1. Chesapeake Energy Corporation (NASDAQ:CHK)
Dividend Yield as of August 18: 9.25%
Chesapeake Energy Corporation (NASDAQ:CHK) is an American energy company that is engaged in the exploration of hydrocarbons. On August 2, the company declared its base and variable dividend of $2.32 per share, which will be paid to shareholders every quarter. The stock’s dividend yield stood at 9.25%, as of August 18.
In its recently announced Q2 results, Chesapeake Energy Corporation (NASDAQ:CHK) reported net cash provided by operating activities of $909 million, while its total net income came in at $1.2 billion. Its adjusted free cash flow stood at $494 million and due to this, the company raised its base dividend by 10% during the quarter. The company also doubled its share repurchase authorization to $2 billion.
In August, Benchmark initiated its coverage of Chesapeake Energy Corporation (NASDAQ:CHK) with a Buy rating and a $137 price target, appreciating the company’s improved capital intensity.
Chesapeake Energy Corporation (NASDAQ:CHK) remained popular among elite funds in Q2 2022, with 67 hedge funds in Insider Monkey’s database investing in the energy company, up from 59 in the previous quarter. These investments hold a value of over $3.5 billion.
ClearBridge Investments mentioned Chesapeake Energy Corporation (NASDAQ:CHK) in its Q1 2022 investor letter. Here is what the firm has to say:
“In the early days of the invasion, we made two measured changes to the portfolio based on longer-term fallout we anticipate from Russia’s invasion of Ukraine. First, we initiated small positions in U.S. natural gas producers Chesapeake (NYSE:CHK).
Given its superior environmental profile compared to other fossil fuels, we have long favored natural gas in our energy holdings. Combustion of natural gas releases 50% less CO2 than coal, 25% less CO2 than gasoline and dramatically less particulate and pollution, per the U.S. Energy Information Administration. With the advances in shale production this century, the U.S. has become a natural gas powerhouse with some of the lowest-cost and largest reserves in the world. But because natural gas is difficult to ship across the ocean (it must be liquefied, which requires expensive infrastructure on both ends of the voyage), America’s gas bounty has ironically proved a burden for U.S. producers.
The surplus of natural gas in North America has resulted in low prices and weak earnings for gas-focused producers. Exports, while growing, are restrained by the high cost of building export infrastructure. Europe, in a Faustian bargain, has relied on abundant, inexpensive Russian gas transported by pipeline.
Despite the abundance of low-cost resources and a superior environmental profile, the investment case for U.S. natural gas producers was previously unfavorable due to oversupply in the domestic market.
In the days preceding the invasion, we were quick to realize the war would change global energy flows. Europe is shifting away from Russia and toward new sources of imported liquified natural gas. We purchased our stakes in Chesapeake to capitalize on these trends. The recently announced energy pact between the U.S. and Europe represents an early positive datapoint in support of this investment thesis.”
You can also take a look at 10 Semiconductor Stocks to Buy Today According to Billionaire Ken Fisher and 10 Best Vanguard ETFs to Invest In
