Shares of Royal Dutch Shell (NYSE: RDS) have produced only meager returns for investors in recent years, but all that may be changing.
That's thanks to an ambitious growth plan that may boost cash flow by 50% and allow Shell to generate more than $175 billion of cash flow during the next three years. By buying shares now, investors can take advantage of the upcoming cash flow bonanza while collecting a 5% dividend.
At a current price-to-earnings (P/E) ratio of 8, Shell -- Europe's largest oil company and the third largest globally behind Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) -- is priced at a nearly 25% discount to its five-year median P/E of 10.5 and 20% below its industry peers. Shell's price-to-cash flow ratio is only 5, which values the company at 35% less than its competitors.
Top 10 Dividend Stocks To Buy Right Now: Illinois Tool Works Inc.(ITW)
Illinois Tool Works Inc. manufactures a range of industrial products and equipment worldwide. The company?s Transportation segment offers metal and plastic components, fasteners, and assemblies; fluids and polymers; fillers and putties; polyester coatings, and patch and repair products; and truck remanufacturing and related parts and service. Its Industrial Packaging segment offers steel and plastic strapping and related tools and equipment; plastic stretch film and related equipment; paper and plastic products that protect goods in transit; and metal jacketing products. The company?s Food Equipment segment provides warewashing, cooking, refrigeration, and food processing equipment; and kitchen exhaust, ventilation, and pollution control systems. Its Power Systems & Electronics segment provides arc welding equipment; metal arc welding consumables; metal solder materials for PC board fabrication; equipment and services for microelectronics assembly; electronic components an d component packaging; and airport ground support equipment. The company?s Construction Products segment offers anchors, fasteners, and related fastening tools for wood, metal, and concrete applications; metal plate truss components, and related equipment and software; and packaged hardware and other products for retail. Its Polymers & Fluids segment provides adhesives, chemical fluids, epoxy and resin-based coating products, hand wipes and cleaners, and pressure-sensitive adhesives and components. The company?s Decorative Surfaces segment offers laminate for furniture, office and retail space, and countertops; and laminate flooring and worktops. In addition, the company offers plastic reclosable packages and bags, and consumables; plastic and metal fasteners, and components; foil and film products; product coding and marking, paint spray, and static and contamination control equipment; and swabs and mats. The company was founded in 1912 and is based in Glenview, Illinois. Advisors' Opinion:
- [By Dave Friedman]
The shares closed at $45.29, up $0.2, or 0.44%, on the day. They have traded in a 52-week range of $40.33 to $59.27. Volume today was 5,269,092 shares, against a 3-month average volume of 4,022,400 shares. Its market capitalization is $22.26billion, its trailing P/E is 11.96, its trailing earnings are $3.79 per share, and it pays a dividend of $1.44 per share, for a dividend yield of 3.20%. About the company: Illinois Tool Works Inc. designs and manufactures fasteners and components, equipment and consumable systems, and a variety of specialty products and equipment. The Company’s products include industrial fluids and adhesives, tooling for specialty applications, welding products, and quality measurement equipment and systems. Illinois Tool Works operates worldwide.
Top 10 Dividend Stocks To Buy Right Now: McDonald's Corporation(MCD)
McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.
Advisors' Opinion:- [By Victor Mora]
McDonald�� provides highly demanded food items to significant amounts of consumers who enjoy their items around the world. The stock has done very well for investors of the last several years and is now trading at all-time high prices. Earnings and revenue figures have done reasonably well, however, investors have expected a little more from the company. Relative to its strong peers and sector, McDonald’s has been a performance leader, year-to-date. Look for McDonald’s to continue to OUTPERFORM.
Top Insurance Companies To Buy For 2014: Telefonica SA(TEF)
Telefonica, S.A. provides fixed and mobile telephony services primarily in Spain, rest of Europe, and Latin America. Its fixed telecommunication services include PSTN lines; ISDN accesses; public telephone; local, domestic, and international long distance and fixed-to-mobile communications; corporate communications; video telephony; supplementary and business-oriented value-added services; network services; leasing and sale of handset equipment; and telephony information services. The company?s Internet and broadband multimedia services comprise Internet service provider service; portal and network services; retail and wholesale broadband access; narrowband switched access to Internet; naked ADSL, a broadband connection; residential-oriented value-added services; companies-oriented value-added services; television services, such as IPTV, cable television, and satellite television; and Fiber to the Home, a service for high speed Internet access and digital video recording. Its data and business-solutions services principally include leased lines; virtual private network services; fiber optics services; the provision of hosting and application; outsourcing and consultancy services; desktop services; and system integration and professional services. The company?s wholesale services for telecommunication operators primarily comprise domestic interconnection services; international wholesale services; leased lines for other operators? network deployment; local loop leasing under the unbundled local loop regulation framework; and bit stream services. It also offers various mobile and related services and products that include mobile voice services, value added services, mobile data and Internet services, wholesale services, corporate services, roaming, fixed wireless, and trunking and paging services. The company has a strategic alliance with China Unicom (Hong Kong) Limited. Telefonica, S.A. was founded in 1924 and is headquartered in Madrid, Spai n.
Advisors' Opinion:- [By Conrad]
Telefonica (TEF) is acting within the foreign telecom services industry. The company has a market capitalization of $89.2 billion, generates revenues in an amount of $85.4 billion and a net income of $13.0 billion. It follows P/E ratio is 6.8 and forward price to earnings ratio 8.1, Price/Sales 1.0 and Price/Book ratio 3.1. Dividend Yield: 10.1 percent. The return on equity amounts to 48.1 percent.
Top 10 Dividend Stocks To Buy Right Now: RPM International Inc.(RPM)
RPM International Inc., together with its subsidiaries, manufactures, markets, and sells various specialty chemical products to industrial and consumer markets worldwide. The company?s Industrial segment offers waterproofing and institutional roofing systems used in building protection, maintenance, and weatherproofing applications; sealants, tapes, and foams; residential basement waterproofing systems; specialized roofing and building maintenance and related services; specialty industrial adhesives and sealants; and concrete and masonry additives, and related construction chemicals. It also offers polymer flooring systems, and offshore and marine structures; industrial and commercial tile systems; fiberglass reinforced plastic gratings and shapes; heavy-duty corrosion-control coatings, fireproofing products, and containment linings; specialty construction products, including bridge expansion joints, bridge deck and parking deck membranes, curb and channel drains, highway markings, protective coatings, and concrete repairs; and fluorescent colorants and pigments, waterproofing and flooring products, exterior insulating finishing systems, and shellac-based-specialty coatings for industrial and pharmaceutical uses, edible glazes, and food coatings. The company?s Consumer segment provides professional use and do-it-yourself products for a range of consumer applications, including home improvement and personal leisure activities. Its products include coating products; specialty products; deck and fence restoration products; metallic and faux finish coatings; hobby paints and cements; and caulks, sealants, adhesives, insulating foam, spackling, glazing, and other general patch and repair products. The company offers its products under the Carboline, DAP, EUCO, Fibergrate, Flecto, Flowcrete, Hummervoll, Universal Sealants, illbruck, Rust-Oleum, Stonhard, Tremco, Watco, and Zinsser brand names. RPM International was founded in 1947 and is headquarte red in Medina, Ohio.
Top 10 Dividend Stocks To Buy Right Now: Telecom Corporation of New Zealand Limited(NZT)
Telecom Corporation of New Zealand Limited, together with its subsidiaries, provides telecommunications services, as well as information, communication, and technology services in New Zealand and Australia. Its products and services include local, national, international, and value-added telephone services; mobile services; data, broadband, and Internet services; IT consulting, implementation, and procurement services; and equipment sales and installation services. The company also involves in the retail of telecommunications products and services. It serves residential, business, and government customers. Telecom Corporation of New Zealand Limited was founded in 1987 and is based in Auckland, New Zealand.
Advisors' Opinion:- [By Chuck Carlson]
Trading for just seven times earnings and yielding a 10% dividend, it's also nice to know that it's a monopoly in New Zealand. And, on top of that, with gold prices soaring, it's worth noting that the currency most closely correlated with gold is the New Zealand currency (affectionately known as the Kiwi dollar), making the company a nice backdoor play on gold.
Top 10 Dividend Stocks To Buy Right Now: S&P Smallcap 600(PH)
Parker Hannifin Corporation manufactures fluid power systems, electromechanical controls, and related components worldwide. Its Industrial segment offers pneumatic and electromechanical components, and systems; filters, systems, and instruments to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors that control, transmit, and contain fluid; hydraulic components and systems for builders and users of industrial and mobile machinery and equipment; critical flow components for process instrumentation, healthcare, and ultra-high-purity applications; and static and dynamic sealing devices. This segment sells its products to original equipment manufacturers (OEMs) and their replacement markets in the manufacturing, transportation, and processing industries. The company?s Aerospace segment provides flight control systems and components, including hydraulic, electrohydraulic, electric backup hydraulic, electrohydrostatic, and electro -mechanical components for precise control of aircraft rudders, elevators, ailerons, and other aerodynamic control surfaces. It also provides electronics thermal management heat rejection systems, and single-phase and two-phase heat collection systems for radar, ISAR, and power electronics. This segment markets its products primarily to OEMs in the commercial, military, and general aviation markets, as well as to end users. Its Climate and Industrial Controls segment offers systems and components primarily for use in the mobile and stationary refrigeration, and air conditioning industry; and in fluid control applications in various industries, such as processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment serves OEMs and their replacement markets. Parker-Hannifin Corporation markets its products through direct-sales employees, independent distributors, wholesalers, and sales representatives. The company was founded in 1918 and is headquartered i n Cleveland, Ohio.
Advisors' Opinion:- [By Putnam]
Parker Hannifin (PH) operates in a broadly diversified engineering industry with peers such as General Electric (GE) and 3M Company (MMM). Its products serve aerospace, commercial, mobile and industrial markets.
The 2011 fiscal year was stellar for Parker. An all time record of $12.3 billion in sales was reached, a 23.5% increase. Net income increased a whopping 90%.
The common stock currently trades at a price to earnings ratio of 10.5, below the industry average of 14.8 and historical average of 14. Price to book ratio is 2.02 with price to cash flow being 7.3.
Making comparisons in a broadly diversified industry is difficult, since products and service offerings vary greatly between businesses. Therefore, the peer company’s business lines and products were used as the main selection criteria for peer analysis.
Top 10 Dividend Stocks To Buy Right Now: Windstream Corporation(WIN)
Windstream Corporation provides communications and technology solutions in the United States. The company offers various solutions, including IP-based voice and data services, multiprotocol label switching (MPLS) networking, data center and managed services, hosting services, and communications systems to businesses and government agencies. It also provides high-speed Internet, voice, and digital television services to residential customers primarily located in rural areas. The company?s data services include data center and managed hosting, MPLS networking, and dedicated access, as well as high-speed Internet to business customers; integrated solutions consist of multiple voice and data services delivered over an IP connection; voice services comprise local and long distance, call waiting, caller identification, and voicemail; and special access services include point-to-point switching arrangements for voice and data traffic. In addition, it provides wholesale services, which primarily include voice and data services on a wholesale basis to other carriers; usage sensitive services to long distance companies; and other local exchange carriers for access to the network in connection with the completion of long-distance calls, as well as reciprocal compensation received from wireless and other local connecting carriers for the use of its facilities. As of June 30, 2011, the company served approximately 3.3 million access lines, 1.3 million high-speed Internet customers, and operated approximately 60,000 fiber route miles. Windstream Corporation is based in Little Rock, Arkansas.
Advisors' Opinion:- [By Jonas Elmerraji]
Nearest Resistance: $8.20
Nearest Support: $7.90
Catalyst: Earnings MissCommunications company Windstream (WIN) is off 5% this afternoon, shoved lower thanks to an earnings miss. The firm earned 9 cents per share, while analysts' consensus estimate was 11 cents. That falls well short of the 25 cents that management has promised to pay investors in dividends, far from a strong sign that WIN's massive 12.3% dividend yield can remain tenable long-term.
In the nearer-term, the technicals don't look much better. Windream had been looking bullish thanks to an inverse head and shoulders pattern that's been building since back in February. But today's gap down on earnings broke the pattern before it had a chance to complete, scuttling WIN's chances of recapturing highs found at the start of this year. This stock doesn't look pretty right now.
- [By Harding]
Windstream Corporation (WIN), together with its subsidiaries, provides various telecommunications services primarily in rural areas in the United States. Since 2006 the company has paid 25 cents/share every quarter. Windstream has been unable to cover its dividends from earnings in every year since 2008. One the bright side cash flow from operations has been relatively stable, although the company has ramped up capex spending in recent years. Yield: 7.90%.
Top 10 Dividend Stocks To Buy Right Now: Altria Group(MO)
Altria Group, Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes, smokeless products, and wine in the United States and internationally. It offers cigarettes under the Marlboro, Virginia Slims, Parliament, Benson & Hedges, Basic, and L&M brands; smokeless tobacco products under the Copenhagen, Skoal, Red Seal, Husky brands, and Marlboro snus brands; and machine-made large cigars and pipe tobacco. The company also produces and sells blended table wines under the Chateau Ste Michelle and Columbia Crest names; and distributes Antinori and Villa Maria Estate wines and Champagne Nicolas Feuillatte in the United States. In addition, it maintains a portfolio of leveraged and direct finance leases in rail and surface transport, aircraft, electric power, real estate, and manufacturing. The company sells its tobacco products to wholesalers, including distributors; large retail organizations, such as chain stores; and the armed services. Altria Group, Inc. markets its wine products to restaurants, wholesale clubs, supermarkets, wine shops, and mass merchandisers. The company was founded in 1919 and is headquartered in Richmond, Virginia.
Advisors' Opinion:- [By Jonas Elmerraji]
Even Verizon's ample dividend looks tepid compared with the 5.1% payout over at tobacco and alcohol firm Altria Group (MO). Altria is the biggest tobacco company in the U.S., led by its flagship Marlboro brand. Its other businesses include cigars and smokeless tobacco, Ste. Michelle Wine Estates and a massive stake in SABMiller (SBMRY). In short, Altria is a textbook "sin stock" -- and that's proven heavenly for shareholders in the wake of the Great Recession.
Altria's business is stable, it's predictable, and it's massive. But that's not going to last for long. The fact is, the firm's business is slowly dying as demand for tobacco products continues to decline in the U.S. While international sales continue to show growth, especially in emerging markets, MO long ago spun its overseas business into Phillip Morris International (PM). But with a gradual decline in cigarette sales already priced into shares, MO's substantial cash flows and increasing exposure to the beverage business provide some shareholder consolation.
Altria's SABMiller stake, for instance, adds up to around $7 per share for MO, providing reduced risk for a material chunk of the firm's balance sheet. After all, the alcoholic beverage business remains hot right now. Investors should continue to expect Altria to payout the majority of its cash flows to investors for the foreseeable future. That makes a hike to its 44-cent dividend look likely in the next quarter.
- [By Jonas Elmerraji]
Altria (MO) is dying, but that shouldn't stop you from buying it. The $73 billion company is one of the biggest tobacco names in the world, with brands such as Marlboro under its belt. The problem is that Altria only represents the U.S. business
of legacy tobacco giant Philip Morris (Philip Morris International (PMI) is the non-U.S. side of the business). With tobacco sales slowly declining here at home, selling cigarettes isn't exactly a growth opportunity.
But the key word there is that the declines are slow, and as long as that remains the case, Altria will remain a cash cow that throws off a huge dividend payout -- a 4.82% yield right now. In the meantime, Altria has been expanding its portfolio in the "sin stock" world, expanding its exposure to alcohol with a 27% stake in SABMiller (SBMRY) and a wholly owned winemaker in Ste. Michelle Wine Estates. That's a big departure from the firm's former ownership of Kraft Foods (KRFT), but it's one that makes a whole lot more sense in my view.
Regulations continue to put a very tight leash on cigarette makers' marketing efforts, and on new product offerings. But all of those challenges are already priced into shares. Customer stickiness is extremely high in the tobacco business, and that helps offset some of the marketing hurdles that Altria's faced with. As the firm continues to diversify outside of tobacco, it should stay relevant to investors. Until then, its dividend makes it worth buying for income.
- [By JON C. OGG]
Altria Group, Inc. (NYSE: MO) recently closed at $25.89 and analysts have a consensus price target objective of $27.86. It carries a 5.9% dividend yield and the stock is down 7.9% from its 52-week high. The price to book value is almost shockingly high at 11 but its return on equity is over 70%. S&P may only have a “BBB” local long-term credit rating here, but the domestic tobacco leader has been a significant winner and it carries no currency risks to speak of. Each generation that has tried to bet against the viability of the tobacco sector has failed to win. B esides, both Boehner and Obama can’t really attack tobacco companies too harshly as they are both smokers.
Top 10 Dividend Stocks To Buy Right Now: Johnson & Johnson(JNJ)
Johnson & Johnson engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The Consumer segment provides products used in baby care, skin care, oral care, wound care, and women?s health care fields, as well as nutritional, over-the-counter pharmaceutical products, and wellness and prevention platforms under the brands of JOHNSON?S, AVEENO, CLEAN & CLEAR, JOHNSON?S Adult, NEUTROGENA, RoC, LUBRIDERM, DABAO, LISTERINE, REACH, BAND-AID, CAREFREE, STAYFREE, SPLENDA, TYLENOL, SUDAFED, ZYRTEC, MOTRIN IB, and PEPCID AC. The Pharmaceutical segment offers products in various therapeutic areas, such as anti-infective, antipsychotic, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, and virology. Its principal products include REMICADE for the treatment of immune me diated inflammatory diseases; STELARA for the treatment of moderate to severe plaque psoriasis; SIMPONI, a treatment for adults with moderate to severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis; VELCADE for the treatment of multiple myeloma; PREZISTA and INTELENCE for treating HIV/AIDS patients; NUCYNTA for moderate to severe acute pain; INVEGA SUSTENNAtm for the acute and maintenance treatment of schizophrenia in adults; RISPERDAL CONSTA for the management of bipolar I disorder and schizophrenia; and PROCRIT to stimulate red blood cell production. The Medical Devices and Diagnostics segment primarily offers circulatory disease management products; orthopaedic joint reconstruction, spinal care, and sports medicine products; surgical care, aesthetics, and women?s health products; blood glucose monitoring and insulin delivery products; professional diagnostic products; and disposable contact lenses. The company was founded in 1886 and is based in Ne w Brunswick, New Jersey.
Advisors' Opinion:- [By Buffett]
The world's largest health care company, Johnson & Johnson (JNJ) owns popular brands you've no doubt heard of and used regularly -- such as Tylenol and Band-Aid. But what you might not know is that the company has the No. 1 or No. 2 position in more than half of its product lines. Beyond consumer products, Johnson & Johnson has a strong pharmaceutical division supported by a solid research pipeline, and it is a leader in medical devices.
All of this has helped Johnson & Johnson produce the kind of steady, long-term earnings growth and profitability that Buffett likes. Earnings have risen in all but two of the past 10 years. And, over the past decade, Johnson & Johnson has produced an average 25.7% return on equity, according to Validea.
That's well above the 15% minimum Buffett likes -- and a reason he owns 42.6 million shares. Morningstar is bullish on Johnson & Johnson, giving it a four-star (of a possible five) rating.
- [By Jon C. Ogg]
Johnson & Johnson (NYSE: JNJ) is at least expected to gain 7.2% in 2013 to rise to $75.14. With a 3.4% dividend, this is one of the smallest expected gainers for the year. This might not be such a big surprise, but it is interesting that Johnson & Johnson was so close to its 52-week high at the end of 2012. With so many former quality control issues, and with this market cap already up at $196 billion, it is a real question as to what could be the next driver. Johnson & Johnson has accumulated so many medical units that perhaps its next way to generate value is to identify ways of divesting assets.
- [By Zachary Silver]
Healthcare giants like Johnson & Johnson have performed extraordinarily well this year. Johnson & Johnson has a beta of 0.38, meaning that it will be less volatile than the market. This might bring peace of mind to some investors who have grown tired of the recent volatility in the markets. With its attractive dividend rate, historically strong free cash flow margins, and a low beta, Johnson & Johnson could be a good addition to a core retirement portfolio.
Top 10 Dividend Stocks To Buy Right Now: Northeast Utilities(NU)
Northeast Utilities, a public utility holding company, provides electric and natural gas energy delivery services to residential, commercial, and industrial customers in Connecticut, New Hampshire, and western Massachusetts. The company engages in the purchase, delivery, and sale of electricity; and owns and operates approximately 1,200 megawatts of primarily fossil-fueled electricity generation assets. As of December 31, 2010, it served approximately 1.2 million customers in 149 cities and towns in Connecticut; 497,000 retail customers in 211 cities and towns in New Hampshire; and 206,000 retail customers in 59 cities and towns in western Massachusetts. The company also operates a natural gas distribution system in Connecticut and serves approximately 206,000 customers in 71 cities and towns. It offers gas supply to commercial and industrial customers; and to residential customers for heating, hot water, and cooking needs, as well as provides gas transportation services t o commercial and industrial customers. In addition, the company offers electric transmission services. Northeast Utilities was founded in 1927 and is headquartered in Hartford, Connecticut.
No comments:
Post a Comment