Corona Capital: Walt Disney 12 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: Walt Disney is light-years ahead on projections for its streaming business.
Corona Capital: Salvatore Ferragamo 10 Nov 2020 Concise views on the pandemic’s corporate and financial fallout: Faded heels-and-loafers brand Salvatore Ferragamo could benefit from a coronavirus vaccine-induced return to airport shopping, but the Florentine fashion house would still need a makeover.
Aramco’s mighty value reflects mini investor base 3 Nov 2020 Shares in the $1.8 trln Saudi oil giant are flat since January, while those of western rivals like BP have halved. Aramco’s solid and more-secure dividend explains some of the difference. But a tiny free float comprised of investors who are less likely to sell helps, too.
Bank dividend bans have passed their sell-by date 30 Oct 2020 European supervisors in March halted payouts so that lenders could keep credit flowing and absorb losses. Yet earnings and capital have held up, while bond markets are booming. Regulators can drop the restrictions, as long as banks keep big shock absorbers and don’t cut lending.
Corona Capital: Utah Jazz, Comcast, Kraft 29 Oct 2020 Concise views on the pandemic’s corporate and financial fallout: Utah Jazz’s owners sign off with a respectable return; Comcast shoots the light out on broadband; and Kraft rides the stay-at-home wave.
Corona Capital: Palantir presents 9 Sep 2020 Concise views on the pandemic’s corporate and financial fallout: Potential shareholders have had their first look at the data company ahead of its planned direct listing later this month. One of the more memorable moments was boss Alex Karp making his pitch from a nature trail.
Corona Capital: Dividends, Zoom, Big-screen blues 24 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: As company bosses try to conserve cash, investors are feeling the pinch; Zoom has a back-to-school problem; and a mediocre debut for Russell Crowe’s new road-rage movie shows Hollywood is stuck in the slow lane.
Corona Capital: Vroom, Estonia WFH, Johnny Rockets 13 Aug 2020 Concise views on the pandemic’s corporate and financial fallout: How Vroom can power through the pandemic; Estonia tries to lure those with wanderlust; Casual dining puts on the Covid-19.
Aramco’s dividend defences are triple-locked 10 Aug 2020 The Saudi state oil giant is disbursing $18.8 bln despite quarterly earnings slumping to $6.6 bln. Ultra-low costs lend an edge over Western rivals. Low debt and priority for private shareholders are extra buffers for those willing to overlook environmental and social concerns.
Glencore’s Glasenberg shows odd dividend caution 6 Aug 2020 The gunslinging boss of the big miner-trader is holstering this year’s $2.6 bln dividend. The company blames coronavirus uncertainty, but Glencore’s cash flow is holding up and metal prices are mostly recovering. The South African may be bracing for a hefty U.S. corruption fine.
Europe bank investors can bear more dividend pain 28 Jul 2020 Hopes for payouts this year have been dashed by top supervisor Andrea Enria, who told lenders to wait until 2021. If profits hold up, investors will only suffer a delay, not a loss. Covid-19 is special, but investors can worry about creeping regulatory control of dividends.
Bank stress tests give the Fed a pass grade too 25 Jun 2020 The biggest lenders would have a minimum capital ratio of 7.7% in a W-shaped virus recovery, the U.S. regulator reckons. The Fed is capping dividends as some banks approach the danger zone. Still, it reassures that after a decade of reforms, they can weather an unforeseen crisis.
ESG takes on new meaning with U.S. private prisons 17 Jun 2020 CoreCivic is halting dividends and may ditch its REIT structure. That comes as social risks prompted most banks to stop lending to the incarceration business. An LBO is one option. But with leverage hard to come by, CoreCivic would need investors for whom the E means equity.
BP’s greener credentials sharpen focus on dividend 15 Jun 2020 The energy giant is writing off up to $17.5 bln after slashing long-term oil price forecasts. BP’s green transition would get an extra boost if it cut dividends to spend more on low-carbon output. But as Royal Dutch Shell has found, that irks investors it needs to keep sweet.
Corona Capital: Crisis loans, Jet fighting 3 Jun 2020 Concise views on the pandemic’s corporate and financial fallout: Bank customers are no longer making a dash for cash, loan drawdowns suggest. Meanwhile, a U.S. block on Chinese passenger flights suggests domestic battles haven’t dimmed President Trump’s desire to make China pay.
Shell’s dividend surrender is a necessary evil 30 Apr 2020 Given it hadn’t reduced shareholder payouts since WW2, the Anglo-Dutch major’s two-thirds cut hurts its pride. But amid an epic price crash boss Ben van Beurden couldn’t have kept Shell’s rating and paid to transition from oil. Stubbornly clinging on would have been even worse.
BP’s dividend sangfroid may not last long 28 Apr 2020 The oil giant held its payout steady in the first quarter, despite crude prices falling off a cliff. CEO Bernard Looney has enough cash to keep it up this year. But debt has spiked and oil is now even cheaper. At the very least BP should let investors take dividends in shares.
Norway shines awkward light on Big Oil dividends 23 Apr 2020 Oslo’s state-owned $42 bln Equinor is slashing its first-quarter payout by 67% after oil prices turned negative this week. Bigger peers like Royal Dutch Shell really won’t want to follow suit and have some leeway not to. But a live example of caution makes it harder to hold firm.
FCA’s big dividend ambitions bruised by pandemic 15 Apr 2020 Plummeting auto sales triggered by the Covid-19 crisis and idle plants expose carmakers’ acute need for cash. Tapping state aid would alleviate Fiat’s pandemic pain. But that would probably require delaying or reconsidering payouts to cement a planned union with France’s Peugeot.
UBS sets high-water mark for 2020 bank earnings 9 Apr 2020 Outgoing CEO Sergio Ermotti unveiled a one-third jump in first-quarter profit. Market volatility has boosted trading income, while wealth clients shifted more money around. Yet both are temporary. With more pain to come, it makes sense to bow to regulators by trimming dividends.