Dividends, Bonds, and Blown Up Wells: Why Chevron, Target and Others Are Attracting Attention Today

It’s another green day in the energy markets as crude futures are standing at around $51 per barrel. Traders are looking forward to today’s EIA weekly release after yesterday’s solid API numbers. Traders are also looking forward to tomorrow’s jobless claims report and next week’s pivotal FOMC meeting. Among the stocks trending today are Chevron Corporation (NYSE:CVX), Vale SA (ADR) (NYSE:VALE), MGIC Investment Corp. (NYSE:MTG), Ford Motor Company (NYSE:F), and Target Corporation (NYSE:TGT). Let’s see why these stocks are turning heads today and check in on how elite funds are positioned among them.

Our research determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor to beat the S&P 500 by around 95 basis points per month (see the details here).

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The Niger Delta Avengers Strike Again

Chevron Corporation (NYSE:CVX) is in the news after the Niger Delta Avengers, a militant group in Nigeria, blew up one of Chevron’s wells in the country. The Avengers have attacked several oil wells and pipelines over the past few months, which has caused production in the country to fall to 20-year lows. Perhaps due to the financial strain, the Nigerian government said on Tuesday that it will start talks with the militant group. The talks could prove more difficult than a simple payoff, however, as the militant group has said in response that its mission is to “liberate the Niger Delta people.” Chevron Corporation (NYSE:CVX) was in the portfolios of 46 funds in our system at the end of March, out of 766 active funds that Insider Monkey tracks.

Vale Raises Fresh Debt in Healthy Offering

Vale SA (ADR) (NYSE:VALE) has raised $1.25 billion from an overseas bond issuance due June 2021 that yields an annual payout of 5.875%. Demand was greater than supply, with demand numbering $4 billion, or over three-times the amount of debt available. The strong demand illustrates renewed overseas demand for Brazilian companies as the country works hard to dig itself out of a severe recession and political chaos. Vale will use the money raised for general corporate purposes. 26 savvy funds in Insider Monkey’s database owned Vale SA (ADR) (NYSE:VALE) at the end of the first quarter, up by eight from the end of the previous quarter.

On the next page we examine the news surrounding MGIC Investment Corp, Ford Motor Company, and Target.