As the energy space continues to recover from last year’s blows, some of the world’s biggest oil companies have started generating healthy cash flows. After a dire 2020 — devastated by the pandemic-induced demand destruction and price plunge — the sector components have shown significant improvement in profits over the past few quarters.
Ballooning Cash Flows
The sharp increase in crude prices from the depths of minus $38 a barrel in April 2020 to around $70 has allowed the energy companies to deliver a solid financial performance. In particular, cash from operations is on a sustainable path as revenues improve and companies slash capital expenditures from the pre-pandemic levels amid sharply higher commodity prices. To put it simply, the environment of strong oil prices has helped the big energy operators to generate significant “excess cash,” which they intend to use to boost investor returns.
Let’s have a rundown on how some of the oil biggies are allocating the increasing cash pile toward stock buybacks and dividends.
Hot Dividend Stocks To Buy Right Now: Cummins Inc.(CMI)
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related component products worldwide. It operates in four segments: Engine, Power Generation, Components, and Distribution. The Engine segment offers a range of diesel and natural gas powered engines under the Cummins and other customer brand names for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, agricultural, construction, mining, marine, oil and gas, rail, and governmental equipment markets. This segment also provides new parts and service, as well as remanufactured parts and engines. The Power Generation segment offers power generation systems, components, and services, including diesel, natural gas, gasoline, and alternative-fuel electrical generator sets for use in recreational vehicles, commercial vehicles, recreational marine applications, and home stand-by or residential applications. This segment also provides components that make up power generation systems, such as engines, controls, alternators, transfer switches, and switchgears. The Components segment supplies filtration products, turbochargers, aftertreatment systems, intake and exhaust systems, and fuel systems for commercial diesel applications. This segment offers filtration and exhaust systems for on-and off-highway heavy-duty and mid-range equipment, as well as supplies filtration products for industrial and passenger car applications. This segment also develops after treatment and exhaust systems to help customers meet emissions standards and fuel systems. The Distribution segment provides parts and services, as well as service solutions, including maintenance contracts, engineering services, and integrated products. The company sells its products to original equipment manufacturers, distributors, and other customers. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.
Advisors’ Opinion:
- [By Ethan Ryder]
Mission Wealth Management LP lessened its holdings in shares of Cummins Inc. (NYSE:CMI) by 12.3% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 5,604 shares of the company’s stock after selling 786 shares during the period. Mission Wealth Management LP’s holdings in Cummins were worth $749,000 at the end of the most recent reporting period.
- [By Max Byerly]
Dividend Assets Capital LLC trimmed its position in shares of Cummins Inc. (NYSE:CMI) by 12.7% in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 6,794 shares of the company’s stock after selling 989 shares during the period. Dividend Assets Capital LLC’s holdings in Cummins were worth $908,000 as of its most recent SEC filing.
- [By Rich Smith]
Over the last 12 months, shares of PACCAR (NASDAQ:PCAR) are down 5%, Cummins (NYSE:CMI) stock is off by 14%, and WABCO(NYSE:WBC)is down more than 18%. Yesterday, the news promised to get worse before it gets better — January orders for Class 8 trucks declined 68% year over year, and orders for smaller Class 5-7 trucks were down 24%, according to TheFly.com(citing a JPMorgan report).
Hot Dividend Stocks To Buy Right Now: S&P Smallcap 600(PH)
Parker Hannifin Corporation manufactures fluid power systems, electromechanical controls, and related components worldwide. Its Industrial segment offers pneumatic and electromechanical components, and systems; filters, systems, and instruments to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors that control, transmit, and contain fluid; hydraulic components and systems for builders and users of industrial and mobile machinery and equipment; critical flow components for process instrumentation, healthcare, and ultra-high-purity applications; and static and dynamic sealing devices. This segment sells its products to original equipment manufacturers (OEMs) and their replacement markets in the manufacturing, transportation, and processing industries. The company?s Aerospace segment provides flight control systems and components, including hydraulic, electrohydraulic, electric backup hydraulic, electrohydrostatic, and electro -mechanical components for precise control of aircraft rudders, elevators, ailerons, and other aerodynamic control surfaces. It also provides electronics thermal management heat rejection systems, and single-phase and two-phase heat collection systems for radar, ISAR, and power electronics. This segment markets its products primarily to OEMs in the commercial, military, and general aviation markets, as well as to end users. Its Climate and Industrial Controls segment offers systems and components primarily for use in the mobile and stationary refrigeration, and air conditioning industry; and in fluid control applications in various industries, such as processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment serves OEMs and their replacement markets. Parker-Hannifin Corporation markets its products through direct-sales employees, independent distributors, wholesalers, and sales representatives. The company was founded in 1918 and is headquartered i n Cleveland, Ohio.
Advisors’ Opinion:
- [By Ethan Ryder]
Commerzbank Aktiengesellschaft FI increased its holdings in shares of Parker-Hannifin Corp (NYSE:PH) by 9.7% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 37,709 shares of the industrial products company’s stock after acquiring an additional 3,348 shares during the quarter. Commerzbank Aktiengesellschaft FI’s holdings in Parker-Hannifin were worth $5,624,000 at the end of the most recent reporting period.
- [By Ethan Ryder]
Parker-Hannifin (NYSE:PH) had its price target boosted by Wells Fargo & Co from $185.00 to $193.00 in a research note released on Thursday, The Fly reports. Wells Fargo & Co currently has a market perform rating on the industrial products company’s stock.
Hot Dividend Stocks To Buy Right Now: First Financial Northwest Inc.(FFNW)
First Financial Northwest, Inc. operates as the holding company for First Savings Bank Northwest that provides community-based savings bank services in Washington. Its deposit products include noninterest bearing accounts, NOW accounts, money market deposit accounts, statement savings accounts, and certificates of deposit. The company?s loan products portfolio comprises one-to-four family residential loans, multifamily loans, commercial real estate loans, construction/land development loans, and business loans, as well as consumer loans, including home equity loans, personal lines of credit, second mortgage loans, and savings account loans. First Financial Northwest, Inc., through another subsidiary, First Financial Diversified, Inc., offers escrow services. The company primarily serves customers in the King, Pierce, Snohomish, and Kitsap counties of Washington through a full-service banking office in Renton, Washington. First Financial Northwest, Inc. was founded in 1923 and is based in Renton, Washington.
Advisors’ Opinion:
- [By Stephan Byrd]
Get a free copy of the Zacks research report on First Financial Northwest (FFNW)
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- [By Max Byerly]
First Financial Northwest (NASDAQ:FFNW) will be announcing its earnings results on Tuesday, July 24th. Analysts expect the company to announce earnings of $0.26 per share for the quarter.
Hot Dividend Stocks To Buy Right Now: Paychex Inc.(PAYX)
Paychex Inc., together with its subsidiaries, provides payroll, human resource, and benefits outsourcing solutions for small-to medium-sized businesses in the United States and Germany. It offers payroll processing services, including calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients? payroll obligations. The company also provides payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. Its human resource outsourcing services include payroll, employer compliance, human resource and employee benefits administration, risk management outsourcing, and the on-site availability of a professionally trained human resource representative, as well as provides employee handbooks, management manuals, and r equired regulatory forms. In addition, the company offers retirement services administration; workers? compensation; business-owner policies; commercial auto; and health and benefits coverage, including health, dental, vision, and life. Further, it provides online human resource administration software products for employee benefits management and administration, and time and attendance solutions. As of May 31, 2010, the company served approximately 536,000 clients in the United States; and 1,700 clients in Germany. Paychex, Inc. was founded in 1971 and is headquartered in Rochester, New York.
Advisors’ Opinion:
- [By ]
Another tech company on the list, Automatic Data Processing (Nasdaq: ADP) is, like Intel, priced to perfection. And, similar to Intel, there is more and more competition in its core business of human resources and human capital management solutions — from more-traditional players like Paychex (Nasdaq: PAYX) to small-business focused TriNet (Nasdaq: TNET) to cloud-based Workday (Nasdaq: WDAY). Up nearly 26% year-to-date, consider taking some gains off the table.
- [By ]
Paychex (Nasdaq: PAYX) handles the payroll for 650,000 clients, mostly small businesses with 10 to 50 employees — the economy’s growth engine.
These payroll customers generally pay a flat service fee, as well as an additional fee for each worker enrolled. Thus, Paychex likes to see businesses hiring new employees. And after a soft February report, the labor market is roaring once again.
Hot Dividend Stocks To Buy Right Now: Nordson Corporation(NDSN)
Nordson Corporation manufactures equipment used for precision dispensing, testing and inspection, and surface preparation and curing. Its Adhesive Dispensing Systems segment manufactures equipment for applying adhesives, lotions, and liquids to disposable products; automated adhesive dispensing systems for the food and beverage, and packaged goods industries; hot melt and cold glue adhesive dispensing systems for the paper and paperboard converting industries; adhesive and sealant dispensing systems for bonding or sealing plastic, metal, and wood products; and laminating and coating systems to manufacture continuous-roll goods in the nonwovens, textile, paper, and flexible-packaging industries. The company?s Advanced Technology Systems segment comprises automated gas plasma treatment systems used to clean and condition surfaces for the semiconductor, medical, and printed circuit board industries; controlled manual and automated systems for applying materials in customer pr ocesses requiring precision and material conservation; ultraviolet equipment used in curing and drying operations for specialty coatings, semiconductor materials, and paints; and bond testing and automated optical and x-ray inspection systems used in the semiconductor and printed circuit board industries. Its Industrial Coating Systems segment provides automated and manual dispensing systems used for applying coatings, paint, finishes, sealants, and other materials. Nordson Corporation markets its products in the United States and internationally through a direct sales force, as well as through qualified distributors and sales representatives. It serves various markets, including the appliance, automotive, bookbinding, container, converting, electronics, food and beverage, furniture, life sciences and medical, metal finishing, non woven, packaging, and semiconductor industries. The company was founded in 1935 and is headquartered in Westlake, Ohio.
Advisors’ Opinion:
- [By Joseph Griffin]
Several research firms recently commented on NDSN. Zacks Investment Research lowered shares of Nordson from a “hold” rating to a “sell” rating in a research note on Wednesday, February 13th. BidaskClub downgraded shares of Nordson from a “strong-buy” rating to a “buy” rating in a report on Tuesday. ValuEngine downgraded shares of Nordson from a “buy” rating to a “hold” rating in a report on Wednesday, January 2nd. Gabelli reaffirmed a “hold” rating on shares of Nordson in a report on Tuesday, December 18th. Finally, CIBC upgraded shares of Nordson from a “market perform” rating to an “outperform” rating and set a $140.00 target price for the company in a research report on Tuesday, January 8th. Eight research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. Nordson presently has an average rating of “Hold” and an average price target of $143.57.
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Nordson Company Profile
- [By Motley Fool Transcribing]
Nordson (NASDAQ:NDSN) Q2 2019 Earnings Conference CallFeb. 21, 2019 8:30 a.m. ET
Contents:
Prepared Remarks Questions and Answers Call Participants
Prepared Remarks:Operator
