Dividend stocks are everywhere, but many just downright stink. In some cases, the business model is in serious jeopardy, or the dividend itself isn't sustainable. In others, the dividend is so low, it's not even worth the paper your dividend check is printed on. A�solid dividend�strikes the right balance of growth, value, and sustainability.
Today, and one day each week for the rest of the year, we're going to look at one dividend-paying company that you can put in your portfolio for the long term without too much concern. This isn't to say that these stocks don't share the same macro risks that other companies have, but they are a step above your common grade of dividend stock. Check out�last week's selection.
This week, we'll turn our attention to our bellies and look at why Mondelez International (NASDAQ: MDLZ ) could be the perfect stock for growth and income-seeking investors.
Source: gfpeck, Flickr.
Top 10 Healthcare Equipment Stocks To Watch For 2015: Xcel Energy Inc.(XEL)
Xcel Energy Inc., through its subsidiaries, engages in the generation, purchase, transmission, distribution, and sale of electricity to residential, commercial, and industrial customers, as well as to public authorities in the United States. The company generates electricity using coal, nuclear, natural gas, hydro, wood, diesel, and wind energy. It also engages in the purchase, transportation, distribution, and sale of natural gas to residential, commercial, and industrial customers. The company serves customers in portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. As of December 31, 2010, it provided electricity services to 3,391,611 customers; and natural gas services to 1,893,250 customers. Xcel Energy, through its joint venture interests in WYCO Development LLC, develops and leases natural gas pipeline, storage, and compression facilities. The company was founded in 1909 and is based in Minneapolis, Minnesota.
Advisors' Opinion:- [By David Dittman]
Answer: It’s too soon to say what the financial impact of the Winnipeg incident will have on TransCanada. The impact for its customers, including Xcel Energy (NYSE: XEL) and Great Plains Energy (NYSE: GXP), may be more acute in the short term. TransCanada will definitely be under increased regulatory scrutiny.
I’m a fan of TransCanada for the long term. It has a solid, diverse and growing presence in North American energy infrastructure. It’s about much more than Keystone XL. - [By Sara Murphy]
Cleetus discusses a new breed of energy companies that are working to incorporate and promote renewables. She specifically praises Xcel Energy (NYSE: XEL ) for its investment in wind power. Just today, Xcel announced a new 200 megawatt wind farm project in Minnesota.
- [By Shauna O'Brien]
Jefferies announced on Wednesday that it has raised its rating on Xcel Energy Inc (XEL).
The firm has upgraded XEL from “Hold” to “Buy,” and has raised the company’s price target from $31 to $32.50. This new price target suggests a 15% upside from the stock’s current price of $27.72.
Analyst Paul B. Fremont commented: “The stock is currently trading at an 8% P/E discount to our 2015E group average multiple.”
“Despite a difficult political environment in Minnesota the company was able to achieve a reasonable outcome in its NSP-Minnesota rate case,” the analyst added.
Looking forward, the firm has increased its FY2014 outlook from $1.95 to $2.00 per share.
Xcel Energy shares were mostly flat during pre-market trading Wednesday. The stock has been mostly flat YTD.
- [By David Dittman]
Xcel Energy Inc�� (NYSE: XEL) coal-fired generation was 42.3 percent of its total 2013output. Xcel was down 0.2 percent.
NRG Energy Inc�� (NYSE: NRG) 2013 coal-fired share of generation was 28.8 percent, but it�� been actively adding renewable sources. Its stock was up 2.2 percent. NextEra Energy Inc (NYSE: NEE), owner/operator of the largest fleet of renewable generation in the US with just 1.7 percent of its output from coal, was up 2.8 percent.
Top 10 Dividend Stocks To Own Right Now: Nicor Inc. (GAS)
Nicor Inc., through its subsidiaries, engages in natural gas distribution business in the United States. The company distributes natural gas to approximately 2.2 million residential, commercial, and industrial customers in northern Illinois. It also provides natural gas storage and transmission-related services to marketers and other gas distribution companies. The company?s gas distribution, transmission, and storage network includes approximately 34,000 miles of steel, plastic, and cast iron main; approximately 2.0 million steel, plastic/aluminum composite, plastic, and copper services connecting the mains to customers? premises; and 8 underground storage fields. In addition, Nicor offers shipping services, including the transportation of containerized freight between Florida, the eastern coast of Canada, the Bahamas, and the Caribbean region. It transports building materials, and food and other necessities for developers, manufacturers, and residents in the Caribbean an d the Bahamas; tourist-related shipments intended for use in hotels and resorts, and on cruise ships; and interisland shipments and northbound shipments of apparel and agricultural products, as well as provides inland transportation and cargo insurance services. As of December 31, 2009, the company operated a fleet of 11 owned vessels and 4 chartered vessels with a container capacity totaling approximately 5,270 Twenty-foot equivalent units. Further, it owns and/or leases containers, container-handling equipment, chassis, and other equipment. Additionally, Nicor involves in the marketing of energy-related products and services, including warranty and maintenance contracts, as well as repair and installation services of heating, air conditioning and indoor air-quality equipment, and customer move connection services for other utilities; and wholesale marketing of natural gas supply services. The company was founded in 1953 and is based in Naperville, Illinois.
Advisors' Opinion:- [By Victor Selva]
AGL Resources Inc. (GAS) is an Atlanta-based energy services holding company with operations in natural gas distribution, retail operations, wholesale services, midstream operations and cargo shipping. Let's take a look at this company and try to explain to investors the reasons this is an apparently appealing investment.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on AGL Resources (NYSE: GAS ) , whose recent revenue and earnings are plotted below. - [By Vanin Aegea]
Investors are very often turned off by a cyclical business. Nonetheless, such behavior gives investors the chance to take a position in a profitable business model at a low entry price. With a recent boom in the U.S. market, prices are not expected to be in the low end. Let us look at AGL Resources (GAS) and Suburban Propane (SPH) to see whether any of them offer a profitable business model at a low entry price.
Top 10 Dividend Stocks To Own Right Now: Agrium Inc.(AGU)
Agrium Inc., together with its subsidiaries, produces and markets agricultural nutrients, industrial products, and specialty products worldwide, as well as involves in the retail supply of agricultural products and services in North and South Americas. The company?s Retail segment markets crop nutrient products, including nitrogen, phosphate, potash, sulphur, and micronutrients; crop protection products, such as herbicides, fungicides, adjuvants, and insecticides; and seeds. This segment also offers agronomic services, as well as product application, soil and leaf tissue testing and analysis, and crop scouting services. This segment operates 1,192 outlets in the United States, Canada, Australia, Argentina, Chile, and Uruguay. The company?s Wholesale segment produces, markets, and distributes nitrogen, phosphate, potash, sulphate, and other crop nutrient products for agricultural and industrial customers. This segment also owns and operates facilities that upgrade ammonia t o other nitrogen products, such as urea, nitric acid, and ammonium nitrate, as well as provides Rainbow plant food products. Agrium?s Advanced Technologies segment produces and markets controlled-release crop nutrients and micronutrients for the agriculture, specialty agriculture, professional turf, horticulture, and consumer lawn and garden markets. The company was formerly known as Cominco Fertilizers Ltd. and changed its name to Agrium Inc. in 1995. Agrium Inc. was founded in 1931 and is headquartered in Calgary, Canada.
Advisors' Opinion:- [By Marc Bastow]
Agricultural and industrial nutrients producer Agrium (AGU) raised its quarterly dividend 50% to 75 cents per share, payable on Oct. 17 to shareholders of record as of Sept. 30.
AGU Dividend Yield: 3.54% - [By Jon C. Ogg]
Gains are being seen elsewhere as well, except in shares of The Mosaic Company (NYSE: MOS). Agrium�Inc. (NYSE: AGU) was up almost 3% at $91.95 in late Monday trading, although this one held up much better in the destructive news phase when the alarming news roiled these stocks. The big winner is Intrepid Potash, Inc. (NYSE: IPI), with a gain of 7% to $16.20 in late-Monday trading.
Top 10 Dividend Stocks To Own Right Now: Seadrill Limited(SDRL)
Seadrill Limited, an offshore drilling contractor, provides offshore drilling services to the oil and gas industries worldwide. It also offers platform drilling, well intervention, and engineering services. As of March 31, 2011 the company owned and operated 54 offshore drilling units, which consist of drillships, jack-up rigs, semisubmersible rigs, and tender rigs for operations in shallow and deepwater areas, as well as in benign and harsh environments. Seadrill Limited was founded in 1972 and is based in Hamilton, Bermuda.
Advisors' Opinion:- [By Ben Levisohn]
The North Sea has been one of the few bright spots, if we can call it that, for offshore drillers this year, as dayrates have been dropping around the world as rigs come off contract. But Credit Suisse expects the region to get hit come 2015–and expose Rowan (RDC), Seadrill (SDRL), Transocean (RIG) and Diamond Offshore (DO) to more pain.
- [By Ben Levisohn]
Seadrill (SDRL) has fallen 3.8% to $36.25 after the offshore driller’s earnings�before interest, tax, depreciation and amortisation, or EBITDA, came in light. Seadrill also said the rig market remained tough.
- [By Garrett Cook]
SeaDrill (NYSE: SDRL) shares tumbled 4.27 percent to $37.91. Seadrill launched $1 billion 2019 convertible bond concurrently with a voluntary incentive payment offer to convert the existing $650 million 3.375% 2017 convertible bond.
- [By Daniel Gibbs]
Illustration
To illustrate this concept and examine how it can be a risk, let's take a look at the debt-to-equity ratios of several offshore drilling companies. The five companies that we will compare are Seadrill (NYSE: SDRL ) , Transocean (NYSE: RIG ) , Ensco (NYSE: ESV ) , Noble, and Diamond Offshore.
Top 10 Dividend Stocks To Own Right Now: NextEra Energy Inc. (NEE)
NextEra Energy, Inc., through its subsidiaries, engages in the generation, transmission, distribution, and sale of electric energy in the United States and Canada. As of December 31, 2010, NextEra Energy had approximately 43,000 mega watts of generating capacity. The company involves in the generation of renewable energy from wind and solar projects. It also generates electricity through natural gas, nuclear, oil and coal, and hydro power plants. The company serves approximately 8.7 million people through approximately 4.5 million customer accounts in the east and lower west coasts of Florida. In addition, it leases wholesale fiber-optic network capacity and dark fiber to telephone, wireless carriers, Internet, and other telecommunications companies. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in May 2010. NextEra Energy, Inc. was founded in 1984 and is headquartered in Juno Beach, Florida.
Advisors' Opinion:- [By Richard Stavros]
Among those companies that are winding down their spending programs, NextEra Energy Inc (NYSE: NEE) accounts for almost 30 percent of the projected $10 billion decline in annual spending from 2013 to 2015. Other larger-cap companies with projected 2015 budgets that are below their 2013 levels include: CenterPoint Energy Inc (NYSE: CNP), Dominion Resources Inc (NYSE: D), PPL Corp (NYSE: PPL), Public Service Enterprise Group Inc (NYSE: PEG), and Southern Company (NYSE: SO).
- [By Morgan Housel]
NextEra Energy (NYSE: NEE ) also took a brief stutter. A handful of early trading prices were quoted about 60% below the day's normal trades.
- [By Richard Stavros]
Top Utilities
The electric utility industry typically does well in a deflationary environment, because these firms provide relative certainty of cash flows and high dividends. Here are our favorites now:
Duke Energy Corp�(NYSE: DUK) is a well-run, regulated energy utility in an accommodative regulatory environment. The firm expects earnings per share (EPS) to grow 4 percent to 6 percent annually in the coming years. Management has narrowed its full-year 2013 adjusted diluted EPS guidance range to $4.25 per share to $4.45 per share. However, the company has yet to provide its 2014 earnings guidance range, or capital expenditure and cost-savings estimates for 2015 and beyond.
Duke remains committed to investing in the expansion of its generational capacity in South Carolina and Florida, as well as improving the efficiency of its generational fleet in Indiana. Moreover, management hopes to improve profitability by focusing on the company�� international business operations and renewable energy sources.�
NextEra Energy Inc�(NYSE: NEE) has produced one of the strongest records of earnings growth among US electric utilities, driven by its large and expanding portfolio of renewable generation at its unregulated unit, as well as load growth at regulated utility FP&L. The latter�� favorable regulatory environment and the highly hedged, clean and well-positioned wholesale generation portfolio establish a solid platform for continued earnings outperformance versus NextEra�� peers.
NextEra�� third-quarter 2013 operating EPS of $1.43, up 13.5 percent from a year ago, beat analyst estimates. The results were due to the company�� effective execution of development projects, continual customer additions, and service start-up of renewable contracted projects.�
Entergy Corp�(NYSE: ETR) is another steady player that has delivered consistent shareholder value over the years. The utility recently posted third-quarter 2013 oper - [By Justin Loiseau]
Can coal still kick it?
Heading into June, AEP (NYSE: AEP ) was in close competition with NextEra Energy (NYSE: NEE ) as Edison Award finalists. NextEra added an enormous 1,500 MW of new wind commissions in 2012, putting its total wind capacity at 10,000 MW. The utility also received kudos for completion of a multi-year, multi-site, multi-billion-dollar nuclear uprate project that topped 400 MW expectations by a smooth 100 MW.
Top 10 Dividend Stocks To Own Right Now: L-3 Communications Holdings Inc. (LLL)
L-3 Communications Holdings, Inc., through its subsidiary, L-3 Communications Corporation, provides command, control, communications, intelligence, surveillance, and reconnaissance (C3ISR) systems; aircraft modernization and maintenance; and government services in the United States and internationally. Its C3ISR segment offers fleet management sustainment and support, such as procurement, systems integration, sensor development, modifications, and periodic depot maintenance for signals intelligence and communications intelligence systems; strategic and tactical signals intelligence systems; secure data links; secure terminal and communication network equipment and encryption management; and communication systems. The company?s Government Services segment provides communication software support, information technology services, and various engineering development services and integration support; engineering and information systems support services; teaching and training; h uman intelligence support services; command and control systems and software services; and technical and management services. Its Aircraft Modernization and Maintenance segment offers modernization and refurbishments, upgrades and sustainment, maintenance, and logistics support services, as well as turnkey aviation life cycle management services for military and various government and commercial customers. The company?s Electronic Systems segment provides components, products, subsystems, systems, and related services across various business areas, including power and control systems, electro-optic/infrared, microwave, simulation and training, precision engagement, warrior systems, security and detection, propulsion systems, avionics and displays, telemetry and advanced technology, undersea warfare, and marine services. L-3 Communications Holdings, Inc. was founded in 1997 and is based in New York, New York.
Advisors' Opinion:- [By Marc Bastow]
Command, control and communications leader L-3 Communications (LLL) raised its quarterly dividend 9% to 60 cents per share, payable March 17 to shareholders of record as of March 3.
LLL Dividend Yield: 2.12% - [By Rich Smith]
The Department of Defense announced $209.1 million worth of new contract awards Thursday. Notable winners that are also publicly traded companies include:
Lockheed Martin's (NYSE: LMT ) Mission Systems and Training division won a $29.5 million contract to supply computer cabinets, consoles, cables, and switches that will be used in testing Japan's modernized Aegis antimissile defense systems.�Lockheed is expected to complete work on this contract by June 2014. United Technologies' (NYSE: UTX ) Pratt and Whitney subsidiary won a $12.1 million contract� to supply vane assemblies by Feb. 28, 2014.� L-3 Communications (NYSE: LLL ) was awarded a $9.1 million contract to perform sustainment operations and management services required by the Peace Pioneer Core and Depot/System Integrated Laboratory Sustainment Program in South Korea through March 31, 2015.Additionally, an $18.2 million contract was awarded to privately held drone manufacturer General Atomics, which will do depot activation work for Air Force MQ-1 Predator drones and MQ--9 Reapers at Hill Air Force Base in Utah, Warner-Robins AFB in Georgia, and Tinker AFB in Oklahoma.
- [By Jon C. Ogg]
L-3 Communications Holdings Inc. (NYSE: LLL) is also now back above the price a week ago, up 0.9% at $91.40 versus $90.80 at the time. Its 52-week range is $68.72 to $94.32 and the consensus price target is still $94.64. L-3 may be more for communications on the surface, but it is involved in many aspects that advanced systems need.
Top 10 Dividend Stocks To Own Right Now: Amphenol Corporation(APH)
Amphenol Corporation engages in the design, manufacture, and marketing of electrical, electronic, and fiber optic connectors; interconnect systems; and coaxial and specialty cables worldwide. Its Interconnect Products and Assemblies segment produces connectors and connector assemblies primarily for the communications, aerospace, industrial, and automotive markets. This segment provides connector and cable assembly products used in communication applications; smart card acceptor and other interconnect devices used in mobile telephones; set top boxes to facilitate reading data from smart cards; fiber optic connectors used in fiber optic signal transmission; backplane and input/output connectors and assemblies used for servers and data storage devices and linking personal computers and peripheral equipment; sculptured flexible circuits used for integrating printed circuit boards; and hinge products used in mobile phone and other mobile communication devices. It also designs a nd produces radio frequency connector products and antennas used in telecommunications, computer and office equipment, instrumentation equipment, local area networks, and automotive electronics. The company?s Cable Products segment produces coaxial cable and connector products used in cable television systems, including full service cable television/telecommunication systems; radio frequency and fiber optic interconnect components for full service cable television/ telecommunication networks; and data cables and specialty cables used to connect internal components in systems with space and component configuration limitations. Amphenol Corporation markets its products directly, as well as through manufacturers? representatives and distributors to original equipment manufacturers, contract manufacturers, cable system operators, and telecommunication companies. The company was founded in 1932 and is headquartered in Wallingford, Connecticut.
Advisors' Opinion:- [By Ben Levisohn]
Competitor AVX Corp. (AVX) has gained 1.1% to $12.96, while Molex (MOLX) has dropped 0.2% to $29.28 and Amphenol (APH) has ticked up 0.3% to $76.32.
- [By Sally Jones] % over 12 months, Amphenol Corporation has a market cap of $12.88 billion and is traded at a P/E of 21.70. The dividend yield is 0.60%.
The current share price is around $80.94.
Incorporated in 1987, Amphenol Corporation designs, manufactures and markets electrical, electronic and fiber optic connectors, interconnect systems and coaxial and specialty cable. The markets for the global company's products are communication systems for the converging technologies of voice, video and data communications and a wide range of industrial applications including factory automation and motion control systems, medical and industrial instrumentation, and commercial aerospace and military applications, and many more.
Guru Action: As of June 30, 2013, Columbia Wanger reduced its position by 0.69%, selling 29,000 shares at an average price of $76.60, gaining 7.5%.
Columbia Wanger is the top guru stakeholder with 4,184,650 shares or 2.63% of shares outstanding.
Over a phenomenal five-year trading history, the firm averaged a gain of 215% on 828,250 shares bought at an average price of $25.71 per share. Columbia Wanger also gained 56% selling 1,608,300 shares at an average price of $51.91 per share.
Check out the very active insider selling and seven gurus holding APH.
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