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.
Pharmaceutical giant Pfizer is first in the list this week, as the company’s hit COVID-19 vaccine has reached another milestone. Second in the list is Energy Transfer, a pipeline giant that received a windfall from the Texas winter storm. The list is closed by oil and gas majors BP and Chevron, which recently reported strong profits after a string of losses.
Don’t forget to read our previous edition of trends here.
Pfizer
Pharma giant Pfizer(PFE) has taken the first position in the list, seeing its viewership rise by 29%. Pfizer trended second two weeks ago after IBM.
The company has received another batch of positive news recently, after the Food and Drug Administration approved its COVID-19 vaccine for use in adolescents from ages 12 to 15. Pfizer’s Phase 3 trial in this category of patients showed 100% efficacy. Another trial is currently being conducted to test the safety and efficacy in patients aged 6 months to 11 years.
The sales of COVID-19 vaccines are already visible on the company’s bottom line. In the first quarter of the year, Pfizer revenues advanced by 21% to $14.6 billion year-over-year. At the same time, net income surged by 43% to $4.9 billion.
Shares in Pfizer have jumped by 6% over the past 30 days, extending 12-month gains to more than 11%. Despite the boon from a highly successful vaccine, Pfizer has underperformed the Nasdaq Biotechnology Index over the past five years. Pfizer is up by 25%, while the index rose by 74% during the period.
Pfizer pays an annual dividend of $1.56 per share, equal to a yield of nearly 4%.
Source: Barchart.com
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Energy Transfer
Energy Transfer (ET) is second in the list with an advance in viewership of 25%. The oil and gas pipeline operator has made news recently for being one of the biggest beneficiaries of long-lasting power cuts in Texas during a storm.
The company said it gained $2.4 billion from the extreme weather in Texas, as its facilities were working 24 hours a day to maintain supply. Amid huge shortages, spot prices for energy surged, allowing Energy Transfer to charge higher prices.
For the three months ended March 31, Energy Transfer recorded adjusted Ebitda of $5.04 billion versus $2.64 billion for the same period last year. Meanwhile, distributable cash flow to partners increased from $1.42 billion to $3.91 billion.
Shares in Energy Transfer have jumped by 18% over the past 30 days, extending 12-month gains to 27%. The company’s stock is still trading below pre-pandemic levels and is at a third of its peak reached in May 2015. At present the company yields around 7%.
Source: Barchart.com
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BP
U.K.-based oil major BP (BP) has taken the third place in the list this week with an advance in viewership of 16%. BP has made the headlines recently as the oil major switched to profit in the first quarter of 2021. For the three months ended March 31, the company reported a profit of $2.6 billion, up from $791 million in the same period last year and beating expectations of $1.6 billion.
Investors watched the results closely as there is a lot of skepticism regarding the company’s goal of profitably transitioning from fossil fuels to renewable energy. In part, investors were worried about the company’s high levels of debt and whether it will be able to finance the transition.
BP has made the first step to squash investors’ concerns. In addition to the strong profits, it said that net debt declined by $5.6 billion to $33.3 billion. The drop came despite the company making a host of investments in renewable energy over the past year.
BP pays a dividend of $1.26 per share, amounting to a yield of nearly 5%. Its forward payout ratio stands at around 50%.
Source: Barchart.com
Chevron
Chevron (CVX), another oil major, is last in the list with an advance in traffic of 8%.
Like BP, Chevron’s results have benefitted from a recovery in oil prices and the company posted good results for the first quarter of the year. Revenues of $32 billion were lower than expected, but they were hit by a one-time closure of some refineries due to Winter Storm Uri in February. Net income declined by 62% year-over-year to $1.4 billion.
Chevron has been focusing on efficiency and profitability at the expense of growth by closing the less efficient wells, a move followed by many oil and gas companies.
The company increased its dividend by 4% to an annualized $5.36 per share. This represents a yield of 4.9%. Chevron has been hiking its dividend for 34 consecutive years.
A brutal 2020 forced many oil companies to cut their dividends, but not Chevron. The company last year upped its dividend by 8%.
Source: Barchart.com
The Bottom Line
Pfizer’s COVID-19 vaccine has received the green light for adolescents aged 12 to 15 years, in another boost for the company. Pipeline operator Energy Transfer is among the biggest beneficiaries from the Texas storm. BP and Chevron have both switched to profit in the first quarter of the year, after a brutal 2020.
Be sure to check out Dividend.com’s News section for next week’s Market Wrap and other great dividend investing news.
