Hot Stocks – Chesapeake Energy Corporation (NYSE:CHK), Valeant Pharmaceuticals Intl Inc (NYSE:VRX)
Dividend growth investing is a strategy that focuses on companies which regularly raise dividends. The strategy focuses on growth in dividends over a longer period of time that usually exceeds ten years. The typical dividend growth stock does not yield a lot today, but can generate very high yields on cost, that will definitely trump even some of the highest yielding stocks today. As a result, dividend growth investors focus on the catalysts that can generate a higher net income for the corporations whose stock they are purchasing. Companies can earn more by selling more, increasing prices, streamlining operations, expanding in new markets, selling new products or acquiring and merging with other companies. Mergers and acquisitions can only lead to higher earnings per share if they result in synergies. We want growth in earnings per share after all, not just a growth in overall net income.
The important tool that makes dividend growth investing is growth in earnings per share. Growth in earnings per share enables companies to increase dividends over time in a sustainable matter. A company that grows dividends for a period of time without corresponding earnings growth will eventually run out of room to boost distributions.
Here are companies that have increased their dividend payouts for several consecutive years.
Chesapeake Energy Corporation (NYSE:CHK) traded 2.42% shares on last trading session with closing price of $5.51.
NYSE:CHK was trading -32.80% below its 52-week high and 54.78 % above its 52-week low. Its last 5-Year EPS growth stands at 5.00 %; with earnings growth of 67.50 % yoy. The stock stands -2.74 % below the average-price of 50 days and -5.60 % compared with the SMA 20.
The stock has a 1-year performance down -13.91 % and a negative weekly performance at -2.65 %. Moreover, the stock is up 5.56 % in one month through last close, to $ 5.51, showing a -20.26 % return during the past three months. The company is set at a mean analysts’ recommendation of 2.80.
According to Reuters, Oil prices edged lower on Wednesday as ample global supplies and data showing a rise in U.S. crude inventories cast doubt on OPEC’s ability to tighten the market with output cuts.
Brent crude, the international benchmark for oil prices, eased 26 cents to $51.84 per barrel at 1054 GMT. Brent is now around 8.5 percent below its April peak.
U.S. West Texas Intermediate (WTI) was trading down 24 cents at $49.32 per barrel, heading for its eighth fall in nine sessions.
U.S. inventory data issued late on Tuesday by the American Petroleum Institute (API) weighed on prices.
The report showed crude stockpiles rose 897,000 barrels in the week to April 21, defying expectations of a fall of 1.7 million barrels, and also showed a large build in gasoline stocks, unusual for this time of the year.
“Should these figures be mirrored by the EIA, widespread concerns over stubbornly high OECD oil stocks will have been justified in what would be a setback to the global oil rebalancing process,” analysts at PVM said. Source: Reuters
Valeant Pharmaceuticals Intl Inc (NYSE:VRX) shares moved to $9.02 after opening the day at $8.56, on Tuesday. The stock floated in a price range of $8.50 – $9.06, with market capitalization of $3.11B. The stock exchanged hands with 12,694,577 shares lower as compared to its average daily volume of 18,829,708 shares. If we take a look on its volatility, 5.17 percent was seen in a week and for the month it was 4.08 percent.
The company’s net profit margin stands at -24.90 % whereas its return on equity (ROE) is -52.70 %. The average analysts gave this company a mean recommendation of 3.00.
Valeant Pharmaceuticals International, Inc.’s (NYSE: VRX and TSX: VRX) wholly owned partner, Bausch + Lomb, recently declared it has received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for Vitesse™, the first and only hypersonic device for vitreous removal, which uses a novel, single-needle design and a continuously open-port system. This new technology represents the first major vitreous removal innovation in 40 years, and one that will be available exclusively on the company’s new Stellaris Elite™ Vision Enhancement System.
“The successful clearance and forthcoming launch of Vitesse is another opportunity in our 2017 launch plan, which we believe will provide truly innovative applications for retina surgeons and their patients,” said Joseph C. Papa, Chairman and CEO of Valeant. “We look forward to bringing this next evolution, cutting-edge technology to market on our new Stellaris Elite platform.”
“I feel privileged to have been able to work with Bausch + Lomb in the development of this new technology since its birth in the lab in 2012. This is perhaps the first major technological change in the way we remove the vitreous since the appearance of guillotine vitrectors,” said Paulo Stanga, M.D., a professor of Ophthalmology and Retinal Regeneration at the University of Manchester, and a vitreoretinal surgeon for the Manchester Royal Eye Hospital based in Manchester, United Kingdom. “The new hypersonic vitrector is a noteworthystep forward as it has the potential to lead to future advancements with various needle configurations and gauge sizes.”