Stocks dropped in early trading as investors prepare to wrap up the worst first half of the year in decades. The first six months of 2022 have been wrought with pain for the major indexes. Moving into the second half of the year, many are wondering – are we turning the page on an ugly chapter, or is it time for a wake-up call?
Yesterday the energy sector dipped into bear market territory, 21.5% below its June 8th high. Still, energy is the only sector in the green for the first half of the year with a 30% increase. The distant runner-up is Utilities, with a 3.5% loss.
Many on Wall Street expect sky-high oil prices to continue to boost returns for some of the top names in energy and are looking at the recent plunge in energy stocks as an attractive opportunity. Matt Smith, lead oil analyst for the Americas at Kpler, an analytics company, recently told CNN Business that “triple-digit oil prices” are likely to stick around. “If Chinese demand comes roaring back after lockdowns and Russia continues to see production drop, then a retest of the high of $139 seen earlier in the year is not beyond the realms of possibility.”
Today we’re looking at an energy name that continues to raise the bar when it comes to rewarding investors, and it’s currently trading at just 8 times forward earnings.
Banyan Hill Publishing:
Just $2 a Share Today — The No. 1 Investment of the 2020s
New technology’s user base growing at 5X the speed of the internet in the 1990s. Could dwarf dot-com boom. [Click here to get details on $2 stock now.]
Texas-based independent energy firm Diamondback Energy (FANG) is living up to its reputation for rewarding investors, and many on Wall Street are awaiting the next move.
The company recently announced enhancements to its capital return framework as a testament to its commitment to delivering significant value to shareholders. This will be the next iteration of a shareholder returns program that began with the initiation of its base dividend in 2018, which has increased 500% since.
Diamondback will increase its base dividend to $3.00 per common share annually ($0.75 per quarter) beginning with the second quarter of 2022, a 7.1% increase from the company’s previous annual base dividend of $2.80 per share. Starting in the third quarter, the company’s Board of Directors has approved an increase to its return of capital commitment to at least 75% of Free Cash Flow, from its previous commitment of at least 50% of Free Cash Flow.
Diamondback has also repurchased 1,966,516 shares of its common stock for about $253 million to date during the second quarter at around $128.42 per share. The company expects that the combination of these stock repurchases together with its expected base-plus-variable dividends for the quarter will constitute a return of capital to stockholders well above 50% of Diamondback’s Free Cash Flow for the second quarter.
Diamondback’s high cash margins and low-cost structure will likely continue to drive an increasing return on capital. At the same time, its strong balance sheet should be able to withstand another downcycle, making this an ideal name to add to your watchlist.
Where to invest $1,000 right now...
Before you consider buying Diamondback, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2022...
And it's not Diamondback.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
Click here to watch his presentation, and decide for yourself...
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
Click here to find out the name and ticker of Keith's #1 pick...
A company with 400 million ‘patents’
One company has quietly compiled more than 400 million official trade secrets.
Trade secrets are like patents in that they protect valuable and proprietary information…
But unlike patents, trade secrets take less time to register… and more importantly, they never expire.
Which is a huge advantage for this little-known company.
You see, this company is using these trade secrets to build the world’s largest “codebase,” which will bethe key to it becoming “America’s Next Big Monopoly.”
Not surprisingly, Wall Street is starting to take notice. And the smart money is already pouring in.
Tech investor Cathie Wood has invested over $80 million already, and Microsoft founder Bill Gates has invested as well.
Get the details here before this story hits the mainstream media.