It was the first step in a multiyear effort and, perhaps most significantly, it allowed Dominion to get its feet wet in the offshore wind space. What the company learned from building it will go into stage two of the plan, which is slated to begin in 2024. According to Dominion, this multistage project is the largest offshore wind project in the United States at 2.6 gigawatts, or enough to power 660,000 homes. That's a much bigger deal.
At this point, it looks like the project will account for around $3.5 billion worth of capital investment between 2020 and 2024, with more to be spent in the years beyond that. Originally this was seen as an $8 billion investment spread over three additional building periods, each with about 800 megawatts of power. Dominion, however, seems to be thinking even bigger as it learns from its construction successes. A recent update on the company's offshore wind goals highlighted that by 2035 it could spend as much as $17 billion in the offshore wind space. The low-end figure given was the $8 billion price tag originally put on the Virginia project. Clearly, the offshore wind push is one investors need to watch.
Little steps
There's an old saying that you have to walk before you run. Dominion, having revamped its business, is definitely taking a deliberate approach with its big offshore wind project. You might even suggest, based on the tiny two-windmill project it recently completed, that it's crawling right now. But these early moves will help to inform and improve the construction processes in the upcoming, larger, stages. Keep an eye on the story here when it holds its upcoming earnings conference calls. Assuming things go well, which they seem to be at this point, offshore wind will be an increasingly important part of Dominion's growth story.
10 stocks we like better than Dominion Energy, Inc
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Reuben Gregg Brewer owns shares of Dominion Energy, Inc. The Motley Fool recommends Dominion Energy, Inc. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and recommends the following options: short March 2021 $225 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What's left is basically a pure-play electric and natural gas distribution utility serving 7 million customers across 16 states. The next big "dig" On Oct. 14, 2020, Dominion announced that a two-turbine, 12-megawatt wind project 27 miles off of the coast of Virginia Beach had completed reliability testing and was ready to become a part of the grid. Assuming things go well, which they seem to be at this point, offshore wind will be an increasingly important part of Dominion's growth story.
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That's going to increasingly include renewable power options, like the offshore wind project Dominion has started in Virginia. Assuming things go well, which they seem to be at this point, offshore wind will be an increasingly important part of Dominion's growth story. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and recommends the following options: short March 2021 $225 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares).
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That's going to increasingly include renewable power options, like the offshore wind project Dominion has started in Virginia. According to Dominion, this multistage project is the largest offshore wind project in the United States at 2.6 gigawatts, or enough to power 660,000 homes. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and recommends the following options: short March 2021 $225 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares).
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That's going to increasingly include renewable power options, like the offshore wind project Dominion has started in Virginia. Assuming things go well, which they seem to be at this point, offshore wind will be an increasingly important part of Dominion's growth story. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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698970.0
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2021-01-25 00:00:00 UTC
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Daily Dividend Report: D,PAYX,BRO,SJM,FELE
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https://www.nasdaq.com/articles/daily-dividend-report%3A-dpayxbrosjmfele-2021-01-25
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The board of directors of Dominion Energy has declared a quarterly dividend of 63 cents per share of common stock. Dividends are payable on March 20, 2021, to shareholders of record at the close of business March 5, 2021. This is the 372nd consecutive dividend that Dominion Energy or its predecessor company has paid holders of common stock. The company's last quarterly dividend was declared Nov. 4, 2020.
Today the Board of Directors of Paychex declared a regular quarterly dividend of $.62 per share payable February 25, 2021 to shareholders of record February 1, 2021.
Brown & Brown, today announced that the Board of Directors has declared a regular quarterly cash dividend of $0.0925 per share. The dividend is payable on February 17, 2021 to shareholders of record on February 5, 2021.
J.M. Smucker today announced its Board of Directors approved a $0.90 per share dividend on the common shares of the Company. The dividend will be paid on Monday, March 1, 2021, to shareholders of record at the close of business on Friday, February 12, 2021.
Franklin Electric announced today that its Board of Directors declared a quarterly cash dividend of $0.175 per share payable February 18, 2021, to shareholders of record on February 4, 2021. Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and fuel. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.
VIDEO: Daily Dividend Report: D,PAYX,BRO,SJM,FELE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The board of directors of Dominion Energy has declared a quarterly dividend of 63 cents per share of common stock. Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and fuel. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications.
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Today the Board of Directors of Paychex declared a regular quarterly dividend of $.62 per share payable February 25, 2021 to shareholders of record February 1, 2021. Brown & Brown, today announced that the Board of Directors has declared a regular quarterly cash dividend of $0.0925 per share. Franklin Electric announced today that its Board of Directors declared a quarterly cash dividend of $0.175 per share payable February 18, 2021, to shareholders of record on February 4, 2021.
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Today the Board of Directors of Paychex declared a regular quarterly dividend of $.62 per share payable February 25, 2021 to shareholders of record February 1, 2021. Brown & Brown, today announced that the Board of Directors has declared a regular quarterly cash dividend of $0.0925 per share. Franklin Electric announced today that its Board of Directors declared a quarterly cash dividend of $0.175 per share payable February 18, 2021, to shareholders of record on February 4, 2021.
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The board of directors of Dominion Energy has declared a quarterly dividend of 63 cents per share of common stock. Today the Board of Directors of Paychex declared a regular quarterly dividend of $.62 per share payable February 25, 2021 to shareholders of record February 1, 2021. Franklin Electric announced today that its Board of Directors declared a quarterly cash dividend of $0.175 per share payable February 18, 2021, to shareholders of record on February 4, 2021.
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698971.0
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2021-01-25 00:00:00 UTC
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Confused About Wind Energy Stocks? It's Simpler Than You Think
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https://www.nasdaq.com/articles/confused-about-wind-energy-stocks-its-simpler-than-you-think-2021-01-25
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In April 2020, Satya Nadella, the CEO of Microsoft, said, "we've seen two years worth of digital transformation in two months." He has a point. The COVID-19 pandemic accelerated the development of video conferencing, remote communication, cybersecurity, e-commerce, and a slew of other trends. What is less talked about is how much the pandemic indirectly accelerated the energy transition from fossil fuels to renewables.
2020 was chock-full of oil and gas companies slashing spending and setting new renewable production goals in response to lower oil and gas prices. Utilities like Dominion Energy scrapped plans for the Atlantic Coast Pipeline in favor of renewable alternatives. And just a few days ago, the Keystone XL oil pipeline pledged zero carbon emissions to avoid further delays.
Wind energy and solar energy are estimated to have accounted for 90% of new capacity installations in 2020. Technological advancements and scale are lowering solar and wind energy costs. Onshore wind and solar PV are now expected to be cheaper than fossil fuel sources as early as 2025.
Wind energy has attractive growth prospects. But the industry itself can appear confusing, complicated, and even intimidating. At their core, wind energy projects are actually quite simple. Gaining a basic understanding of the way the industry works can be one of the best ways to cut through the noise and identify the best wind energy investments for you. Here's a breakdown of what goes into a typical wind energy project.
Image source: Getty Images.
Original equipment manufacturers (OEMs)
Like film production, wind projects have a director. That's the OEM. Leading OEMs include Vestas, GE (NYSE: GE), Nordex, Siemens Gamesa, and Enercon. When you think of wind energy the first thing that comes to mind is probably the massive clusters of wind turbines that paint the landscapes of West Texas, the Great Plains, and the Midwest. The majority of these turbines are supplied by the OEMs, but not all. In fact, blades, towers, and other components can come from a variety of suppliers as long as they fit the OEM's project specifications. One of the biggest misconceptions about wind projects is that the OEM supplies everything when in reality they are more so coordinating the logistics of the project and working with trusted suppliers that can manufacture components according to its specs.
From there, the OEM creates the package and sells it to the operator. Depending on the size of the OEM, they could handle construction management and installations as well. Like a director in a movie, the OEM calls the shots and manages the project, but it relies on a cast and crew to get the job done.
Operators
If the OEM is the director of the wind project, then the operator would be the producer. The operator is the one that finances the project. It buys and owns the equipment, manages the project once it's built, and sells the power to the electrical grid. Unlike the OEMs, which are paid to design and build the project, the operator is responsible for the power itself and ultimately has to figure out which public, private, commercial, and residential customers to sell the electricity to. Leading U.S. operators are utilities like NextEra Energy (NYSE: NEE), Xcel Energy, and MidAmerican Energy (part of Warren Buffett's Berkshire Hathaway). And more recently, oil and gas companies are operating wind projects, too.
Several traditional oil and gas majors are shifting gears into the renewable energy space as operators as well. Total and Shell are investing in renewables, but BP (NYSE: BP) and Equinor (NYSE: EQNR) -- in particular -- are the majors that are aggressively investing in wind energy. Between 2019 and 2030, BP plans to decrease oil production by 40% and increase renewable capacity 20-fold. Equinor has one of the largest offshore wind portfolios and recently partnered with BP to tag-team the development of two of its largest projects. Like the utilities, these oil and gas companies are financing and managing wind projects. BP's specialty is onshore wind, whereas Equnor is positioned to transform itself into the world's leading offshore wind energy operator.
Image source: Getty Images.
Parts contractors
As mentioned, the OEM usually supplies wind turbine towers and blades. But it also outsources based on a variety of factors, namely cost and logistics. For example, if an OEM is managing a project in a location far away from its manufacturing facilities, it's likely cheaper to go with an external supplier. And that happens more than you may realize. In fact, TPI Composites supplied 18% of the world's onshore wind blades in 2019. Its largest customers are the world's leading OEMs, which contract TPI under long-term service agreements. Strategically located blade facilities are crucial to cost savings -- so much so that GE acquired TPI's largest competitor, LM Wind Power, in 2017 in an effort to expand its production capability.
Similar to the blade market, OEMs make the majority of towers. Independent manufacturers such as Broadwind Energy supply a substantial amount of wind towers in North America.
Aside from the blades and the towers, there are several other components that go into a wind package. The OEM will work with suppliers that manufacture drive systems, turbine controls, grid integration technology, generators, gearboxes, power electronics, parts, and other components according to the OEMs spec. They'll also work with software and electronic companies that supply control systems. Depending on the OEM, some of these functions can be provided and supplied in-house.
Engineering, procurement, and construction (EPC) firms
EPCs are hired for engineering expertise, logistics functions, and to construct the project. OEMs large and small will often contract local EPCs to help develop the project. As mentioned, a misconception is that the OEMs are doing everything themselves when in reality they are designing and executing the project and managing several other smaller teams. However, larger OEMs like Vestas will often win several of the EPC contracts themselves since they have the scale to do so. For what the OEM can't provide, it relies on the EPC. Tasks include electrical and mechanical work, infrastructure, logistics, construction, etc.
Most leading U.S. EPCs are privately held firms, many of which bid for a variety of projects (including wind). There are small local EPCs that focus strictly on wind and/or solar energy. But there are no publicly traded EPCs that focus solely on wind energy.
Energy storage
Battery storage technology companies and industrial energy storage systems (like those supplied by Honeywell) are a critical part of wind energy power generation. Large utilities like NextEra often have their own energy storage systems. The large OEMs like GE or Siemens (through its Fluence partnership with AES) also have their own energy storage systems. There's been a recent push for OEMs to vertically integrate battery storage into their core wind businesses. But the technology remains specialized and is often contracted out.
Image source: Getty Images.
Takeaways
At their core, wind projects are like other industrial megaprojects. There's someone in charge, someone with money, and a bunch of other companies that do everything in between. A trend worth following is the push for large OEMs to expand across the wind energy supply chain. GE's acquisition of LM Power and Siemens' partnership with AES are two recent examples of this. It will be interesting to see if this spending reduces costs over the long term and allows the OEM to bid for more contracts.
Determining which segment to invest in will depend on your risk tolerance and interest in other energy and industrial functions (GE and Siemens do a whole lot more than just wind). For investors new to wind, NextEra Energy is probably the best introductory stock to buy. The company has steady earnings, a stable and growing dividend, and loads of new wind projects in the works.
10 stocks we like better than NextEra Energy
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and NextEra Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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*Stock Advisor returns as of November 20, 2020
Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Daniel Foelber owns shares of Dominion Energy, Inc, Equinor ASA, and Royal Dutch Shell plc and has the following options: short April 2021 $17.50 calls on Equinor ASA and short April 2021 $27.50 calls on Royal Dutch Shell plc. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Microsoft. The Motley Fool recommends Dominion Energy, Inc, NextEra Energy, and TPI Composites and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Unlike the OEMs, which are paid to design and build the project, the operator is responsible for the power itself and ultimately has to figure out which public, private, commercial, and residential customers to sell the electricity to. Strategically located blade facilities are crucial to cost savings -- so much so that GE acquired TPI's largest competitor, LM Wind Power, in 2017 in an effort to expand its production capability. Determining which segment to invest in will depend on your risk tolerance and interest in other energy and industrial functions (GE and Siemens do a whole lot more than just wind).
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The OEM will work with suppliers that manufacture drive systems, turbine controls, grid integration technology, generators, gearboxes, power electronics, parts, and other components according to the OEMs spec. Daniel Foelber owns shares of Dominion Energy, Inc, Equinor ASA, and Royal Dutch Shell plc and has the following options: short April 2021 $17.50 calls on Equinor ASA and short April 2021 $27.50 calls on Royal Dutch Shell plc. The Motley Fool recommends Dominion Energy, Inc, NextEra Energy, and TPI Composites and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares).
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One of the biggest misconceptions about wind projects is that the OEM supplies everything when in reality they are more so coordinating the logistics of the project and working with trusted suppliers that can manufacture components according to its specs. Energy storage Battery storage technology companies and industrial energy storage systems (like those supplied by Honeywell) are a critical part of wind energy power generation. The Motley Fool recommends Dominion Energy, Inc, NextEra Energy, and TPI Composites and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares).
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And more recently, oil and gas companies are operating wind projects, too. Like the utilities, these oil and gas companies are financing and managing wind projects. In April 2020, Satya Nadella, the CEO of Microsoft, said, "we've seen two years worth of digital transformation in two months."
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698972.0
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2021-01-22 00:00:00 UTC
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IGF, KMI, D, WMB: ETF Outflow Alert
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https://www.nasdaq.com/articles/igf-kmi-d-wmb%3A-etf-outflow-alert-2021-01-22
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global Infrastructure ETF (Symbol: IGF) where we have detected an approximate $137.3 million dollar outflow -- that's a 4.3% decrease week over week (from 72,000,000 to 68,900,000). Among the largest underlying components of IGF, in trading today Kinder Morgan Inc. (Symbol: KMI) is off about 1.3%, Dominion Energy Inc (Symbol: D) is up about 0.8%, and Williams Cos Inc (Symbol: WMB) is lower by about 2.3%. For a complete list of holdings, visit the IGF Holdings page » The chart below shows the one year price performance of IGF, versus its 200 day moving average:
Looking at the chart above, IGF's low point in its 52 week range is $28.19 per share, with $49.93 as the 52 week high point — that compares with a last trade of $43.73. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Free Report: Top 7%+ Dividends (paid monthly)
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For a complete list of holdings, visit the IGF Holdings page » The chart below shows the one year price performance of IGF, versus its 200 day moving average: Looking at the chart above, IGF's low point in its 52 week range is $28.19 per share, with $49.93 as the 52 week high point — that compares with a last trade of $43.73. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the IGF Holdings page » The chart below shows the one year price performance of IGF, versus its 200 day moving average: Looking at the chart above, IGF's low point in its 52 week range is $28.19 per share, with $49.93 as the 52 week high point — that compares with a last trade of $43.73. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Click here to find out which 9 other ETFs experienced notable outflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global Infrastructure ETF (Symbol: IGF) where we have detected an approximate $137.3 million dollar outflow -- that's a 4.3% decrease week over week (from 72,000,000 to 68,900,000). For a complete list of holdings, visit the IGF Holdings page » The chart below shows the one year price performance of IGF, versus its 200 day moving average: Looking at the chart above, IGF's low point in its 52 week range is $28.19 per share, with $49.93 as the 52 week high point — that compares with a last trade of $43.73. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global Infrastructure ETF (Symbol: IGF) where we have detected an approximate $137.3 million dollar outflow -- that's a 4.3% decrease week over week (from 72,000,000 to 68,900,000). For a complete list of holdings, visit the IGF Holdings page » The chart below shows the one year price performance of IGF, versus its 200 day moving average: Looking at the chart above, IGF's low point in its 52 week range is $28.19 per share, with $49.93 as the 52 week high point — that compares with a last trade of $43.73. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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698973.0
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2021-01-15 00:00:00 UTC
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Top Energy and Industrials Stocks for 2021
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https://www.nasdaq.com/articles/top-energy-and-industrials-stocks-for-2021-2021-01-15
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In this episode of Industry Focus: Energy, we're continuing our theme week on Top Stocks for 2021 with Motley Fool contributor Jason Hall and host Nick Sciple, each sharing two of their favorite stocks for 2021. Find out what the growth opportunities are for these companies, what the challenges are, and why they are a good buy at the moment.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on January 7, 2021.
Nick Sciple: Welcome to Industry Focus. I'm Nick Sciple. Today we're continuing our Top Stocks week on the podcast, with Jason Hall joining me to share some of his favorite energy and industrial stocks for 2021. Jason, welcome back to the podcast.
Jason Hall: It's good to be on. Belated happy birthday and happy new year, my good friend.
Sciple: Thank you. It's great to be in 2021. I'd be remiss if we didn't mention, obviously, the news yesterday, with the Capitol Building being stormed by rioters, shutting down Congress' certifying of the election results of the 2020 presidential election. Not exactly what I asked for on my birthday, we watched the Capitol Building. We got a view of the Capitol Building outside of our window here in Alexandria. I was telling my fiance yesterday, I was like, "Hey, if this building lights on fire, we're going to see this, right?" I don't think when I moved into my apartment, I ever thought I would be saying that, much less on my birthday. But we're here, we're not a political show, we don't have any special insight on politics. That's beyond what any informed citizen has, but we are citizens of America, and the citizens of the world are watching this. Jason, what was your reaction from an investment point of view, and from a citizen's point of view seeing the events yesterday?
Hall: Well, we're human too. This isn't the sort of thing Americans of this generation have had to deal with. You have to go back to Vietnam the last time there was anything like this happening in the presence, in the halls of Capitol Hill, and certainly nothing like what we saw yesterday. I was flabbergasted. I was absolutely flabbergasted. I don't want to say anything partisan here, that's not what anybody is here to hear from me. But I think it's pretty easy to say that it was disgraceful and shameful, but to your point, what happened this morning?
Sciple: Sun came up.
Hall: Democracy worked. I think my favorite quote is ''Democracy is the worst form of government, except for all of the others." Government is ugly. It's hard, it doesn't always work, and nobody ever gets exactly what they want. Sometimes the people that don't get what they want lash out in ways that we don't expect. Here we go, we move forward. Maybe the biggest takeaway is don't make your investing with your partisanship, whatever it is.
Sciple: That's true, I was flabbergasted seeing the market OK to empower through this with the results. But again, it just goes to show it's impossible to predict the market. I think the important thing for me is what precedents do we set, and I think the precedent that we should set and I hope we set is that our institutions will hold strong in the face of these sorts of events. That's important for the world. It's important for markets. It's important for us as American citizens, me and you, Jason. I'm hopeful the worst is behind us, and things look better going forward. But either way, the sun will come up tomorrow. We'll try to be optimistic about what we can control, and we can change, what we can improve going forward. With that being said, we're here to talk about top stocks. What do you look for in a top stock, Jason? Is that a good transition? How did I do with that?
Hall: I think you did about as well as any of us can. I mean, here's the bottom line. I'll say this one little thing. I think one of the great things about America is capitalism. This is the home of capitalism, and this has been the biggest test-bed to prove that great companies can thrive. You know what? Sometimes it's that strife and disruption where they come from. You think about David Gardner, and think about Rule Breakers, looking for companies that disrupt the industries. Look for big trends, big things that are changing. That's informed a lot about the way that I invest, and the things that I look for. The big thing that I start with is, what is the trend driving a company's prospects? Usually, I start the other way, I think about trends a lot. I think about things like the global middle class. This is just an interesting statistic that came across for me from following Starbucks and looking at Starbucks' growth in China, and the expansion of China's middle-class. China's middle-class is going to be in a couple of years, like, 500 million people. China's middle-class is going to be bigger than the entire United States. Then I'm like, well, Africa is growing a lot. Latin America is growing.
There are all of these other places that are growing, and then you start finding out that the bigger trend for the middle class around the world is just going to grow by a billion people over the next 10 years. Then the 10 years after that, it's probably going to grow by 1.5 billion people. As much as the middle class trend hasn't been great here, around the world, that's a big trend. Then you have a big trend here where you have the aging of the baby boomers. There's this big need for all of the things to support them as they age in terms of healthcare and housing in that kind of thing. You find these trends, there's the cashless trend. You find all these trends, and then you have to figure out who's going to benefit from it? Who can profit from it? Brian Feroldi, our colleague, that's somebody I spend a lot of time talking with, talked about figuring out what stakeholders are going to benefit the most. Let's be honest, a lot of those trends, society wins, but maybe investors don't really ever make a lot of money. Figuring those two things out first is the starting point for me. What's the trend driving a company's prospects? How much is the addressable opportunity for that company to profit? Now, then when I start digging into the individual companies, there are a couple of key things that I like to see. One thing is, who is running the business? What is their track record of success? I think of two different approaches here.
One thing I love, I love founder-led businesses, but I don't exclusively invest in founder-led businesses. But if I found a business that the founder is still in charge, still relatively young, has a lot of skill in the game, and has a long track record of success doing whatever they're doing, that's a big green light for me. On the other hand, some of my biggest holdings, the founder has nothing to do with the business at all. But if there's an institutional history of success, that can carry a lot of value too. Winners continue to win usually is the case. Those are the key things that I look at, if you were to boil it down into four or five things.
Sciple: Awesome, yeah, I think that's great. I think that the trend stuff is something that I definitely use when it comes to where I think the world is going to be in 10 years. What kind of insights do I have about changes that are going to take place? For me, I've tried to really simplify things a lot, particularly through 2020. I think the big lesson for everybody is just that the future is very hard to predict. Even if you think you've got to be on what's going to happen tomorrow, you probably don't, and we've been reminded of that repeatedly this year. One of them is just, can I understand it? Do I understand what's driving this business? Sometimes it can just be common sense. So I've talked about online dating, just kind of absorbing how people behave around me. I remember when I invested in PayPal, the big kind of insight for me was they started accepting Venmo for paying for clubs on my college campus, and I was like, well listen, this thing is going to be a runaway winner if everybody on here is using this platform. Something that's just simple and easy to understand and behaviors that are predictable or something that I look for. Along those lines, I think, as a beginning investor, you always get this idea of I want to find this kind of unique thing that nobody else understands. Like, I read this thousand footnote that nobody else saw.
One big thing that I've kind of reached is you don't ever get any bonus points for degree of difficulty or for uniqueness in the stock market. Sometimes those great companies are out there and they just hit you over the head and are pretty obvious. So, I don't want to make things too hard on myself. I think David Gardner saw in his podcast recently, one of his things that he talks about is, if it's a great stock idea, you don't have to think about it too much. Sometimes you just understand them and they make sense. So, I look for something like that along those lines. How easy is it to replicate? If you understand something well, you can see how hard it is for somebody else to enter into this market. What are the behaviors that are driving this business? I think along those lines too is I'll know when I'm wrong. If my insight turns out to not play itself out in the market, then that's something important.
Then lastly is just, can it withstand uncertainty and what's my risk and rewards? So again, going back to what we saw this year, you want to understand, OK, in a worst-case scenario, what's the worst possible thing that could happen to me and then what's my upside available, because no matter how good of a beat you think you have on what's going to happen tomorrow or next week or next year, you will be surprised. Try to have something where it's easy to understand so you can stick to your thesis if it's still intact and to where your downside is protected for when the inevitable hits you. Those are a few things that I look for, obviously not every investment checks every box, and I break my own rules all the time. Just like Ben Graham, I think would say, his best investment he ever had, he broke his own rules. Not to say you won't look at anything in my portfolio and see me breaking that rule. But in a perfect world, stuff that can check all those buckets have to be easy to understand, have a high-risk reward and be something that I think can withstand a lot of volatility, unpredictability in the market. That's something I really like and have looked for as I talk about some of these companies we'll talk about today. Along those lines, Jason, the name of the show is our Top Stocks in Energy and Industrials for 2020, what's a pick that you have for us for this year?
Hall: This is a company that people hear me talk about an awful lot and that should be a key that it's probably a pretty good business and that's Brookfield Infrastructure (NYSE: BIP). It trades under two tickers. There's BIP, which is Brookfield Infrastructure Partners, that's the limited partnership. Then there's BIPC, which was recently created and it's a one-to-one economic equivalent, and it's a corporation. I don't want to focus too much on this, but there's a huge price variance, I think market closed yesterday the BIPC traded to a 35% premium to BIP, and the entire difference is that BIP is a limited partnership, BIPC trades as a corporation, so it's like Coca-Cola. The reason that matters is because this is really a dividend investment, a dividend growth investment, and the bottom line is a lot of institutional investors will not invest in partnerships. They're very rarely included in indices or they're more likely to be excluded from indices maybe is a better way to put it, because there's different tax implications. The limited partnerships issue a scheduled K-1. The dividends are typically taxed, the dividends that the distributions pay to you, part of it might be taxed at your nominal, your tax rate. So it might be taxed if you pay a 22%, 23% tax rate, maybe that's what you pay on it versus that 15% long term capital gains rate on regular dividends, and BIPC pays regular dividends, so that's one of the things. It also issues just a 1099-DIV. So there's a lot of large money investors that will buy BIPC, that BIP is excluded. So that's the biggest reason you see that variance there.
So, why am I interested in which company-wise that I top picked for this year? First of all, it's talking about the trends.
We've heard for years and years and years that U.S. infrastructure is in serious need of modernization and expansion. Whether you're talking about water infrastructure, here's the stuff that just blew my mind. This is something that American Water talks about, 20% of the treated drinkable water in the United States is lost in the system every year, 20% leaves the treatment plant ready to be consumed and never reaches a consumer. It's just lost. The system is so aging and so old. You think about the electrical infrastructure, the fact that Edison would recognize most of the components as being things that he helped design. You think about our roads, our bridges. The list goes on or not. Besides the rail, which is owned by the railways, pretty much anything that's a public property is in dire need of modernization and then you start just thinking about the growth. You think about around the world, that big trend of the global middle-class. I think the exact number that the global infrastructure hub, which is a G-8 or G-20 initiative, I can't remember which, says that between 2010 and almost 2050, like 2047, I think is the number that they pegged to, that the global infrastructure spend really needs to be like $90-something trillion to modernize and then meet the global need.
Over the next 20 years, the annual spend needs to be somewhere between $3 trillion and $4 trillion every single year. That is a ton, a ton of money, and Brookfield is in the middle of this. I can't think of any other international company that's better positioned to play a role in the deployments and the modernization of all kinds of infrastructure around the world. Whether it's water, whether it's transportation, ports, roads, telecommunications, natural gas, and other energy transmission, power transmission. This is their business, this is what they do and they're very, very good at it. In terms of generating returns, since the stock went public in early 2008, it's up more than 584% when you factor in the dividend. It absolutely crushed the S&P 500 over that period. The dividend has grown over 700% since it was initiated, and you can buy it today. I haven't looked at it at this exact moment, but it's around 4% dividend yield, which is very high, particularly when you consider the interest rate environment. That's because the stock is still down about 7% from the 52-week high back in November, it closed 2020 down about 1% over the full year. You think about a high-quality dividend stock with an incredible record of growing the dividend that's tied into some mega-trends. The stock fell last year. It's absolutely stunning to me that the Brookfield Infrastructure Partners' stock is still as cheap as it is right now. Honestly, I think it's my top buy right now, for anybody that's looking for a long-term dividend growth stock. I love it. I absolutely love it.
Sciple: Jason, one thing that I think is interesting with this company as well, you mentioned how big this opportunity is, but also, there's not a huge number of companies in the world that can go buy up and operate these infrastructure projects on such a huge scale. I don't know if it is a Brookfield Infrastructure entity, but Brookfield's like nationalizing South American power grids and things like that. There aren't a ton of companies out in the world with that type of expertise. You have this big opportunity and a limited set of people in a position to exploit it, at least, in a big way.
Hall: Yeah, there definitely aren't very many pureplays. This is a subsidiary of Brookfield Asset Management (NYSE: BAM), ticker BAM, which is one of the largest alternative asset managers in the world. This is one of the instruments they use to acquire, improve, operate, and deploy those infrastructure assets which fall right in that alternative asset class for people that are looking for things besides stocks, or bonds. It's right into their wheelhouse. In terms of their history of allocating capital across the cycles, the corporate culture there is just incredibly good. They've had a couple of CEOs in Brookfield Infrastructure's history, but the corporate culture from the board, through every part of the executive suite and then all the way going back to Brookfield Asset Management, the parent company, is incredibly, incredibly strong. They have a process, they're really good at it. They are really good at being counter-cyclical. In other words, they like to play the game of having access to capital when nobody else does and everybody needs it. That means they can buy great assets. They can go spend $1 billion or a couple of billion dollars to buy an asset that's a regulated monopoly in an area so they don't have to compete. Think about the durable, competitive advantages that their assets have, it's enormous. It is absolutely enormous.
Sciple: Yeah, I really like that one. I would tell you, for my first pick, I mentioned earlier, you don't get any bonus points for the degree of difficulty here for originality. I'm not going to get any bonus points for Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B), that's ticker BRK.B, unless you're super-rich and want to buy the A shares, BRK.A. I don't have $300,000+ sitting around to buy one share of stock. But if you do, thank you for listening and give me a call. Berkshire Hathaway, I think you mentioned the movement on Brookfield Infrastructure, you look at Berkshire over the past year, basically hasn't really moved significantly about 0.5% off its high over the last three years. But you look at how the company performed through the pandemic, this is a company that just can't be killed. You would think an industrial conglomerate would have some issues during the pandemic, have some type of speed bump operating cash flow up in the second and third quarter.
The company is now trading at 1.3 times book value. Warren Buffett has really turned on the buyback canon in the most recent quarters. They've bought $16 billion in stock so far this year, during the pandemic, $9.3 billion of that in the most recent quarter. We've got data in September, and paid about $216 per B share. Today the shares are around $232, so maybe about 10% or 15% above where Buffet was really turning on the buybacks. But you say Berkshire is really boring, but when it comes to the recoveries, you've got this valuation. Lots of the market is up as super-high. I would say Berkshire, from a value perspective, is about in the midpoint of where it's traded as far as price to book value over the past 10 years or so, 1.3 times price to book, so really reasonable valuation. You look at how some of its underlying businesses setup for these recoveries. You've got the railroad, so if you want to transport anything in this country from L.A., Chicago, or any of those western parts of the country, Berkshire Hathaway's railroad is a significant player there. You look at building supplies, everybody is excited about trends. You want to invest in an exciting trend. I think one of the obvious ones right now is there's not enough starter homes for the demand that there is in the market. We've seen this huge spike up in home prices this year. We're going to have to see new homes built. Acme Brick, Benjamin Moore Paints, Shaw carpet, Johns Manville insulation. Did you know Berkshire Hathaway owns the largest seller of recreational vehicles in the world? We've had this huge year for RVs in 2020. You look anywhere in this company --
Hall: Nick, I didn't know that. [laughs].
Sciple: One of the ones I'm really excited about, moving forward, everybody is excited about electric vehicles, going Pilot Flying J and 38% now. In 2023, they're going to take their stake up to 80%. I think truck stops, when you talk about electric vehicles coming to market and taking a bigger share, they're going to do pretty well. You talk how long it takes to recharge these vehicles, you've got to sit there an hour to recharge your vehicle. Pilot Flying J is the third-largest franchisor of quick-service restaurants in the country. When you talk about, if I want to go to a place where I'm stuck for an hour recharging my electric vehicle, I think they own the property that may be the best positioned to do that going forward. I think they have exposure to some of these trends.
But really, the takeaway is, you have this company generating massive amounts of cash. We just had, basically, the worst pandemic that could've happened to them and they've powered through without any significant hiccups. Buffet is turning on the buybacks, as I said, $9.3 billion in the most recent quarter. They still have something on the order of $140 billion worth of cash on the balance sheet that he has available to deploy. I think he's just going to keep buying back stock in an incredible way. If you look back, sometimes we'll go back and you can read some of his old partnership letters. There was one he wrote in October 1967, about market conditions right before he wound down his partnership. He says, "Opportunities for investment that are open to the analysts who stress quantitative factors have virtually disappeared, after rather steadily drying up over the past 20 years." That sounds familiar for where we've been over the past 20 years or so. We also talked about the size of the fund getting in the way of some of these opportunities. Buffet has had this incredible investment success with the Apple investment, that's about half of his investment portfolio today. But when you talk about the size of the company, if he is going to pursue value opportunities, he's really too big to be going after a lot of the small value where would traditionally be his bucket he would shop in. I think what's going to happen is, like he did in the late '60s in the go-go market, you're going to see him start returning capital to shareholders in a really significant way. I think we're going to see just massive amounts of buybacks from Berkshire Hathaway.
Warren Buffett was already featured in the Will Thorndike's, The Outsiders book, which is all about capital allocation historically and companies that really bought back massive amounts of their stock when opportunities presented themselves or just weren't great opportunities for redeployment of their capital. I think we're going to see a similar thing play out this time with Berkshire. I think you're just going to buy massive amounts of stock, just plow other cash flow into that. The stock is going to outperform the market as some of these other areas in the market are a little inflated relative to what they can produce. I think Berkshire isn't appreciated for the massive amounts of cash they can generate and how they can withstand, basically, the biggest disruption you can imagine for them and just power right through.
Hall: A couple of observations about Berkshire, when we did our year-end pre-record with Lou and with Matt a few weeks back, we were talking about Berkshire and I pointed out that for a 10-year period, at one point earlier this year, the S&P 500 had actually doubled Berkshire Hathaway's return,s like in total returns over that same period, it was just absolutely being crushed. And it's narrowed, but over the past 10 years, the S&P 500 has generated about 320% total returns, with Berkshire a little bit around 250%. It's still outperformed, but I don't think I've ever been more interested in buying Berkshire than I am right now. Talking about that book value, I pulled the chart just to look. I think I mentioned too, that it was like it'd been seven years since Berkshire had routinely traded this cheap. You look back and there's been little blips on the radar where Berkshire stock for a few days or a week fell to below like around 1.2 times book that had always quickly regained that value; 2020, if you look at the sustained valuation that the stock has had for the entire year, this is the cheapest Berkshire has been for this long in a decade. Really, you got to go back to the prior crash for Berkshire to be this cheap.
Here's the thing. I think it's easy to anchor on that under-performance and not acknowledge that there was this change in the environment for banks, and the way investors viewed banks that weighed heavily on the performance of the Berkshire stock portfolio. Buffett made a couple of really bad investments in big oil. The ConocoPhillips investment did not go well at all. The ExxonMobil investments did not go well at all. The IBM investment did not go well at all. There are a handful of big bets that just didn't work. But you think about the strength of this operating business, and by the way, we just had a 10-year market bull run that was almost unprecedented. Buffett told us back before, he said, "In strong bull markets, it's going to be hard for Berkshire to outperform. But when the market is down, that's where we can really win." Put all that together, and it seems like a lot of things are lining up in favor for Berkshire to be a great investment over the next decade.
Sciple: I would just say, I'm taking up for Warren Buffett like he needs defending, but we shouldn't overlook the Apple investment. He's got $100 billion in the thing, and Apple was the net with the best performing FAANG stock in 2020, even amid all this stuff. I don't think the guy has lost it at this point, a lot of the talk about his issues. Again, we see how big that Apple investment got and the size of their investment portfolio and just the limited opportunities you see in the market, just with how high private market valuations are getting right now. I think he's going to see the best opportunity being, buy back your own stock, and he is just going to plow massive amounts of cash into it over the next few years. If and when the valuation catches up to where he thinks is fair value, we'll see. The last thing to point out is, we're just a couple of years on since July 2018, Berkshire's board changed the policy around when they could buyback shares. Historically, it had been 1.2 times, 20% above book value. Once they are below that range is when he and Charlie Munger could purchase. They've since removed that restriction. Wherever the stock goes, he could feasibly continue buying indefinitely, if he sees that as the best use for capital. We'll see, it cannot sit in cash forever, I'll tell you that.
Hall: Well, the demand was at Dominion Energy, the pipelines that they purchased and the LNG export facility there. I think we're going to see more of those things, like these steady cash flow assets that become wholly owned subsidiaries. I think we'll see more of that. Apple was like, that's Coca-Cola part two. That's this massive, valuable consumer brand that its IP isn't just the product that it makes. It's the name and the value and the ability to make this huge profit off of something that users really like. Yeah, we'll see what happens next. But I love this pick Nick, I really do.
Sciple: We've got a couple of more picks to run through. Let's do this next one quickly, Jason, what have you got for your second pick?
Hall: This is a stock that's had a pretty good year. It's NV5 Global (NASDAQ: NVEE). The ticker is N-V-E-E. This is a microcap stock here. I think the market cap's maybe $1 billion, maybe a little more. But it's had a pretty good run lately. The reason why is, this is an infrastructure engineering company. Here we are with Democrats having control of both houses of Congress and the White House coming up. There is this idea that we're finally going to see a big push on infrastructure spending. This should be bipartisan. It should be something that gets done. I don't know if I buy into that happening or not, but here's the key: it's been great for NV5 investors over the past few months. The bottom line is, whether it happens or not, this is a business that's going to continue to ride some of those same trends that Brookfield Infrastructure, my first pick, was set up to profit from.
Here's the things that I like about NV5 Global. This is a company that is founder-led, Dickerson Wright. Dick Wright, the CEO, is a founder. He owns over 20% of the company's shares. He has a really long track record of success prior to founding NV5, which has been around for over a decade. The thing is this is an acquisitive model. They grow organically 8%-10% a year, which is really solid. But they do make a lot of acquisitions. There're a lot of bolt-on acquisitions of small engineering firms that maybe have a regional coverage or maybe they have a certain discipline that fits within the NV5 model. They bolt-on these acquisitions. They convert these acquisitions over to their backend, so they wring out some of the costs. But then they also benefit from cross-selling. If you buy an engineering firm that focuses on one thing and they are working with the client on a project and they need engineers that do something different, or maybe they have a property in a different area that they need to develop or something like that, NV5 can meet that need that that small engineering firm couldn't meet on their own. That's how they can cross-sell and that's where a lot of their organic sales growth comes from. They're actually attached to the fact that the original deal maybe came through an acquisition.
The bottom line is it's hard to do this well, but NV5 has a really good model. They're really good at wringing out those costs, they're really rigorous about it. A lot of companies that do acquisitions end up really bloated. These guys have been really good about not letting that bloat come along for the ride. You think about sales growth. This is a company that still doesn't do $1 billion a year in revenue, but over the past year I think they grew revenue something like 70%, just absolutely delivering. It is also a profitable business. Even with the stock price having run, say, well, at 60% or so over the past year, the forward price to earnings ratio is about 23 times. This is a stock that still trades for a really solid discount to the market, which I think their forward P/E for the S&P is over 30 times right now, it's just that market trades for really high valuations. You can buy a very small company participating in a really big growth opportunity, it's founder-led, it's profitable, at a great price. I think it just checks almost every single box for me. Again, the big caveat is the way that they've done a lot of their growth is a hard way to do it. The bigger they get, the harder it's going to be to find acquisitions to give meaningful growth. But they're still so small, I think it's a great company to buy.
Sciple: Awesome. NV5, that's an engineering firm. They're folks who are during the construction of some of these projects?
Hall: They do the engineering, they do a lot of the pre-work, they do project management, they recently made a big geospatial services acquisitions. That's a big deal in the West with the wildfires and all that stuff, to do geospatial work and to help companies, like, powerline transmission and that kind of thing. They're expanded a little bit outside of their initial scope, but it's a really smart place that they've expanded into. They've been really disciplined.
Sciple: Awesome. My second pick, just as quickly as Texas Pacific Land Trust (NYSE: TPL), they discussed this company on December 10th with Luis Sanchez. The stock is up about 15% since then, trading about a little over $800 a share. Today it's Texas Pacific Land Trust, on January 11th it will become Texas Pacific Land Corporation. If you listened to the episode back on December 10th, the history of this company was back to the 1800, there was a company called the Texas Pacific Railroad that went bust and had a certain amount of land. They formed a trust for the shareholders in that company to hold and maintain that land over a period of time. Well, we're here almost 140 years later, and that company is now going through the process of becoming a corporation. On January 11th, they will distribute one for one for shares of Texas Pacific Land Trust, they will distribute shares to Texas Pacific Land Corporation. Phone number is the same, addresses the same, the ticker is still the same, TPL, but the company will change into a corporate form.
Just from a business operations point of view, what's interesting about this company? I think over the past year, obviously, really rough for oil and gas, the oil price is down significantly as demand throughout the world has fallen. Also, there were some supply issues, obviously, in the spring with Saudi Arabia and Russia, going to war with one another. But now, we've seen prices stabilize and they are above $50. Now, Saudi Arabia has done a significant cut in an attempt to support the market. It appears, with demand returning later this year and with the measures that some of these producers are taking, we're in an environment that should be constructive for oil prices. So we said, "Okay, oil prices are headed up, generally, a lot of these companies that will be exposed to that aren't attractive investments. We've talked about in the podcast a lot about exploration and production companies. You have these fixed costs you had to put in to keep your wells maintained and that sort of thing which you're exposed to lots of commodity risks.
These companies sometimes have misaligned management teams, those types of issues. You don't necessarily want to invest in those businesses. But what Texas Pacific Land Trust gives you is a way to get some exposure to that without having some of these operations that an E&P company has. Just straight from their perspectives, TPL Corporation is one of the largest landowners in the state of Texas with approximately 880,000 acres of land, comprised of a number of separate tracks located in 19 counties in West Texas, they also own 128 royalty interests on 85,000 acres of land, and 116th non-participating royalty interest under 371,000 acres of land in Western Texas, and 4,000 additional net royalty acreage. Basically, they own massive amounts of land in West Texas. This is the Permian Basin, this is the area where among these shale plays, where the cost of production is the lowest, where you hear a lot of these companies that have talked about focusing their investments like Exxon and Chevron and others said, "Hey, we're going to deemphasize some places like the Bakken, we're going to emphasize the Permian where our prices are lowest.
To the extent oil production is reducing, and it's certainly as reducing in the U.S., some of those dollars are going to flow to the ,which is where Texas Pacific Land Trust is located. They have surface rights, that's where you see pipelines and the like constructed. Just on January 4th, Kinder Morgan turned on their Permian highway pipeline, taking natural gas out of the area, fully subscribed on regular contracts. The big issue in the Permian for the longest time has been takeaway capacity. If you want to install these pipelines, Texas Pacific has those service easements that folks have to pay them to get access to that as well. I mentioned they have this royalty acreage. Whenever oil gets pulled out of the ground on the acreage that they control, they get income coming in. They don't have to pay to build the pipeline, they don't have to pay to drill the wells, they just get an income based on the oil and gas that's produced. They're predominantly in the region in the Permian Basin where we're going to still see some continued production of oil and gas.
Essentially, you look at the balance sheet for the company, no debt, over $300 million in cash. If you look at their free cash flow yields, this is their free cash flow divided by the market cap of the company, it's the inverse of the free cash flow multiple, if you like, the price to free cash flow multiple, if you like to look at that. It's basically the highest it's been in five years. We have this conversion taking place. Jason mentioned earlier with the Brookfield Infrastructure Corporation, now, their conversion opened up access to a broader variety of investors, those same factors are at play here with the conversion to Texas Pacific Land Corporation. The other thing is you just get better corporate governance. This has been in a trust management style for an excess of 100 years, the trustees were appointed for a lifetime appointment.
Now, you're going to get regular reporting fully, they're going to have a new board in place, eight of nine members being independent, different incentives. If you were a trustee, you're just trying to preserve these properties going forward, you have a lifetime appointment, nobody is going to fire you. If you were a manager, someone who is a corporate manager, you can get fired if you don't do a good job, and you have incentives based on the performance of the company and all those sorts of things. Basically, what you're getting with Texas Pacific Land Trust is exposure to what is likely to be an area of the U.S. where oil and gas production continues where there's demand to either get pipelines installed on their land or to continue to extract oil and gas from that region. You get in a company with a super strong balance sheet. Even if there's continued volatility in the oil and gas market, this company is not going to go bankrupt on you, they're going to stick around to collect that value, and that value really is the oil and gas in the ground.
I think today, if you look at the valuation relative to where it's been in the past five years, that's attractively valued. Issues that might not work out for them, obviously, if oil and gas prices are low over a period of time, people might not choose to produce oil and gas on their land and they don't get money if no oil and gas comes out of the ground or if nobody is using those surface easements to install new pipelines, because producers have decided to not install more pipelines. But if you do believe that oil and gas production is going to continue in a meaningful way in the Permian Basin in the U.S., and I think it will, because if you want to think about it just from the future perspective, we need natural gas to light our homes. I know renewable energy is certainly on the rise, but natural gas is going to be an important contributor to our energy grid for decades to come, just as oil is going to be an important contributor to travel and those sorts of things.
Also, from just a national security point-of-view, the Permian Basin is probably our greatest asset when it comes to oil and gas production here in the country to develop over the next few decades. Does that mean we're ever going to get our production back to the peak it was a few years ago? No, but I do think they're going to continue generating cash out of this region for a long period of time, and Texas Pacific gives you some exposure to that.
Hall: Crazy stuff last week. I don't know if you saw this, you probably did. Zero barrels of oil came into the United States from Saudi Arabia.
Sciple: When is the last time that happened?
Hall: I can't remember. [laughs] That's happened in large part because of the Permian Basin and the Bakken, the development of a lot of these shale resources. The thing I like about this the most, Nick, is there is exposure to prices, because low oil prices mean lower royalties, because it can affect volumes that come out of these areas. If you believe, as I do, that oil and gas are going to continue to play a role, this is a great way to invest in the production without taking on the risk that every independent has, which is you can't get what it costs you just to get it out of the ground. This is the best. Own the royalties, own the real estate. [laughs] Let somebody else deal with producing it.
Sciple: Absolutely. I think we've talked about AerCap on the podcast in the past as a way to invest in an airline recovery. You own the airplanes. Even if the airlines go bankrupt, AerCap has these planes that will continue flying. There's still demand to fly, still demand for that value that airplanes represent. I think in a similar way, Texas Pacific is in a similar spot. Whether these E&Ps go bankrupt or not, that oil and gas in the ground has value, it has value for what what we can do with it and fuels, or fertilizer, or chemicals, or plastics, or all those things, that has value and will continue having value whether these companies, these producers, go bankrupt or not. Texas Pacific owned the option on that value. That's the scenario you're in with these companies. All right, Jason, those are our stocks ran through. We've got Texas Pacific Land Trust, soon to be Taxes Pacific Corporation, TPL, Berkshire Hathaway, ticker BRK.B, if you're a regular person, and if you're super-rich, you can do BRK.A. Then Jason, what were your two picks for us?
Hall: The second one was NV5 Global, ticker NVEE, and Brookfield Infrastructure. The Infrastructure Partners, ticker BIP, and then Brookfield Infrastructure Corporations, BIPC. I encourage people that it makes sense for to buy BIP at the current valuation.
Sciple: If you want to see more information on Texas Pacific, like I said, you can go back to our December 10th episode, I believe we've talked about the Brookfield companies over and over again. Look back anywhere in our history and you'll be able to track it down whenever we're talking about renewable yieldCo's or any of that sort of thing. Jason, always love having you on the podcasts to talk about some of our favorite stocks, and I'll look forward to having you on again next time.
Hall: Thanks, this is fun. Sure, we'll be talking soon.
Sciple: As always, people on the program may own companies discussed on the show, and The Motley Fool may have formal recommendations for or against the stocks discussed, s So don't buy or sell anything based solely on what you hear. Thanks to Tim Sparks for mixing the show, for Jason Hall. I'm Nick Sciple. Thanks for listening and Fool on.
Jason Hall owns shares of Brookfield Infrastructure, NV5 Global, and Starbucks. Nick Sciple owns shares of AerCap Holdings, Apple, Berkshire Hathaway (B shares), and PayPal Holdings. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), Brookfield Asset Management, NV5 Global, PayPal Holdings, and Starbucks. The Motley Fool recommends AerCap Holdings, Brookfield Infrastructure, and Dominion Energy, Inc and recommends the following options: short January 2021 $100 calls on Starbucks, short January 2021 $200 puts on Berkshire Hathaway (B shares), long January 2021 $200 calls on Berkshire Hathaway (B shares), and long January 2022 $75 calls on PayPal Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But if I found a business that the founder is still in charge, still relatively young, has a lot of skill in the game, and has a long track record of success doing whatever they're doing, that's a big green light for me. I remember when I invested in PayPal, the big kind of insight for me was they started accepting Venmo for paying for clubs on my college campus, and I was like, well listen, this thing is going to be a runaway winner if everybody on here is using this platform. If you believe, as I do, that oil and gas are going to continue to play a role, this is a great way to invest in the production without taking on the risk that every independent has, which is you can't get what it costs you just to get it out of the ground.
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Just straight from their perspectives, TPL Corporation is one of the largest landowners in the state of Texas with approximately 880,000 acres of land, comprised of a number of separate tracks located in 19 counties in West Texas, they also own 128 royalty interests on 85,000 acres of land, and 116th non-participating royalty interest under 371,000 acres of land in Western Texas, and 4,000 additional net royalty acreage. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), Brookfield Asset Management, NV5 Global, PayPal Holdings, and Starbucks. The Motley Fool recommends AerCap Holdings, Brookfield Infrastructure, and Dominion Energy, Inc and recommends the following options: short January 2021 $100 calls on Starbucks, short January 2021 $200 puts on Berkshire Hathaway (B shares), long January 2021 $200 calls on Berkshire Hathaway (B shares), and long January 2022 $75 calls on PayPal Holdings.
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Sciple: Jason, one thing that I think is interesting with this company as well, you mentioned how big this opportunity is, but also, there's not a huge number of companies in the world that can go buy up and operate these infrastructure projects on such a huge scale. Berkshire Hathaway, I think you mentioned the movement on Brookfield Infrastructure, you look at Berkshire over the past year, basically hasn't really moved significantly about 0.5% off its high over the last three years. Issues that might not work out for them, obviously, if oil and gas prices are low over a period of time, people might not choose to produce oil and gas on their land and they don't get money if no oil and gas comes out of the ground or if nobody is using those surface easements to install new pipelines, because producers have decided to not install more pipelines.
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Hall: This is a company that people hear me talk about an awful lot and that should be a key that it's probably a pretty good business and that's Brookfield Infrastructure (NYSE: BIP). Berkshire Hathaway, I think you mentioned the movement on Brookfield Infrastructure, you look at Berkshire over the past year, basically hasn't really moved significantly about 0.5% off its high over the last three years. Hall: This is a stock that's had a pretty good year.
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698974.0
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2021-01-14 00:00:00 UTC
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GE alleges Siemens Energy used stolen trade secrets to rig contract bids
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https://www.nasdaq.com/articles/ge-alleges-siemens-energy-used-stolen-trade-secrets-to-rig-contract-bids-2021-01-14-0
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By Mike Spector
NEW YORK, Jan 14 (Reuters) - General Electric Co GE.N accused a Siemens Energy AG ENR1n.DE subsidiary of using stolen trade secrets to rig bids for lucrative contracts supplying gas turbines to public utilities, and cover up improper business gains totaling more than $1 billion, according to a lawsuit filed on Thursday.
GE sued the rival company, Siemens Energy Inc, in a U.S. district court in Virginia, alleging the theft traces back to May 2019, when the industrial conglomerates bid to provide gas turbine equipment and servicing to Dominion Energy Inc D.N. Dominion is a Virginia power utility that provides electricity to about 4 million customers on the east coast.
The suit comes in the wake of Siemens AGSIEGn.DEspinning off its energy business to create Siemens Energy. GE alleges that Siemens Energy used trade secrets improperly received from a Dominion employee in part to win contracts that would boost the price of its initial public offering that took place in September.
Siemens identified the receipt of GE’s trade secrets “through its own robust compliance processes,” a spokesman said. Following an internal investigation, Siemens “implemented extensive remedial measures in response,” the spokesman added, such as “swift and appropriate discipline of the involved employees, including separation from the company.”
A Dominion representative did not immediately respond to a request for comment.
In the course of GE's bid for business with Dominion, the lawsuit alleges, a senior Dominion employee started sending to a Siemens account manager confidential business information GE had submitted. The information also included Dominion's analysis of all bids, giving Siemens a "blueprint" to win contracts worth up to $340 million with the utility for the business, known as the Peakers Project, GE alleged.
The recipient of GE's trade secrets at Siemens passed the information to colleagues that included those preparing the Dominion bid, which they used to help win the business, the lawsuit said.
The Dominion employee, no longer employed there, passed the information to the Siemens manager at least half a dozen times, in some instances forwarding it from his personal email address to that of the Siemens manager's wife, the lawsuit said. The employee on the receiving end remains at Siemens, the lawsuit said.
In a bid package, GE had provided Dominion with technical specifications for four gas turbine models, pricing for different combinations of the equipment and details on how the company would service and maintain it, the lawsuit claims. Gas turbines are combustion engines that convert natural gas to energy powering generators that supply electricity to large residential and business developments.
Siemens only alerted GE to improperly receiving the trade secrets 16 months later, in September, through what GE described as a "nothing to see here, folks" letter minimizing the infraction, the lawsuit alleged.
The alert came after Siemens completed its own internal investigation and Dominion finished its own inquiry, the lawsuit claims. Dominion alerted GE to the alleged malfeasance before Siemens did, the lawsuit said. GE asked a judge to halt Siemens from using the allegedly stolen material and pay damages totaling hundreds of millions of dollars or more.
The litigation is the latest legal battle involving the corporate rivals, which have squared off in lawsuits over patent infringement as recently as last year.
The alleged theft has put GE at a disadvantage competing for upcoming contracts worth at least $120 million apiece, the lawsuit claims. GE and Siemens are competing on another Dominion bid due Jan. 19, adding urgency to resolving the theft allegations, the lawsuit said.
Since first improperly receiving the information in May 2019, Siemens has won eight other gas turbine bids over GE's competing proposals valued at more than $1 billion, the lawsuit alleges.
In most of those proposals, GE bid some of the same gas turbine models from the Dominion project, and in one case equipment with similar specifications, the lawsuit said.
According to GE, the Siemens employee receiving the trade secrets passed them to numerous colleagues, some of whom played key roles in preparing other gas turbine bids. GE lost the Dominion bid to Siemens in July 2019 without explanation, the lawsuit alleges, and Siemens employees continued to disseminate and use GE trade secrets to tailor at least two additional gas turbine proposals.
Siemens has also "steadfastly refused" to assure GE that documents containing the trade secrets have been destroyed, the lawsuit claims.
The Siemens spokesman said the company has removed GE’s confidential information from all its internal systems and restricted employees who received the trade secrets from working on similar bids or proposals and reassigned employees to other parts of its business.
(Reporting by Mike Spector; editing by Edward Tobin)
((mike.spector@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Spector NEW YORK, Jan 14 (Reuters) - General Electric Co GE.N accused a Siemens Energy AG ENR1n.DE subsidiary of using stolen trade secrets to rig bids for lucrative contracts supplying gas turbines to public utilities, and cover up improper business gains totaling more than $1 billion, according to a lawsuit filed on Thursday. GE alleges that Siemens Energy used trade secrets improperly received from a Dominion employee in part to win contracts that would boost the price of its initial public offering that took place in September. Following an internal investigation, Siemens “implemented extensive remedial measures in response,” the spokesman added, such as “swift and appropriate discipline of the involved employees, including separation from the company.” A Dominion representative did not immediately respond to a request for comment.
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By Mike Spector NEW YORK, Jan 14 (Reuters) - General Electric Co GE.N accused a Siemens Energy AG ENR1n.DE subsidiary of using stolen trade secrets to rig bids for lucrative contracts supplying gas turbines to public utilities, and cover up improper business gains totaling more than $1 billion, according to a lawsuit filed on Thursday. GE alleges that Siemens Energy used trade secrets improperly received from a Dominion employee in part to win contracts that would boost the price of its initial public offering that took place in September. The Siemens spokesman said the company has removed GE’s confidential information from all its internal systems and restricted employees who received the trade secrets from working on similar bids or proposals and reassigned employees to other parts of its business.
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In the course of GE's bid for business with Dominion, the lawsuit alleges, a senior Dominion employee started sending to a Siemens account manager confidential business information GE had submitted. The recipient of GE's trade secrets at Siemens passed the information to colleagues that included those preparing the Dominion bid, which they used to help win the business, the lawsuit said. GE lost the Dominion bid to Siemens in July 2019 without explanation, the lawsuit alleges, and Siemens employees continued to disseminate and use GE trade secrets to tailor at least two additional gas turbine proposals.
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GE alleges that Siemens Energy used trade secrets improperly received from a Dominion employee in part to win contracts that would boost the price of its initial public offering that took place in September. Since first improperly receiving the information in May 2019, Siemens has won eight other gas turbine bids over GE's competing proposals valued at more than $1 billion, the lawsuit alleges. The Siemens spokesman said the company has removed GE’s confidential information from all its internal systems and restricted employees who received the trade secrets from working on similar bids or proposals and reassigned employees to other parts of its business.
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698975.0
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2021-01-14 00:00:00 UTC
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GE alleges Siemens Energy used stolen trade secrets to rig contract bids
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https://www.nasdaq.com/articles/ge-alleges-siemens-energy-used-stolen-trade-secrets-to-rig-contract-bids-2021-01-14
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nan
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nan
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By Mike Spector
NEW YORK, Jan 14 (Reuters) - General Electric Co GE.N accused a Siemens Energy AG ENR1n.DE subsidiary of using stolen trade secrets to rig bids for lucrative contracts supplying gas turbines to public utilities, and cover up improper business gains totaling more than $1 billion, according to a lawsuit filed on Thursday.
GE sued the rival company, Siemens Energy Inc, in a U.S. district court in Virginia, alleging the theft traces back to May 2019, when the industrial conglomerates bid to provide gas turbine equipment and servicing to Dominion Energy Inc D.N. Dominion is a Virginia power utility that provides electricity to about 4 million customers on the east coast.
The suit comes in the wake of Siemens AGSIEGn.DEspinning off its energy business to create Siemens Energy. GE alleges that Siemens Energy used trade secrets improperly received from a Dominion employee in part to win contracts that would boost the price of its initial public offering that took place in September.
A Siemens Energy spokesman had no immediate comment and Dominion representative did not immediately respond to requests for comment.
In the course of GE's bid for business with Dominion, the lawsuit alleges, a senior Dominion employee started sending to a Siemens account manager confidential business information GE had submitted. The information also included Dominion's analysis of all bids, giving Siemens a "blueprint" to win contracts worth up to $340 million with the utility for the business, known as the Peakers Project, GE alleged.
The recipient of GE's trade secrets at Siemens passed the information to colleagues that included those preparing the Dominion bid, which they used to help win the business, the lawsuit said.
The Dominion employee, no longer employed there, passed the information to the Siemens manager at least half a dozen times, in some instances forwarding it from his personal email address to that of the Siemens manager's wife, the lawsuit said. The employee on the receiving end remains at Siemens, the lawsuit said.
In a bid package, GE had provided Dominion with technical specifications for four gas turbine models, pricing for different combinations of the equipment and details on how the company would service and maintain it, the lawsuit claims. Gas turbines are combustion engines that convert natural gas to energy powering generators that supply electricity to large residential and business developments.
Siemens only alerted GE to improperly receiving the trade secrets 16 months later, in September, through what GE described as a "nothing to see here, folks" letter minimizing the infraction, the lawsuit alleged.
The alert came after Siemens completed its own internal investigation and Dominion finished its own inquiry, the lawsuit claims. Dominion alerted GE to the alleged malfeasance before Siemens did, the lawsuit said. GE asked a judge to halt Siemens from using the allegedly stolen material and pay damages totaling hundreds of millions of dollars or more.
The litigation is the latest legal battle involving the corporate rivals, which have squared off in lawsuits over patent infringement as recently as last year.
The alleged theft has put GE at a disadvantage competing for upcoming contracts worth at least $120 million apiece, the lawsuit claims. GE and Siemens are competing on another Dominion bid due Jan. 19, adding urgency to resolving the theft allegations, the lawsuit said.
Since first improperly receiving the information in May 2019, Siemens has won eight other gas turbine bids over GE's competing proposals valued at more than $1 billion, the lawsuit alleges.
In most of those proposals, GE bid some of the same gas turbine models from the Dominion project, and in one case equipment with similar specifications, the lawsuit said.
According to GE, the Siemens employee receiving the trade secrets passed them to numerous colleagues, some of whom played key roles in preparing other gas turbine bids. GE lost the Dominion bid to Siemens in July 2019 without explanation, the lawsuit alleges, and Siemens employees continued to disseminate and use GE trade secrets to tailor at least two additional gas turbine proposals.
Siemens has also "steadfastly refused" to assure GE that documents containing the trade secrets have been destroyed, the lawsuit claims.
(Reporting by Mike Spector; editing by Edward Tobin)
((mike.spector@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Mike Spector NEW YORK, Jan 14 (Reuters) - General Electric Co GE.N accused a Siemens Energy AG ENR1n.DE subsidiary of using stolen trade secrets to rig bids for lucrative contracts supplying gas turbines to public utilities, and cover up improper business gains totaling more than $1 billion, according to a lawsuit filed on Thursday. GE alleges that Siemens Energy used trade secrets improperly received from a Dominion employee in part to win contracts that would boost the price of its initial public offering that took place in September. In a bid package, GE had provided Dominion with technical specifications for four gas turbine models, pricing for different combinations of the equipment and details on how the company would service and maintain it, the lawsuit claims.
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By Mike Spector NEW YORK, Jan 14 (Reuters) - General Electric Co GE.N accused a Siemens Energy AG ENR1n.DE subsidiary of using stolen trade secrets to rig bids for lucrative contracts supplying gas turbines to public utilities, and cover up improper business gains totaling more than $1 billion, according to a lawsuit filed on Thursday. GE alleges that Siemens Energy used trade secrets improperly received from a Dominion employee in part to win contracts that would boost the price of its initial public offering that took place in September. The recipient of GE's trade secrets at Siemens passed the information to colleagues that included those preparing the Dominion bid, which they used to help win the business, the lawsuit said.
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GE sued the rival company, Siemens Energy Inc, in a U.S. district court in Virginia, alleging the theft traces back to May 2019, when the industrial conglomerates bid to provide gas turbine equipment and servicing to Dominion Energy Inc D.N. In the course of GE's bid for business with Dominion, the lawsuit alleges, a senior Dominion employee started sending to a Siemens account manager confidential business information GE had submitted. GE lost the Dominion bid to Siemens in July 2019 without explanation, the lawsuit alleges, and Siemens employees continued to disseminate and use GE trade secrets to tailor at least two additional gas turbine proposals.
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GE alleges that Siemens Energy used trade secrets improperly received from a Dominion employee in part to win contracts that would boost the price of its initial public offering that took place in September. The information also included Dominion's analysis of all bids, giving Siemens a "blueprint" to win contracts worth up to $340 million with the utility for the business, known as the Peakers Project, GE alleged. Since first improperly receiving the information in May 2019, Siemens has won eight other gas turbine bids over GE's competing proposals valued at more than $1 billion, the lawsuit alleges.
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698976.0
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2021-01-12 00:00:00 UTC
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TPG's Rise Fund invests in renewable natural gas marketer Element
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https://www.nasdaq.com/articles/tpgs-rise-fund-invests-in-renewable-natural-gas-marketer-element-2021-01-12-0
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By David French
NEW YORK, Jan 12 (Reuters) - The impact investing arm of TPG has bought a majority stake in Element Markets, which helps corporations achieve sustainability goals through securing renewable natural gas and advising them on credits and offsetting emissions.
No financial details were disclosed in a joint statement by Element Markets and The Rise Fund, which was founded in 2016 by the San Francisco-based private equity firm and counts U2 front man Bono among its backers.
Either through their own actions or under pressure from investors and activist groups, corporations are becoming increasingly attuned to environmental, social and governance (ESG) concerns, and are changing their behaviors accordingly, such as getting power from clean energy sources.
Element Markets is among the leading North American providers of renewable natural gas, also known as biomethane, for use instead of fossil fuels in transportation fleets.
The Houston-based firm also helps clients achieve compliance with environmental standards, through securing carbon and emissions credits.
"Our clients are doing this because of the sustainability stewardship within their corporations," Element Markets Chief Executive Angela Schwarz told Reuters, noting such commitments are substantial and time-consuming investments for companies.
Element Markets counts Smithfield Foods, the world's largest pork processor, global cosmetic brand L'Oreal SA OREP.PA, and U.S. utility Dominion Energy Inc D.N among its clients.
Schwarz said the Rise Fund investment will support Element Markets' expansion plans in the United States and overseas, as well as building out its carbon market operations and those in emerging alternative fuels such as hydrogen.
Both Schwarz and founder Randall Lack will retain a stake in Element Markets following the deal.
"We reached a point where we recognized that sustainability investing and decarbonization is at a major inflection point. So we realized, from a company perspective, that we had to find a partner to help us go to the next level," said Schwarz.
(Reporting by David French in New York; editing by Richard Pullin and Steve Orlofsky)
((davidj.french@thomsonreuters.com; +1 646 223 5211; Reuters Messaging: davidj.french.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David French NEW YORK, Jan 12 (Reuters) - The impact investing arm of TPG has bought a majority stake in Element Markets, which helps corporations achieve sustainability goals through securing renewable natural gas and advising them on credits and offsetting emissions. No financial details were disclosed in a joint statement by Element Markets and The Rise Fund, which was founded in 2016 by the San Francisco-based private equity firm and counts U2 front man Bono among its backers. Either through their own actions or under pressure from investors and activist groups, corporations are becoming increasingly attuned to environmental, social and governance (ESG) concerns, and are changing their behaviors accordingly, such as getting power from clean energy sources.
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By David French NEW YORK, Jan 12 (Reuters) - The impact investing arm of TPG has bought a majority stake in Element Markets, which helps corporations achieve sustainability goals through securing renewable natural gas and advising them on credits and offsetting emissions. The Houston-based firm also helps clients achieve compliance with environmental standards, through securing carbon and emissions credits. Schwarz said the Rise Fund investment will support Element Markets' expansion plans in the United States and overseas, as well as building out its carbon market operations and those in emerging alternative fuels such as hydrogen.
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By David French NEW YORK, Jan 12 (Reuters) - The impact investing arm of TPG has bought a majority stake in Element Markets, which helps corporations achieve sustainability goals through securing renewable natural gas and advising them on credits and offsetting emissions. "Our clients are doing this because of the sustainability stewardship within their corporations," Element Markets Chief Executive Angela Schwarz told Reuters, noting such commitments are substantial and time-consuming investments for companies. Schwarz said the Rise Fund investment will support Element Markets' expansion plans in the United States and overseas, as well as building out its carbon market operations and those in emerging alternative fuels such as hydrogen.
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By David French NEW YORK, Jan 12 (Reuters) - The impact investing arm of TPG has bought a majority stake in Element Markets, which helps corporations achieve sustainability goals through securing renewable natural gas and advising them on credits and offsetting emissions. No financial details were disclosed in a joint statement by Element Markets and The Rise Fund, which was founded in 2016 by the San Francisco-based private equity firm and counts U2 front man Bono among its backers. "Our clients are doing this because of the sustainability stewardship within their corporations," Element Markets Chief Executive Angela Schwarz told Reuters, noting such commitments are substantial and time-consuming investments for companies.
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698977.0
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2021-01-12 00:00:00 UTC
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TPG's Rise Fund invests in renewable natural gas marketer Element
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D
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https://www.nasdaq.com/articles/tpgs-rise-fund-invests-in-renewable-natural-gas-marketer-element-2021-01-12
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nan
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nan
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By David French
NEW YORK, Jan 12 (Reuters) - The impact investing arm of TPG Capital has bought a majority stake in Element Markets, which helps corporations achieve sustainability goals through securing renewable natural gas and advising them on credits and offsetting emissions.
No financial details were disclosed in a joint statement by Element Markets and The Rise Fund, which was founded in 2016 by the San Francisco-based private equity firm and counts U2 front man Bono among its backers.
Either through their own actions or under pressure from investors and activist groups, corporations are becoming increasingly attuned to environmental, social and governance (ESG) concerns, and are changing their behaviors accordingly, such as getting power from clean energy sources.
Element Markets is among the leading North American providers of renewable natural gas, also known as biomethane, for use instead of fossil fuels in transportation fleets.
The Houston-based firm also helps clients achieve compliance with environmental standards, through securing carbon and emissions credits.
"Our clients are doing this because of the sustainability stewardship within their corporations," Element Markets' Chief Executive Angela Schwarz told Reuters, noting such commitments are substantial and time-consuming investments for companies.
Element Markets counts Smithfield Foods, the world's largest pork processor, global cosmetic brand L'Oreal SA OREP.PA, and U.S. utility Dominion Energy Inc D.N among its clients.
Schwarz said the investment from The Rise Fund will support Element Markets' expansion plans in the United States and overseas, as well as building out its carbon market operations and those in emerging alternative fuels such as hydrogen.
"We reached a point where we recognized that sustainability investing and decarbonization is at a major inflection point. So we realized, from a company perspective, that we had to find a partner to help us go to the next level, and that's where The Rise Fund fit us well," said Schwarz.
(Reporting by David French in New York; editing by Richard Pullin)
((davidj.french@thomsonreuters.com; +1 646 223 5211; Reuters Messaging: davidj.french.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David French NEW YORK, Jan 12 (Reuters) - The impact investing arm of TPG Capital has bought a majority stake in Element Markets, which helps corporations achieve sustainability goals through securing renewable natural gas and advising them on credits and offsetting emissions. No financial details were disclosed in a joint statement by Element Markets and The Rise Fund, which was founded in 2016 by the San Francisco-based private equity firm and counts U2 front man Bono among its backers. Either through their own actions or under pressure from investors and activist groups, corporations are becoming increasingly attuned to environmental, social and governance (ESG) concerns, and are changing their behaviors accordingly, such as getting power from clean energy sources.
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By David French NEW YORK, Jan 12 (Reuters) - The impact investing arm of TPG Capital has bought a majority stake in Element Markets, which helps corporations achieve sustainability goals through securing renewable natural gas and advising them on credits and offsetting emissions. Element Markets is among the leading North American providers of renewable natural gas, also known as biomethane, for use instead of fossil fuels in transportation fleets. The Houston-based firm also helps clients achieve compliance with environmental standards, through securing carbon and emissions credits.
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By David French NEW YORK, Jan 12 (Reuters) - The impact investing arm of TPG Capital has bought a majority stake in Element Markets, which helps corporations achieve sustainability goals through securing renewable natural gas and advising them on credits and offsetting emissions. "Our clients are doing this because of the sustainability stewardship within their corporations," Element Markets' Chief Executive Angela Schwarz told Reuters, noting such commitments are substantial and time-consuming investments for companies. Schwarz said the investment from The Rise Fund will support Element Markets' expansion plans in the United States and overseas, as well as building out its carbon market operations and those in emerging alternative fuels such as hydrogen.
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By David French NEW YORK, Jan 12 (Reuters) - The impact investing arm of TPG Capital has bought a majority stake in Element Markets, which helps corporations achieve sustainability goals through securing renewable natural gas and advising them on credits and offsetting emissions. No financial details were disclosed in a joint statement by Element Markets and The Rise Fund, which was founded in 2016 by the San Francisco-based private equity firm and counts U2 front man Bono among its backers. Either through their own actions or under pressure from investors and activist groups, corporations are becoming increasingly attuned to environmental, social and governance (ESG) concerns, and are changing their behaviors accordingly, such as getting power from clean energy sources.
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698978.0
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2021-01-08 00:00:00 UTC
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2 Big Reasons Dominion Energy Stock Lost 9% in 2020
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https://www.nasdaq.com/articles/2-big-reasons-dominion-energy-stock-lost-9-in-2020-2021-01-08
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What happened
2020 was a dreary year for utility stocks, with the Dow Jones Utility Average Index ending up 1.6% in the red. Shares of Dominion Energy (NYSE: D) fared even worse, shedding 9.2% in 2020, according to data provided by S&P Global Market Intelligence. Two major developments put tremendous pressure on the stock.
So what
Dominion shares bounced back sharply after crashing alongside the broader stock market in March, but they failed to sustain the momentum. The first big blow came in the month of July, when the utility and partner Duke Energy canceled their long-drawn, multi-billion dollar Atlantic Coast Pipeline project because of cost and time overruns.
The same day, Dominion announced the sale of its gas storage and transmission segment to Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) for $9.7 billion, including debt worth $5.7 billion, in a bid to become a pure-play regulated utility. Although Dominion highlighted how the deal will help it improve its balance sheet among other things, investors were miffed for one big reason: a dividend cut.
Image source: Getty Images.
You see, as a result of the above two developments, Dominion slashed its 2020 operating earnings per share guidance and projected a 28% cut in its dividend by the end of the year. That was a remarkable deviation for a company that had increased its dividends for 16 consecutive years.
Dominion assured it will start growing its dividend again in 2022, but investors were focused on the near term. To make matters worse, the company finally cut its dividend by 33% in November, and that sent the stock even lower.
Now what
A dividend cut is sure to annoy income investors, but it's a near-term loss for long-term gains. The Berkshire Hathaway deal should help Dominion pare down debt worth nearly $6 billion and give it $3 billion in cash to repurchase shares. And while the stock's annual dividend of $2.52 per share is expected to remain steady this year, management projects annual dividend growth of 6% beginning 2022. That should give investors in Dominion Energy some respite even as they enjoy the stock's current yield of 3.5%.
10 stocks we like better than Dominion Energy, Inc
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*Stock Advisor returns as of November 20, 2020
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Dominion Energy, Inc and Duke Energy and recommends the following options: short January 2021 $200 puts on Berkshire Hathaway (B shares) and long January 2021 $200 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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So what Dominion shares bounced back sharply after crashing alongside the broader stock market in March, but they failed to sustain the momentum. The first big blow came in the month of July, when the utility and partner Duke Energy canceled their long-drawn, multi-billion dollar Atlantic Coast Pipeline project because of cost and time overruns. Although Dominion highlighted how the deal will help it improve its balance sheet among other things, investors were miffed for one big reason: a dividend cut.
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The same day, Dominion announced the sale of its gas storage and transmission segment to Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) for $9.7 billion, including debt worth $5.7 billion, in a bid to become a pure-play regulated utility. The Berkshire Hathaway deal should help Dominion pare down debt worth nearly $6 billion and give it $3 billion in cash to repurchase shares. The Motley Fool recommends Dominion Energy, Inc and Duke Energy and recommends the following options: short January 2021 $200 puts on Berkshire Hathaway (B shares) and long January 2021 $200 calls on Berkshire Hathaway (B shares).
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10 stocks we like better than Dominion Energy, Inc When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool recommends Dominion Energy, Inc and Duke Energy and recommends the following options: short January 2021 $200 puts on Berkshire Hathaway (B shares) and long January 2021 $200 calls on Berkshire Hathaway (B shares).
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You see, as a result of the above two developments, Dominion slashed its 2020 operating earnings per share guidance and projected a 28% cut in its dividend by the end of the year. The Berkshire Hathaway deal should help Dominion pare down debt worth nearly $6 billion and give it $3 billion in cash to repurchase shares. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Dominion Energy, Inc wasn't one of them!
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698979.0
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2021-01-08 00:00:00 UTC
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Roundtable: Energy and Industrials in 2020
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https://www.nasdaq.com/articles/roundtable%3A-energy-and-industrials-in-2020-2021-01-08
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In the final Industry Focus: Energy episode of 2020, Nick Sciple and Motley Fool contributors Jason Hall, Matt DiLallo, and Lou Whiteman break down the year that was and look forward to what's coming in 2021. Topics include: trends that will change and stay the same in 2021, overlooked stories from 2020, favorite stock picks, and more!
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
10 stocks we like better than Brookfield Renewable Partners L.P.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Brookfield Renewable Partners L.P. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 20, 2020
This video was recorded on December 18, 2020.
Nick Sciple: Welcome to Industry Focus, I'm Nick Sciple. It's our end of the year special here on the Energy and Industrial show. I'm joined by Motley Fool contributors Matt DiLallo, Jason Hall, and Lou Whiteman to help me break down the crazy year that was 2020, maybe talk about some trends that will stay in place going forward, some that will go back to normal, some stocks that we're watching. Lots to talk about. I'm excited to have you all on the podcast. Guys, what's going on?
Jason Hall: This is fun. It's been a couple years since we did a big roundtable Industry Focus. I'm pretty excited to be on with these two guys.
Matt DiLallo: These are always fun, I'm excited to see Jason again, we always have fun together.
Lou Whiteman: Always an honor. [laughs]
Sciple: Running into the 21st century, as Jason said, the last one of these we've had, we've had the Motley Fool Writes Conference that everybody's down in Alexandria, we're all get together, but now, we're on Zoom using the magic of Zencastr, we can all be together. Just a heads up for our listeners, this episode is going to air on New Year's Eve. We're recording it on December 18th, 2020, ahead of the holidays, if the Martians come down to Earth between now and then, that's why we're not talking about it. I don't know what the investing implications are, but I hope they leave me alone. That'll be my takeaway there.
First off, before we get into some of these topics, I just wanted to address the haters. I thought that'd be a good place to start. If you look back this year in 2020 with the worst-performing sector in the S&P 500, the energy sector down to 29%. When I checked recently, if you look back over the past year, the past three years and the past five years, the energy and industrial sector are trailing the S&P 500 as a whole. Many are saying why should you have energy and industrial stocks as part of your portfolio, how would you respond to these lewd accusations, Jason Hall?
Hall: First of all, I think there's a little bit of, "Yeah, OK," [laughs] particularly when it comes to the energy sector. There's context, I think is important. If you look at the way that the sectors are divided up, the energy sector is oil and gas. That's what it is. It's oil and gas and that's all that it is. As of this writing, it's down almost 35% in 2020 since the beginning of the year. It's hard to predict what 2021 is going to look like. We do know that the bigger trends are transitions away from oil and gas, so there's no getting around that. That doesn't mean every oil stock is in a void, every natural gas stock is in a void. I think there are some good companies there. I think there's some good companies that could prove to be good investments, but I do think it's going to be one of the hardest industries as an entire sector to outperform because energy is transitioning to other sectors. You look at the utilities, you look at some of the industrials, and even tech companies like solar stocks are generally considered semiconductors manufacturers in the tech sector. The face of energy is changing and that's going to make it hard for the oil and gas sector to remain relevant and a profitable area to invest as an entire sector.
Sciple: Matt, Lou, anything to add there?
DiLallo: Well, I think oil prices is what drives returns here, because if oil prices are going to go up again, then you're just not going to have a good year, but if demand comes back that growing back when you had all these under investments in the past couple of years, you can see energy just shine one of these years, maybe it's 2022 when we're back to normal and the industry hasn't come up in oil prices, breaks seven years, something like that, it's just so in price share and that makes it so difficult as an investor, who knew that we were going to blow up this year and it just wasn't on anybody's radar and that's just been the problem, just had blow up after blow up.
Whiteman: I'll say as a more industrial generalist, as the aerospace guy and airlines guy this year, I am certainly glad that industrials aren't my entire portfolio, trust me, but I am glad they're a part of my portfolio and I believe to just this diversification work this year, if you're thinking like we talk about here at The Fool, you're thinking in terms of decades, I believe diversification works a lot of different ways. Like I said, glad I'm not in aerospace this year, I have a feeling there will be a year in the future that I'm glad I'm not all cloud. That's my best argument for these stocks as part of a diversified portfolio.
Sciple: I would say this regardless of sector, you've got to pick your spots. I think, right now, if you're looking on a relative valuation basis, you're probably going to find better odds fishing in the industrial, energy space than maybe you can find in some of these other areas that have gotten more attention. Well, we might talk about some of that later this year. We mentioned off the top just how crazy 2020 has been. I don't think anybody needs a reminder of that, but if you had to boil down at this sector or the areas that you covered down to one headline for this year, what would be your one headline for 2020? We'll start with you first on this one, Lou.
Whiteman: I think my headline would be, it could've been worse. The thing is, and especially even with the airlines, if you look at where we are and the airlines got hit probably as bad as anyone, but here we are, December, less than a year later, the stocks have almost come back in some of the worst sectors. They are alive, we're still in business. I mean, I think that was a real point for this year, the resiliency of the economy, but also the resiliency of the industries that got hit hardest. It could have been worse.
Sciple: I think that's one thing I think about maybe ask you this, Lou. As far as the vaccine and the pace of the way things have been, I mean, you couldn't have imagined a better outcome when it comes to recovery for any of these businesses. When you're in the middle of the pandemic, if you said six months from now, we're going to be rocking and rolling with vaccine distribution. I think Biden is supposed to get it on Monday here after we're recording. Could it have been much better for these companies when it comes to the recovery?
Whiteman: Well, so far, I think it's just speaking to airlines specifically, the one thing that was really lost was how healthy these companies were coming into this. Every down-cycle has seen airline bankruptcies. This was a much worse hit and yet we didn't see bankruptcies. That's partially to the government, certainly the CARES Act was a big part of it. But just partially, this was an industry that was more ready for this than they've ever been. Look, we are at the beginning of a very long and this isn't going to be over anytime soon. But at least now with the vaccine, you can see the light at the end of the tunnel, you can start putting a date or an idea of how long it will last. I think you can say the worst is over.
Sciple: My official wedding date was July 17th, 2020. I thought we weren't going to get the bachelor party and I think we're going to make it to Vegas this year. So, things are looking bright. Matt, what's your one headline for 2020?
DiLallo: Maybe the oil prices I think was the thing that who ever saw that coming. Just a complete implosion of the oil market where you had the pandemic hitting at the same time Saudi Arabia and Russia decided that they were going to duke it out on prices and just totally created the oil market and the same with industrials. It's still standing and part of that's because they spent the past about four or five years recovering from the last one and so we had a lot of better capitalized oil companies still turning to bankruptcy. Chesapeake Energy finally went under and several others, but the industry survived and it should survive. The question is, when is demand going to come back and how are they going to make money for shareholders in the future? Because they haven't done that in so long. But we're still kicking and that's I think a good thing.
Sciple: Yeah. It's been wild to see just this whole development for these companies this year. They've already had a tough end and then you get the pandemic whacking them over the head. Again, it's been interesting to see them navigate that. Jason?
Hall: Yeah. So, I think their context, it's easy to lose, especially for people that don't follow oil and gas very closely, is that the entire story of the oil crash this year is not the pandemic. Yes, that's been huge. I mean, that lopped 30 million barrels a day of oil consumption off in the second quarter for six or eight weeks. But the bigger story that drove it started in early February when Saudi Arabia and OPEC tried to work with Russia to keep the market stabilized and Russia bulked, and Saudi Arabia went full on war. I mean, full on war at one point. This was in March when the battle really happened and Matt alluded to it, but I think it's really important to understand it. Saudi Arabia was ready to increase their oil output like 15% and increase the amount of oil product that they were exporting. I think at one point, they said like a 20% increase. This is the country with the largest, cheapest oil reserves on earth that was going to absolutely drown theglobal marketwith excess oil.
Then of course, within a few weeks after that, the U.S. goes into lockdown, the pandemic, it becomes clear that the implications for oil consumption were dire, and OPEC circles its wagons and works with Russia to take a big 10 million a barrel a day cut. U.S. producers realize that they have to start backing off on their development completing wells simply just to survive. But the bottom line is, even if the coronavirus pandemic didn't happen, I'm convinced that this would have been a brutal, brutal year for American independent oil producers because Russia and Saudi Arabia have spent the past four years stabilizing the markets, and U.S. producers have soaked up essentially every barrel of global oil growth. The U.S. grew production a massive amount, I think from about eight or nine million barrels a day in 2016 to, like, almost 13 million barrels, Matt?
DiLallo: Yeah. Somewhere around there.
Hall: I don't know if that's exactly right, but it was more than 10 million barrels, and at the same time, if you look at Saudi Arabia and Russia, who were the second and third largest oil producers, they were essentially flat, right? These are countries that rely on oil revenues to fund their governments and their social programs. These aren't private companies, these are entire countries that have millions of citizens that depend on those revenues. This was going to be a battle of the year, so I think that's the bigger context that's easy to miss. What that tells me is that informs me that going forward, you can't just look at Exxon's stock price, or Phillips 66 (NYSE: PSX), or ConocoPhillips, or any of these guys and just assume that the price is going to be what it was back in 2018 or 2019. It's not that clear.
Sciple: Yeah. I think it's important to note when you look at global oil and gas, a massive proportion of those reserves, those commodities are controlled by national governments, and national governments sometimes have a different set of incentives than a for-profit business might have and that's one example you're talking about there, Jason.
Hall: Yeah. I think it's just really important context and interesting. Go ahead, Nick.
Sciple: No. That's all I got.
Hall: I was going to say the interesting next step from there is that even with commodity prices being crushed and it being such a tough year, we've still seen wind and solar gain cost advantages, right? That to me is just the real power of the energy transition right there.
Sciple: Yeah. So, you're talking about this growth in wind and solar that maybe is a decent transition to the next topic I have for us. With 2020, it's been this year of huge change, with this rise of remote work, people working out at home, all these sorts of things. So that begs the question, what's the trend or change that took place in 2020 do you think stays the same going forward? We'll start with Matt on this one.
DiLallo: Jason alluded to it about wind and solar but especially solar. Right now wind is. Actually, I've seen some of the natural gas power plants out there to do wind and solar is rapidly getting there and within two or three years I think solar is going to be the cheapest by far and that's with adding energy storage batteries. That's just incredible, because you look back a couple of years ago and there were just so many concerns, like, how are we going to get to this future? We're there. We're right at the cusp of the solar explosion and the numbers can double the amount of capacity. I think they are projecting 10 gigawatts of new solar capacity added between now and 2022 per year and that can double in 2023 to 2030 time-frame. That's an incredible amount of growth, and so I'm just spending a lot of my time looking at solar stocks and who's going to benefit from this because the trend is there cost-wise. For all these years it has been the government's help, and the government can accelerate this and there needs to be more government policies to accelerate this, and that's where the Biden administration's going to come in. But it didn't work to the point where that's just kind of greedy for what this industry can do so I'm really excited about solar.
Sciple: Yeah. The stuff that comes to mind for me, Matt, I saw in an IEA report recently, it said, "If you look in 2020, they expect for the new additions for energy, 90% of those to be renewable, with only 10% coming from hydrocarbons." So, just this massive shift over where the new dollars are moving to.
DiLallo: We're even seeing one of the big players out there is Brookfield Renewable (NYSE: BEP). It's a stock that we talk about on Fool a lot. Right now they're hydro, that's their big business and solar is less than 10%, and they came out this year and said, within the next decade that they expect solar to be the No. 1 producer by capacity, and that's just because they see so much growth. They've done a bunch of deals this year, they just see the returns are really fantastic in solar and that's just been such a great trend this year.
Hall: Matt, you mentioned Brookfield, so there is a point that I wanted to make real quick here. Probably the two buy signals for me on solar that have happened over the past few years. The first one was Brookfield Renewable when they made some pretty big investments to expand their solar portfolio a few years ago and that they have accelerated. That was the first big green light. When Brookfield says, "Okay, we're going to go this way," that means that they can make money, right? That's huge. As an investor, that's what you want to look at, especially in these commodity-driven industries, is when a big player with a successful track record of allocation to things that make money says, "This is what we're doing," it means there's money to be made there. Then, the other thing that was more recent was NextEra Energy (NYSE: NEE). I think this was last year. I'm pretty sure it's NextEra Energy's CFO onearnings call made a statement that they saw within five years and this was something you said, but I heard this from an industry executive first, said, "We see within five years, solar-plus batteries will be cheaper than natural gas." That's huge, right? Again, NextEra Energy, this is a company that has a very clear track record of making money in the utility space and they're saying, "We're going to make a lot of money in renewables."
Sciple: Yeah. Jason, did you want to hop in with your trend from 2020 that you think is going to stay the same moving forward?
Hall: Yeah. It's one that I think we saw a big blip on the radar this year but I think that the trend is going to revert back to where it was and that's natural gas exports. I think liquefied natural gas. North America has a tremendous amount of it. Australia has a tremendous amount of it. There are other places in the world that have a lot of it, and there's markets and the places where populations are growing, where the middle class is growing, where the energy consumption is growing that don't have access to low-cost energy and natural gas is far preferable to coal, because it doesn't produce all the particulars that are terrible for health. The greenhouse gas emissions are lower. I think we're going to see probably late next year, maybe 2022, before we really see a full recovery in investment in that space. But I think it's going to recover because the demand for that energy is still going to be there and natural gas is going to provide a big supply of that going forward.
Sciple: Absolutely. Lou, what is your one trend from 2020 that you think is going to stay the same going forward?
Whiteman: The first thing that came to my mind here was logistics, and at this time last year, there were a lot of discussions going on. A lot of companies are thinking about outsourcing supply chains, outsourcing logistics, trying to simplify operations, and COVID really accelerated that trend. We've really seen a push in the second half of this year toward some of these companies, these logistics providers taking over operations, and I think that was the spark and this is a trend that we're going to see over the long term. It's going to create opportunities for operators, for warehouse REITs, a lot of different people. Couple that with the mega trend of e-commerce, the fulfillment challenges it requires, logistics had a great second half of the year. I think FedEx was up 80% for the year. UPS, XPL, a lot of them are up 40%, 45% or more. These are businesses that even without the vaccine shipments have a lot of tailwinds heading into 2021 and good long-term prospects and I think we're just going to see more of the same for the next few years.
Sciple: Yeah. I think one of the things you hear about in this industry, maybe I can get your thoughts on it really quick, Lou, is Amazon's (NASDAQ: AMZN) going after trucking and Amazon is going to get in there and gobble up the market. Is this one of those where you think that's a threat, or the market is growing so quickly that there's going to be lots of winners here?
Whiteman: Well, I'll quote one of my favorite things Jason always says, is that when a company comes in, that means they see opportunities. I think that's the case for Amazon. I mean, for Amazon it's interesting, because in a way, they are trying to turn a huge cost into a profit so they have different incentives that it's a little different. But yeah, there's so much going on here, and quite frankly, in just e-commerce, the business consumer, there are a lot of companies out there that have demand that don't want to do business with Amazon and so yeah. I mean, FedEx just reported this week. This is basically the year-over-year comparison to the beginning of their divorce with Amazon, and everything was up, margins are up and they see room for margin improvement in 2021 even after the pandemic settles down. So no, I don't. I mean, Amazon's more proof-of-concept that is a competitor but no, they are going to be fine despite Amazon.
Sciple: Absolutely. Those are the trends we think that 2020 put in place, we think we're going to continue going forward, on the other side, what's something that 2020 brought forward that you think, "You know what? We're going right back to normal here once people are allowed to do that in a safe way?" Jason.
Hall: This is a little more on the industrial side than real estate space. You know, 2020 has been an accelerant for e-commerce. There's millions of people that never would've anticipated buying something online, they do it now and it's comfortable. I mean, [laughs] if you had asked me about Wayfair, this is a company that sells furniture on the Internet. Let's just assume there's this massive pandemic and everybody's isolated and we have the worst recession and essentially, how do you think Wayfair is going to do next year? I would've probably said they're going to go out of business. They are crushing, sales were up like 45%. As much as we've seen e-commerce become established, I think the second half of next year, physical retail is going to do very well. I think that's going to be really good for some of the real estate, the retail REITS out there like Tanger Factory Outlets (NYSE: SKT), ticker SKT, I think it's in the right space. You look at Realty Income, I think they're going to do well. I think people are still sleeping a little bit on that. Also, I think it's going to be a great year for the convention industry. A company like Ryman Hospitality Properties, that owns these big event properties, because even if we'd have more remote work or some hybrid model, it's going to make things like big events more and more important, even if work changes, it's good for industries like that. I think those are some trends that I see a lot of positive for.
Sciple: I think that makes sense kind of travel-related retail. When you look at where the Tanger Outlet Centers are, they often buy places that are high. I travel areas, I remember that when I always used to go to, growing up wasn't fully Alabama on the way to the beach. If you're thinking this idea that there's going to be more folks traveling, there's some of these retail locations that are really targeted to those types of customers. I think that that's a really interesting one, Lou.
Whiteman: I want to be careful here and I may split some Harris because I do believe in the long-term trend toward the electrification of the automobile. I really do believe that's a sustainable trend. What I don't believe in is the software like valuations we've seen in 2020, not just for the manufacturers, but also the parts suppliers. Autos, for 100 years, it's been a capital-intensive, labor-intensive business with low-margins and switching out the powertrain shouldn't change that. If anything, the tech that's coming into automobiles is increasing input costs. I love the trend of electrification, I think it's here for good. I believe there could even be some oversized winners and maybe a couple of these valuations will hold. But in general, it has been an amazing year for EV stocks, EV suppliers, parts suppliers, Lidar and all things attached to the second generation of the automobile. I can't imagine that trend continuing with the way it has this year.
Sciple: Time to find out how many of them actually grow into those valuations.
Whiteman: Yeah. If you look at it, it's going to take years even in the best case scenario.
Sciple: Yeah.
Whiteman: I love the trend of the vehicles, I don't like the trend on the stocks right now.
Sciple: Yeah. I agree with you. I think maybe the short answer is that there are too many companies, I think there's going to be some winners here, or ain't going to be dozens of them and there's dozens of them out there planned right now, trying to become those happy few there at the end. Too many people are assuming that the automakers that already have hundreds of factories are not going to be able to make the transition. I think that's a mistake.
Whiteman: Yeah.
Sciple: That's a great point too. Matt, what's your trend that you think reverses after 2020?
DiLallo: Playing on both of those things, like Jason is very bullish on, just travel again. Next I don't see, for example, offices that have been crushed. Because we work from home and people don't think people will be going back to the office, I think people will be going back to the office. People are going to be driving, commuting again, they're going to be flying on business trips again. They are going to be going to stores and travel and in the long-term [...] but short-term, I think gasoline and refiners, we could just see a big spike next year. We had a lot of capacity cast this year because of COVID, but they're going to be just a big tight market next year, people are driving again, flying again, so I think refiners can have a really tremendous year next year. That would be like a short-term, trade right there will be your thoughts on 2066 year marathons, there can be great stocks next year.
Sciple: Absolutely. I think in all these industries, do you think about maybe getting a star for capital in 2020 for whatever reason, when that demand comes back, we're going to have to adjust. These are real industries that require moving real goods in the real world and take some time for those things to snap back. We want to move on to our next segment. For our listeners who don't follow energy and industrials as closely as we do on a daily basis, there's lots of stories that may have missed their radar this year. What's the one story from 2020 that folks overlook, that folks should have paid attention to, that we should bring attention back to, Jason?
Hall: I think it's one thing, which is what's happened with offshore oil? We're at a point where just about every major offshore oil drilling contractor went through bankruptcy this year. So far at this riding Transocean has managed to make it, but Matt, I think they owed a big payment a couple of days ago. Again, today's the 18th as of this record, but I think they owed money a couple of days ago. I may have heard that they were thinking about not making that payment, which would have potentially put them into fall. It's possible every major offshore oil driller in the world publicly traded, then the world will have filed for bankruptcy during this year. That has enormous implications because at the end of the day, as Matt's point, at some point, all of this underspending to develop those resources is going to catch up to the world's ability to produce enough oil, to meet the demand once it recovers. Lou mentioned the EV theme. EV is not going to replace all the automobiles in five years. The average car on the American roads is over a dozen years old, so even when the only thing that's being made is electric vehicles, they're still going to be a lot of gasoline vehicles driving. I think that's a big one, because these companies went bust because nobody was drilling offshore. That's the bigger underlying thing that I think we don't know, when that comes home to roost, we don't know how that's going to affect oil prices, gasoline prices, and what the implications are for there. I think they are pretty big.
Sciple: Because historically there's lots of cycles in oil and gas boom and busts, it's a hallmark of the industry. Is this something where this bust in the case of the offshore folks, is worse than we've seen historically?
Hall: Yeah. Here's the thing, the industry was just getting bailing all the water that they took on back in early 2014. They were just getting that water out of the hole. They were just [laughs] getting to the point where they will float to use as many ridiculous bonds as I possibly can in one sentence, and then this happened. You have these companies that are heavily leveraged, they carry massive amounts of debt, it also costs what? These things are hundreds of millions of dollars. They have huge amounts of debt and they pretty much depend on steady cash flows from long-term contracts to keep things moving, and every oil producer in the world that had any flexibility to end a deal, they did. They walked away, even if they paid a penalty, they would do it to get away from these big deals.
What we've seen this year, particularly in the Permian and a lot of the U.S. shale plays is that a lot of that oil production has helped bridge the gap, because these guys were living on money they spent in 2019 to drill wells that just needed to be completed. The completion costs are lower, so there have been a lot of completing wells and bridging that gap. So, the output on the flip side, these offshore places, they take years and years and years, sometimes decades to really develop. The full price that we pay, we're not going to know for a number of years before that lack of development catches up to demand. But I think it has big implications. We just don't know exactly what it's going to look like.
Sciple: In a lot of ways, we're a little bit off the edge of the map in oil and gas with this whole field thing and all that stuff. Matt, what's your one story from 2020 you think folks overlook?
DiLallo: Green hydrogen is something that has come to my attention this year. It's been floated around as an idea for years. Is this going to be that eventual emission free fuel that can get us to those not zero targets that everybody is talking about? During the second quarter, I was reading through NextEra Energy's conference call and they mentioned that they were getting into this, and that spoke my attention, because they're so good investing in renewables, and then I saw Brookfield, they're getting into this oil deal upon power to supply that with renewable energy. There's just been so much under the surface talk about green hydrogen and iis future is years away, but it could be this mega market for renewables. The thing that stood out for me and that investors should really plant a radar, it's on my radar now, and I'm really excited to see. Because of the potential, this could be the fuel that we need to get us to that emissions-free future.
Sciple: Matt, for folks, listeners who don't know what green hydrogen is, can you explain that, the 10,000-foot view of what green hydrogen is?
DiLallo: Yes. Hydrocarbons refers to hydrocarbons, that's in oil and gas and probably that would spit back carbon. We want the hydrogen because that's what burns up and gives us energy. Green hydrogen uses renewable energy to produce hydrogen from water. Your output from that is oxygen, which is not a bad thing. That's why it could be such a great fuel. We could use renewable energy, and we can basically store it in hydrogen and burn the hydrogen in, for example, natural gas power plants. They could be used to power trucks and cars, and planes. There's a lot of pilot projects out there to use it in jet fuel. It's just as potentially great [...].
Hall: I think the dirty little secret that I just want to make sure it's abundantly clear for folks who don't know. Essentially, every bit of hydrogen that's produced in the world and used for industrial applications is a byproduct of steam forming from natural gas. That's how most of it is made. It's not a clean fuel. It comes from natural gas, so it is not very clean. [laughs] This is huge.
Sciple: So, this prospect and, again, it comes back to those themes that you all talked about earlier about the cost of energy production from wind and solar is becoming lower and lower to where it makes economic sense to now do this. To talk about these energy transitions has been a buzzword. You heard a lot this year and that's a big driver. Part of that is going to be some of these hydrogen fuels. Lou, what's your story from 2020 that the folks overlooked for you?
Whiteman: It speaks to how far this company has fallen that could ever be overlooked. But General Electric, maybe the stock of the 90's and it's been really hard times down, I think, 80%, 85% from it's all-time high in the summer of 2000. They finally maybe, hopefully, appear to be one of the myth. This is a company that basically, just in all sorts of industries, did market topping acquisitions, took on huge amount of debts. Businesses like their big energy business didn't live up to expectations. They've had three CEOs in the last couple of years. This one, the current one, Larry Culp, seems to be doing a good job trying to get the balance sheet together. They have, I think, $40 billion or so worth of divestitures to try and stabilize things. They have a plan in place. It's very early. I'm not personally an investor, but it's for the first time and maybe nearly a decade for this company, it feels like they're moving in the right direction. Considering how far they fell, I think that's pretty amazing story with everything else going on. Not appreciated yet but the markets maybe.
Sciple: What would you do, if you're a shareholder in GE today, you'd stay the course if you've held on this long, I think there's light at the end of the tunnel now?
Whiteman: Absolutely. I mean, if you've held on this long, you have to stay the course. The more intriguing question is, is there are really amazing assets in that business. It's just been muddied by all the things that aren't so great. Is it time to get in yet? For me, it still feels too early. I do believe in the potential of some of the businesses, but it is a multiyear transformation and maybe we're through year one. I'm still watching it play out. This is the first time, and as long as I can remember, that I'd even considered and asked myself the question, do I want to look at GE? That either speaks to my insanity or Larry Culp's good work.
Sciple: There you go. Let's move ahead. I think folks like it when we give them some stock picks, some companies that are on our radar. What is one energy or industrial stock that you're excited about for 2021? Let's go right back at you, Lou, let's keep you on the hot seat.
Whiteman: I get some feedback when I call this an industrial, but I'm going with it, and I mind if anyone's listening to this podcast before they probably know it's AerCap (NYSE: AER). AerCap is in the business of buying airplanes and leasing them back to airlines. No surprise, this was not a good stock to own as the pandemic hit it up. AerCap actually underperformed most of the airlines, which is understandable given it's a highly levered business with the market really failed to appreciate just how conservative this management team was and how well this company is able to weather the storm. They have had issues. They wrote down billions of dollars in the aircraft valuation just in the last few months. They've differed hundreds and millions in lease payments, but they still have billions in liquidity and they have more unencumbered assets.
With a vaccine, we talked about this earlier, I'm not ready to say the airlines are going to get healthy next year, but the worst appears to be over. As the airlines get a little bit healthier, the odds of them paying their bills go up and the revenue should normalize for AerCap. There's a lot of pent-up demand for air travel. AerCap, I think, is the best way to play into that, just because this is a business airlines arguably need more now with their balance sheets in ruins, thanks to the COVID crisis, than they even did a year ago. It's better than Boeing, better than buying an airline. If you believe travel will come back, take a hard look at AerCap.
Sciple: Yeah, for our listeners, that's ticker AER, just to remind you there, and if you want to hear us talking about that company a little bit more in depth, I believe it was in November, we discussed AerCap. I believe the name of the episode was "the best way to invest in airline recovery" [A Vaccine Is Coming. Here Are the Airlines That Will Recover First] or something like that. I'll throw a link in the description of the podcast for folks to check it out. Matt, what is your favorite energy and industrials back for 2021?
DiLallo: It's clearly energy, which is a renewable YieldCo. They own solar plants, wind towers, wind turbines and some natural gas power plants. There's a clean energy play. They got hit hard, I think it was last year when the California Utility PG&E went bankrupt. They were a big supplier of power there, but they got through bankruptcy this year and [...] increase their dividend by 50%. It's growing since then and they have a lot of deals in the pipeline to acquire assets. They've got a parent called Clearway Energy, which is owned by a big private equity firm, that's giving them gross flexibility and they think they can grow their dividend another 8% next year, and 5% to 8% over the next couple of years. Up there with your NextEra and your Brookfield, which is another one of those really solid renewable energy [...]. I really like dividends, so that's a good stock for my portfolio. They've turned the corner, they know what they're doing, and I like what's [...].
Sciple: What's that ticker, Matt?
DiLallo: CWEN.
Hall: There's two, I think it's good to see. There's CWEN and then there's also CWEN.A. The A-shares, I think, are the non-voting shares, and then CWEN, you get a vote. That's the difference between them. I love that business too, Matt.
DiLallo: Yeah.
Sciple: All right, that's another great renewable energy company, and for folks who have been listening all year long, that's one that Matt and I have talked about, and I think Jason and I have talked about on the podcast, if you look back at some of the episodes we've done on renewable energy, so that's another one. If you want to get a little bit more information on it, you can go back to the archives. We talk about this every week, it's nice. Jason, what do you like in energy and industrials for 2021?
Hall: This is normal for me, it's hard for me to just pick one of anything. But I'm actually going to make it and this will be surprising to a lot of people. I'm going to pick a company in the oil and gas business. I'm going to go with Phillips 66, ticker PSX. Here's a couple of reasons why. No. 1, the point Matt was making earlier about, as things do start to normalize, that's great for refiners. That's going to be really good for refiners, and Phillips 66 is one of the best refiners in the world. They have some of the most advanced, most efficient refineries, and they can generate massive cash flows from it.
The other things that I like about Phillips 66, this is a business that's embedded in the North American natural gas story. Whether it's their pipelines, to get that gas from production to markets, or whether it's monetizing that natural gas and their giant and growing petrochemicals business, so you think about fertilizer, you think about car tires, you think about plastics for the healthcare industry. The feedstocks that come out of their petrochemical factories have massive value and there is growing demand around the world. This is a company that benefits in a lot of ways. They participate in the energy transition, they've already got one refinery that's making biodiesel. They have a refinery in the Bay Area of Northern California that they're converting to produce renewable fuels. This is a company I think is going to participate in the transition. The stock right now is down like 41% from the beginning of the year. They are a buyer of oil. They don't produce oil, so they are on the right end of that transaction, and they benefit from the recovery of demand, so PSX, again, it has a great dividend. What's the dividend yield right now, if I were to ask?
DiLallo: It's around 5% I think, the last time I looked.
Hall: Let's see, it's 5.4% today, and they've held firm on the dividend and the cash flows are getting better, so it should prove pretty stable. That's where I stand on Phillips 66. I bought not too long ago, I bought in the past couple of weeks too.
Sciple: Awesome. That's AerCap, Phillips 66, and Clearway Energy, and the energy in Industrial space. I will give you one just for fun. I think Berkshire (NYSE: BRK-A) (NYSE: BRK-B) is a great pick in the energy and industrial sectors. You talk about an industrial company that grows cash flow during a global pandemic, you talk about something that touches pretty much everything that's going to come in global trade. Charlie Munger did his interview at Caltech this week, he said a lot of great quotes, every time I hear him talk, it's great, but he talked about the railroad, Burlington to Northern Santa Fe. He said, basically, if you want to take something from the Port of Los Angeles to Chicago, and you don't use our railroad, I don't know how you're going to do it. And Berkshire has lots of those types of assets. One of the biggest producers of renewable energy in the world through Berkshire Hathaway Energy, gobbling up assets that some of these other companies don't want to own this year, bought Dominion Energy's pipeline assets. That's another one of those assets that it's really difficult to build new pipelines in 2020, but if these are the types of things that if they disappeared overnight, we would notice really incredibly quickly. Generates predictable cash flow for this company, I don't know how you lose money in Berkshire Hathaway over the next several years unless the whole stock market really blows-up on you. If you just want steady, dependable exposure to this industry, that's probably going to give you gains, at least on an absolute basis. You can sleep at night pretty comfortably, I think you can do a lot worse than just Berkshire. Even though it's boring and nobody is going to give you any awards for saying that Berkshire's in your portfolio. I think it's a very simple way to get exposure to some of these trends in a way that you can sleep at night pretty comfortably.
Hall: Pop quiz for everybody. Berkshire Hathaway, price-to-book rate value, so you use that as a pretty good metric considering the asset-heavy aspect of their business and then their portfolio of equities, it's about 1.2 times book value right now. Before 2020, when's the last time you could consistently buy it for that book value?
Sciple: 2016.
Hall: Consistently, how about 2012? That's the last time on a book value basis, it was the cheapest. It's touched that a little bit for a couple of weeks here and there. Early 2016 it came down for about a month. This is a great time to be buying Berkshire.
Sciple: It's a brilliant slip there. [laughs] That's what we've got in Energy and Industrials. We opened the show talking about, you know, we needed to address the haters about why you should own energy and industrial stocks. We thought it would be fine to pick some that aren't in the energy and industrial space, give some picks. Let's do that, Lou, do you have a favorite non-energy and industrial stock that you're excited about for 2021?
Whiteman: It's like we planned this net, because speaking of Berkshire, perfect. I'm going to go with Boston Omaha (NASDAQ: BOMN), and the ticker there is B-O-M-N. This is one of those so-called baby Berkshires. Right now, it's just a couple of businesses. It's billboards, it's world broadband, it's a lot of insurance assets, but the model is similar to what Berkshire Hathaway tried to build. These are businesses that are set up to generate strong operating income, strong cash flow which is fueled to grow and find new businesses. Now, this is a much smaller version, much earlier version, and the stock has been a real loser for most of the year. I think it was trailing the S&P by 40%. It's come back some, but there's a lot of that execution risk here, because not everyone can be Warren Buffett, so that is the danger. But I really like what they've done. I really like the team here, and it's an interesting setup that I enjoy being a shareholder and following and see what becomes of it.
Sciple: I own Boston Omaha, Lou. I think it's Warren Buffett's great grand-nephew or something like that, is one of the leaders of the business. But you look at, yes, there's the billboards business which as you look at the economics of that business, it's really tough to get new billboards put up, but those assets have some value. They also have the surety insurance business, very reliable income, and one thing I did want to ask you about, very thematic for 2020, what are your thoughts on their SPAC that they did this year?
Whiteman: It's fascinating. I didn't touch on it, but it's fascinating, and who knows, why not? But this is a company that has cash. It makes cash, and the question as an investor is, what are you going to do with the cash? It's 2020 and they did a SPAC. [laughs]
Sciple: The exciting thing, the background on this SPAC is they had had some previous investments in homebuilding and some structural things, they couldn't own it in their existing structure without getting into some regulatory issues. I think it's an exciting company, I like a lot of the moves they're making. Matt, what about you? Outside of energy and industrials, what's the stock you're excited about for 2021?
DiLallo: Lemonade, which is a fintech company that does insurance. My real agent actually showed me when we were buying a house, I bought it and I checked into it. Compared to our traditional insurance we're doing in the process, it was so simple to get insurance through them and the cost was so much better than what I was given from traditional insurance. One of our houses is insured with Lemonade and I'm following it on Twitter. A bunch of different financial gurus that I follow on Twitter like it and I'm really looking into it. It seemed like as soon as I was about to buy, it popped and I just couldn't pull this trigger because I was stubborn like that. But that's what I'm really excited about and I want to own it before 2021.
Sciple: Awesome, I love it when you have this great experience for a user and you're like, hey man, this thing is public, let me see if I can go and invest in that, it's always super-exciting. Jason, what about you?
Hall: I'm going to go with Magnite (NASDAQ: MGNI), ticker MGNI. This is a company that's right at this confluence of ad spending and the shift away from broadcast TV to connect the TVs. A lot of people are familiar with The Trade Desk, ticker TTD. These are companies that are complementary. One is on the sell side, one is on the buy side, so they don't really compete, which is really good. They are also great for ad agencies to work with. It's a business that's really complementary and it's also in an industry that is still at the very early stages. So market cap is less than $2 billion, it's probably about $1.4 billion or $1.5 billion a day. Trailing revenues are less than $200 million, and there are hundreds of billions of dollars every year that gets spent on TV and video ad revenue. You think about these giant deals that sports channels pay to get sports content. They're spending that money because they're going to get a lot more in ad revenue. Ad revenue is a big thing, and this is a company that's in the right place. I think it's a little overlooked right now, and this is a company that I could see being worth $20 or $30 billion in 10-years.
Sciple: Awesome. I talked about Match Group on a recent episode of the podcast. I like that one a lot. I think they've essentially cornered the market on dating in 2020. I think that's even more so when you look at this past year during the pandemic. If you are a "traditional dater," you had to figure out something if you wanted to stay in the dating market. That's pulled even more people into that industry. If you look even before the pandemic, trends were toward more than two out of every three couples meeting online. Match Group essentially controls all the platforms of significance in that industry; Tinder, Hinge, Plenty of Fish, their namesake platform, lots of others, OkCupid. It really got a significant share in that industry.
As we move forward in 2021, people are going to go back out into the real world and do real dating. That's a continued tailwind for this business. Really, the takeaway for me is this is a business valued at $40 billion. If you don't have a relationship with an online dating platform and you're somewhat in the dating market, you're at a structural disadvantage to everyone else in the dating market. The predominant payers on this platform are going to be men. Women are, I think the stat is 25 times more likely to get a match than men. Clearly, the folks that are paying to get extra swipes and things like that on these platforms are men. If you know anything about men, if you want to get into the bar where all the chicks are or whatever, you will pay whatever it costs. Thirsty dudes will pay more. Whatever the number is, they will pay more. This company is $40 billion, it's worth more.
Whiteman: Nick's bullish on thirst. [laughs]
Sciple: Very, very bullish on it. I don't think I would ever bet against it. I can't tell you the number of times that you're in your young 20s and there is a place where this is the bar where everybody has to be at. If they charge five more dollars for cover, you will pay. Match Group, they're working the door at the great big bar of the 2020. I would like to turn a little piece of that. That's my takeaway there.
Another one I really like is Redfin, and you see this other inflection and how people are shopping for homes in 2020. You've seen all these people, this flood of people are into the housing market. Part of that's because interest rates have been so low. Part of that is this opening up of remote work. Redfin really sets up perfectly for millennials entering the home buying market. Once you get a realtor, you stick with them. If you ask the typical homebuyer, nine out of every 10 say they're going to use the same realtor they used the first-time through. When you're acquiring customers in this market, you want to get the first-time homebuyers. Redfin set up for that market. Millennials are super cost-conscious because we can't afford to buy homes, that's why you see the average age of a first-time homebuyer ticking up. That puts Redfin in a good position as someone whose innovation is lowering the cost.
Second off is across all age demographics, it doesn't matter. The first-place people are going to find homes online and Redfin has been an online-first platform from day one. They're going to continue to take a share. Overtime, what essentially they're doing is aggregating demand for folks to come buy homes. They are going to go to Redfin, they'll look for homes to buy, that will give them opportunities to attach lots of other services on whether it's brokerage or title or all those sorts of things. The last thing that I think is interesting with Redfin is, if you look at the way people find mortgage brokers, the predominant way is through referral. The bigger this business gets, the more folks they acquire, it gets easier and easier for this business. If you project out five years, they continue on this growth trajectory, it becomes harder and harder and harder for the incumbents to compete with Redfin. I think it'll be a snowball rolling downhill. We're going to turn around 10 years from now and they're just going to be collaborating in this industry. Those are two that I really like.
Hall: One of the things they're really focusing a lot too right now on, Nick, is getting employees licensed brokers. They're going after this market in a really big way.
Sciple: Yeah. If you look at management right now in recent quarters, the big thing they are saying is we don't have enough agents to meet demand. No. 1, we don't have enough agents to be able to service all the transactions we'd like, and then, No. 2, on the buyers side, there's just not enough entry-level homes to service all the buying demand. There's not enough homes for sale. It's a good problem to have if you're servicing and industry and there's more demand than you could possibly meet even though you could try your hardest. Those were a couple I'm excited about, Match Group and Redfin.
I think we have time for one last segment before we hit the road. This is going to be about an hour long episode. But you know what, it's the new year and I think, folks, a lot happened in 2020 so there's a lot to talk about. Last thing, hitting the road, do you have a New Year's resolution, a lesson you learned in 2020 that you're going to take forward with you and try to implement going forward? Jason, I'll let you go first with this one.
Hall: I think the lesson I learned is that really, the same things work that worked in years before. As much as we look at this year and we have the fastest 30% drop in history and then the fastest 30% or 40% gain in history, the fastest full recovery from a market-crash. All of those things happened in one year, and that doesn't normally happen. But what we've learned is the things that still work is buying great companies, paying a good value, and then holding that company for as long as possible, that still works. We certainly learned that it doesn't work to try to time your way around it. It might be some of you, could you imagine deciding to sell in late March? Looking at everything that's happening with the anticipation that this is going to be a long, deep recession or a long, deep market crash, and here we are heading toward the end of the year and knocking on a 20% gainer for a full-year and up, like, 110% from the bottom. The stuff that works still works and I've resolved to remember that and not make dumb mistakes like selling great companies that I love that are growing like crazy just on valuation, because that's the thing that doesn't work that I have done a few times a little bit that have hurt me in bigger ways. That's my thoughts and my resolution.
Sciple: That's great, Jason. Life moves pretty fast. I think that's my takeaway. The Ferris Bueller line, life moves pretty fast. I think in 2020, there's no better illustration than that. Matt, what about you?
DiLallo: I'll just focus a little bit too much on value and I'll look at a stock. I mentioned Lemonade, it went up as I'm watching it. I need to get away from not buying when I see a great company and just look at the long-term picture instead of "Oh, it just went up 20% since I started looking at it." Buy a little bit and hope that it comes down, because if it does, I can buy more. If it doesn't, hey, at least I've got some of it. I just don't want to do more of that. I've been sitting on cash as the markets go down. I was shopping heavily when it went down. But as it's going up, I've just been sitting on my hands a little bit too much and I missed some still great companies that I could have gotten better valuations if I just bought even though that went up.
Sciple: So, get some skin in the game, that's a good one. I think sometimes we can be hesitant, but sometimes, you just need to fire away. Lou?
Whiteman: That's great. I can end this by being in the wet blanket. [laughs]
Sciple: Let's go. I love it.
Whiteman: It feels like my new year's resolution, and I think I'd advise it for all investors, as it feels like a good time to have that blunt conversation with yourself about risk tolerance to gameplay what you will do if it goes down, to still yourself, get ready. I want to be clear, this is not a market prediction. I don't know if stocks are going up or down in 2021. But if we're honest, we've had a really good run. I saw a stat the other day that Dallas gained 20,000 points in the last 20 years. 60% of that has come in the last nine months. Hopefully, we're going to keep going up for years and years to come. But the worst mistakes happen at those moments, like in March, when it's, "Oh, God, what do I do now?" It feels like a good time to just talk to yourself, to prepare yourself for that, just in case we don't go straight up, just to make sure there isn't a panic decision then or it catches you off-guard.
Sciple: Yeah, I agree with that, Lou. Maybe I'll leave you all, I guess, my lesson, big one, is I don't know. I think that's the big takeaway from this year, is anytime you thought you were certain about what was going to happen next or what's going to happen with XYZ company, the answer was I don't know. I think this year, as for my portfolio, to Jason's point, as it turned out, if you'd have told me in March that this will turn out being one of the best years I've ever had as an investor, I never would have believed you. Maybe to circle back to what Matt said too, at the end of the day, the things that you're looking for in companies are the same. No matter what's going on in the stock market, you're looking for the same qualities when it comes to businesses that have long sustainable advantages. If you know that, you don't have to know anything about a lot of the other stuff. I think knowing what you're good at, paying attention to what you know, and trying not to get too confused about all the stuff that you don't, that's a lesson I am going to try to take going forward. But that's a lot easier said than done. It's really hard to do when all those emotions are flying when the stock market is down lots of percent.
Hall: Nick, there's one other piece of information that is incredibly handy to managing your emotions, and that's knowing when your financial goals are. When are you retiring? When is your kid going to start college? When do you want to buy that vacation property? When do you want to try to pay off your mortgage? Whatever. If you know when your goals are, it's a lot easier to look at that date and see how far away it is, and not do something dumb like sell just because the S&P 500 has gone up 67% over the past nine months, right? Because you're not retiring for 10 years or 20 years, you have plenty of time to ride out those ups and downs. Also, it can be a reality check. If that date does get closer, then you might say, well, it is time for me to shift these high-volatility assets into bonds or into cash, because I'm going to need it and I can't risk the downside now because I'm going to need it next year or whatever.
Sciple: Yeah. I think knowing your goals, knowing the problem or the game that you're playing, which in our case is long-term picking companies that have strong advantages that can continue to compound those advantages year-over-year. If you stick to that game, I think you're going to have success in the stock market. That's the game that we try to talk about every week on this podcast and we'll continue doing it in 2021. Hopefully, it won't be quite as exciting as 2020 [laughs] but we'll see. It's really been great having you all in this round table to break what was this wild year, break it down a little bit. This is fun. Matt, Lou, it's really good to see you guys.
DiLallo: Good to see you.
Sciple: Definitely. I wish you all a happy new year. As always, people on the program may own companies discussed on the show and The Motley Fool may have formal recommendations for or against the stocks discussed, so don't buy or sell anything based solely on what you hear. Thanks to Heather Horton for mixing the show. For Lou Whiteman, Jason Hall, and Matt DiLallo. I'm Nick Sciple, thanks for listening and Fool on.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jason Hall owns shares of Amazon, Boston Omaha, Brookfield Renewable Inc., Phillips 66, Realty Income, Ryman Hospitality Properties, Tanger Factory Outlet Centers, The Trade Desk, and Transocean. Lou Whiteman owns shares of AerCap Holdings, Berkshire Hathaway (B shares), Boston Omaha, FedEx, Phillips 66, Realty Income, Redfin, Tanger Factory Outlet Centers, and The Trade Desk. Matthew DiLallo owns shares of Amazon, Berkshire Hathaway (B shares), Brookfield Renewable Inc., Clearway Energy, Inc., ConocoPhillips, FedEx, General Electric, NextEra Energy, and Phillips 66. Nick Sciple owns shares of AerCap Holdings, Berkshire Hathaway (B shares), Boston Omaha, Match Group, and Redfin. The Motley Fool owns shares of and recommends Amazon, Berkshire Hathaway (B shares), Boston Omaha, FedEx, Lemonade, Inc., Magnite, Inc, Match Group, Redfin, Ryman Hospitality Properties, and The Trade Desk. The Motley Fool recommends AerCap Holdings, Dominion Energy, Inc, NextEra Energy, and Tanger Factory Outlet Centers and recommends the following options: long January 2022 $1920 calls on Amazon, short January 2021 $200 puts on Berkshire Hathaway (B shares), short January 2022 $1940 calls on Amazon, short February 2021 $40 puts on Redfin, and long January 2021 $200 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the final Industry Focus: Energy episode of 2020, Nick Sciple and Motley Fool contributors Jason Hall, Matt DiLallo, and Lou Whiteman break down the year that was and look forward to what's coming in 2021. I'm joined by Motley Fool contributors Matt DiLallo, Jason Hall, and Lou Whiteman to help me break down the crazy year that was 2020, maybe talk about some trends that will stay in place going forward, some that will go back to normal, some stocks that we're watching. DiLallo: Yeah.
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DiLallo: Yeah. Jason Hall owns shares of Amazon, Boston Omaha, Brookfield Renewable Inc., Phillips 66, Realty Income, Ryman Hospitality Properties, Tanger Factory Outlet Centers, The Trade Desk, and Transocean. Lou Whiteman owns shares of AerCap Holdings, Berkshire Hathaway (B shares), Boston Omaha, FedEx, Phillips 66, Realty Income, Redfin, Tanger Factory Outlet Centers, and The Trade Desk.
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DiLallo: Well, I think oil prices is what drives returns here, because if oil prices are going to go up again, then you're just not going to have a good year, but if demand comes back that growing back when you had all these under investments in the past couple of years, you can see energy just shine one of these years, maybe it's 2022 when we're back to normal and the industry hasn't come up in oil prices, breaks seven years, something like that, it's just so in price share and that makes it so difficult as an investor, who knew that we were going to blow up this year and it just wasn't on anybody's radar and that's just been the problem, just had blow up after blow up. DiLallo: Yeah. We had a lot of capacity cast this year because of COVID, but they're going to be just a big tight market next year, people are driving again, flying again, so I think refiners can have a really tremendous year next year.
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In the final Industry Focus: Energy episode of 2020, Nick Sciple and Motley Fool contributors Jason Hall, Matt DiLallo, and Lou Whiteman break down the year that was and look forward to what's coming in 2021. DiLallo: Yeah. Hopefully, we're going to keep going up for years and years to come.
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698980.0
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2021-01-05 00:00:00 UTC
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4 Things to Expect from Berkshire Hathaway in 2021
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https://www.nasdaq.com/articles/4-things-to-expect-from-berkshire-hathaway-in-2021-2021-01-05
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The last year marked the end of a period in which Warren Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) underperformed the S&P 500 over the past one-, three-, five-, and 10-year periods.
But could that change in 2021?
There is some reason to think it could. After all, the underperformance at Berkshire doesn't seem to be driven by fundamentals. Rather, it appears Berkshire's size, Buffett's advancing age, and Berkshire's relative lack of technology holdings have caused investors to chase newer and shinier growth stocks.
Still, the stock is quite cheap, Buffett is buying back more of Berkshire's stock than he ever has before, and Berkshire's industrial and manufacturing businesses should rebound with the economy once vaccines are distributed. Here are several key things for Berkshire shareholders to look forward to 2021.
Image source: The Motley Fool.
No. 1: An industrial earnings recovery
2020's COVID-19 outbreak obviously affected a wide swathe of businesses, and Berkshire's diversified holdings weren't spared. The pain was felt especially acutely at Berkshire's Precision Castparts subsidiary, which makes custom airline parts for the major airplane assemblers. Precision's revenues were down 41.4% last quarter, and its operating earnings were down 80%. This year, Precision Castparts also laid off about 40% of its workforce and took an asset impairment writedown of $300 million.
While Precision was perhaps the most-affected, Berkshire's other industrial and manufacturing businesses were also down, though not as much. These subsidiaries include Lubrizol, which makes specialty chemicals for transportation and industrial fluids, Marmon, a highly diversified industrial machine and parts producer, and International Metalworking Co., which is huge metalworking conglomerate.
Yet while the pandemic caused the entire group's revenue to decrease 20% and earnings to decline 35.6% last quarter, the rollout of vaccines and economic stimulus should allow this key group to bounce back in 2021.
No. 2: Growth at Berkshire Hathaway Energy, and clean growth at that
One of the brighter spots in Berkshire's 2020 results has been the resilience and continued growth of Berkshire Hathaway Energy, the segment that includes a number of electric utilities, and for some reason, BHE also includes the Berkshire Hathaway real estate brokerage business.
At any rate, BHE has showed revenue and profit growth last quarter, with revenue up 8.8% and pre-tax earnings up 5.7%, in spite of the recession that has dampened energy consumption at large. In last year's letter to shareholders, Buffett praised the accomplishments of the MidAmerican Energy segment, which is completely wind self-sufficient in Iowa. That focus on renewables allows MidAmerican to sell power to consumers significantly cheaper than the other competing utility, which only has less than 10% of its power coming from renewables.
Image source: Getty Images.
In that same letter, Buffett also outlined $100 billion in investment opportunities for Berkshire Hathaway Energy, and this will probably come over time, because of the slow nature of regulatory approvals for large utility projects. Still, with the costs of wind and solar power continuing to plummet, and with BHE unburdened by dividend payments of most utility companies, look for Berkshire to greatly expand its electric utility business in 2021 and beyond. Additionally, Berkshire's largest purchase this year, a $9.7 billion acquisition of natural gas pipelines, storage, and export terminals from Dominion Energy (NYSE: D), will add even more fee-earnings assets to the mix this year.
No. 3: More share repurchases likely if the price stays here
Through its earnings were down, during the first three quarters of 2020, Berkshire still managed to produce just under $20 billion in free cash flow, swelling its hefty cash pile has swelled to $142 billion as of September.
Yet Berkshire's stock remained depressed, increasing only 2.4%, versus the S&P 500's return of 18.4%. Furthermore, Berkshire only eked out a positive gain thanks to a last-minute surge following a COVID-19 vaccine announcement.
Some investors scoffed at Buffett's reluctance to buy stocks in a big way during the March swoon; however, Buffett did make a rather sizable stock buy this year -- Berkshire Hathaway itself.
Image source: Getty Images.
Through the first nine months of 2020, Buffett repurchased $15.7 billion of Berkshire's stock, good for about 3% of shares outstanding. Buffett had relaxed the buyback rules he used to adhere to in 2018, saying at the time that Berkshire would repurchase shares, "at prices below Berkshire's intrinsic value, as conservatively determined by Warren Buffett, Berkshire's chairman of the board and chief executive officer, and Charlie Munger, vice chairman of the board."
This year's share repurchases were significantly higher than the $5 billion in repurchases made in all of 2019, and probably continued into the fourth quarter. That probably means Buffett thought Berkshire's own collection of businesses and investments were among the best deals in the market. And even though Berkshire's share price is up compared with the third quarter, it's still far behind the market and Berkshire's likely book value growth for the year. With a still-cheap stock and loads of cash, look for more repurchases in 2021, barring a sudden spike in Berkshire's share price.
No. 4: Expect the unexpected
While Berkshire didn't execute many large, consequential buys in 2020, Berkshire did make several smaller but unique investments, with some even the kind Buffett himself had said he'd never make.
High up on the "unexpected Berkshire buys" list was Barrick Gold (NYSE: GOLD) a gold miner that Berkshire purchased in the second quarter. This was very surprising since Buffett had long been opposed to investing in gold versus productive businesses -- though arguably Barrick is a business, albeit one whose earnings is tied to the price of gold.
Buffett didn't shed light on the purchase, but as its size was only about half a billion dollars, it was probably the work of Buffett's lieutenants Ted Wechsler or Todd Combs. We still don't know the exact reason for the gold-oriented purchase, but it could be due to fears of inflation and instability. Interestingly, the Barrick Gold position was slashed by 42% in the third quarter, so the purchase may have been a short-term hedge against the considerable uncertainty in the immediate aftermath of the pandemic.
Berkshire then surprised again with the purchase of over six million shares of Snowflake (NYSE: SNOW) at its IPO price of $120 per share. Snowflake was a high-flying technology name at the time of the IPO, and since then it's gone to the stratosphere, more than doubling to around $280 per share as of this writing, and trading at an astronomical 163 price-to-sales ratio.
The purchase is a huge outlier for the stingy Buffett, the world's best-known value investor. However, it's highly likely the purchase was spearheaded by Todd Combs, one of Buffett's younger lieutenants and a user of Snowflake's big data platform at Berkshire's GEICO insurance subsidiary.
Finally, Buffett himself made what is in many ways a typical Berkshire value investment, but in an atypical geography of Japan. During the summer, Berkshire purchased 5% stakes in five different Japanese trading companies, which have large and diversified businesses across energy, food, textiles, and other import/exports. All five companies sported low valuations and high dividend yields that Berkshire typically seeks, but were not easily found in the U.S. markets this year.
Not many would have predicted Buffett and his team would buy into gold, high-flying tech IPOs, or Japanese stocks last year, and I'd expect more shrewd and surprising moves from Buffett and his team in this strange economic time.
At a valuation of just 1.3 times book value as the of the end of Q3 -- though probably even cheaper today after a book value increase in Q4 -- Berkshire remains one of the best value stocks in the market heading into 2021.
10 stocks we like better than Berkshire Hathaway (A shares)
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*Stock Advisor returns as of November 20, 2020
Billy Duberstein owns shares of Berkshire Hathaway (B shares). His clients may own shares of the companies mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Snowflake Inc. The Motley Fool recommends Dominion Energy, Inc and recommends the following options: short January 2021 $200 puts on Berkshire Hathaway (B shares) and long January 2021 $200 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In that same letter, Buffett also outlined $100 billion in investment opportunities for Berkshire Hathaway Energy, and this will probably come over time, because of the slow nature of regulatory approvals for large utility projects. However, it's highly likely the purchase was spearheaded by Todd Combs, one of Buffett's younger lieutenants and a user of Snowflake's big data platform at Berkshire's GEICO insurance subsidiary. All five companies sported low valuations and high dividend yields that Berkshire typically seeks, but were not easily found in the U.S. markets this year.
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2: Growth at Berkshire Hathaway Energy, and clean growth at that One of the brighter spots in Berkshire's 2020 results has been the resilience and continued growth of Berkshire Hathaway Energy, the segment that includes a number of electric utilities, and for some reason, BHE also includes the Berkshire Hathaway real estate brokerage business. High up on the "unexpected Berkshire buys" list was Barrick Gold (NYSE: GOLD) a gold miner that Berkshire purchased in the second quarter. Not many would have predicted Buffett and his team would buy into gold, high-flying tech IPOs, or Japanese stocks last year, and I'd expect more shrewd and surprising moves from Buffett and his team in this strange economic time.
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2: Growth at Berkshire Hathaway Energy, and clean growth at that One of the brighter spots in Berkshire's 2020 results has been the resilience and continued growth of Berkshire Hathaway Energy, the segment that includes a number of electric utilities, and for some reason, BHE also includes the Berkshire Hathaway real estate brokerage business. Buffett had relaxed the buyback rules he used to adhere to in 2018, saying at the time that Berkshire would repurchase shares, "at prices below Berkshire's intrinsic value, as conservatively determined by Warren Buffett, Berkshire's chairman of the board and chief executive officer, and Charlie Munger, vice chairman of the board." The Motley Fool recommends Dominion Energy, Inc and recommends the following options: short January 2021 $200 puts on Berkshire Hathaway (B shares) and long January 2021 $200 calls on Berkshire Hathaway (B shares).
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Some investors scoffed at Buffett's reluctance to buy stocks in a big way during the March swoon; however, Buffett did make a rather sizable stock buy this year -- Berkshire Hathaway itself. And even though Berkshire's share price is up compared with the third quarter, it's still far behind the market and Berkshire's likely book value growth for the year. Berkshire then surprised again with the purchase of over six million shares of Snowflake (NYSE: SNOW) at its IPO price of $120 per share.
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698981.0
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2020-12-26 00:00:00 UTC
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3 Energy Stocks to Buy in 2021
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https://www.nasdaq.com/articles/3-energy-stocks-to-buy-in-2021-2020-12-26
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The turbulent ride of 2020 is finally coming to a close. Whether you had a market-beating investment year, did OK, or had a year you'd rather forget, now is the time to look ahead toward 2021.
The energy sector is full of high-risk companies that are probably worth avoiding. But there are buys if you know where to look. Array Technologies (NASDAQ: ARRY), Dominion Energy (NYSE: D), and Kinder Morgan (NYSE: KMI) are three completely different companies that offer favorable risk/reward profiles in solar, wind, and income investing (respectively). Here's the rundown on each so you can choose what's best for you.
Image source: Getty Images.
1. The solar play: Array Technologies
Let's start with the riskiest stock on this list -- Array Technologies. Array had its IPO in mid-October. By the end of November, shares were up over 50% but Array has sold off a little since then.
Array has been around for over 30 years, honing its craft in the solar tracking industry. Array's single-axis trackers clamp on to solar panels and help them follow the sun throughout the day. Over the years, Array has grown into a market leader in this field and notes that its trackers are used in more than 25% of U.S. solar modules.
Array delivered impressive results during its first quarterly conference call as a public company. Comparing the nine months ended 2020 to the same period last year, it increased revenue by 64% and nearly doubled adjusted EBITDA. It hopes to translate its U.S. success to the global stage by taking its product international and gaining market share in the U.K, Spain, Brazil, Mexico, China, and Australia.
The solar sector as a whole has absolutely crushed the market in 2020. Many industry leaders are now trading at potentially dangerous record highs and could face dark days ahead.
TAN Total Return Level data by YCharts
Investors looking for solar opportunities in 2021 will be hard-pressed to find anything that is truly "cheap". But Array looks to be one of the best options on the market today. In 2019, it grew revenue by over 120% compared to 2018. Its forecasting to finish 2020 with revenue of $855 million, which would be 32% more than an already strong 2019. It lost money in 2018 but turned profitable in 2019, reporting $122 million in adjusted EBITDA and $77 million in adjusted net income. Array is guiding for $158 million in adjusted EBITDA for 2020 -- 30% higher than 2019. These top and bottom-line growth rates are impressive, especially considering 2020 has been a somewhat low growth year for the industry.
Array's valuation is also reasonable. Using its full-year 2020 guidance, it would have a price to sales (P/S) ratio of 6.6 and an EV to adjusted EBITDA ratio of 35.4, which is cheaper than other high growers in this industry like SolarEdge Technologies and Enphase Energy but more expensive than slower growers like First Solar. If Array can grow its top and bottom line at a similar pace as it did this year, it could end up being one of the best performing solar stocks in 2021.
2. The wind play: Dominion Energy
Dominion Energy is a utility that's making some bold investments into wind energy. But Dominion has struggled this year. In the second quarter, the company reported its largest quarterly loss in history due to impairments related to its failed Atlantic Coast Pipeline project. It also cut its dividend by 33%.
Bruised and battered, Dominion is looking for a new beginning that starts with offshore wind energy. Offshore wind is a growing subsegment focused on cherry-picking some of the ocean's most favorable conditions for harnessing wind energy. In 2013, Dominion acquired a 112,000-acre lease 26 miles off the coast of Virginia. It used that lease to run a 12MW test project, the success of which has led Dominion to file a permit for a 2.6 GW, $8 billion full-scale project using its lease. It will be one of the largest offshore wind projects in the world and is expected to go into service in 2024.
As exciting as Dominion's prospects are, it's important to realize that wind energy isn't contributing to its performance yet. 85% to 90% of its earnings come from state-regulated utility operations such as electric distribution, transmission, generation, gas distribution, and renewable natural gas. However, Dominion expects to be able to grow earnings by 6.5% and its dividend by 6% starting in 2021. This forecast includes up to $47 billion in zero-carbon power generation and storage, meaning it expects renewable investments to contribute to profitability.
In terms of an energy mix, Dominion is expecting to go from nearly 100% fossil fuel-based power projects to a more diversified approach that includes about 5.2 GW of offshore wind by 2035 and 16 GW of solar/onshore wind by 2036.
Dominion's renewable portfolio isn't established. And the company as a whole has endured heavy losses as of late. But its stock is down and its dividend still yields 3.3% -- even after the cut. Investing is about looking ahead, not backward. And Dominion seems to be on the right track toward integrating profitable regulated and contracted renewable investments into its portfolio, potentially giving investors dividend and earnings growth for years to come.
3. The dividend play: Kinder Morgan
If 2020 was Dominion's year of reckoning, then 2015 was Kinder Morgan's. Between 2010 and 2015, the company nearly tripled its long-term debt just in time for one of the most brutal oil crashes in recent history. In response, Kinder Morgan slashed its dividend by 75% at the end of 2015.
Since then, it has spent the last five years converting its business model from using debt to fuel growth to running a lean operation that generates free cash flow (FCF) to support the dividend. With a yield of 7.4%r, income investors are probably more than happy with this business strategy. Kinder Morgan's long-term fee-based and take-or-pay contracts provide over 90% of its FCF. As such, its earnings have remained largely insulated from the 2020 downturn.
Investing in Kinder Morgan is basically a bet that the company is stable enough to afford its high-yielding dividend. Considering its performance and management's remarks regarding the company's long-term strategy, it seems well-positioned to sustain and maybe even grow its current dividend. If that's the case, then Kinder Morgan can be used to generate a nice stream of income without having to sell any shares. However, its lack of earnings growth means that investors shouldn't count on the stock for much else.
Something for everyone
Array Technologies, Dominion Energy, and Kinder Morgan offer you varying risk/reward profiles so you can choose whichever option is best for you. Watch to see if Array can continue growing at a good rate and whether it's making international progress. Dominion is basically giving itself a fresh start in 2021, so it would be wise to monitor if it can stick to the plan of growing earnings and its dividend while ramping renewable investments. As for Kinder Morgan, ignore its stock price and just make sure it's generating enough FCF to fund its dividend while avoiding additional debt.
10 stocks we like better than Kinder Morgan
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David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Kinder Morgan wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Daniel Foelber owns shares of Array Technologies, Dominion Energy, Inc, and Kinder Morgan and has the following options: short July 2021 $50 calls on Array Technologies and short January 2022 $15 calls on Kinder Morgan. The Motley Fool owns shares of and recommends Kinder Morgan. The Motley Fool recommends Dominion Energy, Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It hopes to translate its U.S. success to the global stage by taking its product international and gaining market share in the U.K, Spain, Brazil, Mexico, China, and Australia. And Dominion seems to be on the right track toward integrating profitable regulated and contracted renewable investments into its portfolio, potentially giving investors dividend and earnings growth for years to come. Since then, it has spent the last five years converting its business model from using debt to fuel growth to running a lean operation that generates free cash flow (FCF) to support the dividend.
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The wind play: Dominion Energy Dominion Energy is a utility that's making some bold investments into wind energy. And Dominion seems to be on the right track toward integrating profitable regulated and contracted renewable investments into its portfolio, potentially giving investors dividend and earnings growth for years to come. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Daniel Foelber owns shares of Array Technologies, Dominion Energy, Inc, and Kinder Morgan and has the following options: short July 2021 $50 calls on Array Technologies and short January 2022 $15 calls on Kinder Morgan.
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Array Technologies (NASDAQ: ARRY), Dominion Energy (NYSE: D), and Kinder Morgan (NYSE: KMI) are three completely different companies that offer favorable risk/reward profiles in solar, wind, and income investing (respectively). The wind play: Dominion Energy Dominion Energy is a utility that's making some bold investments into wind energy. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Daniel Foelber owns shares of Array Technologies, Dominion Energy, Inc, and Kinder Morgan and has the following options: short July 2021 $50 calls on Array Technologies and short January 2022 $15 calls on Kinder Morgan.
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However, Dominion expects to be able to grow earnings by 6.5% and its dividend by 6% starting in 2021. The dividend play: Kinder Morgan If 2020 was Dominion's year of reckoning, then 2015 was Kinder Morgan's. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Daniel Foelber owns shares of Array Technologies, Dominion Energy, Inc, and Kinder Morgan and has the following options: short July 2021 $50 calls on Array Technologies and short January 2022 $15 calls on Kinder Morgan.
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698982.0
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2020-12-19 00:00:00 UTC
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These 3 Dividend Stocks Are on Sale This Holiday Season
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https://www.nasdaq.com/articles/these-3-dividend-stocks-are-on-sale-this-holiday-season-2020-12-19
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The stock market has been on fire for the last several months. For that reason, it's getting harder for investors to find bargains. However, there are a few out there, especially in the energy sector, which still hasn't recovered from the impact the COVID-19 outbreak is having on demand.
On a more positive note, one of the benefits of that sector's rough patch is that investors can pick up some higher-yielding dividends at attractive prices. Three that stood out to our Motley Fool contributors are Dominion Energy (NYSE: D), Helmerich & Payne (NYSE: HP), and ONEOK (NYSE: OKE).
Image source: Getty Images.
A fresh start
Daniel Foelber (Dominion Energy): Shares of utility giant Dominion Energy have drastically underperformed the market since the company announced a massive $9.7 billion pipeline sale to Warren Buffett in early July. Included in the sale were the assets that would have formed the Atlantic Coast Pipeline (ACP). The project went from what was expected to be a cash cow that would go into service in early 2022 to a money pit that faced regulatory hurdle after hurdle and ultimately resulted in billions of dollars of losses for Dominion Energy.
Dominion's stock is selling off for a number of reasons. The two most important are earnings losses and a dividend cut. In the second quarter, the company reported its largest quarterly loss in history after writing down assets related to the ACP. The company is paying a $0.63 per-share dividend on Dec. 20, which is the lowest dividend it has paid in five years and one-third lower than what it paid last quarter. However, the stock still yields a respectable 3.4% even with the lower dividend.
D data by YCharts
With the damage done, Dominion Energy is looking well positioned for 2021 and beyond. It had a good third quarter and earned more money than it thought it was going to now that select coronavirus vaccines are being authorized for use. It also reaffirmed its plan to grow earnings at 6.5% per year and its dividend by 6% starting in 2021. Looking ahead, Dominion plans to generate and transport energy from a variety of sources by growing renewables. The company has proposed up to $55 billion in renewable and emissions-reducing investments over the next 15 years. Since 2013, Dominion has increased its involvement in offshore wind and has an $8 billion, 2.6 GW project in the works. Permitting is expected to take two years, and construction is expected to begin in 2024.
Dominion's renewable projects will take time to build out and impact its bottom line, but the company appears to be headed in a direction that can steadily grow earnings over the long term. Investors would be wise to take advantage of the sale, collecting dividends while waiting for its growth projects to develop.
A turnaround opportunity for aggressive investors
Reuben Gregg Brewer (Helmerich & Payne): When it comes to the energy sector, services providers like Helmerich & Payne tend to be volatile. Given the material headwinds in the company's fiscal 2020 calendar year, which ended in September, it was a disastrous time for this onshore U.S. services provider. To put a number on that, Helmerich & Payne lost $4.60 per share (largely due to asset write downs) and ended up cutting its dividend 65%. The stock is still off about 45% in 2020. But there's still some things to like about Helmerich & Payne.
HP data by YCharts
For starters, despite the dividend cut, it offers a fairly generous 4% yield. Then there's the balance sheet, where the debt-to-equity ratio is a very modest 20%, and the company is carrying nearly $600 million in cash. That cash plus an undrawn revolving credit facility provide roughly $1.3 billion in liquidity. That should be more than enough for the company to muddle through this industry downturn.
Which brings us to Helmerich & Payne's sizable portfolio of modern Super-Spec rigs. Customers prefer these over older technology, and they will be among the first rigs put back to work. In addition, the company is working to adjust its business model by shifting to new payment structures, including performance-based and distance-based pricing (typically, rates are charged on a days-used basis).
Put these facts together and Helmerich & Payne is out of favor but looks highly likely to survive this rough patch and perhaps come out the other side a stronger company. It's a turnaround story for sure -- and a pretty compelling one.
A high-yield on sale
Matt DiLallo (ONEOK): The COVID-19 outbreak and associated downturn in the oil market upended the growth ambitions of pipeline operator ONEOK. Heading into 2020, the company expected its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow 25% this year and another 20% increase in 2021. However, crashing crude prices forced its customers to shut in wells and shut down drilling rigs, causing fewer volumes to flow through ONEOK's systems.
As a result, the company currently anticipates that its adjusted EBITDA will rise by about 8.5% this year. That's still a decent result considering that many rivals expect their earnings to decline. Meanwhile, it anticipates achieving double-digit growth in 2021. Again, that's much better than most peers, which don't expect much, if any, earnings growth next year.
Despite that growth outlook, shares of ONEOK are down 45% this year. That steep sell-off has pushed ONEOK's dividend yield up to an eye-popping 9.1%. Further, it has made the stock a lot cheaper. Currently, ONEOK is on track to generate $2.8 billion of adjusted EBITDA in 2020. However, given the sell-off in its stock price, it has an enterprise value (EV) of $31.7 billion, implying that it trades at 11.3 times EV/EBITDA. For comparison's sake, it entered the year with an EV of $41.2 billion, giving it a 16 times EBITDA multiple on last year's earnings. Add that lower price tag to ONEOK's yield, and it has significant upside potential if the oil market continues improving in 2021, since that should provide a boost to its valuation.
10 stocks we like better than Dominion Energy, Inc
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*Stock Advisor returns as of November 20, 2020
Matthew DiLallo has no position in any of the stocks mentioned. The Motley Fool recommends Dominion Energy, Inc and ONEOK. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Dominion's renewable projects will take time to build out and impact its bottom line, but the company appears to be headed in a direction that can steadily grow earnings over the long term. In addition, the company is working to adjust its business model by shifting to new payment structures, including performance-based and distance-based pricing (typically, rates are charged on a days-used basis). Add that lower price tag to ONEOK's yield, and it has significant upside potential if the oil market continues improving in 2021, since that should provide a boost to its valuation.
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Three that stood out to our Motley Fool contributors are Dominion Energy (NYSE: D), Helmerich & Payne (NYSE: HP), and ONEOK (NYSE: OKE). A turnaround opportunity for aggressive investors Reuben Gregg Brewer (Helmerich & Payne): When it comes to the energy sector, services providers like Helmerich & Payne tend to be volatile. A high-yield on sale Matt DiLallo (ONEOK): The COVID-19 outbreak and associated downturn in the oil market upended the growth ambitions of pipeline operator ONEOK.
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Three that stood out to our Motley Fool contributors are Dominion Energy (NYSE: D), Helmerich & Payne (NYSE: HP), and ONEOK (NYSE: OKE). A fresh start Daniel Foelber (Dominion Energy): Shares of utility giant Dominion Energy have drastically underperformed the market since the company announced a massive $9.7 billion pipeline sale to Warren Buffett in early July. 10 stocks we like better than Dominion Energy, Inc When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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A turnaround opportunity for aggressive investors Reuben Gregg Brewer (Helmerich & Payne): When it comes to the energy sector, services providers like Helmerich & Payne tend to be volatile. A high-yield on sale Matt DiLallo (ONEOK): The COVID-19 outbreak and associated downturn in the oil market upended the growth ambitions of pipeline operator ONEOK. For that reason, it's getting harder for investors to find bargains.
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698983.0
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2020-12-16 00:00:00 UTC
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After-Hours Earnings Report for December 16, 2020 : LEN, ABM, DL
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https://www.nasdaq.com/articles/after-hours-earnings-report-for-december-16-2020-%3A-len-abm-dl-2020-12-16
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The following companies are expected to report earnings after hours on 12/16/2020. Visit our Earnings Calendar for a full list of expected earnings releases.
Lennar Corporation (LEN) is reporting for the quarter ending November 30, 2020. The building (residential/commercial) company's consensus earnings per share forecast from the 6 analysts that follow the stock is $2.38. This value represents a 11.74% increase compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for LEN is 10.05 vs. an industry ratio of 11.10.
ABM Industries Incorporated (ABM) is reporting for the quarter ending October 31, 2020. The building maintenance & services company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.72. This value represents a 9.09% increase compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABM is 16.71 vs. an industry ratio of 24.80.
China Distance Education Holdings Limited (DL) is reporting for the quarter ending September 30, 2020. The internet content company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.24. This value represents a 41.46% decrease compared to the same quarter last year. Zacks Investment Research reports that the 2020 Price to Earnings ratio for DL is 23.51 vs. an industry ratio of 80.00.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The building maintenance & services company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.72. China Distance Education Holdings Limited (DL) is reporting for the quarter ending September 30, 2020. The following companies are expected to report earnings after hours on 12/16/2020.
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Zacks Investment Research reports that the 2020 Price to Earnings ratio for LEN is 10.05 vs. an industry ratio of 11.10. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABM is 16.71 vs. an industry ratio of 24.80. Zacks Investment Research reports that the 2020 Price to Earnings ratio for DL is 23.51 vs. an industry ratio of 80.00.
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Zacks Investment Research reports that the 2020 Price to Earnings ratio for LEN is 10.05 vs. an industry ratio of 11.10. Zacks Investment Research reports that the 2020 Price to Earnings ratio for ABM is 16.71 vs. an industry ratio of 24.80. Zacks Investment Research reports that the 2020 Price to Earnings ratio for DL is 23.51 vs. an industry ratio of 80.00.
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The following companies are expected to report earnings after hours on 12/16/2020. Lennar Corporation (LEN) is reporting for the quarter ending November 30, 2020. Zacks Investment Research reports that the 2020 Price to Earnings ratio for LEN is 10.05 vs. an industry ratio of 11.10.
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698984.0
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2020-12-10 00:00:00 UTC
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We Did The Math RYU Can Go To $110
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https://www.nasdaq.com/articles/we-did-the-math-ryu-can-go-to-%24110-2020-12-10
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco S&P 500— Equal Weight Utilities ETF (Symbol: RYU), we found that the implied analyst target price for the ETF based upon its underlying holdings is $110.32 per unit.
With RYU trading at a recent price near $99.99 per unit, that means that analysts see 10.33% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of RYU's underlying holdings with notable upside to their analyst target prices are NRG Energy Inc (Symbol: NRG), NiSource Inc. (Symbol: NI), and Dominion Energy Inc (Symbol: D). Although NRG has traded at a recent price of $33.81/share, the average analyst target is 31.86% higher at $44.58/share. Similarly, NI has 21.23% upside from the recent share price of $23.20 if the average analyst target price of $28.12/share is reached, and analysts on average are expecting D to reach a target price of $83.36/share, which is 12.20% above the recent price of $74.30. Below is a twelve month price history chart comparing the stock performance of NRG, NI, and D:
Combined, NRG, NI, and D represent 10.24% of the Invesco S&P 500— Equal Weight Utilities ETF. Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
Invesco S&P 500— Equal Weight Utilities ETF RYU $99.99 $110.32 10.33%
NRG Energy Inc NRG $33.81 $44.58 31.86%
NiSource Inc. NI $23.20 $28.12 21.23%
Dominion Energy Inc D $74.30 $83.36 12.20%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Although NRG has traded at a recent price of $33.81/share, the average analyst target is 31.86% higher at $44.58/share. Invesco S&P 500— Equal Weight Utilities ETF RYU $99.99 $110.32 10.33% NRG Energy Inc NRG $33.81 $44.58 31.86% NiSource Inc. NI $23.20 $28.12 21.23% Dominion Energy Inc D $74.30 $83.36 12.20% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Three of RYU's underlying holdings with notable upside to their analyst target prices are NRG Energy Inc (Symbol: NRG), NiSource Inc. (Symbol: NI), and Dominion Energy Inc (Symbol: D). Invesco S&P 500— Equal Weight Utilities ETF RYU $99.99 $110.32 10.33% NRG Energy Inc NRG $33.81 $44.58 31.86% NiSource Inc. NI $23.20 $28.12 21.23% Dominion Energy Inc D $74.30 $83.36 12.20% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. Similarly, NI has 21.23% upside from the recent share price of $23.20 if the average analyst target price of $28.12/share is reached, and analysts on average are expecting D to reach a target price of $83.36/share, which is 12.20% above the recent price of $74.30. A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past.
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. With RYU trading at a recent price near $99.99 per unit, that means that analysts see 10.33% upside for this ETF looking through to the average analyst targets of the underlying holdings. Although NRG has traded at a recent price of $33.81/share, the average analyst target is 31.86% higher at $44.58/share.
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698985.0
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2020-12-09 00:00:00 UTC
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RSI Alert: Dominion Energy (D) Now Oversold
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D
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https://www.nasdaq.com/articles/rsi-alert%3A-dominion-energy-d-now-oversold-2020-12-09
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Wednesday, shares of Dominion Energy Inc (Symbol: D) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $73.16 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 64.1. A bullish investor could look at D's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of D shares:
Looking at the chart above, D's low point in its 52 week range is $57.79 per share, with $90.89 as the 52 week high point — that compares with a last trade of $73.39.
Find out what 9 other oversold stocks you need to know about »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Wednesday, shares of Dominion Energy Inc (Symbol: D) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $73.16 per share. A bullish investor could look at D's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of D shares: Looking at the chart above, D's low point in its 52 week range is $57.79 per share, with $90.89 as the 52 week high point — that compares with a last trade of $73.39.
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By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 64.1. A bullish investor could look at D's 29.8 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of D shares: Looking at the chart above, D's low point in its 52 week range is $57.79 per share, with $90.89 as the 52 week high point — that compares with a last trade of $73.39.
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One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. In trading on Wednesday, shares of Dominion Energy Inc (Symbol: D) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $73.16 per share. The chart below shows the one year performance of D shares: Looking at the chart above, D's low point in its 52 week range is $57.79 per share, with $90.89 as the 52 week high point — that compares with a last trade of $73.39.
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Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
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698986.0
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2020-12-08 00:00:00 UTC
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Why Berkshire Hathaway Stock Climbed 13.6% in November
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https://www.nasdaq.com/articles/why-berkshire-hathaway-stock-climbed-13.6-in-november-2020-12-08
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What happened
Berkshire Hathaway's (NYSE: BRK.A)(NYSE: BRK.B) Class A shares rose 13.6% in November, according to data from S&P Global Market Intelligence. Class B shares climbed 13.4% in the month. The Warren Buffet-led company's stock enjoyed double-digit gains thanks in large part to a record-setting rally for the broader market.
^SPX data by YCharts.
The S&P 500 index climbed 10.75% last month, its best-ever November performance. Berkshire Hathaway is an investment holding company that owns a large portfolio of stocks, and the broader market's impressive rally drove double-digit gains for the Class A and B shares last month.
Image source: The Motley Fool.
So what
Berkshire Hathaway's valuation often sees moves in conjunction with the broader market, and last month's rally helped the Class A and B shares set record highs. The company also published its third-quarter earnings results and 13-F filing last month, providing a detailed look at the investment giant's recent performance and what it has been buying and selling.
Berkshire repurchased $9 billion worth of its own shares in the third quarter, a record for the company. Last quarter's repurchasing splurge pushed the company's spending on stock buybacks to $15.7 billion across the first nine months of the year.
Other notable purchases in the quarter included $2 billion in Bank of America stock and a $10 billion deal (including debt) to purchase Dominion's natural gas assets. The company also bought 6.1 million shares of Snowflake, a cloud data warehousing specialist that had its initial public offering (IPO) in mid-September. Berkshire trimmed its position in Apple by 36.3 million shares, although the tech giant remains the conglomerate's largest stock holding and still accounts for nearly half of its portfolio.
Now what
Berkshire Hathaway stock has traded roughly flat across December's trading despite continued momentum for the broader market.
^SPX data by YCharts.
The company's massive stock buyback initiative should create an earnings catalyst, as shares that have been bought back will be retired, thereby reducing the total outstanding share count. The buyback push also suggests that Buffett, vice chairman Charlie Munger, and other top managers believed that Berkshire was undervalued and that they have a bullish outlook for the company and the broader market.
10 stocks we like better than Berkshire Hathaway (A shares)
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (A shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of November 20, 2020
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), and Snowflake Inc. The Motley Fool recommends Dominion Energy, Inc and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short December 2020 $210 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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^SPX data by YCharts. Berkshire Hathaway is an investment holding company that owns a large portfolio of stocks, and the broader market's impressive rally drove double-digit gains for the Class A and B shares last month. So what Berkshire Hathaway's valuation often sees moves in conjunction with the broader market, and last month's rally helped the Class A and B shares set record highs.
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^SPX data by YCharts. Berkshire Hathaway is an investment holding company that owns a large portfolio of stocks, and the broader market's impressive rally drove double-digit gains for the Class A and B shares last month. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), and Snowflake Inc.
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^SPX data by YCharts. Berkshire Hathaway is an investment holding company that owns a large portfolio of stocks, and the broader market's impressive rally drove double-digit gains for the Class A and B shares last month. 10 stocks we like better than Berkshire Hathaway (A shares) When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
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^SPX data by YCharts. Berkshire Hathaway is an investment holding company that owns a large portfolio of stocks, and the broader market's impressive rally drove double-digit gains for the Class A and B shares last month. Last quarter's repurchasing splurge pushed the company's spending on stock buybacks to $15.7 billion across the first nine months of the year.
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698987.0
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2020-12-02 00:00:00 UTC
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Dominion Energy, Inc. (D) Ex-Dividend Date Scheduled for December 03, 2020
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https://www.nasdaq.com/articles/dominion-energy-inc.-d-ex-dividend-date-scheduled-for-december-03-2020-2020-12-02
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Dominion Energy, Inc. (D) will begin trading ex-dividend on December 03, 2020. A cash dividend payment of $0.63 per share is scheduled to be paid on December 20, 2020. Shareholders who purchased D prior to the ex-dividend date are eligible for the cash dividend payment. This represents an -32.98% decrease from the prior dividend payment. At the current stock price of $80.16, the dividend yield is 3.14%.
The previous trading day's last sale of D was $80.16, representing a -11.81% decrease from the 52 week high of $90.89 and a 38.71% increase over the 52 week low of $57.79.
D is a part of the Public Utilities sector, which includes companies such as NextEra Energy, Inc. (NEE) and Southern Company (SO). D's current earnings per share, an indicator of a company's profitability, is -$.02. Zacks Investment Research reports D's forecasted earnings growth in 2020 as -16.04%, compared to an industry average of .9%.
For more information on the declaration, record and payment dates, visit the D Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to D through an Exchange Traded Fund [ETF]?
The following ETF(s) have D as a top-10 holding:
VanEck Vectors Uranium & Nuclear Energy ETF (NLR)
SPDR Select Sector Fund - Utilities (XLU)
Vanguard Utilities ETF (VPU)
iShares U.S. Utilities ETF (IDU)
Fidelity MSCI Utilities Index ETF (FUTY).
The top-performing ETF of this group is NLR with an increase of 12.04% over the last 100 days. It also has the highest percent weighting of D at 7.86%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shareholders who purchased D prior to the ex-dividend date are eligible for the cash dividend payment. Zacks Investment Research reports D's forecasted earnings growth in 2020 as -16.04%, compared to an industry average of .9%. For more information on the declaration, record and payment dates, visit the D Dividend History page.
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Shareholders who purchased D prior to the ex-dividend date are eligible for the cash dividend payment. This represents an -32.98% decrease from the prior dividend payment. The following ETF(s) have D as a top-10 holding: VanEck Vectors Uranium & Nuclear Energy ETF (NLR) SPDR Select Sector Fund - Utilities (XLU) Vanguard Utilities ETF (VPU) iShares U.S. Utilities ETF (IDU) Fidelity MSCI Utilities Index ETF (FUTY).
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A cash dividend payment of $0.63 per share is scheduled to be paid on December 20, 2020. Shareholders who purchased D prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have D as a top-10 holding: VanEck Vectors Uranium & Nuclear Energy ETF (NLR) SPDR Select Sector Fund - Utilities (XLU) Vanguard Utilities ETF (VPU) iShares U.S. Utilities ETF (IDU) Fidelity MSCI Utilities Index ETF (FUTY).
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A cash dividend payment of $0.63 per share is scheduled to be paid on December 20, 2020. Shareholders who purchased D prior to the ex-dividend date are eligible for the cash dividend payment. The following ETF(s) have D as a top-10 holding: VanEck Vectors Uranium & Nuclear Energy ETF (NLR) SPDR Select Sector Fund - Utilities (XLU) Vanguard Utilities ETF (VPU) iShares U.S. Utilities ETF (IDU) Fidelity MSCI Utilities Index ETF (FUTY).
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698988.0
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2020-12-01 00:00:00 UTC
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Ex-Dividend Reminder: Acushnet Holdings, Horton and Dominion Energy
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https://www.nasdaq.com/articles/ex-dividend-reminder%3A-acushnet-holdings-horton-and-dominion-energy-2020-12-01
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Looking at the universe of stocks we cover at Dividend Channel, on 12/3/20, Acushnet Holdings Corp (Symbol: GOLF), Horton Inc (Symbol: DHI), and Dominion Energy Inc (Symbol: D) will all trade ex-dividend for their respective upcoming dividends. Acushnet Holdings Corp will pay its quarterly dividend of $0.155 on 12/18/20, Horton Inc will pay its quarterly dividend of $0.20 on 12/14/20, and Dominion Energy Inc will pay its quarterly dividend of $0.63 on 12/20/20. As a percentage of GOLF's recent stock price of $37.70, this dividend works out to approximately 0.41%, so look for shares of Acushnet Holdings Corp to trade 0.41% lower — all else being equal — when GOLF shares open for trading on 12/3/20. Similarly, investors should look for DHI to open 0.27% lower in price and for D to open 0.79% lower, all else being equal.
Below are dividend history charts for GOLF, DHI, and D, showing historical dividends prior to the most recent ones declared.
Acushnet Holdings Corp (Symbol: GOLF):
Horton Inc (Symbol: DHI):
Dominion Energy Inc (Symbol: D):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.64% for Acushnet Holdings Corp, 1.07% for Horton Inc, and 3.17% for Dominion Energy Inc .
In Tuesday trading, Acushnet Holdings Corp shares are currently trading flat, Horton Inc shares are up about 0.6%, and Dominion Energy Inc shares are up about 1.2% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a percentage of GOLF's recent stock price of $37.70, this dividend works out to approximately 0.41%, so look for shares of Acushnet Holdings Corp to trade 0.41% lower — all else being equal — when GOLF shares open for trading on 12/3/20. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. If they do continue, the current estimated yields on annualized basis would be 1.64% for Acushnet Holdings Corp, 1.07% for Horton Inc, and 3.17% for Dominion Energy Inc .
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Looking at the universe of stocks we cover at Dividend Channel, on 12/3/20, Acushnet Holdings Corp (Symbol: GOLF), Horton Inc (Symbol: DHI), and Dominion Energy Inc (Symbol: D) will all trade ex-dividend for their respective upcoming dividends. Acushnet Holdings Corp will pay its quarterly dividend of $0.155 on 12/18/20, Horton Inc will pay its quarterly dividend of $0.20 on 12/14/20, and Dominion Energy Inc will pay its quarterly dividend of $0.63 on 12/20/20. Acushnet Holdings Corp (Symbol: GOLF): Horton Inc (Symbol: DHI): Dominion Energy Inc (Symbol: D): In general, dividends are not always predictable, following the ups and downs of company profits over time.
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Looking at the universe of stocks we cover at Dividend Channel, on 12/3/20, Acushnet Holdings Corp (Symbol: GOLF), Horton Inc (Symbol: DHI), and Dominion Energy Inc (Symbol: D) will all trade ex-dividend for their respective upcoming dividends. Acushnet Holdings Corp will pay its quarterly dividend of $0.155 on 12/18/20, Horton Inc will pay its quarterly dividend of $0.20 on 12/14/20, and Dominion Energy Inc will pay its quarterly dividend of $0.63 on 12/20/20. As a percentage of GOLF's recent stock price of $37.70, this dividend works out to approximately 0.41%, so look for shares of Acushnet Holdings Corp to trade 0.41% lower — all else being equal — when GOLF shares open for trading on 12/3/20.
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Looking at the universe of stocks we cover at Dividend Channel, on 12/3/20, Acushnet Holdings Corp (Symbol: GOLF), Horton Inc (Symbol: DHI), and Dominion Energy Inc (Symbol: D) will all trade ex-dividend for their respective upcoming dividends. As a percentage of GOLF's recent stock price of $37.70, this dividend works out to approximately 0.41%, so look for shares of Acushnet Holdings Corp to trade 0.41% lower — all else being equal — when GOLF shares open for trading on 12/3/20. This can help in judging whether the most recent dividends from these companies are likely to continue.
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698989.0
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2020-11-30 00:00:00 UTC
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Noteworthy ETF Outflows: XLU, NEE, DUK, D
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https://www.nasdaq.com/articles/noteworthy-etf-outflows%3A-xlu-nee-duk-d-2020-11-30
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $114.8 million dollar outflow -- that's a 0.9% decrease week over week (from 192,020,000 to 190,220,000). Among the largest underlying components of XLU, in trading today NextEra Energy Inc (Symbol: NEE) is off about 0.8%, Duke Energy Corp (Symbol: DUK) is off about 0.8%, and Dominion Energy Inc (Symbol: D) is higher by about 0.6%. For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average:
Looking at the chart above, XLU's low point in its 52 week range is $43.435 per share, with $71.10 as the 52 week high point — that compares with a last trade of $63.41. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $114.8 million dollar outflow -- that's a 0.9% decrease week over week (from 192,020,000 to 190,220,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $43.435 per share, with $71.10 as the 52 week high point — that compares with a last trade of $63.41. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Click here to find out which 9 other ETFs experienced notable outflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $114.8 million dollar outflow -- that's a 0.9% decrease week over week (from 192,020,000 to 190,220,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $43.435 per share, with $71.10 as the 52 week high point — that compares with a last trade of $63.41. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $114.8 million dollar outflow -- that's a 0.9% decrease week over week (from 192,020,000 to 190,220,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $43.435 per share, with $71.10 as the 52 week high point — that compares with a last trade of $63.41. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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698990.0
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2020-11-23 00:00:00 UTC
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FOCUS-Pipe dreams leave U.S. energy firms caught in climate trap
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https://www.nasdaq.com/articles/focus-pipe-dreams-leave-u.s.-energy-firms-caught-in-climate-trap-2020-11-23-0
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By Stephanie Kelly, Devika Krishna Kumar and Jessica Resnick-Ault
NEW YORK, Nov 23 (Reuters) - In remote northern Michigan a propane shortage in early 2014 caused prices to nearly double, squeezing about half of the families there who rely on the fossil fuel to heat their homes.
Glenda Bowler remembers her son fitting a wood stove at his restaurant as an alternative to propane, which reaches Michigan's Upper Peninsula via a 645 mile (1038 km) pipeline.
"Everybody's thermostats got turned down, and you turned to supplemental, like wood or electric to help. I'm old, so I can't go cut wood," the 68-year-old said.
Now the future of the Enbridge Inc ENB.TO owned line supplying the region is under threat, as climate activists widen their campaign to cut U.S. fossil fuel dependency from new pipelines to the refurbishment or expansion of older ones.
"To speed up the extraction of what remains is an insane strategy because we need to have something that replaces that energy source in the future and we don't have it as long as people are continuing to rely on oil," Anne Woiwode, co-chair of the Sierra Club's Michigan chapter, said.
But as authorities worldwide face the challenge of a smooth transition to a lower-carbon future, energy firms are wrestling with investment decisions to keep their businesses running and prevent supply disruptions.
Enbridge had to temporarily close its Line 5 this summer after damage was discovered, boosting calls for the 67-year-old line carrying crude oil, propane and liquid fuels to Canada through the sensitive Straits of Mackinac, to be shut down.
Nearly half the oil and gas pipeline miles that crisscross the United States are at least 50 years old. And even though the world's largest fuel consumer is starting to rely more on renewables, fossil fuels still provide almost all of its road fuel and natural gas accounts for about 40% of electricity generation.
Michigan Governor Gretchen Whitmer this month revoked a decades-old easement allowing the Enbridge line to operate, saying that its location and age means it poses a major risk and vowing to shut it after a transition period.
Roughly 43% of pipeline miles for hazardous liquids, which includes crude oil, were installed pre-1970, while 55% of gas transmission pipeline miles were installed before 1970, according to the U.S. Department of Transportation.
BLOCKING PIPELINES
Climate activists, Native tribes, and local opponents have waged years-long battles to prevent construction of pipelines with some, like Keystone XL, a 830,000-barrel-per-day crude expansion project, still in limbo after more than a decade.
Although the $8 billion Atlantic Coast Pipeline project, once the largest gas line under construction, was canceled this year, the Dakota Access LLC oil pipe and other large crude pipelines from Texas have been completed in recent years.
If existing pipelines are shut, suppliers could be forced to transport fuel and gas to consumers by rail or road.
Pipelines moved 4.4 billion barrels of foreign and domestic crude oil to refineries in 2019, while rail cars accounted for just 123.6 million barrels, or 3% of pipeline volumes, and trucking was about 2.4% of pipeline volume, U.S. Energy Information Administration data showed.
In Michigan, Sean McBrearty, a coordinator for Oil and Water Don't Mix, said the Enbridge pipeline is not needed to supply the region and that train cars or truckloads could replace it.
But analysts at Tudor, Pickering, Holt & Co. estimate it would take 30 trucks and half a unit train each day to haul the 40,000 barrels per day of propane that Line 5 usually supplies.
And Jim Mankervis, supervisor in Ishpeming Township, a 3,500-person community on the Upper Peninsula, doubts this is viable.
"I don't know that they could even get enough trucks to supply the (Upper Peninsula) with propane," he said.
Switching Upper Peninsula customers to an alternative fuel source, like natural gas, would be far from simple.
Separate lines are required from those that carry liquid fuels like propane, so a new right-of-way would be needed.
End users like homes and businesses would need to switch their own tankage and private pipes to the new fuel, at a greater cost than paying more for propane that is trucked in.
One solution agreed by Michigan's former governor with Enbridge was to encase the existing pipeline to prevent the line from polluting the water supply.
Enbridge estimates the project, due to be completed in 2024, will cost $500 million, said Ryan Duffy, Enbridge spokesman.
"More people see it is a common sense solution to protect the environment and make what has been a safe pipeline even safer, and then also continue to make sure that energy is delivered to the people in the state that really do rely on that," Duffy told Reuters.
PRICE IMPACT
The Atlantic Coast gas pipe would have added an additional pipeline to deliver gas to residents of the southeast, including North Carolina and Virginia, from West Virginia.
In the winter, most of the gas there is used by homes and businesses for heat, leaving less for industries and power plants during the coldest times of year, and utility companies say the pipeline's cancellation could drive up prices.
"We'll be able to meet the needs of our customers, but we're going to have to do it in a way that is a little more expensive and has a little more reliability concerns," Rayhan Daudani, a spokesman for Dominion Energy's D.N Virginia Power utility, said.
Other pipeline projects in North America face national or local opposition, including TC Energy Corp's TRP.TO Keystone XL in Alberta, Energy Transfer's ET.N Mariner East in Pennsylvania and Kinder Morgan Inc's KMI.N Permian Highway in Texas.
As of Nov. 1, the Permian Highway pipeline was mechanically complete, with full service still planned for early in the first quarter of 2021, the company told Reuters.
The U.S. Bureau of Indian Affairs in July ordered Andeavor/Tesoro, now owned by Marathon Petroleum, to stop using a pipeline flowing out of North Dakota and invoiced the company $187 million for trespass on Native American land.
Marathon said this month that the trespass order and damages had been canceled, although a new court decision was expected by Dec. 15
This line is nearly 70 years old and its latest easement agreement with the landowners expired in 2013. While it is still operational, the dispute could result in a portion being closed.
While pipeline opponents have become focused on older pipelines, even new ones have problems. Keystone, which moves Canadian crude to the Midwest, has twice leaked thousands of barrels, even though it is about 10 years old.
U.S. Energy Consumption by Sourcehttps://tmsnrt.rs/3fcuZ8p
U.S. hazardous liquid miles by decade installedhttps://tmsnrt.rs/35LoxCg
U.S. gas transmission miles by decade installedhttps://tmsnrt.rs/36TtesX
(Reporting by Stephanie Kelly, Devika Krishna Kumar, Jessica Resnick-Ault; Additional reporting by Scott DiSavino; Editing by David Gaffen and Alexander Smith)
((Stephanie.Kelly@thomsonreuters.com; 646-223-4471; Reuters Messaging: stephanie.kelly.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Stephanie Kelly, Devika Krishna Kumar and Jessica Resnick-Ault NEW YORK, Nov 23 (Reuters) - In remote northern Michigan a propane shortage in early 2014 caused prices to nearly double, squeezing about half of the families there who rely on the fossil fuel to heat their homes. "To speed up the extraction of what remains is an insane strategy because we need to have something that replaces that energy source in the future and we don't have it as long as people are continuing to rely on oil," Anne Woiwode, co-chair of the Sierra Club's Michigan chapter, said. Michigan Governor Gretchen Whitmer this month revoked a decades-old easement allowing the Enbridge line to operate, saying that its location and age means it poses a major risk and vowing to shut it after a transition period.
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Roughly 43% of pipeline miles for hazardous liquids, which includes crude oil, were installed pre-1970, while 55% of gas transmission pipeline miles were installed before 1970, according to the U.S. Department of Transportation. Although the $8 billion Atlantic Coast Pipeline project, once the largest gas line under construction, was canceled this year, the Dakota Access LLC oil pipe and other large crude pipelines from Texas have been completed in recent years. U.S. Energy Consumption by Sourcehttps://tmsnrt.rs/3fcuZ8p U.S. hazardous liquid miles by decade installedhttps://tmsnrt.rs/35LoxCg U.S. gas transmission miles by decade installedhttps://tmsnrt.rs/36TtesX (Reporting by Stephanie Kelly, Devika Krishna Kumar, Jessica Resnick-Ault; Additional reporting by Scott DiSavino; Editing by David Gaffen and Alexander Smith) ((Stephanie.Kelly@thomsonreuters.com; 646-223-4471; Reuters Messaging: stephanie.kelly.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Roughly 43% of pipeline miles for hazardous liquids, which includes crude oil, were installed pre-1970, while 55% of gas transmission pipeline miles were installed before 1970, according to the U.S. Department of Transportation. Although the $8 billion Atlantic Coast Pipeline project, once the largest gas line under construction, was canceled this year, the Dakota Access LLC oil pipe and other large crude pipelines from Texas have been completed in recent years. Pipelines moved 4.4 billion barrels of foreign and domestic crude oil to refineries in 2019, while rail cars accounted for just 123.6 million barrels, or 3% of pipeline volumes, and trucking was about 2.4% of pipeline volume, U.S. Energy Information Administration data showed.
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Although the $8 billion Atlantic Coast Pipeline project, once the largest gas line under construction, was canceled this year, the Dakota Access LLC oil pipe and other large crude pipelines from Texas have been completed in recent years. "I don't know that they could even get enough trucks to supply the (Upper Peninsula) with propane," he said. Switching Upper Peninsula customers to an alternative fuel source, like natural gas, would be far from simple.
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698991.0
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2020-11-20 00:00:00 UTC
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The Stark Reality Buffett Followers Must Face
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https://www.nasdaq.com/articles/the-stark-reality-buffett-followers-must-face-2020-11-20
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has quite the following on Wall Street, and it's not hard to understand why. Buffett's long-term investing approach and his ability to pick out businesses that offer plain-as-day competitive advantages has allowed Berkshire Hathaway's stock to run circles around the benchmark S&P 500 over the last 55 years.
Investors might harp about Buffett's subpar returns over the past decade relative to the S&P 500, but his company's stock has delivered a 2,744,062% return to shareholders over the past 55 years and created over $400 billion in market value in the process.
What I'm trying to say is, when Warren Buffett buys or sells a stock, Wall Street and retail investors pay close attention. Riding Buffett's coattails has proved to be a winning investment far more often than not.
Berkshire Hathaway CEO Warren Buffett. Image source: The Motley Fool.
But Berkshire Hathaway's recently filed Form 13F with the Securities and Exchange Commission reveals a stark reality that investors who love tracking Warren Buffett's every move must face: This isn't Warren Buffett's portfolio anymore.
Warren Buffett's portfolio presence is predominantly residual
Make no mistake about it, Warren Buffett remains the CEO of Berkshire Hathaway, and any big spending decisions are going to need his nod of approval. For instance, the $9.7 billion acquisition of pipeline and natural gas storage assets from Dominion Energy was 100% a Buffett call. The Oracle of Omaha has always been big on buying into cash-cow industries, and scooping up fee- or contract-based pipeline and storage solutions from Dominion to more than double Berkshire's share of the interstate natural gas transmission market is a typical genius move.
However, what we've witnessed in 2020 is far from typical for a Berkshire Hathaway investment portfolio. Through nine months, Berkshire has, at one time or another, pared down or completely sold out of 35 stocks.
I believe this outlier year has only one explanation: Todd Combs and Ted Weschler are now predominantly running the show.
Mind you, Buffett still has plenty of residual influence within his own investment portfolio. Apple is affably viewed by the Oracle of Omaha as Berkshire's "third business" and comprises a gargantuan $115.2 billion of $249.6 billion in invested assets. Known for his avoidance of tech stocks, Buffett appreciates Apple for its branding power, superior leadership team, and the company's willingness to aggressively repurchase its own stock.
Image source: Coca-Cola.
Buffett is also behind the $28.5 billion held in Bank of America, $21.5 billion in Coca-Cola, and $17.7 billion in American Express. Coca-Cola and American Express are two of Buffett's most tenured holdings, while BofA has been a popular add, especially after the Federal Reserve Bank of Richmond gave Berkshire Hathaway the OK to increase its stake up to as much as 24.9%, should it choose to do so. That's almost $183 billion of the $249.6 billion invested that's directly tied to Buffett's investment activity, and none of these holdings should be going away anytime soon.
Face the facts: This is Combs' and Weschler's show now
However, the ramp up in buying and selling activity in 2020, coupled with what's being bought and sold, leaves little doubt that Buffett has willingly taken a back seat.
Take a gander at what Berkshire Hathaway opened a position in during the third quarter:
Pfizer
Merck
Bristol Myers Squibb
AbbVie
T-Mobile
Snowflake
This has all the hallmarks of being Combs' and Weschler's work. For example, Buffett probably has no clue what cloud-data warehousing company Snowflake does or how it makes money. Likewise, Buffett exited the telecom space years ago, signaling that he didn't favor its long-term prospects. There's no question he's not behind the T-Mobile purchase.
Even the Big Pharma stocks are unlikely to have been added by Buffett. Since exiting most of his stake in Johnson & Johnson in the early 2010s, the Oracle of Omaha has opted to avoid drug and device developers. He simply doesn't have the time to keep up with clinical trials or worry about finite periods of exclusivity on brand-name therapeutics or devices.
Image source: Getty Images.
The thing is, we're seeing the influence of Combs and Weschler on the sell side, too.
We watched gold stock Barrick Gold get trimmed by 42% during the third quarter, which is exceptionally odd, given that it was initially added to Berkshire's portfolio in the sequential second quarter. Buffett has been critical of physical gold for decades and has never been one to increase then decrease his stake from one quarter to the next.
There's also the magnitude of these sales. Warren Buffett has been very clear in previous interviews that he's not the type of investor to slowly pare down a holding. If the Oracle of Omaha loses favor in a company, it tends to get the heave-ho within a few quarters. But over the past three quarters, we've watched as well over a dozen holdings have been pared down by a single-digit percentage. Again, nothing that Buffett would ever do as a portfolio manager.
The point is, Buffett is a passive player in his own investment portfolio these days. He still holds enormous clout as CEO, and no big deals are getting done without his approval. But his time as a day-to-day portfolio manager are gone. These 13F filings pretty clearly show a passing of the torch to his investing lieutenants, and that's something Buffett's followers are going to have to accept.
10 stocks we like better than Berkshire Hathaway (B shares)
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Sean Williams owns shares of Bank of America. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), Bristol Myers Squibb, and Snowflake Inc. The Motley Fool recommends Dominion Energy, Inc, Johnson & Johnson, and T-Mobile US and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short December 2020 $210 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Buffett's long-term investing approach and his ability to pick out businesses that offer plain-as-day competitive advantages has allowed Berkshire Hathaway's stock to run circles around the benchmark S&P 500 over the last 55 years. The Oracle of Omaha has always been big on buying into cash-cow industries, and scooping up fee- or contract-based pipeline and storage solutions from Dominion to more than double Berkshire's share of the interstate natural gas transmission market is a typical genius move. Coca-Cola and American Express are two of Buffett's most tenured holdings, while BofA has been a popular add, especially after the Federal Reserve Bank of Richmond gave Berkshire Hathaway the OK to increase its stake up to as much as 24.9%, should it choose to do so.
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has quite the following on Wall Street, and it's not hard to understand why. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), Bristol Myers Squibb, and Snowflake Inc. The Motley Fool recommends Dominion Energy, Inc, Johnson & Johnson, and T-Mobile US and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short December 2020 $210 calls on Berkshire Hathaway (B shares).
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But Berkshire Hathaway's recently filed Form 13F with the Securities and Exchange Commission reveals a stark reality that investors who love tracking Warren Buffett's every move must face: This isn't Warren Buffett's portfolio anymore. Warren Buffett's portfolio presence is predominantly residual Make no mistake about it, Warren Buffett remains the CEO of Berkshire Hathaway, and any big spending decisions are going to need his nod of approval. The Motley Fool recommends Dominion Energy, Inc, Johnson & Johnson, and T-Mobile US and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short December 2020 $210 calls on Berkshire Hathaway (B shares).
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Warren Buffett's portfolio presence is predominantly residual Make no mistake about it, Warren Buffett remains the CEO of Berkshire Hathaway, and any big spending decisions are going to need his nod of approval. Apple is affably viewed by the Oracle of Omaha as Berkshire's "third business" and comprises a gargantuan $115.2 billion of $249.6 billion in invested assets. Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has quite the following on Wall Street, and it's not hard to understand why.
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698992.0
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2020-11-19 00:00:00 UTC
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D Crosses Below Key Moving Average Level
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https://www.nasdaq.com/articles/d-crosses-below-key-moving-average-level-2020-11-19
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In trading on Thursday, shares of Dominion Energy Inc (Symbol: D) crossed below their 200 day moving average of $80.05, changing hands as low as $79.54 per share. Dominion Energy Inc shares are currently trading down about 1.9% on the day. The chart below shows the one year performance of D shares, versus its 200 day moving average:
Looking at the chart above, D's low point in its 52 week range is $57.79 per share, with $90.89 as the 52 week high point — that compares with a last trade of $79.71. The D DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other energy stocks recently crossed below their 200 day moving average »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Dominion Energy Inc (Symbol: D) crossed below their 200 day moving average of $80.05, changing hands as low as $79.54 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $57.79 per share, with $90.89 as the 52 week high point — that compares with a last trade of $79.71. The D DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other energy stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Dominion Energy Inc (Symbol: D) crossed below their 200 day moving average of $80.05, changing hands as low as $79.54 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $57.79 per share, with $90.89 as the 52 week high point — that compares with a last trade of $79.71. The D DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other energy stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Dominion Energy Inc (Symbol: D) crossed below their 200 day moving average of $80.05, changing hands as low as $79.54 per share. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $57.79 per share, with $90.89 as the 52 week high point — that compares with a last trade of $79.71. The D DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other energy stocks recently crossed below their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Thursday, shares of Dominion Energy Inc (Symbol: D) crossed below their 200 day moving average of $80.05, changing hands as low as $79.54 per share. Dominion Energy Inc shares are currently trading down about 1.9% on the day. The chart below shows the one year performance of D shares, versus its 200 day moving average: Looking at the chart above, D's low point in its 52 week range is $57.79 per share, with $90.89 as the 52 week high point — that compares with a last trade of $79.71.
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698993.0
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2020-11-18 00:00:00 UTC
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XLU, SCO: Big ETF Inflows
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https://www.nasdaq.com/articles/xlu-sco%3A-big-etf-inflows-2020-11-18
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the The Utilities Select Sector SPDR Fund, which added 9,750,000 units, or a 5.2% increase week over week. Among the largest underlying components of XLU, in morning trading today Nextera Energy is up about 0.3%, and Dominion Energy is lower by about 0.2%.
And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares ProShares UltraShort Bloomberg Crude Oil, which added 1,700,000 units, for a 37.4% increase in outstanding units.
VIDEO: XLU, SCO: Big ETF Inflows
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the The Utilities Select Sector SPDR Fund, which added 9,750,000 units, or a 5.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares ProShares UltraShort Bloomberg Crude Oil, which added 1,700,000 units, for a 37.4% increase in outstanding units. VIDEO: XLU, SCO: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the The Utilities Select Sector SPDR Fund, which added 9,750,000 units, or a 5.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares ProShares UltraShort Bloomberg Crude Oil, which added 1,700,000 units, for a 37.4% increase in outstanding units. VIDEO: XLU, SCO: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the The Utilities Select Sector SPDR Fund, which added 9,750,000 units, or a 5.2% increase week over week. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares ProShares UltraShort Bloomberg Crude Oil, which added 1,700,000 units, for a 37.4% increase in outstanding units. VIDEO: XLU, SCO: Big ETF Inflows The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Comparing units outstanding versus one week ago at the coverage universe of ETFs at ETF Channel, the biggest inflow was seen in the The Utilities Select Sector SPDR Fund, which added 9,750,000 units, or a 5.2% increase week over week. Among the largest underlying components of XLU, in morning trading today Nextera Energy is up about 0.3%, and Dominion Energy is lower by about 0.2%. And on a percentage change basis, the ETF with the biggest increase in inflows was the ProShares ProShares UltraShort Bloomberg Crude Oil, which added 1,700,000 units, for a 37.4% increase in outstanding units.
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698994.0
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2020-11-18 00:00:00 UTC
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NextEra Energy Stock Is Well Worth the Premium
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https://www.nasdaq.com/articles/nextera-energy-stock-is-well-worth-the-premium-2020-11-18
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
NextEra Energy (NYSE:NEE) stock has an interesting, and unusual, pair of characteristics.
NEE) website on a mobile phone screen" width="300" height="169">
Source: madamF / Shutterstock.com
By market capitalization, NextEra is far and away the most valuable U.S. utility. Second- and third-place Dominion Energy (NYSE:D) and Duke Energy (NYSE:DUK) combined aren’t worth as much.
Meanwhile, relative to forward earnings, NextEra is also the most dearly valued of the electric utilities. NEE stock trades at 31x 2021 consensus earnings per share estimates. Among major utilities, WEC Energy Group (NYSE:WEC) is a distant second at 26x.
That’s an unusual combination. Microsoft (NASDAQ:MSFT), for instance, is far more valuable than, say, Zoom Video Communications (NASDAQ:ZM). But investors assign a higher multiple to the smaller company, and many others like it, given their faster projected growth rates going forward.
7 Best 5G Stocks to Buy for the Next Revolution in Tech
Obviously, utilities, and particularly regulated utilities, are very different businesses than software plays like Microsoft and Zoom. Still, it’s rare in any sector to see the market price a business as both the biggest (ie, most valuable) and the best (as the higher earnings multiple in turn reflects higher growth potential).
But the combination makes sense here, because NextEra indeed looks like the biggest and the best. That’s the core of the attractive bull case for NEE stock.
Clean Energy Growth
One of the core reasons to own NextEra is its potential in clean energy. Results of the recent presidential election have been cited as a catalyst for NEE stock, as Joe Biden ostensibly should help the push for renewable energy sources such as wind and solar.
But the broader point is that the election doesn’t really matter. The revolution already is underway and defies politics. The top four states in terms of wind power generated all went for President Donald Trump in the election, including Texas, far and away the leader. More liberal California leads in solar power, thanks in part to generous state-level subsidies. But the top 10 includes Texas (again), North Carolina, Utah, and Florida — all still Republican states.
State-level regulators are pushing renewables. Major companies are looking to minimize their “carbon footprints.” The growth in clean energy simply is not solely dependent on the White House and the U.S. Congress anymore.
And NextEra is one of the sector’s biggest players, and likely its biggest. Indeed, its NextEra Energy Resources business is the largest producer of solar and wind energy in the world.
That scale positions NextEra to profit in however the renewable revolution plays out. Whether it’s long-awaited battery storage, or better solar farms, NextEra is going to have its hand in projects around the country.
That business is going to grow — and it’s already rather large. In 2019, NEER revenue totaled $3.6 billion, more than one-quarter of NextEra’s total revenue. Adjusted earnings per share were $3.49, 40% of total profit.
The Utility Business
That clean energy business sits on top of traditional utilities that themselves look rather attractive.
Florida Power & Light serves huge and growing markets across the state. Fort Myers, for instance, by one measure is the fastest-growing city in the country. South Florida continues to boom, as does Jacksonville.
More citizens mean more FP&L customers, and more profit for NextEra. Gulf Power, acquired at the beginning of 2019, serves the area around Pensacola, which too is seeing an influx of residents.
The utility business is going to grow inorganically as well. NextEra clearly is on the hunt for more acquisitions. It has made offers to acquire Duke Energy and Evergy (NYSE:EVRG). At least two other deals were rejected by state regulators.
And what’s helpful so far is that the company hasn’t pushed too far, or been willing to pay too high a price, simply to get a deal done. NextEra chief executive officer James Robo has said publicly that his company won’t pursue a hostile acquisition. At some point, NextEra will find a willing target and get a major deal done. Its history so far suggests that the deal will be a likely winner.
NEE Stock Looking Forward and Backward
Over the past two decades, NEE stock has been the best stock in the sector. As a recent NextEra presentation (see slide 6) points out, on June 30, 2001 NextEra was the 30th-most valuable utility globally. Again, it’s now number one by an enormous margin.
Over that stretch, total returns have averaged nearly 16% annually. That’s a massive performance in a sector usually chosen for income and its defensive nature. Lower risk almost always means lower reward, but not for NextEra stock.
Admittedly, the market to at least some extent is pricing in that history. Again, relative to earnings, NEE stock is the most expensive utility stock out there. A 1.8% dividend yield is paltry by the standards of the sector.
But no other utility has the growth potential promised by NextEra Energy Resources. No other utility has the track record that inspires such confidence in management.
NextEra is worth paying a premium for. This is not just one of the best businesses in the sector, but one of the best businesses in the market. NEE stock isn’t cheap because NEE stock shouldn’t be. It’s still easily worth owning anyway.
On the date of publication, Vince Martin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
After spending time at a retail brokerage, Vince Martin has covered the financial industry for close to a decade for InvestorPlace.com and other outlets.
The post NextEra Energy Stock Is Well Worth the Premium appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Results of the recent presidential election have been cited as a catalyst for NEE stock, as Joe Biden ostensibly should help the push for renewable energy sources such as wind and solar. The top four states in terms of wind power generated all went for President Donald Trump in the election, including Texas, far and away the leader. Major companies are looking to minimize their “carbon footprints.” The growth in clean energy simply is not solely dependent on the White House and the U.S. Congress anymore.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips NextEra Energy (NYSE:NEE) stock has an interesting, and unusual, pair of characteristics. Among major utilities, WEC Energy Group (NYSE:WEC) is a distant second at 26x. Still, it’s rare in any sector to see the market price a business as both the biggest (ie, most valuable) and the best (as the higher earnings multiple in turn reflects higher growth potential).
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips NextEra Energy (NYSE:NEE) stock has an interesting, and unusual, pair of characteristics. Indeed, its NextEra Energy Resources business is the largest producer of solar and wind energy in the world. NEE Stock Looking Forward and Backward Over the past two decades, NEE stock has been the best stock in the sector.
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Second- and third-place Dominion Energy (NYSE:D) and Duke Energy (NYSE:DUK) combined aren’t worth as much. Adjusted earnings per share were $3.49, 40% of total profit. InvestorPlace - Stock Market News, Stock Advice & Trading Tips NextEra Energy (NYSE:NEE) stock has an interesting, and unusual, pair of characteristics.
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2020-11-12 00:00:00 UTC
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Dominion Energy (D) Shares Cross 3% Yield Mark
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https://www.nasdaq.com/articles/dominion-energy-d-shares-cross-3-yield-mark-2020-11-12
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Looking at the universe of stocks we cover at Dividend Channel, in trading on Thursday, shares of Dominion Energy Inc (Symbol: D) were yielding above the 3% mark based on its quarterly dividend (annualized to $2.52), with the stock changing hands as low as $83.80 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999 — you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 3% would appear considerably attractive if that yield is sustainable. Dominion Energy Inc (Symbol: D) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Dominion Energy Inc , looking at the history chart for D below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annual yield.
Click here to find out which 9 other dividend stocks just recently went on sale »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel, in trading on Thursday, shares of Dominion Energy Inc (Symbol: D) were yielding above the 3% mark based on its quarterly dividend (annualized to $2.52), with the stock changing hands as low as $83.80 on the day. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company.
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Looking at the universe of stocks we cover at Dividend Channel, in trading on Thursday, shares of Dominion Energy Inc (Symbol: D) were yielding above the 3% mark based on its quarterly dividend (annualized to $2.52), with the stock changing hands as low as $83.80 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. In the case of Dominion Energy Inc , looking at the history chart for D below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annual yield.
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Looking at the universe of stocks we cover at Dividend Channel, in trading on Thursday, shares of Dominion Energy Inc (Symbol: D) were yielding above the 3% mark based on its quarterly dividend (annualized to $2.52), with the stock changing hands as low as $83.80 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 3% would appear considerably attractive if that yield is sustainable.
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Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999 — you would have paid $146.88 per share. Dominion Energy Inc (Symbol: D) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
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698996.0
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2020-11-06 00:00:00 UTC
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Notable ETF Outflow Detected - XLU, DUK, D, SO
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https://www.nasdaq.com/articles/notable-etf-outflow-detected-xlu-duk-d-so-2020-11-06
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $83.6 million dollar outflow -- that's a 0.7% decrease week over week (from 188,070,000 to 186,770,000). Among the largest underlying components of XLU, in trading today Duke Energy Corp (Symbol: DUK) is up about 1%, Dominion Energy Inc (Symbol: D) is up about 1.7%, and Southern Company (Symbol: SO) is higher by about 0.8%. For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average:
Looking at the chart above, XLU's low point in its 52 week range is $43.435 per share, with $71.10 as the 52 week high point — that compares with a last trade of $64.74. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Click here to find out which 9 other ETFs experienced notable outflows »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $83.6 million dollar outflow -- that's a 0.7% decrease week over week (from 188,070,000 to 186,770,000). These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $43.435 per share, with $71.10 as the 52 week high point — that compares with a last trade of $64.74. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Click here to find out which 9 other ETFs experienced notable outflows » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $83.6 million dollar outflow -- that's a 0.7% decrease week over week (from 188,070,000 to 186,770,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $43.435 per share, with $71.10 as the 52 week high point — that compares with a last trade of $64.74. Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the The Utilities Select Sector SPDR— Fund (Symbol: XLU) where we have detected an approximate $83.6 million dollar outflow -- that's a 0.7% decrease week over week (from 188,070,000 to 186,770,000). For a complete list of holdings, visit the XLU Holdings page » The chart below shows the one year price performance of XLU, versus its 200 day moving average: Looking at the chart above, XLU's low point in its 52 week range is $43.435 per share, with $71.10 as the 52 week high point — that compares with a last trade of $64.74. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed).
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698997.0
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2020-11-06 00:00:00 UTC
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Dominion Energy, Inc (D) Q3 2020 Earnings Call Transcript
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https://www.nasdaq.com/articles/dominion-energy-inc-d-q3-2020-earnings-call-transcript-2020-11-06
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Image source: The Motley Fool.
Dominion Energy, Inc (NYSE: D)
Q3 2020 Earnings Call
Nov 05, 2020, 11:00 a.m. ET
Contents:
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Good morning, and welcome to the Dominion Energy third-quarter earnings conference Call. [Operator instructions] I would now like to turn the conference over to Steven Ridge, vice president, investor relations. Please go ahead.
Steven Ridge -- Vice President, Investor Relations
Thank you, Casey. Good morning, everyone, and thank you for joining on a very busy earnings day. Earnings materials including today's prepared remarks contain forward-looking statements and estimates that are subject to various risks and uncertainties. Please refer to our SEC filings, including our most recent annual reports on Form 10-K and our quarterly reports on Form 10-Q for a discussion of factors that may cause results to differ from management's estimates and expectations.
This morning, we will discuss some measures of our company's performance that differ from those recognized by GAAP. Reconciliation of our non-GAAP measures to the most directly comparable GAAP financial measures, which we can calculate are contained in the earnings release kit. I encourage you to visit our investor relations website to review webcast slides, as well as the earnings release kit. Joining today's call are Tom Farrell, executive chairman; Bob Blue, president and chief executive officer; Jim Chapman, executive vice president, chief financial officer, and treasurer; and other members of the executive management team.
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With that, I'll turn the call over to Tom.
Tom Farrell -- Executive Chairman
Thanks, Steve, and good morning. Earlier this week, we completed the sale of the majority of our gas transmission and storage assets to Berkshire Halfway. We expect the remaining around 20% of the transaction to close early next year. This is a major milestone in the strategic repositioning of our company, and I wish to thank the nearly 1,900 employees who served our company with great distinction in the safe and reliable operation of these best-in-class assets.
I have no doubt that these men and women will continue to serve their customers, which includes Dominion Energy, and their communities with the same level of dedication and professionalism. I also wish to thank the team at Berkshire Hathaway who have been excellent partners throughout the process and have demonstrated a strong commitment to their newly acquired employees and customers. Jim will touch on the financial details of the transaction in his prepared remarks. We believe that the investment proposition created through Dominion Energy's strategic repositioning is compelling.
We are a pure-play, state-regulated utility company, operating in some of the nation's most attractive states. We offer an industry-leading clean energy profile. In presentations in our IP filings, we have highlighted regulated and long-term contracted capital investment of up to $55 billion over the next 15 years in projects that directly reduce our emissions footprint, including offshore wind, solar, energy storage, nuclear life extension, renewable natural gas and gas delivery system modernization. That is in addition to many billions of dollars we will also invest over the next decade in complementary programs such as electric transmission, electric grid modernization, strategic undergrounding and renewable enabling quick start generation.
Our earnings and dividend growth rates, 6.5% and 6%, respectively, are competitive with the highest valued companies in our sector. We have a strong balance sheet a significantly improved business risk profile. And we are focused on transparency and consistency and believe that our shareholders will benefit greatly from the continued execution of our business strategy. Turning to Virginia.
Pending gubernatorial review this week, the Virginia General Assembly special session incorporated financial relief for our customers that have fallen behind on our utility service payments. In addition to extending the service disconnection moratorium and strengthening flexible repayment plan options, the budget calls for the forgiveness of customer balances that are more than 30 days in arrears as of September 30. That forgiveness, which represents around $125 million, will be appropriately accounted for during the 2021 triennial review process. Bob will provide additional commentary on the impact of COVID in our service territories in a few minutes.
But suffice to say, electric demand levels continue to prove resilient, reflecting the economic strength of our premier regulated jurisdictions. Turning to the election for a moment. We, like everyone else, continue to monitor results. We want to see exactly how future policy reflects the final result.
But in any case, we are on an unwavering and industry-leading path to net zero emissions, consistent with state level policy priorities. A more sustainable energy future is what our shareholders, customers, communities and employees want, and we intend to deliver. Finally, we're announcing today several important changes to our board of directors. First, following more than 20 years of distinguished service on our board, including six years as a director, John Harris has chosen to retire from the board effective today.
John has been a critical element of our company's success over the years, sharing his diverse experiences as a business community and board leader to our organization and to me personally as a trusted advisor. I thank him for the outstanding leadership and strategic perspective he has provided during his service and also, for his commitment as he delayed his expected retirement date through much of this year as we navigated some transformational events, including the sale of our gas transmission and storage business and also, the transition to our new CEO. He will absolutely be missed. The board has chosen as its new lead director, Rob Spilman, who will succeed John effective today.
Rob has served as chairman, president and CEO of Basset Furniture Industries, joined the board in 2009 and has served as chair of our Audit Committee since 2014. Like John Harris, Rob is a proven and experienced business leader, community leader and valued and trusted member of our board. We look forward to working with him in his new capacity. I'm also pleased to announce that Bob Blue, who recently succeeded me in the role of present CEO, obviously, will be joining our board also effective today, taking the seat vacated by John as a part of our transition plan.
We look forward to having his perspective in the boardroom as both CEO and fellow board member. I will now turn the call over to Jim.
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
Thank you, Tom. Our third-quarter 2020 operating earnings, shown on Slide 4, were $1.08 per share, which included a $0.04 help from better-than-normal weather in our utility service territories. Weather-normalized results of $1.04 per share were at the top of our guidance range. And for the 19th consecutive quarter, we're at or above the quarterly guidance midpoint.
Note that our third-quarter and year-to-date GAAP and operating earnings, together with comparative periods, are adjusted to account for discontinued operations associated with the sale of assets to Berkshire Hathaway Energy. GAAP earnings for the quarter were $0.41 per share, which includes the impact of a customer credit reinvestment offset for the benefit of customers in Virginia, as well as charges associated with our long-term contracted renewable portfolio outside of our core service territories. We also had a positive impact attributable to net gains on our nuclear decommissioning trust funds. As a reminder, we consistently report such gains and losses on those funds as nonoperating.
A summary of adjustments between operating and reported results is included in Schedule 2 of the earnings release kit. Turning to our earnings outlook on Slide 5. As usual, our guidance ranges assume normal weather, variations from which could cause results to be toward the top or the bottom of these ranges. We are initiating fourth-quarter 2020 operating earnings guidance with a range of $0.73 to $0.87 per share.
As mentioned, this range reflects the impact of recasting operating earnings to exclude discontinued operations. Consistent with our press release in late September, we now expect our annual weather-normal operating EPS to be above the midpoint, so in the top half of our annual guidance range. This strong anticipated result is partly a function of lower-than-assumed COVID-related headwinds and partly a function of continued focus on managing controllable costs carefully. We estimate that through the end of September, lower-than-budgeted sales associated with the impacts of COVID-19 across our electric utility operations have reduced operating income by approximately $0.05 per share, which is lower than our original expectations and thus far, has been largely offset with corporate initiatives.
Turning now to Slide 6. We will, as usual, provide 2021 guidance on our fourth-quarter call early in the new year, but we continue to expect the midpoint of our 2021 guidance range to be between 10% and 11% higher than the midpoint of our 2020 guidance range. We are affirming our long-term annual earnings growth guidance of 6.5% off a 2021 base, as well as annual dividend growth guidance of 6% post 2021. Our focus is on executing our financial plan and extending our track record of meeting or exceeding the midpoint of our guidance.
Turning to Slide 7. Let me briefly touch on the status of the gas transmission and storage sale. As Tom mentioned, we closed on the first phase, representing over 80% of the transaction value earlier this week. We also took receipt of approximately $1.3 billion of cash in anticipation of the sale of the Questar pipeline assets, which we expect to complete early next year following HSR clearance.
At that time, we will transfer control and the remaining $430 million of Questar pipeline-related indebtedness to Berkshire, bringing the total amount of debt reduction for the transaction to nearly $6 billion. We've now completed almost $900 million of the share repurchases in addition to the previously communicated $1.5 billion accelerated share repurchase agreements that will support ongoing stock repurchases into December. With Phase 2 equity proceeds now in hand, we expect to augment our repurchase activity between now and the end of the year, bringing our total share repurchases to around $3.1 billion, an increase from prior guidance of about $100 million. There are no changes to our existing equity or fixed income issuance guidance, which are replicated from previous materials in the appendix.
Finally, just a reminder that we plan to use our fourth-quarterearnings callto provide something of a mini-investor day style refresh, with supplementary appendix disclosures aimed at providing projected capex, rate base and other inputs, which we hope will assist investors in their financial evaluation of our company. So to summarize my remarks, we remain focused on extending our track record of delivering financial results that meet or exceed our public commitment. We aim to complete share repurchases of approximately $3.1 billion by year-end. We expect our weather-normal operating earnings per share to be above the midpoint of the range for 2020.
And we affirm our long-term earnings and dividend growth guidance. And we look forward to engaging with many of you at next week's EEI Financial Conference. I'll now turn the call over to Bob.
Bob Blue -- President and Chief Executive Officer
Thank you, Jim, and good morning. Let me begin with an update on the company's safety performance. As shown on Slide 8, the record-setting performance from the first half of the year continued during the third quarter, and we remain on track to deliver the safest year of operations in the company's history. At the current pace, our annual OSHA recordable rate would be around 40% lower than last year and represent a 79% improvement since 2006.
Turning to the pandemic. I'd like to express our gratitude to the frontline workers who continue to help people affected by COVID-19, as well as all those who are engaged in developing vaccines and new therapies. I'm also grateful for our employees who perform a vital public service by keeping homes, hospitals and businesses energized. We continue to reflect the latest public health guidance in our COVID-19 policies to keep our employees, customers and communities as safe as possible.
The graphs on Slide 9 depict weather-normalized electric demand since the emergence of COVID-19 relative to the two-year historic weather normal average. On the left side, demand in the PJM DOM zone continues to be very resilient despite the pandemic, largely due to robust residential and data center demand. As shown on the right side, electric demand in South Carolina has not been quite as resilient, though we saw significant improvement from April lows through the high-volume third-quarter summer months. As a reminder, impacts from COVID on our Gas Distribution operations are much more muted, partly as a result of decoupling and other regulatory mechanisms.
Turning to Slide 10. We also benefit from operating in states that have proven economically resilient. During the third quarter, we saw continued improvement of utility fundamentals across our largest states. In Virginia, we continue to see strong growth in new customer connections and very strong data center demand growth.
Customer growth is up 1.4% year over year, and year-to-date data center sales were up 19%. In South Carolina, year-over-year customer growth is 2.1% for electric operations and gas customer growth is 3.8%. Gas Distribution utilities recorded customer growth of between 1.5% and 3.8% across Ohio, Utah and North Carolina. Unemployment levels in several of our primary states are well below the national average and have all shown dramatic improvement.
That said, we're mindful of our customers and the difficult time this has been for many of them. As Tom discussed, we have worked to assist our customers in addressing the financial challenges they may be facing. COVID impacts remain difficult to predict. So we're reiterating the demand-related earnings sensitivities that we provided on the first-quarter call, and which can be found in the appendix of today's presentation.
Beyond our day-to-day performance, we're engaged in an enterprisewide effort consistent with state policies to increase the sustainability of our products and services. Highlights include an updated Sustainability and Corporate Responsibility Report published last month; the submission of our first renewable portfolio standard filing, which describes our plans to comply with the objectives of the Virginia Clean accounts jet; our most recent solar generation filing in Virginia, representing nine solar facilities totaling nearly 500 megawatts; and the beginning of renewable natural gas production, which is significantly carbon negative from our first Smithfield Foods partnership facility. Perhaps our most notable efforts are around offshore wind. In 2013, we acquired a 112,000-acre lease 26 miles off the coast of Virginia.
We were the first company to successfully complete the federal permitting process coordinated by BOEM for a wind project in federal waters. That permit covered our 12-megawatt test project, which was successfully energized just weeks ago and is depicted on the cover of today's presentation materials. We continue to be on track to submit our permit application for our 2.6 gigawatt, $8 billion full-scale deployment at year-end. And just as a reminder, our existing leasehold acreage will fully support that project.
We expect BOEM permitting to take around two years, with capital investment to start to ramp-up in 2023 and full-scale construction commencing in 2024. We do not expect that recent pronouncements regarding the future federal offshore leasing will have any impact on our plans. Lastly, let me address the Dominion Energy South Carolina electric rate case. We've been participating in discovery and initial testimony processes.
Hearings are scheduled to begin early next year with the decision in February. We believe our proposal, which equates to less than 1% per-year bill increase since the last general rate case, fairly reflects the substantial investments we've made in the last eight years or so to connect over 80,000 new customers and achieve the reliable and responsive service that our customers deserve. We look forward to a constructive outcome for all stakeholders. As you heard Tom describe, we've positioned our company strategically in a way that we believe will provide the greatest long-term value to shareholders, employees and communities.
Our focus now is on execution. We are well-positioned across our pure-play electric and gas utilities to make investments that grow our company and deliver value for customers and investors. With that, I'll summarize today's call as shown on Slide 12. Our safety performance is on track to set a new company record.
We achieved weather-normalized operating earnings that exceeded the midpoint of our guidance range for the 19th consecutive quarter. We affirmed our current and long-term earnings and dividend-per-share growth guidance. We believe we offer a compelling investment opportunity. And we're focused on executing our robust organic growth plan, and we are aggressively pursuing our vision to become the most sustainable energy company in the country.
With that, we're ready to take your questions.
Questions & Answers:
Operator
Thank you. [Operator instructions] Our first question comes from Shar Pourreza with Guggenheim Partners.
Shar Pourreza -- Guggenheim Partners -- Analyst
Good morning, guys.
Bob Blue -- President and Chief Executive Officer
Good morning, Shar.
Tom Farrell -- Executive Chairman
Good morning.
Shar Pourreza -- Guggenheim Partners -- Analyst
Just a couple of quick questions here. On just the offshore wind, I think you guys plan to file the comp for the 2.6 gigawatts of offshore wind that you highlight with BOEM later this year, and we've seen some other developers kind of in the northeast have some delays in the time between filing the comp and receiving the review schedule from BOEM. Wondering what's given you a sense that you're going to receive a review schedule from BOEM in '22? Just get a little bit of a sense there. I mean, obviously, you guys have some cushion in your construction schedule on how you guide investors.
But just curious how we should think about what we're seeing on the Eastern side with you guys.
Bob Blue -- President and Chief Executive Officer
Thanks a lot, Shar. This is Bob.
Shar Pourreza -- Guggenheim Partners -- Analyst
Hi.
Bob Blue -- President and Chief Executive Officer
We're keeping an eye on those Northeast projects, obviously, and we're learning from them as they move through permitting. And we also intend to take advantage of our experience with permitting, as we described in our opening remarks, the only project currently in federal waters. We're comfortable with our schedule will file, as you noted, at the end of this year. We expect about two years for BOEM review.
And that will, we think, be a comfortable time frame for us to get our construction and our project in service in '26. So we're very bullish on that commercial project. Look forward to the process with BOEM and getting that project under construction.
Shar Pourreza -- Guggenheim Partners -- Analyst
Got it. And then, obviously, potentially higher corporate tax rates with the new administration or maybe a new administration. Have you guys done sort of any preliminary work assuming like, let's say, an increase to 28% tax rate, for instance, on the HoldCo or the OpCo and potential impacts to maybe your ongoing equity needs? I mean, you obviously -- you're, obviously, a consolidated taxpayer. And then, just any sense on what the potential bill impact could be as we think about the higher corporate tax rate? Maybe a question for Jim.
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
Yeah, Shar, it's Jim. Let me address that. Obviously, as Tom mentioned, we're all watching developments, and it's pretty hypothetical at this stage, the election and any follow-on tax reform result. But yes, we're watching and we're doing some math.
Really, it's pretty early. It's too early to tell. So if that happens, tax reform, we, first of all, we expect that to be addressed across our utility properties in every state in different ways like it did last time. Some of it just to rider true-ups like in Virginia and some of our larger LDCs, some of it through regulatory proceedings on that topic.
But we are a cash taxpayer currently. It's heavily shielded from -- based on our tax credit position. So we currently pay, on a cash basis, 5% or so on cash taxes. So if the rate went from 21% to 28%, as is proposed, that cash tax rate would go from around 5% to around 7%.
So not a quantum leap. So there would be, we assume, some credit metric help there for the forecast period. We don't know enough yet to understand the quantum of that help. So it's a positive.
Now is it enough to impact equity financing plan, which is part of your question, we're not there yet to say that. I would say that in light of our spending program, our investment capital program, our equity financing plan is already pretty modest. And all of us anticipated through our existing program. So we're not quite there.
We think the tax reform, if it happens, will be a positive. But we don't have the exact math yet to see how positive it would be. On the customer bill, the other part of your question, also hypothetical, just some rough math, the devil is in the detail. But we're seeing -- there are some differences state to state, but it probably would be kind of in the range of a 1% to 2% kind of customer bill increase.
And it currently did not happen, but it's in that kind of modest range.
Shar Pourreza -- Guggenheim Partners -- Analyst
Got it. Got it. So very manageable. And very clear-cut quarter, guys.
That's all the questions I had. Thanks.
Bob Blue -- President and Chief Executive Officer
Thanks a lot.
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
Thank you.
Operator
Our next question comes from Steve Fleishman with Wolfe Research.
Steve Fleishman -- Wolfe Research -- Analyst
Hi, good morning. I just wanted to follow up, I guess, on the first question regarding the offshore wind. And it seems like in New England, there's this -- they agree to this one by one mile configuration and that everyone, for the most part, agrees with that, except for the fishing community? So could you maybe just give color on kind of -- is that the configuration you're planning to use? And do you have any of the same opposition of the kind of fishing community that you've had up in New England?
Bob Blue -- President and Chief Executive Officer
Yeah, thanks, Steve. The fishing issues are different off our coast than in New England. So on turbine spacing, we're going to work with the Coast Guard and other stakeholders. Shipping lanes in addition to fishing, shipping lanes are going to be different for us than they might be in other projects and particularly ones that are several projects that may be strung together, whereas ours does not have that at the moment.
So we'll make sure we work with Coast Guard, other interested parties. But we're confident that we can get spacing that makes sense for our project and is going to work for regulators and other interested parties.
Steve Fleishman -- Wolfe Research -- Analyst
OK, that's great. That was it for me. Thank you.
Bob Blue -- President and Chief Executive Officer
Thank you.
Operator
We'll take our next question from Jeremy Tonet with JP Morgan.
Jeremy Tonet -- J.P. Morgan -- Analyst
Hi, good morning.
Bob Blue -- President and Chief Executive Officer
Good morning, Jeremy.
Tom Farrell -- Executive Chairman
Good morning.
Jeremy Tonet -- J.P. Morgan -- Analyst
Maybe continuing with offshore wind, if that's OK here, and just thinking about the construction side a bit. Can you talk about what you've learned with the trial project so far and how that might help with your future development such as navigating the supply chain?
Bob Blue -- President and Chief Executive Officer
Yes, Jeremy, that's a great question. And I think you hit on one of the things that we've learned a great deal about is the supply chain, the importance of the supply chain. We've selected our preferred turbine vendor already. And we have a very good understanding, I think, in ways that maybe we didn't before how to sequence this project.
So you need to make sure that when step two is ready to go, that step one has been completed. That's much more crucial maybe on this kind of project than even on some others. Things have to be done sequentially. So we've learned a great deal about that, and we've learned a great deal about the other parties in the industry.
It's not an enormous industry. And so we've had an opportunity to get a lot to know a lot of folks that way. Those kind of relationships are going to be really valuable to us as we move forward with construction of this project. So and then, finally, back to the permitting side, we've certainly learned about working with BOEM.
So all of those things together, I think, have helped us out as we move forward with the bigger project.
Jeremy Tonet -- J.P. Morgan -- Analyst
Got it. That's very helpful. And maybe just pivoting to South Carolina here. And as you -- just any thoughts you have as how the first rate case in South Carolina could progress.
First one, after acquiring SCANA here. And could you just give a sense for how you think the relationships have developed there over time?
Bob Blue -- President and Chief Executive Officer
Yeah. We have worked very hard and succeeded in meeting the commitments that we made when we announced this transaction. And I think that credibility is important for us. And then, we filed a case that was very much down the fairway, a solid, well-supported case.
And we're moving through the process the way you would expect. So I think the credibility that we seek to establish, that we're going to continue to maintain will help us out. And also, thinking very carefully about what we were looking for when we filed that case will pay off, I believe.
Jeremy Tonet -- J.P. Morgan -- Analyst
Got it. That makes sense. That's helpful. I'll stop there.
Bob Blue -- President and Chief Executive Officer
Thanks, Jeremy.
Operator
Our next question comes from Michael Weinstein with Credit Suisse.
Michael Weinstein -- Credit Suisse -- Analyst
Hi, good morning, guys.
Tom Farrell -- Executive Chairman
Good morning.
Bob Blue -- President and Chief Executive Officer
Good morning.
Michael Weinstein -- Credit Suisse -- Analyst
Hey, do you think -- if Biden is elected president, do you think there would be a possibility that the two-year time frame at BOEM could be shortened? Or accelerate in some way? And if that happened, would that accelerate the construction process at all? Or is that just on its own time line, no matter what?
Bob Blue -- President and Chief Executive Officer
Well, obviously, with all the caveats about, we don't know who's going to be the next president. I think our focus really is we've got a time frame that we think makes sense both for permitting and construction. And that's what we're going to stick to. And again, sort of back to where we started, we feel very confident in that schedule.
I don't think we're sort of thinking about shifting that around. We have plenty to say grace over with the permitting and construction process for that project.
Michael Weinstein -- Credit Suisse -- Analyst
Gotcha. And is there anything that investors should be aware about as you prepare your first triennial review filing? I think you said last time that you're going to be filing it next year, in the midyear?
Bob Blue -- President and Chief Executive Officer
Yeah. So we've talked about this. We're going to file in March, expect an order in November. It will review the period 2017 to 2020.
And we know we'll have an order at the end of the year next year, pretty straightforward.
Michael Weinstein -- Credit Suisse -- Analyst
OK. Do you see growing data center demand in Virginia as -- I don't know, as potentially helping with the filing at this point? Or is that something that can help offset any other increase in costs, anything else?
Bob Blue -- President and Chief Executive Officer
Yes. I mean, the strength of our customer base is always helpful. And we're not seeing a let up in data center demand. It's continuing.
Michael Weinstein -- Credit Suisse -- Analyst
Gotcha. All right. Thank you.
Bob Blue -- President and Chief Executive Officer
Thank you.
Operator
[Operator signoff]
Duration: 31 minutes
Call participants:
Steven Ridge -- Vice President, Investor Relations
Tom Farrell -- Executive Chairman
Jim Chapman -- Executive Vice President, Chief Financial Officer, and Treasurer
Bob Blue -- President and Chief Executive Officer
Shar Pourreza -- Guggenheim Partners -- Analyst
Steve Fleishman -- Wolfe Research -- Analyst
Jeremy Tonet -- J.P. Morgan -- Analyst
Michael Weinstein -- Credit Suisse -- Analyst
More D analysis
All earnings call transcripts
This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Motley Fool Transcribing has no position in any of the stocks mentioned. The Motley Fool recommends Dominion Energy, Inc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Tom Farrell -- Executive Chairman Good morning. I thank him for the outstanding leadership and strategic perspective he has provided during his service and also, for his commitment as he delayed his expected retirement date through much of this year as we navigated some transformational events, including the sale of our gas transmission and storage business and also, the transition to our new CEO. I'm also pleased to announce that Bob Blue, who recently succeeded me in the role of present CEO, obviously, will be joining our board also effective today, taking the seat vacated by John as a part of our transition plan.
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Tom Farrell -- Executive Chairman Good morning. Joining today's call are Tom Farrell, executive chairman; Bob Blue, president and chief executive officer; Jim Chapman, executive vice president, chief financial officer, and treasurer; and other members of the executive management team. In presentations in our IP filings, we have highlighted regulated and long-term contracted capital investment of up to $55 billion over the next 15 years in projects that directly reduce our emissions footprint, including offshore wind, solar, energy storage, nuclear life extension, renewable natural gas and gas delivery system modernization.
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Tom Farrell -- Executive Chairman Good morning. Joining today's call are Tom Farrell, executive chairman; Bob Blue, president and chief executive officer; Jim Chapman, executive vice president, chief financial officer, and treasurer; and other members of the executive management team. We will, as usual, provide 2021 guidance on our fourth-quarter call early in the new year, but we continue to expect the midpoint of our 2021 guidance range to be between 10% and 11% higher than the midpoint of our 2020 guidance range.
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Tom Farrell -- Executive Chairman Good morning. Look forward to the process with BOEM and getting that project under construction. Bob Blue -- President and Chief Executive Officer Thank you.
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698998.0
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2020-11-05 00:00:00 UTC
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Dominion Energy Q3 20 Earnings Conference Call At 11:00 AM ET
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D
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https://www.nasdaq.com/articles/dominion-energy-q3-20-earnings-conference-call-at-11%3A00-am-et-2020-11-05
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nan
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nan
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(RTTNews) - Dominion Energy, Inc. (D) will host a conference call at 11:00 AM ET on Nov. 5, 2020, to discuss Q3 20 earnings results.
To access the live webcast, log on to http://investors.dominionenergy.com
To listen to the call, dial 1-800-341-6228 (US) or 1-334-777-6993 (International), Passcode 63771662#.
For a replay call, dial 1-877-919-4059 (US) or 1-334-323-0140 (International), PIN 65141144.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc. (D) will host a conference call at 11:00 AM ET on Nov. 5, 2020, to discuss Q3 20 earnings results. To access the live webcast, log on to http://investors.dominionenergy.com To listen to the call, dial 1-800-341-6228 (US) or 1-334-777-6993 (International), Passcode 63771662#. For a replay call, dial 1-877-919-4059 (US) or 1-334-323-0140 (International), PIN 65141144.
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To access the live webcast, log on to http://investors.dominionenergy.com To listen to the call, dial 1-800-341-6228 (US) or 1-334-777-6993 (International), Passcode 63771662#. For a replay call, dial 1-877-919-4059 (US) or 1-334-323-0140 (International), PIN 65141144. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc. (D) will host a conference call at 11:00 AM ET on Nov. 5, 2020, to discuss Q3 20 earnings results. To access the live webcast, log on to http://investors.dominionenergy.com To listen to the call, dial 1-800-341-6228 (US) or 1-334-777-6993 (International), Passcode 63771662#. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc. (D) will host a conference call at 11:00 AM ET on Nov. 5, 2020, to discuss Q3 20 earnings results. To access the live webcast, log on to http://investors.dominionenergy.com To listen to the call, dial 1-800-341-6228 (US) or 1-334-777-6993 (International), Passcode 63771662#. For a replay call, dial 1-877-919-4059 (US) or 1-334-323-0140 (International), PIN 65141144.
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698999.0
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2020-11-05 00:00:00 UTC
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Dominion Energy, Inc. Q3 adjusted earnings Beat Estimates
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D
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https://www.nasdaq.com/articles/dominion-energy-inc.-q3-adjusted-earnings-beat-estimates-2020-11-05
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nan
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nan
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(RTTNews) - Dominion Energy, Inc. (D) reported earnings for third quarter that fell from last year.
The company's profit totaled $356 million, or $0.41 per share. This compares with $975 million, or $1.17 per share, in last year's third quarter.
Excluding items, Dominion Energy, Inc. reported adjusted earnings of $916 million or $1.08 per share for the period.
Analysts had expected the company to earn $0.99 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter fell 4.5% to $3.61 billion from $3.78 billion last year.
Dominion Energy, Inc. earnings at a glance:
-Earnings (Q3): $916 Mln. vs. $946 Mln. last year. -EPS (Q3): $1.08 vs. $1.15 last year. -Analysts Estimate: $0.99 -Revenue (Q3): $3.61 Bln vs. $3.78 Bln last year.
-Guidance: Next quarter EPS guidance: $0.73 to $0.87 Full year EPS guidance: $3.37 to $3.63
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc. (D) reported earnings for third quarter that fell from last year. Excluding items, Dominion Energy, Inc. reported adjusted earnings of $916 million or $1.08 per share for the period. Analysts had expected the company to earn $0.99 per share, according to figures compiled by Thomson Reuters.
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(RTTNews) - Dominion Energy, Inc. (D) reported earnings for third quarter that fell from last year. Excluding items, Dominion Energy, Inc. reported adjusted earnings of $916 million or $1.08 per share for the period. -Guidance: Next quarter EPS guidance: $0.73 to $0.87 Full year EPS guidance: $3.37 to $3.63 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc. (D) reported earnings for third quarter that fell from last year. Excluding items, Dominion Energy, Inc. reported adjusted earnings of $916 million or $1.08 per share for the period. -Guidance: Next quarter EPS guidance: $0.73 to $0.87 Full year EPS guidance: $3.37 to $3.63 The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - Dominion Energy, Inc. (D) reported earnings for third quarter that fell from last year. Excluding items, Dominion Energy, Inc. reported adjusted earnings of $916 million or $1.08 per share for the period. The company's profit totaled $356 million, or $0.41 per share.
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