Diamonds and Dogs

10/7/19

Oil companies becoming like utilities? Oil company, ConocoPhillips (COP) is up 3% after boosting its dividend payout by 38% lifting the yield to 3%. The company also announced a $3 billion buyback program which could buy back 5% of their outstanding shares. For years energy stocks have gone nowhere as sales stall, yet the companies remain very profitable. Exxon's dividend yield is over 5% and Chevron's is over 4%. Every year the dividend yields get better making the sector more appealing to income investors that typically look to utilities and telecom stocks for income.  

Harley-Davidson (HOG) going electric? Harley is down 3% on a news article indiciating their new electric motorcycles are not attracting the next generation of younger and more environmentally conscious riders. Not to mention the price tag for this bike is steep at $29,799. Some suggest the bike costs nearly as much as a Tesla Model 3 and aims for a market that does not really exist: young, "green" and affluent first-time motorcyclists. In 2018, Harley posted their steepest sales decline in four years in the United States. U.S. sales are set to fall again this year.