The world is always going to need energy. Chances are, for the foreseeable future, that energy is going to come from oil. For income-oriented investors and/or retirees yield is critical. The yields of these stocks should at least increase on par with inflation, while the equity components should perform quite well given the continuing, rapidly growing demand for energy. These companies are all well positioned for the future, and make hefty profits now. Total S.A. (TOT): At a P/E ratio of 6.57, this French oil giant has exceptionally little downside, and its yield of 5% last year provided some decent income to shareholders. The company generates a massive $12 billion in cash flow, and has $25 billion in cash on hand. The company is extremely well integrated, as it explores and produces... more
Published Thu, 18 Aug 2011 08:56:05 -0400 on SeekingAlpha
Stock symbol(s): BP,CVX,KMP,SDRL,TOT
Here we offer an interesting way to find potentially undervalued opportunities. Under the theoretical assumption that P/E is equal to a constant K, growth in EPS estimates should be matched by proportionate growth in price. When they don’t match up, a mispricing may have occurred.We admit that many stocks have been trading lower lately due to the large breadth of the latest market downturn; however, it is helpful to focus on stocks with increases in projected earnings.We ran a screen on large-cap dividend champions, companies that have consistently raised their dividend per share over the last 25 years. We screened these companies for those exhibiting the behavior of growth in earnings estimates over the last 30 days coupled with decreases in price.
Interactive Chart: Press Play to... more
Published Thu, 18 Aug 2011 08:56:59 -0400 on SeekingAlpha
Stock symbol(s): AFL,DOV,MHP,PPG
If you’re looking for sources of dividend income, there are a few considerations to keep in mind.Dividend yields above 7% may be considered unsustainable and high – any dip in cash flow may immediately threaten a high dividend yield. Payout ratios above 35% may also be considered unsustainable and high. The payout ratio, or ratio of dividends to earnings, indicates how much of earnings a company pays back to shareholders. Dips in cash flow can easily threaten a dividend payment when the payment is a large share of earnings.We ran a screen on stocks priced under $5 for those exhibiting both of these considerations: Dividend yields below 7% and payout ratios below 35%.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks... more
Published Thu, 18 Aug 2011 08:57:27 -0400 on SeekingAlpha
Stock symbol(s): ASX,DROOY,FCF,RAS
Anne H. Lloyd, Executive Vice President, Chief Financial Officer and Treasurer of Martin Marietta Materials, Inc. (NYSE: MLM), today announced that the Board of Directors has declared a regular quarterly cash dividend of $0.40 (forty cents) per share on the Corporation’s common stock. This dividend, which represents a cash dividend of $1.60 per share on an annualized basis, is payable September 30, 2011, to shareholders of record at the close of business on September 1, 2011.... more
Published Thu, 18 Aug 2011 12:00:00 UT on BusinessWire
Stock symbol(s): MLM
Dan Dzombak of the Motley Fool digs into Warren Buffett's dividend stocks.
Warren Buffett has been such a stellar investor for such a long period of time that one could do worse than just following in his footsteps, which is what a large slice of the investing population does. By drilling down into which are his best dividend payers, we can hopefully find a portfolio that will be good for the long run as well as providing income through these testing times.
Here are his highest yielders:
Company Yield Return on Equity (TTM)
GlaxoSmithKline (NYSE: GSK) 5.2% 36.3
M&T Bank (NYSE: MTB) 3.8% 10.7
ConocoPhillips (NYSE: COP) 3.6% 17.0
Johnson & Johnson (NYSE: JNJ) 3.4% 20.2
Published Thu, 18 Aug 2011 07:38:42 -0400 on SeekingAlpha
Stock symbol(s): COP,GE,GSK,JNJ,KFT,MTB,PG
The S&P 500 Index is owned and maintained by Standard & Poor's, a division of McGraw-Hill. The index was first published in 1957 and is the second most recognized index in the U.S. behind only the Dow Jones Industrial Average. Stocks included in the S&P 500 are large publicly companies that trade on either the New York Stock Exchange or the Nasdaq.Most of the stocks are U.S. based companies. However, there are a few companies with headquarters in or incorporated outside of the U.S. For many investors, the S&P 500 represents the U.S. stock market and this index is used as a benchmark for many portfolios.Not all stock in the index pay dividends, but many of the best known dividend growth stocks are part of the index. The dividend Aristocrats is a subset of the S&P... more
Published Thu, 18 Aug 2011 07:53:12 -0400 on SeekingAlpha
Stock symbol(s): CINF,CTL,DUK,HCP,LEG,PBCT,PBI,PPL,SCG,T,TEG,VZ
Topics of our time include the debt crisis, jobless rate, recession, government spending, trade deficit and QE by the Federal Reserve. These are themes that devalue the U.S. dollar in the long-term. For investors it could make sense to escape from the country and allocate funds abroad in order to find new growth perspectives and to realize foreign capital gains.
I screened all high yield stocks (dividend yield of more than five percent) of U.S.-listed companies with headquarters outside the United States. In order to limit the screening results, I decided to implement three additional pricing criteria. First, the stock should have a low forward price to earnings ratio (a value of less than 15); second, the price to book ratio must be less than the current share price (a value below... more
Published Thu, 18 Aug 2011 07:53:19 -0400 on SeekingAlpha
Stock symbol(s): SLF,TI,VE
There are many various reasons why an investor would sell stocks. Jim Cramer recently unloaded shares of all the stocks below from his charitable trust. These companies all face economic headwinds that could put pressure on stock prices. As always, use the analysis below as a starting point for your own due diligence:
Shares of Conoco Phillips have traded at 18.30% off its 52-week high. Its share price performance mimics the performance of energy stocks like Exxon Mobil Corporation (XOM) and Chevron Corporation (CVX). At the current price of $66.83 a share, the stock is trading at 8 times this year’s earnings, 1.32 times book value and 4% dividend yield. This is cheaper than XOM but slightly higher than CVX valuations. XOM is trading at 8.55 times... more
Published Thu, 18 Aug 2011 05:51:48 -0400 on SeekingAlpha
Stock symbol(s): COP,GIS,HON,K,MO
As retirement investors seek income and security, I looked at five roaring dividend lions that have a history of paying high dividends and that may prove valuable additions to an income investor’s portfolio: AT&T Inc (T): T is still looking to takeover T-Mobile America (DTEGY.PK). Shares are trading at $28.21 on the day of writing, in the bottom half of a tight 52-week trading range of $26.20 to $31.94. At the current market price, the company is capitalized at $167.13 billion. Earnings per share for the last fiscal year were $3.44, placing the shares on a price to earnings ratio of 8.21. It paid a dividend of $1.72 last year (a yield of 5.90%) which was covered two times by its earnings. Earnings are expected to decrease through the next couple of years, easing to $2.38 this... more
Published Thu, 18 Aug 2011 05:52:08 -0400 on SeekingAlpha
Stock symbol(s): EXC,INTC,MO,T,VZ
With interest rates so low, investors may want to turn to the equity markets where dividends can give higher returns than bank deposits, and the opportunity of capital growth on top. We looked at 7 dividend kings that income investors might like to consider in the midst of the recent turmoil:Windstream Corporation (WIN): The company operates as a telecommunications services provider across the rural United States, serving individuals and businesses. Shares are trading at $10.81 the bottom of its 52-week trading range of $10.76 to $14.40. At the current market price, the company is capitalized at $5.51 billion. Earnings per share for the last fiscal year were $0.55, placing the shares on a P/E ratio of 19.65. It paid a dividend of $1.00 last year (a yield of 8.60%) which was covered 0.55... more
Published Thu, 18 Aug 2011 05:52:48 -0400 on SeekingAlpha
Stock symbol(s): AGNC,CIM,CTL,FTR,MO,NLY,WIN