High, Yet Safe Dividend Yield: EPD Stock Makes Income Investors Fall In Love

One lesson the stock market has consistently hammered on us is that when something looks too good to be true, you’ll find a stinker nine times out of ten if you dig deep enough.

But that’s nine times out of ten. What happens to the remaining one?

Well, Enterprise Products Partners (NYSE: EPD) is that one. There aren’t many stinkers that can effectively ruin this stock or income investors.

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Source: Zukiman Mohamad

One of the greatest strengths of Enterprise Products Partners is its diversity. The company provides various midstream services of natural gas, natural gas liquids (NGLs), petrochemicals, crude oil, and petrochemicals.  Although the bulk of its income comes from NGL, its diversification into petrochemicals and crude oil has proven to be business-smart.

Perhaps, the most attractive aspect of EPD is its high and safe dividend yield of 7.4%. And not only is this dividend yield sumptuous, but the company also has a good habit of increasing dividend-per-share annually for 23 years.

Thanks to the company’s midstream service diversity, cash flows have been reliable enough to keep the business running while still paying 86% of earnings to unitholders. Even then, the company has $7.3 billion in free cash flow.

Concerning growth potentials, Enterprise Products Partners isn’t the most exciting. However, the future is by no means bleak too. EPD estimates that 3 billion people on earth still live in energy poverty. But if you, just like us, think that’s a long shot, here’s another: Navitas Midstream, the company’s recent acquisition, is expected to bolster EPD’s cash flows going forward.

The icing on the cake for EPD is how it’s inexpensively priced compared to its industry and the US market at large.  The company boasts a PE ratio of 11.9x, which trails the US Oil and Gas industry PE ratio of 15.8x.

Technical Analysis

A high dividend yield is not the only thing EPD unitholders have to be glad about. A look at the EPD stock chart reveals how the stock is making a gradual recovery from the great dip of 2020. Having dipped to as low as $10, the stock has risen by 140% to its current price.

The level where the stock finds itself now is the more interesting thing. The $24 – $25 resistance level hovers firmly over the price. Whether the stock breaks this level after attempting and failing twice since last year is anyone’s guess.

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If the stock fails to break this level, the $19 – $20 level awaits. But if the breakout is successful, the stock has about 20% upside before it hits the next significant resistance level of $30 – $31.

Whatever happens, though, the stock is still about half of its all-time high of $41. So, there’s still a lot of space for the stock to grow.

Should You Buy Franco-Nevada Right Now?

Franco-Nevada Corporation (NYSE: FNV) stock reached its all-time high of $168 on the eighth of March, after making an inspired charge from its lowest price level of $124 in January.

If you viewed FNV stock from 2022 alone, you might be impressed. But from a broader historical view, this wouldn’t be the first time this stock would make such a move since 2020. In fact, the stock has mostly moved sideways in its entire history.

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Source: Zlaťáky

FNV has never looked like one for exciting growth prospects. It has only managed just over 330% in growth since it went public in 2011. But value investors can often rely on the stock to buy-low-sell-high.

So, what’s the outlook for the stock? Is Franco-Nevada a buy right now?

Support and Resistance Levels

Three distinct levels have stood out on the FNV stock so far. Of them, two are supports, and the topmost one is a resistance level. These three levels are distinct because the price has mostly ranged among them since 2020.

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The Year 2022, however, has been a great year for the stock. The year started with the stock very close to the lowest of the three levels. It then rose by 35% from the lowest price level of the year to the stock’s all-time high, cutting through the $142.5 – $145.5 resistance level (which is now a support level) in the process.

However, the stock tried to break out of the $161.9 – $165.6 resistance level but fell short. It now rests just underneath the support level.

Is Franco-Nevada Corporation a Buy Right Now?

Desist from buying Franco-Nevada Corporation stock. The technicals don’t look so great, as the stock seems to have bounced off the $161.9 – $165.6 resistance level. The closest support level at $142.5 – $145.5 is now the next likely destination. That’s a 7% downside from the current stock price of $158.

If the stock makes another quick challenge of the resistance level that becomes successful, which is still very possible, we may upgrade our forecast for the stock to a buy. But even then, we would need to re-analyze the market condition to be sure.

For the moment, though, we recommend ‌you hold the FNV stock.

Can Intel Stock Turn Its Fortunes Around For The Better?

In all honesty, this stock is not the most exciting. It won’t guarantee you profits in triple-digit percentages. This stock has had its glory days and is now just making its way out of rough times.

But despite these turbulent times, its financials have looked somewhat stable, and its dividend yield makes a compelling case. So, if you’re in for dividends and potential upsides, we present you Intel Corporation (Nasdaq: INTC)

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Source: Pok Rie

Intel Corp is one of the most popular processor chip makers around. Its processors are in most personal computers. That means it has the likes of Dell, Hewlett Packard, Lenovo, Acer, and Asus in its customer books. In addition to processor chips, Intel also manufactures chips for various purposes in any computer system.

Intel Corp was the undisputed champion for a long time as far as processor chips were concerned. Then formidable competitors, such as AMD, reared their heads. As a result, Intel lost some customers to these competitors, especially in the space of chipsets for specialized purposes, such as gaming.

However, Intel hired a new CEO, Patrick P. Gelsinger, a little over a year ago, and things have started looking up. The seeming “brain drain” appropriated to the company by many blogs, review sites, and publications has begun to wane. One of the most prominent hardware publications, Tom’s Hardware, had this to say about one of Intel’s upcoming processors, Alder Lake: “a cataclysmic shift in Intel’s battle against AMD’s potent Ryzen 5000 chips.”

Also, insider optimism about the stock has been growing, as they bought about $745,000 worth of Intel shares in the last quarter. If insiders, who may (or may not) have insider information on the stock, are spending so much accumulating it, there may be some future for it.

Another compelling case the Intel stock makes is its 3% dividend yield. And with a payout ratio of just 28%, you can be sure it is hard at work trying to rebuild the company. Also, a price-to-earnings ratio of 9.8X, which trails its industry by over 12.1X, is a good sign for value investors.

Technical Analysis

INTC stock has formed a consolidation with a lower boundary at the $40.5 – $43.5 support level.

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Despite being in a range, the Intel stock is still on a more extensive bullish run, according to the bullish trendline that formed underneath the stock price.

It will be interesting to see how the stock performs from here. But for now, it looks headed for the $56.2 – $59 resistance level. If it breaks this level and continues to break the next $67.9 – $70 resistance level, that would be a strong bullish signal for the stock.

For now, though, we recommend you buy the stock for short-term gain and hold it for its dividend.

Buy This Healthcare Facilities REIT Stock Now For Its Dividend

The REIT stock market is likely one of the best places to be for income investors because these companies are legally mandated to pay 90% of their income as dividends to investors. In other words, these companies exist to feed their investors. Medical Properties Trust Inc (NYSE: MPW) stock is one such company. And we believe this stock holds an edge over other REITs in the market.

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Source: Jonathan Meyer

Medial Properties Trust is in the business of healthcare facility real estate. The company owns about 440 hospitals in the United States and Europe.

Dividend-wise, MPW pays a 5.73% yield to its investors and a dividend per share (DPS) of $1.16. This DPS has steadily increased for the past eight years. And while the company has not promised a further increase, business has looked good and there’s no reason not to expect it.

Talking about business, here’s what Medical Properties Trust financials look like.

In the most recent Q4 FY’21, funds from operations were $259 million, topping Q4 FY/20 by 35%. Revenues also grew year on year by 24% to $409 million. Earnings per share for the quarter also increased to $0.34 by 70% from the same quarter of the previous year.

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Source: Medical Properties Trust

Despite these impressive figures, Medical Properties Trust is still relatively cheap compared with other stocks in its industry. It has a Price to Earnings (PE) ratio of 18.8X, while its industry has a 41.2 XPE ratio.

Another reason we believe Medical Properties Trust is an outstanding stock to invest in is that healthcare real estate is going nowhere, even in the future, something that can’t be said for some other REITs.

Many office building REITs face the threat of not being useful in the long run, as companies are taking their operations online. But because there’s only so much medical treatment you can receive online, the healthcare real estate scene is going to remain active long term.

Technical Analysis

Medical Properties stock has not seen the 2022 it hoped for, as it has dropped by almost 20% to where it currently is. However, this dip might prove to be a mere correction, as the stock now rests on the $19.4 – $20.20 support level.

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Already a hammer candlestick, which is a bullish pattern, has appeared right on the support level, suggesting that there might be a reversal that sends the price bouncing off the level. And if this happens, there’s about a 20% upside for the stock to reach the $23.6 – $24.4 resistance level.

The current price level is an excellent place to buy the MPW stock for all investors.

However, if the price falls below the support level, we may see a further dip to the $16.1 – $16.8 support level.

Is Exxon Mobil Stock A Buy Now?

Exxon Mobil Corporation (NYSE: XOM) stock has had quite a journey on its way to its historical highs. What the stock is doing can best be described as a resilient charge, and it has momentum on its side. In fact, it has had a flying start to the year with a 38% rise to its current price. Can momentum drive it even higher?

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Source: Raymond Kotewicz

What Has Happened?

Since the stock bottomed out in 2020 at $30, the lowest level since 2002, things have looked rather bullish for it. It headed straight for the $81.5 – $84.5 resistance level, challenged it twice, before finally breaking out of it on the third trial.

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The stock now finds itself 178% above that $30 low.

So What?

Whether the breakout of the $81.5 – $84.5 resistance level would happen right now is what we don’t know for sure. As it is, the stock is far away from the bullish trendline that underlines it, or the closest significant support level at $63.5 – $67.

Besides the bullish trendline that formed underneath the price, perhaps the more critical trendline on the XOM chart is the resilient bearish trendline from which the stock broke. The trendline has hovered over the stock for seven years and has been tested six times during the period.

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A slight retest of the bearish trendline appeared on the weekly chart, which officially put XOM in bullish territory.

Should You Buy Exxon Mobil Stock Now?

Not yet. Although we hold a bullish sentiment for it long term, we recommend you hold Exxon Mobil stock for now. But you can buy the stock as soon as it breaks out of and retests the $81.5 – $84.5 resistance level.

Suppose this breakout doesn’t happen and the stock returns below the resistance level. In that case, we recommend you hold until it finds support at any of the bearish trendline, the bullish trendline, the $63.5 – $67 support level or the minor support that has developed around $75. Then, we re-analyze what the stock’s price action has for us.

Buy Sunoco Now For Its High Dividend Yield and Strong Value Potential

There’s been so much noise about electric vehicles and their stocks lately that we forget the vast majority of our vehicles still run on combustion engines. Yes, EV is the future. But combustion engines with good ol’ gas fuels are what will drive us to that future. And that is why we believe Sunoco LP (NYSE: SUN) stock will continue to do just fine until that future arrives.

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Source: Andrea Piacquadio

Sunoco is a retailer of motor fuel in the US. The company gets its fuel from independent refiners and oil companies; and sells them to commercial filling stations, independent dealers, and distributors. Apart from its motor fuel business, Sunoco also dabbles in real estate in Hawaii.

Business-wise, Sunoco looks solid. A dividend yield of 7.65% and a payout ratio of 62% is backed by $100 million in net income in its most recent Q4 FY2021 report. This figure was 20% more than it earned at the same time in the previous year. The fuel retailer also recorded a robust adjusted EBITDA of $754 million for the FY2021. Other financial figures for the quarter and the year also looked good.

Although this dividend has only had a history that spans 9 years, the company’s business resilience gives investors something to be confident about. For instance, Sunoco’s industry was one of those that were most hit with the pandemic, which lead to the 35% YoY revenue dip for the fuel retailer that year. What was surprising, though, was how the company still managed to be profitable.

Now that the economy is opening up, one can only expect things to get better for the company, which is expected to have more positive effects on the dividend.

The only potential risk for Sunoco is the transition to sustainable energy sources. But we don’t expect that to threaten Sunoco yet, as the transition is still in its infancy.

We believe Sunoco is a solid stock for its dividend. And considering that the stock is undervalued, with a PE ratio of 8.1 that lags the industry’s 16, now is the best time to buy Sunoco for value and for dividend.

Technical Analysis

Things are looking just great for SUN stock at the moment. It broke out of the $41.5  – $43 resistance level and recently retested it as a support. If this support level holds, it could be the next step in the stock’s rise to heights it has only been in 2014 and 2015.

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In addition to the support level, a strong bullish trendline also underlines the stock price, giving SUN’s bullish trend even more credibility.

We believe now is the time to buy Sunoco stock.

Is Atlassian Now Ripe For Buying After Dipping By 33%?

The tech stocks sell-off may be the best thing that has happened to investors looking to buy shares in tech companies that looked too expensive before the sell-off. Thanks to this sell-off, those expansive stocks are now doing double-digit discounts. Meta did about 50%, Amazon did over 25%. And our stock pick for today, Atlassian (Nasdaq: TEAM), did 33%. This sell-off will not last forever, and we believe the best time to buy Atlassian stock is close.

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Source: RODNAE Productions

But let’s take a step back to tell you what Atlassian does. Atlassian is a cloud-based company that provides products that enhance collaboration on projects within companies and workspaces. These products automate basic tasks that require little or no human intelligence; you’ll be surprised at how much these tasks hinder productivity.

Atlassian’s products are integrable. In other words, you can simply own one Atlassian account and use various Atlassian products for just one project. The impressive thing about this business strategy is that a user can start with one product and just float to others. It’s easy for its clients who will enjoy having all their data in one place; and it’s good for Atlassian itself, as it gets to keep its customers within its ecosystem.

The benefit of this business strategy and other strategies the project management company has employed is evident in its financials. In its most recent quarter, Q2 FY22, the company recorded a 37% year-on-year increase in revenue to $689 million. Net Income also rose by 34% YoY to $127 million.

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Source: Atlassian

These numbers are impressive because the company is mostly cloud-based, and it has to spend a lot on research, development, and marketing.

Shareholders, potential investors, and customers will be glad to know that Atlassian recently acquired Percept.AI. This acquisition will allow support teams on Atlassian to more efficiently handle tasks and scale. While this doesn’t directly translate to more income for the company, it does improve the usefulness of Atlassian, which may, in turn, attract more customers.

Technical Analysis

If you thought Atlassian was too expensive to jump on in late 2021, check again now. TEAM has shed over 40% since then. Although the stock has recovered to a 33% dip, we’re still very much in the buy zone for the Atlassian stock.

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The stock made two quick touches on the $260 – $274 support level in the past 5 weeks and now hovers not far above it. This suggests that the support level is quite important, and this may be where the pullback ends for TEAM. The bulls may mount a challenge from here.

The bulls could echo a loud statement of intent if the stock breaks out of the overlying bearish trendline and the $334 – $349 resistance level.

However, there’s nothing to get excited about yet, as the $260 – $274 support level may very well fail to hold the next contact with the price. And if this happens, the $199 – $211 support level awaits the price, thus, ushering us deeper into bearish territory.

Can Steel Dynamics Overcome This Pattern Of Doom And Soar?

The Steel Dynamics, Inc (Nasdaq: STLD) stock finds itself at a pivotal point on the weekly chart. Whatever happens here would leave a mark on the stock in the near term.

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Source: Movidagrafica Barcelona

The Chart Pattern of Doom

Three times since 2009. That is the number of times the Head and Shoulders Pattern appeared on the STLD stock on the weekly chart. And three times, the stock behaved as predicted by the chart pattern. On one occasion, the stock nearly defied the pattern, but nearly was not enough. Today, the STLD attempts to defy the Head and Shoulders pattern once more. Will it be successful this time?

Before we go too far, here’s a little insight into what the Head and Shoulders chart pattern is. The head and shoulders pattern, in an uptrend, appears as three highs consecutive highs, with the middle-high (head) edging out the two on either side (shoulders).

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This pattern suggests that there maybe a reversal that’s at least the size of the vertical distance between the base of the pattern and the tip of the middle high. And it has proven to be fairly accurate across many stocks and other financial instruments.

As we write this, the Head of the pattern is at $74.5, which is not far away from the current price of $60. If the stock is going to defy the chart pattern, though, it will have to overcome the $65.5 – $68 resistance level that has reared its head against it. But if the chart pattern prevails, shareholders of Steel Dynamics may have to brace for a loss of 48% from the current price.

The Silver Lining

But if you look past the shadow of gloom cast on the Steel Dynamics stock by the chart pattern, the stock does look bullish. It bounced off the $50 – $53 support level in late January and now challenges the $65.5 – $68 resistance level. Should this challenge be successful, it will launch the stock into new all-time highs.

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However, a failure to pull through this challenge could mean the stock returns into the range it has been in since it broke out of the $50 – $53 resistance level (now support). And if the stock falls below this level, we would be ushered into bearish territory.

Signals and Forecast

We recommend you hold Steel Dynamics stock for now. But once the stock breaks out and retests the $65.5 – $68 support, our sentiment changes to a buy. And if the stock falls below the $50 – $53 support level, our sentiment changes to a sell of a minimum of 20%.

Devon Energy: Outpacing The S&P 500 In Growth And Dividend Yield

We bring before you the best performing stock among all S&P 500 stocks in 2021. It did a 179% growth in that year. And despite this immense achievement and growth, its dividend potential is what brings Devon Energy Corporation (NYSE: DVN) to your screen today.

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Source: Jan-Rune Smenes Reite

Devon Energy, based in the United States, is involved in oil and gas exploration, development, and production. The oil producer has been doing well on the business end lately, and it is rewarding the faith of its shareholders in stock growth and high dividend yield.

The dividend yield of Devon Energy is 7.3%, close to the highest it has ever been in the company’s 29-year history of paying dividends, and about 6 times higher than the S&P 500 average yield. But even with this high yield, the dividend only makes up 47% of the oil producer’s total income.

A little caveat about Devon Energy’s dividend payout, though, is how its dividend is two-pronged: fixed dividend and variable dividend. The variable dividend is paid from excess cash flow. However, investors may rest easy knowing that DVN has no shortage of cash flow soon. The world economy is only just getting back to the normalcy of the pre-pandemic times, and the demand on the oil and gas industry is only going to increase.

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Source: Devon Energy

Also, with the oil producer’s plans to bring 40 more oil wells online to add to the 47 it already has at its Texas OIlfield, there’s room for more cash flow growth. The company also aims to maintain efficient operations at the Williston basin oilfield, which generated the most free cash flow for the company in 2021.

Despite DVN’s rise in stock price since 2020, its price to earnings ratio of 13.1 trails the US oil and gas industry by 3.2. This suggests that there remains an upside for this stock. Although the 179% growth feat it achieved in 2021 may be too big an ask, Devon Energy could still pull an outstanding year in 2022.

Technical Analysis

DVN stock has been going up so fast that it has barely had enough time to rest at the support and resistance levels around it. It already looks to be challenging the $57 – $58.8 resistance level after almost tearing through the $50.7 – $52.5 level.

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One thing that’s immediately obvious on the DVN stock is that it looks like it’s flying off the roof. And when things take off that way, they have to land somehow. The landing of the DVN stock could be as little as a pullback, or it could be a complete reversal. That the price has strayed to the overbought area of the RSI indicator supports this hypothesis.

While we hold a bullish sentiment for DVN stock long-term, we would rather wait for it to land before we make any commitment. The landing could be as little as a breakout and retest of the $57 – $58.8 level or a pullback to any of the other levels. It could also be a return to the base trendline that has underlined the price for over a year now. Whatever it is, we’re taking it.

How Wells Fargo Overcame Its Scandalous Past To Now Challenge The Top Banks

Scandals have befallen this banking sector giant so much, it seemed they would be the end of this bank. But this company has made a complete U-turn and has re-cemented its name among the top banks in the United States. So, while reputation is still being rebuilt, the financials look to have recovered. We present to you, Wells Fargo & Company (NYSE: WFC).

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Source: Expect Best

The first of the scandals that arose against Wells Fargo was when it was culpable of opening unauthorized customer accounts in millions. Scandals about customer abuse and other exploitive actions on small businesses soon followed suit.

If you had asked any customer then, they would have told you they would never bank with Wells Fargo again. The bank was all but done. Fast forward to 2022 and a new CEO later, we’re talking about the value and growth potentials of this stock.

How things have changed for the company since then. You only need to take a look at the financial report for evidence of this turnaround.

The company recorded YoY revenue growth of 13% to $20.9 billion in its latest Q4 FY21 report. This revenue was also an increase from what the company recorded in the previous quarter. Net income also grew YoY by 86% to $5.75 billion. In addition, the profit margin recorded for the same quarter was 26.48%, which is more than what the company has received in a while.

The simple interpretation of those figures is that Wells Fargo & Company is not only solid but also growing. Its Return on Equity for that quarter (12%) was just as strong as the other major banks, Bank of America and Citigroup. This means the bank is now competing among the best again.

Now that most of the headwinds the bank is facing are external, such as the pandemic and federal monetary policies, it is safe to say Wells Fargo stock can be worth more than it is in the next 5 years.

Technical Analysis

What’s going on with the WFC stock is beyond mere support and resistance this time around. It’s about breaking out of the resistance line of an uptrend price channel, thereby showing a stronger bullish sentiment.

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Although the entire formation is just taking shape, there are reasons to believe there’s something interesting going on with the WFC stock.

The level where the breakout occurred coincides with the $50 – $52 support/resistance level. And a retest of this level has appeared, with the price having outshot its most recent high by 2.35%.

So does this mean WFC stock is going to keep soaring from here? Not yet. There’s still another hurdle to cross at the $58 – $60 resistance level. Whatever WFC price does between and around these levels is going to determine whether the bullish run will continue, at least for now.

In the short term, though, we recommend that you hold the WFC stock. A breakout of the $58 – $60 resistance level unleashes a bullish sentiment with an entry point above the resistance level. But until then, there’s nothing to do as we speak on this stock. Long term, however, we believe there’s still more upside to WFC over the coming years.