New Buffett-buying speculation sprouts in May, right around Berkshire’s ប្រជុំប្រចាំឆ្នាំ in Omaha, Neb. This year’s speculation is swirling around energy stocks after a note in the company’s first quarter financial filing about a big investment in oil giant
ឈេហ្វរ៉ុន
(CVX) ។
“Approximately 66% of the aggregate fair value was concentrated in four companies,” reads Berkshire’s 10-Q report. “
អាមេរិចអិចប្រេស
,
28.4 ពាន់លានដុល្លារ;
ផ្លែប៉ោម Inc បាន
,
159.1 ពាន់លានដុល្លារ;
សាជីវកម្មធនាគារអាមេរិក
,
៤២,៦ ពាន់លានដុល្លារ និង
ឈេហ្វរ៉ុន
ខប
oration, $25.9 billion.” Chevron is a surprise number four. It looks as if Berkshire added about 120 million shares of Chevron in the quarter.
Buffett likes oil these days. Oil prices are up, but a reason he likes the stocks likely is more about how companies are spending their free cash flow. Chevron is giving more of its cash flow back to shareholders instead of investing it.
Buffett, answering an annual meeting question about equity purchases in the first quarter, also cited
Occidental Petroleum
(OXY), saying its capital return plan was simple and made sense. Berkshire is the largest holder of Occidental stock.
Occidental pays a 13-cent quarterly dividend, which works out to about yield of almost 1%. The company also plans to buy back about $3 billion worth of its own stock over the coming few quarters. The dividend and buyback, at roughly $3.5 billion, are consuming about half of the company’s free cash flow. Most of the remaining cash is going toward debt reduction.
Occidental’s total shareholder yield, which can be defined as dividends and buybacks divided by a company’s market capitalization, is about 7%. Chevron’s total shareholder yield, based on the first- quarter repurchase of stock, is about 5%.
About one third of the nonfinancial companies in the
អេស & ភី ៥០០
have a total shareholder yield of greater than 5%, based on numbers reported over the past 12 months. That’s roughly 120 firms and gives investors a lot to choose from.
Two other oil-and-gas companies with shareholder yields greater than 5%:
ប្រេងម៉ារ៉ាតុង
(MPC) at about 13% and
APA
(APA) at about 6%.
The top defense company, based on a screen of S&P 500 stocks, is
អិល ៣ ហារីសបច្ចេកវិទ្យា
(LHX), with a shareholder yield of about 9%. One of the top industrial firms is engine make
Cummins
(CMI) at about 8%. A handful of chemical producers sport attractive yields, including
ឌូប៉ូont de Nemours
(DD),
Dow Inc.
(ដូ) និង
សេលេនីស
(CE).
It isn’t just old-economy companies.
វេទិកាមេតា
(FB) និង
របស់ eBay
(EBAY) have yields 10% and 26%, respectively. (
របស់ eBay
bought back about $7.2 billion worth of stock over the past 12 months.)
Logistic giant
FedEx
(FDX), which trades for just 9 times calendar year 2022 estimated earnings, has a shareholder yield of about 6%. And home-improvement retailers
ទំព័រដើមដេប៉ូ
(HD) និង
ឡូវ៉េ
(LOW) come in at about 12% and 7%, respectively.
A screen isn’t a substitute for a more thorough investigation of a company and its stock. But Buffett’s approach can help investors in uncertain times.
សរសេរទៅអាល់រ៉ូលនៅ [អ៊ីមែលការពារ]