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Globe and Mail
02-07-2025
- Business
- Globe and Mail
Will BAC's Intended Dividend Hike Boost Investor Confidence?
After clearing the Federal Reserve's 2025 stress test, Bank of America BAC has announced plans to increase its quarterly common stock dividend 7.7% to 28 cents per share beginning third-quarter 2025. This year, all 22 banks that were tested have passed the stress test, given that the 2025 scenario used to test the banks was less severe than last year. The current scenario modelled a 10% unemployment rate, a 33% drop in home prices, a 30% decline in commercial real estate prices, an 8% contraction in GDP and a 50% equity market decline. The aggregate simulated losses across the group totaled more than $550 billion. Yet, banks remained well-capitalized with common equity tier 1 (CET1) ratios far above the 4.5% minimum. Per the results, BAC's preliminary stress capital buffer (SCB) would improve 70 bps to 2.5% and its CET1 minimum requirement would be 10%, effective Oct. 1, 2025. However, if the Fed's proposed modifications to the SCB calculation are adopted, Bank of America's SCB would be 2.7% and its CET1 minimum requirement is 10.2%, effective Jan. 1, 2026. Currently, BAC has a payout ratio of 31% and its annual dividend yield is 2.20%. After clearing the 2024 stress test, the company increased its quarterly dividend 8.3% to 26 cents per share, following a 9.1% hike in 2023, a 4.8% rise in 2022 and 17% hike in 2021. BAC also has a share repurchase plan in place. In July 2024, the company authorized a $25-billion stock repurchase program, effective Aug. 1. As of March 31, 2025, $14.4 billion worth of authorization remained available. Moreover, as of March 31, 2025, Bank of America had total debt worth $721.9 billion and cash and cash equivalents of $273.6 billion. Given a decent liquidity position and strong balance sheet, BAC is expected to continue to reward shareholders with efficient capital deployments. Capital Deployment Plans of BAC's Peers Like BAC, JPMorgan JPM has announced that it intends to increase its quarterly common stock dividend 7.1% to $1.50 per share for the third quarter of 2025. Also, JPM's board of directors authorized a share repurchase program worth $50 billion, effective July 1, 2025. After clearing last year's stress test, JPMorgan had authorized a repurchase program of $30 billion. As of March 31, 2025, $11.7 billion in authorization remained available. Moreover, in March 2025, the Wall Street giant raised its quarterly dividend 12%, following a 9% hike in September 2024. Morgan Stanley MS announced that it would increase its quarterly dividend from 92.5 cents per share to $1.00 in the third quarter. Also, MS' board of directors reauthorized a multi-year common equity share repurchase program of up to $20 billion, without any expiration date. Following the clearance of the 2024 stress test, Morgan Stanley hiked its dividend by 8.8%. BAC's Price Performance, Valuation & Estimates So far this year, shares of Bank of America have gained 9.6% compared with the industry 's 18% growth. YTD Price Performance From a valuation standpoint, BAC trades at a price-to-tangible book ratio of 1.82, well below the industry average of 2.85. Price-to-Tangible Book Ratio The Zacks Consensus Estimate for BAC's 2025 and 2026 earnings indicates year-over-year growth rates of 11.9% and 16.7%, respectively. Earnings estimates have been revised marginally lower for both years over the past seven days. Expected Earnings Growth Currently, Bank of America carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Morgan Stanley (MS): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Yahoo
17-06-2025
- Business
- Yahoo
NOG Announces Proposed Reopening of 3.625% Convertible Senior Notes Due 2029
Reopening of existing 2029 convertible notes provides NOG with incremental strategic flexibility A portion of the proceeds will be used to repurchase stock and purchase a hedge overlay intended to offset share dilution until the stock is above $50.87 MINNEAPOLIS, June 12, 2025--(BUSINESS WIRE)--Northern Oil and Gas, Inc. (NYSE: NOG) (the "Company" or "NOG") today announced its intention to offer, subject to market and other conditions, $150.0 million aggregate principal amount of additional 3.625% convertible senior notes due 2029 (the "new notes") in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). The new notes will be issued under the same indenture as the Company's $500.0 million aggregate principal amount of 3.625% convertible senior notes due 2029 (the "initial notes" and, together with the new notes, the "notes") issued on October 14, 2022 and will form a part of the same series of notes as the initial notes. While the new notes the Company is offering will initially trade under a Rule 144A CUSIP number, the Company expects that once de-legended, the new notes will trade with same CUSIP number as the initial notes. The Company also expects to grant the initial purchasers of the new notes an option to purchase, for settlement within a period of 13 days from, and including, the date new notes are first issued, up to an additional $22.5 million principal amount of new notes. The Company intends to use a portion of the net proceeds of the offering to fund the cost of entering into the capped call transactions described below. In addition, the Company intends to use a portion of the net proceeds of the offering to repurchase shares of its common stock concurrently with the pricing of the offering in privately negotiated transactions effected through one of the initial purchasers of the new notes or its affiliate, as the Company's agent. The Company intends to use any remaining net proceeds from the offering for general corporate purposes (initially, the repayment of a portion of the outstanding debt under its revolving credit facility). If the initial purchasers exercise their option to purchase additional new notes, the Company expects to use a portion of the net proceeds from the sale of the additional new notes to enter into additional capped call transactions. The new notes will be senior, unsecured obligations of the Company, will accrue interest payable semi-annually in arrears and will mature on April 15, 2029, unless earlier repurchased, redeemed or converted. Noteholders will have the right to convert their notes in certain circumstances and during specified periods. The Company will settle conversions by paying or delivering, as applicable, cash and, if applicable, shares of its common stock, based on the applicable conversion rate(s). The notes will be redeemable, in whole or in part (subject to certain limitations), for cash at the Company's option at any time, and from time to time, on or after April 15, 2026 and on or before the 40th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of the Company's common stock exceeds 130% of the conversion price for a specified period of time. The redemption price will be equal to the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Notwithstanding the foregoing, the Company will agree not to call any of the new notes issued in the offering for redemption unless those notes are "freely tradable" (as defined in the indenture governing the initial notes) pursuant to the proviso to the first sentence of the definition thereof. If certain corporate events that constitute a "fundamental change" occur, then, subject to a limited exception, noteholders may require the Company to repurchase their notes for cash. The repurchase price will be equal to the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date. In connection with the pricing of the new notes, the Company expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers or their respective affiliates and/or other financial institutions (the "counterparties"). The capped call transactions are expected to offset the potential dilution to the Company's common stock upon any conversion of new notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted new notes, as the case may be, with such offset subject to a cap. The Company expects that, in connection with establishing their initial hedge of the capped call transactions, the counterparties or their respective affiliates will purchase shares of the Company's common stock and/or enter into various derivative transactions with respect to the Company's common stock concurrently with, or shortly after, the pricing of the new notes, including potentially with certain investors in the new notes. These activities could increase (or reduce the size of any decrease in) the market price of the common stock or the notes at that time. In addition, the counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to the Company's common stock and/or purchasing or selling shares of common stock or other securities of the Company in secondary market transactions following the pricing of the new notes and prior to the maturity of the notes (and are likely to do so during any observation period relating to a conversion of the notes). This activity could also cause or prevent an increase or a decrease in the market price of the common stock or the notes, which could affect the ability of noteholders to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of the notes, could affect the number of shares of the Company's common stock and value of the consideration that noteholders will receive upon conversion of the notes. The offer and sale of the new notes and any shares of common stock issuable upon conversion of the new notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the new notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the new notes or any shares of common stock issuable upon conversion of the new notes, nor will there be any sale of the new notes or any such shares, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful. ABOUT NOG NOG is a real asset company with a primary strategy of acquiring and investing in non-operated minority working and mineral interests in the premier hydrocarbon producing basins within the contiguous United States. SAFE HARBOR This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act and the Securities Exchange Act of 1934, as amended. All statements, including statements regarding the timing and size of the proposed offering and the anticipated use of the net proceeds therefrom, other than statements of historical facts included in this press release, are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "continue," "anticipate," "target," "could," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond NOG's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: changes in crude oil and natural gas prices, the pace of drilling and completions activity on NOG's current properties and properties pending acquisition; infrastructure constraints and related factors affecting NOG's properties; general economic or industry conditions, whether internationally, nationally and/or in the communities in which NOG conducts business, including any future economic downturn, cost inflation, supply chain disruptions, the impact of continued or further inflation, disruption in the financial markets, changes in the interest rate environment and actions taken by OPEC and other oil producing countries as it pertains to the global supply and demand of, and prices for, crude oil, natural gas and NGLs; ongoing legal disputes over, and potential shutdown of, the Dakota Access Pipeline; NOG's ability to identify and consummate additional development opportunities and potential or pending acquisition transactions; the projected capital efficiency savings and other operating efficiencies and synergies resulting from NOG's acquisition transactions, integration and benefits of property acquisitions, or the effects of such acquisitions on NOG's cash position and levels of indebtedness; changes in NOG's reserves estimates or the value thereof; disruption to NOG's business due to acquisitions and other significant transactions; changes in local, state, and federal laws, regulations or policies that may affect NOG's business or NOG's industry (such as the effects of tax law changes, and changes in environmental, health, and safety regulation and regulations addressing climate change, and trade policy and tariffs); conditions of the securities markets; risks associated with the notes, including the potential impact that the notes may have on NOG's financial position and liquidity, potential dilution, and that provisions of the notes could delay or prevent a beneficial takeover of NOG; the potential impact of the capped call transactions undertaken in tandem with the new notes issuance, including counterparty risk; increasing attention to environmental, social and governance matters; NOG's ability to raise or access capital on acceptable terms; cyber-incidents could have a material adverse effect on NOG's business, financial condition or results of operations; changes in accounting principles, policies or guidelines; events beyond NOG's control, including a global or domestic health crisis, acts of terrorism, political or economic instability or armed conflict in oil and gas producing regions; and other economic, competitive, governmental, regulatory and technical factors affecting NOG's operations, products and prices. Additional information concerning potential factors that could affect future plans and results is included in the section entitled "Item 1A. Risk Factors" and other sections of NOG's most recent Annual Report on Form 10-K, as updated from time to time in amendments and subsequent reports filed with the SEC, which describe factors that could cause NOG's actual results to differ from those set forth in the forward-looking statements. The Company has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control. You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except as may be required by applicable law or regulation, the Company does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements. View source version on Contacts Evelyn Leon InfurnaVice President of Investor Relations952-476-9800ir@
Yahoo
17-05-2025
- Business
- Yahoo
Chubb Limited (CB) Hikes Dividend as It Continues Dividend Aristocrat Tradition
Chubb Limited (NYSE:CB) announced a hike in its quarterly dividend, staying true to its shareholder-friendly track record. On May 15, Chubb Limited (NYSE:CB) declared a 6.6% hike in its quarterly dividend to $0.97 per share. Through this increase, the Zurich-based property-and-casualty insurance giant stretched its dividend growth streak to 32 years. The stock will trade ex-dividend on June 13. As of May 16, CB has a dividend yield of 1.32%. Chubb Limited (NYSE:CB) has consistently maintained a strong dividend policy over the years. As a Dividend Aristocrat, it has achieved a nearly 4% dividend growth rate over the past five years—an impressive figure when considering its overall shareholder returns. The stock has surged by 8% since the start of 2025, and its 12-month return came in at over 11%. The company also announced that its board has approved a new $5 billion stock repurchase program, set to take effect on July 1 without a set expiration date. Its existing buyback plan will remain in place until the end of June, according to the company's statement on Thursday. Additionally, it repurchased nearly 1.35 million shares for $385 million, leaving $1.3 billion still available for buybacks as of March 31. In the first quarter of 2025, Chubb Limited (NYSE:CB) reported an adjusted operating cash flow of $2 billion. Staying true to its commitment to shareholder value, the company paid out $366 million in dividends during the quarter. While we acknowledge the potential of CB to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CB and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
