This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Add Refinement to Your Portfolio with HollyFrontier

Last year HFC easily covered both kinds of dividends when EPS was more than $8 per share.

Estimated EPS for 2013 is projected to decrease to around $5.32 per share and even if HFC were to reduce the special dividend by 50% the yield would still be 4% based on a share price of $45.

In a message to shareholders on May 16 CEO Jennings said, "Our board of directors continues their commitment to deliver shareholder value through both regular and special dividends.

He commented further by saying, "Today's announcement represents our ninth special dividend paid since our merger. Including today's announced dividends, our last 12-month cash dividend yield stands at 7.1% relative to yesterday's closing price of $48.43."

Since then the oil spread almost disappeared and profit margins have been pinched. Yet, given HFC's good proximity to its sources of oil it will continue to enjoy access to less expensive supplies of crude. This should help drive profits and support the share price.

A recent assessment of the company by analyst Matt Murphy at Stelliam Investment Management in New York City would value its shares at somewhere between $55 and $60. This helps explain the recent 15% pop in the stock price.

With less than 10 days till its next earnings report, those who're interested in investing in HFC may want to do it incrementally. The earnings conference call on August 7th at 8 am EST will discuss the company's latest financial results and is likely to lead to more clues about its industry-leading dividend policies.

At the time of publication the author had no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Marc Courtenay is the founder and owner of Advanced Investor Technologies, LLC, as well as the publisher and editor of

Courtenay holds a Master's of Science degree in Psychology from California Polytechnic State University, and is a former senior vice-president of Investments for two major brokerage firms. He's been a fiercely independent investment "investigator" and a consulting contributor to the investment publishing world for over 30 years. In addition to his role as an investment publisher and analyst, he serves as a marketing consultant to the investment media industries.

In his role as a financial editor, he specializes in unique investment strategies, overlooked stock investments, energy and resource companies, precious metals, emerging growth companies, the prudent use of option strategies,real estate related opportunities,wealth preservation, money-saving offers, risk management, tax issues, as well as "the psychology of investing". Because of his training and background in Clinical Counseling and Psychology, he enjoys writing about investor behavior, the ¿herd mentality, how to turn investment mistakes into investment breakthroughs and the stock market's behavioral trends and patterns.

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HFC $30.62 -1.30%
AAPL $94.26 0.26%
FB $99.89 -4.00%
GOOG $667.65 -2.30%
TSLA $150.76 -7.30%


Chart of I:DJI
DOW 15,835.98 -368.99 -2.28%
S&P 500 1,836.79 -43.26 -2.30%
NASDAQ 4,238.54 -124.6040 -2.86%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs