Friday, October 02, 2015
The last post profiled a strong dividend paying stock in the renewable energy sector. Dividends can be an investor’s ‘sea sick pill’ when volatility become excessive. The volatility measure for the S&P 500 Index (VIX) spiked to a peak of 53.29 during trading on August 24, 2015. While things have calmed down since, volatility remains well above the 20.00 level where many investors consider it too precarious to take new equity positions.
Methanex Corporation (MEOH: Nasdaq) is the largest aggregator and distributor of methanol or wood alcohol. At the current price level MEOH provides a dividend yield of 3.2%. A price earnings ratio of 11.6 times trailing earnings makes the stock look even more interesting.
Tuesday, September 29, 2015
In late August 2015, volatility turned its frightening countenance on the U.S. equity market. The volatility measure for the S&P 500 Index (VIX) spiked to a peak of 53.29 during trading on August 24th. While things have calmed down since, volatility remains well above the 20.00 level where many investors consider it too precarious to take new equity positions. At time like these it makes sense to seek the warm comfort of an ample dividend. Those regular cash rewards can make it worthwhile waiting for stock prices to calm down.
Within the renewable energy sector Covanta Holdings, Inc. (CVA: NYSE) is a strong candidate for dividends. At the current price level, CVA is yielding 5.2%, making it one of the best dividend payers in our indices of renewable energy, efficiency and conservation companies. Will Covanta be able to sustain its generous payments?
Friday, September 25, 2015
The last post outlined how Bion Environmental Technologies (BNET: OTC/QB) is transforming livestock waste into organic fertilizer. Bion is not the only aspiring fertilizer producer. BioNitrogen Holdings Corp. (BION: OTC/PK) was recently patent protection for a process to produce urea from stranded natural gas. Instead of burning off the unwanted gases, oil and gas operators can turn it into an economically viable by-product.
Tuesday, September 22, 2015
Last week Bion Environmental Technologies, Inc. (BNET: OTC/QB) announced that the company has applied for patent protection of a process to recover nitrogen from livestock waste. The process yields a crystalline, water-soluble fertilizer product that is about 12% to 15% nitrogen. Since the nitrogen is extracted from the livestock waste without the use of chemicals and leaves behind potentially toxic salts, metals and minerals, the company is also applying for certification as an organic material.
The company believes there will be a strong demand in the agriculture sector for its products. First, feedlot owners have to worry about federal mandates to stem contaminated run-off that can pollute streams and rivers. Nitrogen and other nutrients in run-off can lead to reduced oxygen levels in water and otherwise harm aquatic life. There is a strong incentive to find alternatives for livestock waste and Bion expects to find an eager reception among livestock finishers.