Tag Archives: Penn West

Business, Finance, Occupation & Industry

Why Penn West Petroleum Will Outperform

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By Brian D. Pacampara, The Motley Fool

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, petroleum and natural gas company Penn West Petroleum has earned a respected four-star ranking.

With that in mind, let’s take a closer look at Penn West and see what CAPS investors are saying about the stock right now.

Penn West facts

Headquarters (founded)

Calgary, Canada (1979)

Market Cap

$5.0 billion

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$2.7 billion

Management

CEO Murray Nuns

CFO Todd Takeyasu

Return on Equity (average, past 3 years)

7.5%

Dividend Yield

9.8%

Competitors

EnCana

Paramount Resources

Suncor Energy

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,394 members who have rated Penn West believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, Investment16, tapped Penn West as a particularly timely opportunity: “In the next financial release, we will very well see the balance sheet much healthier than it has been in the past few years. Positive news on Natural Gas, and the commitment from the Canadian Government to bring crude to the market will give much improved future cash flows.”

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Penn West Petroleum Will Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Business, Finance, Occupation & Industry

Some Hefty Dividend Payers to Consider

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By Selena Maranjian, The Motley Fool

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Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you’d like to add some big dividend payers to your portfolio, the Global X SuperDividend ETF could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.

The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The Global X ETF‘s expense ratio — its annual fee — is 0.58%. It recently yielded close to 7%, a considerable payout.

This ETF is too young to have a meaningful track record to assess. As with most investments, of course, we can’t expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.

Why dividends?
The power of dividend investing is often underappreciated. They can be powerful portfolio supporters, providing income even during market downturns. Consider parking them in an IRA, too, to postpone or avoid taxes on dividends.

More than a handful of dividend payers had strong performances over the past year. Diversified REIT Starwood Property Trust surged 44%, for example. It specializes in commercial mortgages and debt, and recently posted a surprisingly good earnings report. The company has been boosting its volume, originating and purchasing more than $1 billion in debt in its recent fourth quarter. It yields 6.2%.

Mortgage REIT Chimera Investment gained 25% and yields a whopping 11.3%. It has been profiting by taking on more risk than many of its brethren, but it generated a lot of concern in the investment community due to accounting irregularities and its not filing reports on time. My colleague John Maxfield has reviewed some just-released information and finds issues of “competence and not integrity,” which doesn’t exactly inspire confidence. Some have wondered whether Annaly Capital Management might fold Chimera into itself, as it already owns a chunk of the company.

Other companies didn’t do as well last year, but could see their fortunes change in the coming years. Pitney Bowes shed 6% — and yields 9.5%. While you may just think of it as a postage-meter business threatened by the growth of digital communications, the company actually has other less-threatened and higher-margin businesses, such as providing geocoding software to Facebook and others. It posted estimate-topping quarterly results in January and its single-digit P/E ratio is enticing, but it does carry some risks and considerable debt, and its hefty dividend may end up reduced. The stock is heavily shorted as well.

Penn West Petroleum sank 40%, and yields 9.4%. While that might make your heart beat fast, know that the company is paying out about three times more than its earning per share. Penn West, which drills for both oil and gas, has been …read more
Source: FULL ARTICLE at DailyFinance