Dividend.com analyzes the search patterns of our visitors each week. By sharing these trends with our readers, we hope to provide insights into what the financial world is concerned about and how to position your portfolio.
Oil tanker provider Euronav has taken the first spot in the list this week, as the company saw large fluctuations in its dividend following a strong increase in revenue stemming from high demand earlier this year. The real newsmaker was BP, the British oil major that announced an accelerated shift away from fossil fuels to renewable energy. Third in the list is Apple, as the iPhone seller seems to be on track to reach a valuation of $2 trillion. The list is closed by Intel, which recently disclosed another delay in the manufacturing of its 7-nanometer chip.
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Euronav
International oil shipping company Euronav (EURN) has taken first place in the list, with a rise in viewership of 60%. This is unsurprising, as oil tankers have been popular with our readers since a supply glut triggered demand for storage in March. This, in turn, has led to an increase in revenues for these companies as well as higher payouts to shareholders.
Revenues in the second quarter jumped by 156% to reach nearly $435 million compared to the same period a year ago. In the first quarter, revenues were up by 80% to $417 million. As such, the company declared a dividend of $0.81 in the first quarter and $0.47 in the second quarter. Over the past 12 months, the company returned $1.57 per share to shareholders, resulting in a dividend yield of 16%.
Despite the strong revenue growth and high dividends, Euronav shares have fallen more than 20% since the start of the year. They are up 10% for the past 30 days.
Going forward, Euronav revenues are expected to fall as the oil supply shock is abating. Still, demand for storage is expected to be high in the third quarter.
Source: Barchart.com
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BP
Oil major BP (BP) has just announced a bold strategic move away from fossil fuels to renewable energy, in a harbinger of the end of the oil era. As such, BP has seen its viewership climb by 55%, not far off from Euronav’s numbers.
BP said it would increase its investments in renewable energy ten-fold over the next decade to $5 billion, while its production of oil and gas is expected to drop by 40%. However, over the next five years, a major part of BP’s investments will still be in the traditional oil and gas sector.
Among others, BP will make major investments in bioenergy, hydrogen, and carbon capture and storage, while targeting an increase in electric-vehicle charging points from 7,500 to 70,000. At the same time, BP will sell its oil and gas refining portfolio, aiming to raise $25 billion in capital over the next 5 years.
The strategy update overshadowed an otherwise extremely downbeat quarter. BP reported a loss of $16.8 billion due to a writedown of certain assets as it lowered its forecasts for future oil prices. The company slashed its dividend by 50% to $0.31 per share, although the cut was expected and it was smaller than rival Shell’s. The next dividend is payable on September 25 to shareholders of record on August 14.
Source: Barchart.com
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Apple
Apple (AAPL) might be the first company to reach the $2 trillion valuation. As such, the technology giant has taken third place in the list, with an advance in viewership of 43%. Shares in Apple have appreciated 53% since the beginning of the year and are up 124% over the past 12 months.
To be clear, the ascent has been fuelled by the same old revenue driver, the iPhone, which has unexpectedly benefited from strong demand. Revenues in the fiscal third quarter ended July 30 stood at nearly $70 billion, up nearly 11% over the same period last year. Around $27 billion of those revenues came from iPhone sales and $13 billion from services.
The company’s stock currently trades at a price-to-earnings ratio of 34. Investor bullishness could be explained by the fact that Apple is becoming a market leader in wearables, with the Apple Watch and AirPods proving a hit with consumers.
Apple has continued to pay dividends to shareholders. It declared a cash dividend of $0.82 per share, payable on August 13 to shareholders of record as of August 10. The dividend represents a yield of less than 1%.
Source: Barchart.com
Intel
Intel (INTC) has seen its viewership increase by 43%, on par with Apple. The technology giant recently announced better-than-expected quarterly revenue and profit numbers, but the news was largely overshadowed by a couple of embarrassing setbacks.
First, the company again delayed the manufacturing of its next-generation 7-nanometer chip by at least six months. This is complicating efforts by the company to fend off Advanced Micro Devices (AMD) and its partner Taiwan Semiconductor (TSM). At the same time, Apple announced it is moving its Macbooks away from Intel chips to ARM.
Shares in Intel have fallen 17% since the start of the year, but remain up 7% for the past 12 months. Intel pays an annualized dividend of $1.32 per share, amounting to a dividend yield of 2.75%.
Source: Barchart.com
The Bottom Line
Oil tanker Euronav posted strong revenue growth, thanks to surging demand for oil storage. BP reported weak earnings and a huge loss, but investors were optimistic about its strategy of moving away from fossil fuels to renewable energy. Apple is close to reaching a valuation of $2 trillion, as the tech giant is seeing high demand for its products, including the iPhone and wearables. Finally, Intel delivered a strong earnings report but its shares suffered on yet another delay of its 7-nanometer chip.
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