Latest news with #dividends
Daily Mail
an hour ago
- Business
- Daily Mail
FORESIGHT SOLAR: Solar farm fund struggles to keep the lights on - but is fighting back
Stock market listed Foresight Solar Fund is in retrenchment mode. It's selling assets – some of its solar farm sites – and buying back shares from shareholders. In just two weeks it faces a discontinuation vote at its annual general meeting, although the special resolution is unlikely to garner sufficient support. Two thirds of shareholders would have to back it to go through – a similar vote last year was not supported. The trust's board also recently confirmed that it had been in 'discussions' with other parties about the future of the fund. Although Foresight remains schtum about the nature of these talks, they are likely to have involved a merger with a similar trust – or going private. It all represents a massive state of flux which will deter many investors from going anywhere near it. Yet Foresight has one big attraction, in the shape of the income it derives from the energy its solar panel farms generate. Since launching in late 2013 the trust has increased the dividends it pays to shareholders every year. For the 2024 financial year it handed out quarterly dividends totalling 8p a share. This year the intention is to tickle up the annual payment to 8.1p. For new investors this income is made all the more compelling by the fact that the trust's shares sit at a massive 30 per cent discount to the value of underlying assets. The result is a share price of 77p, compared to the £1 price that shares were issued at in October 2013 – and an annual dividend equivalent to 10.6 per cent. Foresight is not alone. Double-digit share price discounts are currently common within the renewable energy infrastructure trust sector – and, for that matter, across infrastructure funds generally. They are a reflection of higher gilt yields, making these income-focused trusts comparatively less attractive. Concerns over persistent inflation, weak economic growth and sticky interest rates have also dampened institutional interest. Over the past year the average renewable energy infrastructure trust has delivered investors a total loss of 6.7 per cent, while Foresight's losses are less at 1.5 per cent. To contextualise, Foresight has generated a ten-year return of 46 per cent. Ross Driver, manager of Foresight Solar, says they are doing all they can to improve matters. The solar sites it owns in Australia are being disposed of, as are selected operations in Spain and the UK. In total, it has sites in 58 locations. The proceeds of any sales, says Driver, will be part used to pay down borrowings and return cash to investors. He adds: 'We're selling assets and pulling all the levers while paddling with as many oars as possible in a tsunami.' Driver insists that if sentiment within the asset class improves his trust offers investors a good income, with the potential for share price growth. It's a view shared by some analysts. In a note last month, investment bank Peel Hunt said that Foresight Solar's shares offered 'an attractive tactical opportunity' while Rachel May, research analyst at investment group Shore Capital, says that the trust's board is trying hard to narrow the share price discount. While some people are unhappy about the impact of solar farms blighting the countryside, Driver says it's a trade-off. 'We need to decouple the country off a volatile gas price,' he adds. The trust's annual charges total 1.2 per cent and the stock market identification code is BD3QJR5. Its market ticker is FSFL. In total, investment house Foresight manages assets of £12 billion, primarily in infrastructure.
Yahoo
5 hours ago
- Business
- Yahoo
Why CenterPoint Energy (CNP) is a Great Dividend Stock Right Now
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns. Based in Houston, CenterPoint Energy (CNP) is in the Utilities sector, and so far this year, shares have seen a price change of 16.96%. The energy delivery company is paying out a dividend of $0.22 per share at the moment, with a dividend yield of 2.37% compared to the Utility - Electric Power industry's yield of 3.27% and the S&P 500's yield of 1.56%. Taking a look at the company's dividend growth, its current annualized dividend of $0.88 is up 8.6% from last year. CenterPoint Energy has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 8.25%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, CenterPoint's payout ratio is 55%, which means it paid out 55% of its trailing 12-month EPS as dividend. Looking at this fiscal year, CNP expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $1.75 per share, representing a year-over-year earnings growth rate of 8.02%. Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout. High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CNP presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 hours ago
- Business
- Yahoo
Markel Group (NYSE:MKL) delivers shareholders respectable 14% CAGR over 5 years, surging 4.4% in the last week alone
If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can do a lot better than that by buying good quality businesses for attractive prices. For example, the Markel Group Inc. (NYSE:MKL) share price is up 90% in the last five years, slightly above the market return. Zooming in, the stock is up a respectable 18% in the last year. After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During the five years of share price growth, Markel Group moved from a loss to profitability. That's generally thought to be a genuine positive, so investors may expect to see an increasing share price. Since the company was unprofitable five years ago, but not three years ago, it's worth taking a look at the returns in the last three years, too. We can see that the Markel Group share price is up 41% in the last three years. During the same period, EPS grew by 2.6% each year. This EPS growth is lower than the 12% average annual increase in the share price over three years. So one can reasonably conclude the market is more enthusiastic about the stock than it was three years ago. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. It's nice to see that Markel Group shareholders have received a total shareholder return of 18% over the last year. That's better than the annualised return of 14% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Markel Group better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Markel Group , and understanding them should be part of your investment process. There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 hours ago
- Business
- Yahoo
Markel Group (NYSE:MKL) delivers shareholders respectable 14% CAGR over 5 years, surging 4.4% in the last week alone
If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can do a lot better than that by buying good quality businesses for attractive prices. For example, the Markel Group Inc. (NYSE:MKL) share price is up 90% in the last five years, slightly above the market return. Zooming in, the stock is up a respectable 18% in the last year. After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During the five years of share price growth, Markel Group moved from a loss to profitability. That's generally thought to be a genuine positive, so investors may expect to see an increasing share price. Since the company was unprofitable five years ago, but not three years ago, it's worth taking a look at the returns in the last three years, too. We can see that the Markel Group share price is up 41% in the last three years. During the same period, EPS grew by 2.6% each year. This EPS growth is lower than the 12% average annual increase in the share price over three years. So one can reasonably conclude the market is more enthusiastic about the stock than it was three years ago. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. It's nice to see that Markel Group shareholders have received a total shareholder return of 18% over the last year. That's better than the annualised return of 14% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Markel Group better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Markel Group , and understanding them should be part of your investment process. There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Business
- Yahoo
Retirement Wealth: 2 TSX Dividend Stocks for RRSP Investors
Written by Andrew Walker at The Motley Fool Canada Canadian savers are searching for good stocks to buy for their self-directed Registered Retirement Savings Plan (RRSP) portfolios focused on dividends and total returns. With the TSX near its record high and tariff uncertainty expected to provide ongoing volatility in the coming months, it makes sense to consider established companies with strong businesses that can ride out market turbulence. Canadian National Railway (TSX:CNR) increased its dividend in each of the past 25 years. The company also returns cash to shareholders through stock repurchases. In fact, the current share buyback plan will see CN repurchase and cancel up to 20 million shares of the common stock float to February 2026. CN's share price is down about 17% in the past year. This gives investors an opportunity to buy CNR stock on a meaningful pullback at a time when many TSX stocks are near 12-month highs. Labour strikes at both CN and key ports, along with delays due to wildfires in Alberta, caused most of the pain in 2024. Wildfire risks are not going to go away, but the labour disputes should be done for the next few years. The extension of the decline in the share price in 2025 can be attributed to concerns that U.S. tariffs will trigger a recession in Canada, the United States, and the broader global economy. A significant economic slowdown would impact demand for CN's services. The company carries 300 million tons of cargo across its 20,000 route-mile rail network that connects ports on the Pacific and Atlantic coasts of Canada to the Gulf coast of the United States. Near-term volatility is expected, but trade deals will get done, and economic growth will continue. CN actually expects to generate adjusted earnings-per-share (EPS) growth of 10% to 15% in 2025, even in this environment. Assuming the company hits the target, the stock might be oversold at this point. TD Bank (TSX:TD) had a rough year in 2024 due to issues in its U.S. business. American regulators put an asset cap on TD's U.S. operations and hit the bank with fines of more than US$3 billion for not having adequate systems in place to prevent money laundering at some of the U.S. branches. In 2025, the stock is on the rebound under the new CEO, who took control in February. TD sold its remaining stake in Charles Schwab for proceeds of about $20 billion. The bank is using $8 billion to buy back stock and will allocate the remaining funds to drive organic growth in Canada, along with funding other initiatives. TD just reported solid fiscal second-quarter (Q2) 2025 financial results that topped analyst expectations. Provisions for credit losses (PCL), however, continue to be high, so investors need to keep an eye on the economy. A recession could trigger a spike in unemployment in Canada and the United States, which would potentially drive higher PCL at TD and its peers. TD is trimming its staff count by 2%, or about 2,000 positions, as part of a restructuring as it works out a new growth strategy while the U.S. operations remain under the asset cap. The American market has been a core driver of growth for TD over the past two decades. TD remains very profitable and has the capital to ride out market turbulence. At the current price of nearly $93, the stock remains well below the $108 it reached in 2022. Investors who buy TD at the current level can get a dividend yield of 4.5%. CN and TD trade at reasonable prices and should deliver solid dividend growth over the coming years. If you have some cash to put to work in a self-directed RRSP, these stocks deserve to be on your radar. The post Retirement Wealth: 2 TSX Dividend Stocks for RRSP Investors appeared first on The Motley Fool Canada. 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See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
