Investors like the high dividends and buybacks energy companies offer, but debt is starting to rise again

  • 📰 CNBC
  • ⏱ Reading Time:
  • 25 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 72%

France Nouvelles Nouvelles

France Dernières Nouvelles,France Actualités

Oil companies are increasing the debt at a time when shareholders expect rich dividends and robust stock buyback programs.

A mix of high oil prices and capital discipline has led to strong balance sheets across the energy sector, but the trend of falling debt has started to reverse itself. If oil prices stay high — and especially, if they breach $100 a barrel — the companies are well positioned. However, should oil prices fall and debt levels continue to rise, some companies have boxed themselves into a corner with very generous dividends and share repurchase programs.

"Since April of 2019, the energy market became the highest yielding sector in the market, and in my view, that was a signal from shareholders telling the entire space this is a short duration asset now, we want a return of our capital as soon as possible," Pies said. Investors have a range of options to choose from when chasing a dividend yield among energy stocks. If a trader wants to stick with blue chips, Chevron offers a 6% yield, while Conocophillips ' yield is 4.6%.

Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 12. in FR
 

Merci pour votre commentaire. Votre commentaire sera publié après examen.

France Dernières Nouvelles, France Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Bonds, oil and the dollar: What investors need to know about these 3 headwinds for stocksThree material hurdles are standing in the way of stocks returning to their winning ways: a rise in bond yields, oil prices and the dollar.
La source: CNBC - 🏆 12. / 72 Lire la suite »