By Global X
In 2020, annual outlooks quickly became obsolete as the COVID-19 pandemic caught the world by surprise. Nearly a year later, we believe massive stimulus efforts, vaccine development and distribution, and new political agendas put us on a
likely more predictable path to recovery. Yet if 2020 taught us anything, it’s to never underestimate the unpredictable. In this 2021 outlook, Global X’s CIO and Research teams provide our insights and expectations for the year ahead, covering topics from the macroeconomic landscape, to disruption amid a return to normalcy, interest rates and income investing, and investing abroad.
Trends to look out for in 2021
Dec 28, 2020 at 9:23AM
Income investors generally want to maximize their dividend yield, but unfortunately, a winning investment strategy is not as simple as running a screener and buying shares of the stocks with the highest yields at a given moment. A dividend yield might reach high levels because the market is pricing the stock with the assumption that the dividend per share will decline in the future.
Investors analyzing high-yield stocks should assess the likelihood that the current dividend is sustainable using the dividend payout ratio, as well as several financial health ratios. Financial health metrics such as the interest coverage ratio, current ratio, and debt-to-equity ratio indicate a company s ability to sustain operations and distributions to shareholders through temporary disruptions such as recessions, pandemics, and energy crises. If dividends are too high relative to profits, and a company doesn t have enough liquid assets to keep paying
InfraCap MLP ETF (NYSE Arca: AMZA) Declares Monthly Distribution cnweekly.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from cnweekly.com Daily Mail and Mail on Sunday newspapers.
Premium Content
The Two Midstream Oil Stocks Set To Thrive In 2021 By Alex Kimani - Dec 15, 2020, 12:00 PM CST
Just like the rest of the oil and gas sector, the U.S. midstream oil and gas segment has been hugely disrupted by the plunge in global energy demand spawned by the coronavirus pandemic. Since the beginning of the current year, many North American midstream players have seen their market values cut roughly in half, with huge pullbacks in production as well as a ramping down of capacity by refineries, liquefaction facilities, and exporters taking a heavy toll. To make matters worse, many of these businesses have historically demonstrated weak earnings potential or carried excessive debt or both.
MIDSTREAM RISES LAST WEEK WHILE RENEWABLES LAG
Last week, the Alerian MLP ETF (AMLP) surged over 9% on the heels of a 16% gain from its Gathering & Processing MLPs. Crude oil gained roughly 2% last week after OPEC + (Organization of the Petroleum Exporting Cooperation + Russia) agreed to a smaller than expected increase in its daily crude output with planned monthly meetings to reassess the quota as the pandemic plays out into 2021.
Since the end of October, AMLP has returned over 40% as midstream energy infrastructure continues its price recovery with the market’s rotation to value stocks. The price of crude oil has jumped over 27% during the same period with optimism growing that COVID-19 vaccines will begin to be rolled out by year-end.