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"Tuesday’s news that Freeport-McMoRan (NYSE: FCX) is slashing its quarterly dividend to 5 cents per share from 31.25 cents is igniting scuttlebutt that other natural resources companies will follow suit.
Freeport is commonly viewed as a copper produce and, to a lesser extent, a gold miner. However, by way of its 2013 acquisition of McMoRan Exploration, the company is also an oil and gas producer. That means Freeport’s negative dividend news has investors speculating about the next energy company to cut payouts."
Correct symbol is FCX and it didn't look as though the announcement affected the stock price a whole lot. I believe that the potential for these type of announcements are already baked into the prices of energy and commodity stocks. Witness XOM and COP just to name a couple.
I'll note that FCX is heavily copper and gold; while the oil is a decent part of the company (and was a controversial purchase), I think FCX's dividend cut was expected (or if someone wasn't, they should have been.) Energy will do what it's going to do, I don't think FCX is an indicator of the larger whole.
I'll say what I've said: I'd stick with the largest energy co's (COP, XOM, etc) and the pipelines/energy infrastructure.
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I'll say what I've said: I'd stick with the largest energy co's (COP, XOM, etc) and the pipelines/energy infrastructure.