U.S. equity markets rose again during the third quarter of 2013 as investors continued to purchase riskier assets in search of higher returns. The S&P 500 Index returned 5.2%, including dividends, finishing the quarter just 2% below its all-time high reached on September 18, 2013. Equity markets traded off in the final days of September as political debates over the debt ceiling ensued in Washington D.C. In addition, the market's momentum slowed as valuations moved above average historical levels, prompting some investors to take money out of equities. Year-to-date, the S&P 500 Index total return was 19.8%.
After a difficult start to the third quarter for the bond markets, fixed income investors were given a reprieve when the Federal Reserve again surprised the markets with an announcement related to its bond buying program (QE). After prepping the global capital markets in May for a 'tapering' of QE, Chairman Bernanke announced in September that the committee had decided to continue purchasing securities at the same pace and pledged to keep interest rates low for the foreseeable future. The bond market reacted positively to the announcement pushing interest rates back down. The 10-Year U.S. Treasury yield began the quarter at 2.49%, touched 3% on September 5, and then ended the quarter at 2.63%.
Top 5 Dividend Companies To Buy Right Now: First Security Group Inc.(FSGI)
First Security Group, Inc. operates as the holding company for FSGBank that provides banking and financial products and services to various communities in eastern and middle Tennessee and northern Georgia. The company offers various deposit services, such as checking, savings, and money market accounts, as well as certificates of deposit. It offers commercial loans, including loans to smaller business ventures, credit lines for working capital, short-term seasonal or inventory financing, and letters of credit; real estate?construction and development loans to residential and commercial contractors and developers; and consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans. The company also offers commercial mortgage loans to finance the purchase of real property; commercial leasing for new and used equipment, fixtures, and furnishings to owner-managed businesses; and leasing for forklifts, heavy equipment, and other machinery to owner-managed businesses primarily in the trucking and construction industries. It also provides trust and investment management, mortgage banking, financial planning, and electronic banking services, such as Internet banking, online bill payment, cash management, ACH originations, wire transfers, direct deposit, traveler?s checks, safe deposit boxes, United States savings bonds, and remote deposit capture, as well as equipment leasing. The company operates 38 full-service banking offices and 1 loan and lease production office. Its market areas include in Bradley, Hamilton, Jackson, Jefferson, Knox, Loudon, McMinn, Monroe, Putnam, and Union counties, Tennessee; and Catoosa and Whitfield counties, Georgia. First Security Group was founded in 1974 and is headquartered in Chattanooga, Tennessee.
Advisors' Opinion:- [By Ning Jia]
The case for First Security Group (FSGI) is interesting. It is bank holding company that is obscure, cheap and unloved. As the company completed the recapitalization earlier this year, I think the market has been under-appreciating its potential to return to growth and profitability as a result of the much-needed recapitalization.
Top 5 Dividend Companies To Buy Right Now: Dominion Resources Inc. (D)
Dominion Resources, Inc., together with its subsidiaries, engages in producing and transporting energy in the United States. It operates in three segments: DVP, Dominion Generation, and Dominion Energy. The DVP segment includes regulated electric transmission and distribution operations that serve residential, commercial, industrial, and governmental customers in Virginia and North Carolina. This segment also involves in non regulated retail energy marketing of electricity and natural gas. The Dominion Generation segment includes the electricity generation through coal, nuclear, gas, oil, and renewables; and related energy supply operations. It also comprises generation operations of the company?s merchant fleet and energy marketing, and price risk management activities for these assets. The Dominion Energy segment includes the company?s Ohio and West Virginia regulated natural gas distribution companies, regulated gas transmission pipeline and storage operations, natural gas gathering and by-products extraction activities, and regulated LNG import and storage operations. It also provides producer services, which aggregates natural gas supply; engages in natural gas trading and marketing activities; and involves in natural gas supply management. The company?s portfolio of assets includes approximately 27,615 MW of generation; 6,100 miles of electric transmission lines; 56,800 miles of electric distribution lines; 11,000 miles of natural gas transmission, gathering, and storage pipeline; and 21,800 miles of gas distribution pipeline. Dominion Resources, Inc. also owns approximately 947 bcf of storage capacity of natural gas and serves retail energy customers in 14 states. In addition, it sells electricity at wholesale prices to rural electric cooperatives, municipalities, and into wholesale electricity markets. The company was founded in 1909 and is headquartered in Richmond, Virginia.
Advisors' Opinion:- [By Marc Bastow]
Energy producer and transporter Dominion (D) raised its quarterly dividend 6.7% to 60 cents per share, payable sometime in March 2014, with a record date also to be determined.
D Dividend Yield: 3.5%
Top Cheap Stocks To Own Right Now: Potomac Electric Power Company(POM)
Pepco Holdings, Inc., through its subsidiaries, engages in the transmission, distribution, and supply of electricity. The company also distributes and supplies natural gas. It distributes electricity to approximately 1.8 million customers in the mid-Atlantic region and delivers natural gas to approximately 123,000 customers in Delaware. In addition, the company involves in the retail supply of electricity and natural gas; provision of energy efficiency services to federal, state, and local government customers; and designs, constructs, and operates combined heat and power and central energy plants, as well as owns and operates two oil-fired generation facilities. Further, it offers high voltage electric construction and maintenance services, low voltage electric construction and maintenance services, and streetlight construction and asset management services to utilities, municipalities, and other customers in the Washington, District of Columbia. Additionally, the company holds investments in eight cross-border energy leases. Pepco Holdings, Inc. was founded in 1896 and is based in Washington, District of Columbia.
Advisors' Opinion:- [By Jake L'Ecuyer]
Top Headline
Pepco Holdings (NYSE: POM) reported a 35% rise in its fourth-quarter profit. For the year, Pepco projects earnings of $1.12 to $1.27 per share, versus analysts' estimates of $1.22 per share. Pepco's quarterly earnings surged to $58 million, or $0.23 per share, versus a year-ago profit of $43 million, or $0.18 per share. Excluding one ��ime items, its earnings from continuing operations came in at $0.24 per share. Its total operating revenue climbed 3.3% to $1.09 billion. However, analysts were expecting earnings of $0.21 per share on revenue of $1.11 billion. - [By Jake L'Ecuyer]
Utilities shares dropped by 0.37 percent in the US market today. Among the sector stocks, Consolidated Water Co (NASDAQ: CWCO) was down more than 2.3 percent, while Pepco Holdings (NYSE: POM) tumbled around 1.5 percent.
- [By Jake L'Ecuyer]
Among the sector stocks, Consolidated Water Co (NASDAQ: CWCO) was down more than 1.9 percent, while Pepco Holdings (NYSE: POM) tumbled around 0.9 percent.
Top 5 Dividend Companies To Buy Right Now: TECO Energy Inc.(TE)
TECO Energy, Inc., an electric and gas utility company, through its subsidiaries, engages in the generation, purchase, transmission, distribution, and sale of electric energy. It provides retail electric service to approximately 672,000 customers in West Central Florida with a net winter system generating capability of 4,684 megawatts. The company also engages in the purchase, distribution, and marketing of natural gas. It serves approximately 336,000 residential, commercial, industrial, and electric power generation customers in Florida. In addition, the company owns mineral rights, owns or operates surface and underground mines, and owns interests in coal processing and loading facilities. TECO Energy, Inc. was founded in 1899 and is headquartered in Tampa, Florida.
Advisors' Opinion:- [By Justin Loiseau]
PPA's are a sore spot for Atlantic, as they're a key facet of a flurry of lawsuits aimed at punishing the company for alleged false and/or misleading statements concerning the future of soon-to-be-renewed contracts. Duke's Progress Energy Florida didn't select Atlantic as its power provider of choice, and TECO Energy's (NYSE: TE ) Tampa Electric recently decided to take power generation into its own hands with a new combined-cycle plant.
- [By Justin Loiseau]
Coal-centric TECO Energy (NYSE: TE ) is back in business. A second Energy Information Administration report recently outlined coal's relative cost, and things are looking up again for this solid black gold. TECO uses coal for 61% of its generation capacity, and also owns and/or operates 11 Appalachian coal mines.
- [By David Dittman]
TECO Energy Inc (NYSE: TE), a member of the UF Dividend Watch List, was highest at 94.6 percent. AES Corp (NYSE: AES), the January 2014 UF Growth Spotlight, was lowest at 12.4 percent.
Top 5 Dividend Companies To Buy Right Now: FirstEnergy Corporation(FE)
Firstenergy Corp. operates as a diversified energy company. The company, through its subsidiaries and affiliates, involves in the generation, transmission, and distribution of electricity, as well as energy management and other energy-related services. It serves approximately 6 million customers within 67,000 square miles through 10 utility operating companies in Ohio, Pennsylvania, New Jersey, West Virginia and Maryland. The company was founded in 1996 and is headquartered in Akron, Ohio.
Advisors' Opinion:- [By Justin Loiseau]
FirstEnergy (NYSE: FE ) relies on coal for a whopping 64% of its generation, while natural gas comprises just 6% of its capacity. The company's Q1 earnings come out next Wednesday, and bullish investors will undoubtedly be on the lookout for higher 2013 guidance.
- [By Justin Loiseau]
FirstEnergy (NYSE: FE ) reported earnings last Tuesday, beating on both top and bottom lines. But what should've been a day to celebrate for FirstEnergy shareholder ended with a 1% dip in share prices. Let's take a deeper look to see why this dividend stock didn't deliver.
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