Diverse Income Share Discussion Threads

[ariane] 31/1/2018 12:01

ArcelorMittal (MT.AE) reported its fourth-quarter results before the market opened on Wednesday. Here's what you need to know:



SALES: Sales rose by about 25% to $17.71 billion due to higher steel and iron-ore shipments and higher average steel selling prices. The results fell slightly short of a FactSet-compiled consensus of analyst estimates that forecast $17.94 billion.



NET INCOME: The steelmaker posted quarterly net profit of $1.04 billion, more than doubling its result from a year ago, propped up by sales performance. The company recorded an income tax benefit of $119 million in the quarter, which compares with a $71 million tax expense in the year-earlier period.



MACRO OUTLOOK: ArcelorMittal was upbeat about the steel industry outlook for 2018, saying that the demand environment remains positive and steel spreads remaining healthy. The company estimates global steel demand--measured through apparent steel consumption--to grow between 1.5% and 2.5% in 2018, with Chinese demand flat.



CASH FLOW: Net debt decreased this quarter by $1.9 billion to $10.1 billion, mainly due to positive free cash flow. The debt figure at year-end was $0.9 billion lower than on Dec. 31, 2016. ArcelorMittal said that it would continue to prioritize deleveraging--it has a net debt target of $6 billion--but proposed a dividend of $0.10 per share in 2018. Once the debt level falls to or below its target, the company will return a portion of annual free cash flow to shareholders, it said.



ILVA: ArcelorMittal said that it will continue "to work closely and constructively" with the European Commission, which has opened a phase II review of its proposed acquisition of Italian steelmaker Ilva. Arcelor's 1.8 billion euros ($2.23 billion) acquisition had become mired in controversy after an EU antitrust investigation ruled that the Italian government must recover around EUR84 million in illegal state aid.



Write to Alberto Delclaux at [e-mail]



(END) Dow Jones Newswires

January 31, 2018 05:27 ET (10:27 GMT)

[grupo guitarlumber] 09/1/2018 12:52

Engie

SUEZ


Total


Axa


Orange


Credit Agricole


Sanofi


Veolia Environnement


Bouygues


Pernod Ricard


Alstom


Schneider Electric

[maywillow] 13/12/2017 08:40

Total SA (FP.FR) said Tuesday that its board of directors has removed the discount offered for new shares to be issued as payment of the second interim dividend of the year, a move that sets the price for new shares at 46.55 euros ($54.86).

Shareholders have the option to receive the dividend in cash or in new shares of the company, it added.

The French energy group said the discount is the result of current oil prices--above $60 a barrel--and its performance in terms of cash-flow generation.

The ex-dividend date for the second interim dividend is set for Dec. 19, the company said.



Write to Marc Navarro Gonzalez at [e-mail]



(END) Dow Jones Newswires

December 12, 2017 13:22 ET (18:22 GMT)

[sarkasm] 11/12/2017 17:50

BP confirms details of Q3 dividend payment
By BFN News | 02:20 PM | Monday 11 December, 2017

Factsheet BP PLC USD0.25 (BP.)


On 31 October, BP announced that the interim dividend for the third quarter of 2017 would be $0.10 per ordinary share ($0.60 per ADS). The interim dividend is to be paid on 21 December to shareholders on the register on 10 November. Sterling dividends payable in cash will be converted from US dollars at an average of the market exchange rate over the four dealing days from 5 to 8 December (£1 = $1.34346). Accordingly, the amount of sterling dividend payable in cash on 21 December will be 7.4435p per share. At 2:20pm: (LON:BP.) BP PLC share price was +4.1p at 496.85p Story provided by StockMarketWire.com

[waldron] 07/12/2017 18:54

Royal Dutch Shell plc Third Quarter 2017 Euro and GBP Equivalent Dividend Payments

News provided by
Royal Dutch Shell plc

12:59 ET

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THE HAGUE, Netherlands, December 7, 2017 /PRNewswire/ --

The Board of Royal Dutch Shell plc ("RDS") (NYSE: RDS.A) (NYSE: RDS.B) today announced the pounds sterling and euro equivalent dividend payments in respect of the third quarter 2017 interim dividend, which was announced on November 2, 2017 at US$0.47 per A ordinary share ("A Share") and B ordinary share ("B Share").

Dividends on A Shares will be paid, by default, in euro at the rate of €0.3985 per A Share. Holders of A Shares who have validly submitted pounds sterling currency elections by December 1, 2017 will be entitled to a dividend of 35.02p per A Share.

Dividends on B Shares will be paid, by default, in pounds sterling at the rate of 35.02p per B Share. Holders of B Shares who have validly submitted euro currency elections by December 1, 2017 will be entitled to a dividend of €0.3985 per B Share.

This dividend will be payable on December 20, 2017 to those members whose names were on the Register of Members on November 17, 2017.

Taxation - cash dividend
Cash dividends on A Shares will be subject to the deduction of Dutch dividend withholding tax at the rate of 15%, which may be reduced in certain circumstances. Non-Dutch resident shareholders, depending on their particular circumstances, may be entitled to a full or partial refund of Dutch dividend withholding tax. Expected from 2018, Dutch and non-Dutch resident shareholders who are exempt from corporate income tax may elect for an exemption from Dutch dividend withholding tax instead of requesting a refund if tax was withheld.

Furthermore, in April 2016, there were changes to the UK taxation of dividends. The dividend tax credit was abolished, and a new tax free dividend allowance introduced. Dividend income in excess of the allowance is taxable at the following rates: 7.5% within the basic rate band; 32.5% within the higher rate band; and 38.1% on dividend income taxable at the additional rate.

If you are uncertain as to the tax treatment of any dividends you should consult your own tax advisor.

[the grumpy old men] 07/12/2017 10:18

BP, Total’s ratings could absorb end of scrip dividends: Fitch

December 7, 2017 Company News, Crude Oil, Europe, Natural Gas, News 0

European oil majors BP and Total could be pressured into following Shell’s recent decision to cancel scrip dividends and return to paying its dividend entirely in cash, but such a move is unlikely to negatively impact their debt ratings, Fitch Ratings said Wednesday.

Analysts at the credit rating agency said in a note both BP and Total have rating headroom if scrip dividends are ended, at least more headroom at their current rating than Shell did.

Fitch has affirmed Shell at "AA-" with a negative outlook after last week’s decision, claiming the plan will slow the firm’s deleveraging, Kallanish Energy learns.

If both companies were to completely cancel scrip dividends beginning in 2018, it would “probably take significantly more shareholder-friendly actions, such as very large share buybacks or rising dividends, as well as rising capital intensity, for the ratings of Total and BP to come under significant pressure,” Fitch said.

All three oil majors introduced scrip dividend programs when oil prices collapsed in 2014-2015, rather than cut gross dividends, which helped balance cash flows and reduce additional borrowing.

The analysts said the recent oil price recovery, along with pressure from shareholders who don’t want their shares diluted, could incentivize oil companies to increase cash distributions by cancelling scrip dividends, launching share buybacks or even raising dividends.

Shell saved roughly $11 billion of cash with the program, but reiterated its commitment to buy back at least $25 billion of shares in 2017-2020, subject to a sustained recovery in crude prices and debt reduction. Its reference oil price is $60 a barrel.

Fitch analysts, however, see Shell's decision as credit negative “as it will reduce the company's financial flexibility under our base case of oil prices returning to below $55/Bbl in 2018, and refining margins moderating.”

[grupo] 03/12/2017 17:43

Oil & Gas
Chevron’s $1million-an-hour dividend may go into overdrive

Written by Bloomberg - 03/12/2017 12:31 pm

Chevron news

Chevron Corp. may accelerate dividend growth over the next two years thanks to megaprojects that are already in the budget, according to one of the top-rated analysts following the oil explorer.

With earnings from massive Australian liquefied natural gas investments poised to swell cash flow, Chevron probably will have the bandwidth to lift payouts for 2018 and 2019 by more than a five-year annual growth rate of about 5 percent, Cowen & Co.’s Sam Margolin wrote in a note to clients.

Fresh off a breakfast meeting with Chevron executives that included CEO-In-Waiting Mike Wirth and longtime CFO Pat Yarrington, Margolin noted that Chevron’s existing capital budget guidance is sufficient to fund the company’s portfolio of crude and gas projects. In addition to the Australian LNG developments, Chevron is in store for a flood of new output and cash flow from the $37 billion expansion of its Tengiz field in Kazakhstan.


“Management did note that the business requires investments in new resources periodically,” Margolin wrote. “But there is no current pressure to allocate capital within or above the current guidance budget to support steady production or higher levels of growth before Tengiz comes on.”

Wells Fargo Securities LLC analyst Roger Read picked up a similar message from the breakfast. Management “made clear they have heard loud and clear from investors that increasing cash returns to shareholders are a necessary component to keep them confident in Chevron and its prospects,” Read wrote in a note today.

Chevron, the world’s third-biggest oil explorer by market value, spends the equivalent of almost $1 million an hour on dividends. Margolin has the equivalent of a “buy” rating on Chevron and is rated the third-best among peers over the past year, according to data compiled by Bloomberg.

[grupo guitarlumber] 28/11/2017 18:59

Why I’d sell this FTSE 100 shocker to buy this dividend star

Royston Wild | Sunday, 26th November, 2017 | More on: BWNG MKS
Image: Marks & Spencer. Fair use.

Against a toughening trading backdrop Marks & Spencer Group (LSE: MKS) has seen its share price decline 25% from the 2017 peaks above 395p per share printed back in May. And the company’s latest trading update has fed expectations that even more trouble could be around the corner.

Transforming its clothing lines has long been a problem amid charges that its ranges are both old-fashioned and expensive, particularly when lined up against what’s found over at the likes of Next and H&M.

And Marks & Spencer’s November market update showed that these accusations remain very much alive and well. While revenues have improved over the most recent quarter, the company still endured a 0.7% decline in like-for-like sales for the six months to September.
Food failing

To add to the its headaches, the allure of its previously-robust Food arm is also declining slightly. Like-for-like sales here dropped 0.1% during April-September, its performance again lagging that of the wider grocery industry. M&S noted noted the detrimental impact of the online home delivery and convenience segments on sales, and the price pressures that are driving customers into the arms of the discounters.

The FTSE 100 firm plans to slow the rollout of its Simply Food outlets, and to change its product proposition with a greater focus on value. This is likely to put further stress on already-pressured margins and higher costs and increased promotions in the first half have caused M&S to say Food margins will fall between 75 and 125 basis points in the full year.
A bleak outlook

Falling demand for its edible items is the last thing Marks & Spencer needed given its ongoing failure to attract fashion shoppers.

Chief executive Steve Rowe recently commented: “The business still has many structural issues to tackle as we embark on the next five years of our transformation”; and he is not kidding, the challenging retail environment making it even harder to achieve its much-awaited turnaround.

The City is expecting earnings to drop 9% in the year to March 2018, and the likelihood of any bounce-back thereafter is built on pretty sandy foundations, in my opinion. I reckon investors should give the company a wide berth despite its low paper valuation, a forward P/E ratio of 10.8 times.
Brown sugar

Marks and Sparks’ poor profits outlook, expensive transformation programme and colossal debt pile (net debt stood at £2bn as of September) leave dividends in danger of falling short of forecasts. Analysts are expecting an 18.4p per share reward, creating a jumbo 6.2% yield.

Instead, I believe those seeking a cut-price dividend star should take a look at N Brown Group (LSE: BWNG). The FTSE 250 retailer is expected to deliver a 14.22p per share reward, resulting in a monster 5.2% yield.

Although the retailer is not immune to the broader pressures washing over the UK high street, its focus on the ‘plus size’ niche segment and under-served 50-plus market puts it in a much stronger position than M&S to ride out the storm and deliver long-term earnings growth. Indeed, sales at its Jacamo and Simply Be fascias increased 6.7% and 21% respectively during March-August.

The City is expecting earnings to slip 3% in the 12 months to February, but I am expecting earnings to flip higher thereafter, helped by its increased focus on online retailing. I reckon a forward P/E ratio of 12.4 times makes N Brown worth a serious look today.

[ariane] 26/11/2017 10:51

Dutch Shell plc or GlaxoSmithKline plc?

Edward Sheldon | Sunday, 26th November, 2017 | More on: GSK RDSB
Photo: Royal Dutch Shell. Fair use.

Royal Dutch Shell (LSE: RDSB) and GlaxoSmithKline (LSE: GSK) are two of the most popular dividend stocks in the FTSE 100 index. I own both in my own portfolio. However, neither Shell nor Glaxo are perfect dividend stocks, in my view. Both have struggled with profitability in recent years, and as a result, have not increased their payouts. Today, I’m comparing the two companies. Is one a better dividend stock than the other?
Dividend yield

Beginning the analysis by looking at each company’s yield reveals that GlaxoSmithKline has a higher dividend yield than Shell right now. Shell paid its shareholders $1.88 in dividends last year, a yield of 5.9% at the current share price and exchange rate. Glaxo paid investors 80p per share, a yield of 6.2%. The healthcare giant wins here.
Recent dividend growth

Examining recent dividend growth, between 2014 and 2016, Shell paid shareholders $1.88, $1.88 and $1.88. No growth was recorded, however, with the pound having fallen against the dollar, UK investors will have enjoyed a rise in the yield. In comparison, Glaxo, which declares its payout in GBP, paid 80p, 80p and 80p in that time. Again, no growth. However, the company did pay a special dividend of 20p per share in 2015. On that basis, I’ll give Glaxo the win in this department too.
Dividend cover

City analysts expect Shell to generate earnings per share of $2 this year. That gives a dividend coverage ratio of just 1.06 times last year’s payout. In comparison, analysts expect Glaxo’s earnings to come in at 111p. That gives a coverage ratio of 1.39 times last year’s payout. Glaxo has the upper hand here, although neither ratio is strong.
Valuation

GlaxoSmithKline shares are also cheaper than Shell shares right now. The healthcare specialist sports a forward looking P/E ratio of just 11.8, vs 15.9 for Shell.

So far, Glaxo looks to be the better dividend stock. However, I’m not entirely convinced that it is.
Dividend outlook

The reason I say this is that Shell appears to have momentum at the moment. The oil price is back up to around $60 per barrel, and at that price, Shell can generate decent levels of free cash flow. With the merger of BG Group complete, Shell’s dividend is looking more and more sustainable, assuming the oil price doesn’t crash again. The stock’s 10% gain over the last three months reflects this.

In contrast, I’m getting more concerned about the sustainability of Glaxo’s dividend. Free cash flow is low, and with the group looking at potential acquisitions such as that of Pfizer, there could be implications for the payout.

When asked recently whether such a deal would carry dividend risk, CEO Emma Walmsley replied: “We confirmed our intentions to pay the dividend in 2017 of 80 pence and again in 2018 and then we will be returning to declaring the dividend quarterly and not giving a more specific outlook beyond that.”

Lack of long-term dividend assurance has rattled investors, with the stock falling 15% over the last three months. The market clearly has doubts about the sustainability of GlaxoSmithKline̵7;s dividend.

So while Glaxo has the lower valuation, higher yield and better coverage, if I was to pick one dividend stock between the two right now, I’d be inclined to go with Shell. I believe there’s less chance of a dividend cut with Shell, assuming the oil price doesn’t plummet again.

[waldron] 17/11/2017 17:19

Total: Strong Q3 Performance And Dividend Create Investor Appeal
Nov. 17, 2017 12:05 PM ET|
About: TOTAL S.A. (TOT)
Power Hedge
Power Hedge
Macro, energy, alternative energy, contrarian
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Summary

Total recently reported very solid Q3 2017 results.

The company showed both QoQ and YoY improvements in nearly every financial metric.

The company recently acquired a stake in one of the largest oil fields in the world and increased its production at Kashagan, giving it much more oil to sell.

The company pays a strong dividend and has a history of maintaining or increasing it for the past thirty years.

Overall, Total appears to offer quite an appealing opportunity for investment and further research.

On Friday, Oct. 27, 2017, integrated French oil and gas supermajor Total SA (TOT) reported its Q3 2017 earnings results. Overall, these results were quite impressive as the company both beat the expectations of its analysts and showed relatively strong improvements year-over-year in nearly all aspects of its business. While this is not necessarily a sign that the oil and gas industry has finally begun to turn the corner, the string of relatively strong reports that we have been seeing recently certainly show that the industry has adapted to the current pricing environment. Total is the latest example of this.

As many of my long-time followers are no doubt already aware, it is my usual practice to share the highlights from a company's earnings report before delving into an analysis of those results. This is because these highlights serve to provide background for the remainder of the article and provide a framework for the resultant analysis. Therefore, here are the highlights from Total's third quarter 2017 earnings results:

Total achieved an adjusted operating income of $3.062 billion in the third quarter of 2017. This represents an increase over the $2.748 billion and the $2.332 billion that the company reported in the second quarter of 2017 and the third quarter of 2016 respectively.
Total achieved an average combined production of 2.581 mboe per day during the third quarter. This represents an approximate production increase of 6% year-over-year.
Total managed to achieve an average realized price of $52.10 per produced barrel of Brent crude, representing a 14% year-over-year increase.
The company took over as operator of the giant Al-Shaheen field in Qatar and announced the acquisition of Maersk (OTCPK:AMKAF). These two items will serve to increase its growth going forward.
Total achieved a reported net income of $2.7 billion in the third quarter of 2017, representing a 29% increase year-over-year.

Undoubtedly, one of the items that will most appeal to an investor in Total that is perusing these highlights is that Total's earnings climbed fairly significantly on both a quarter-over-quarter and a year-over-year basis. While one reason for that is that the market price of both oil and natural gas increased over the period, resulting in the company generating more revenue per unit of energy produced. In addition however, Total also managed to grow its production in the latest quarter.

There are a few reasons for this. In July 2017, Total completed a multi-year process to obtain a 30% ownership stake in the Al-Shareen oil field, located offshore Qatar. Al-Shareen is one of the largest known oil fields in the world, producing approximately 300,000 barrels of oil per day (roughly 40% of the Qatari total). Thus, Total completing this deal in July 2017 would naturally increase the company's production quarter-over-quarter. In addition, investors will be pleased to note that the company's role in producing at this field is valid for the next 25 years, so Total will continue to generate revenue from this field for quite some time to come.

For a number of years, Total was one of several oil companies that was involved in the development of the massive Kashagan oil field located in the Caspian Sea. While this project experienced many troubles over the first decade of its existence, it finally began production on Sept. 11, 2013, although it was expected that it would take several years to expand to full production. Total is one of the companies that has continued to benefit from increasing production from Kashagan to this date and saw a production increase from it in the most recent quarter. It seems likely that Total will continue to see its production from Kashagan grow going forward as the ramp up continues and due to the size of this field, production can continue at the site for a number of years to come.

As many investors that follow the industry are already well aware, oil and gas companies the world over have been actively working to reduce their cost structures. This is largely a necessity given that it seems likely that the current oil pricing environment is going to continue for quite some time. Total is no exception to this and has implemented its own cost reduction program to attempt to keep its costs down. According to Chairman and CEO Patrick Pouyanne, commenting on the company's results (see link to results above):

Investment discipline continues. Organic investments were $3.1 billion in the third quarter 2017 and $10.0 billion in the first nine months, in line with the target of $14 billion this year, and cost reduction will be more than $3.6 billion, surpassing the target for this year.

In effect then, Total reduced its annual costs by $3.6 billion year-over-year while still managing to grow its production. As the oil and gas industry is a very capital-intensive industry, this is certainly an impressive feat and should prove to be quite appealing to investors. While this undoubtedly increased the company's reported profits, it also has the effect of increasing the company's cash flows in the face of the "new normal" oil price environment compared to where they would otherwise be. This provides some support to Total's dividend, which historically is quite appetizing.

One thing that has always appealing to investors about Total is the firm's dividend. The company quite often boasts one of the highest dividends in the oil sector, even among its European peers. In the latest quarter, the company was able to maintain this streak, declaring a quarterly dividend of €0.62 ($0.73205) per share. As of the time of writing, Total had a stock price of $55.21 per ADR, giving the company a dividend yield of 5.30%.

As is the case with many oil and gas companies, Total has a history of assisting its dividend over time, assisting income-focused investors in keeping their income growing to keep up with inflation. The company has either maintained or increased its dividend for more than 30 years, a track record that is quite similar to its American peers such as Exxon Mobil (XOM) or Chevron (CVX) in this regard. Unfortunately, this has not always translated into a dividend increase for American investors, as shown here:

Source: DividendChannel.org

Total may actually be one of the better energy companies to own for those investors that desire or require income as it does boast one of the highest dividend yields among its peers.

Source: Created by author with source data from Yahoo Finance

Please note that, as with many foreign companies, U.S. citizens are often better served by holding their shares of Total in a standard brokerage account as opposed to some form of tax-advantaged vehicle. This is because France imposes a withholding tax on dividends paid by Total. This rate will either be 15% or 30% (typically 15% for individuals) depending on the status of the owner of the shares. Individuals, however, are able to take a credit against their tax returns for this amount, thus reducing their U.S. tax liability but this credit cannot be claimed if a tax-advantaged vehicle holds the shares but the tax will still be paid after the tax-advantaged account receives the dividend. This is the reason why it is recommended to hold your shares outside of your retirement account.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.