PPG Industries: Dividend Stock Analysis
PPG Industries, Inc. (PPG) manufactures and supplies protective and decorative coatings. The company is a Dividend Aristocrat which has increased distributions for 39 years in a row.Over the past decade, this dividend stock has delivered an annualized total return of 9.60% to its loyal shareholders (click to enlarge). The company has managed to deliver a negative average increase in EPS of 6.10% per year since 2000. Analysts expect PPG Industries to earn $5.04 per share in 2010 and $5.68 per share in 2011. This would be a nice increase from the $2.03/share the company earned in 2009. The company’s net income is exposed to the cyclical nature of the company’s business, as it shrinks during downturns but rebounds sharply during upturns. Click to enlarge:Few cyclical companies can... more
10 Dividend Stocks Raising Their Payouts and Yields
When you purchase individual stocks, risk is inherit. Sometimes bad things happen to good stocks. Eventually, every investor will hold a stock that falls out of favor and endures a double-digit decline. Understanding this from the onset makes it easier to deal with. To minimize the risk of significant declines, your core portfolio should focus on blue-chip dividend growth stocks. Listed below are select companies that have recently elected to raise their payout and yield by increasing their cash dividends to shareholders:Wal-Mart Stores, Inc. (WMT) serves customers and members more than 200 million times per week at 8,970 retail units under 60 different banners in 15 countries. March 3nd the company increased its quarterly dividend 21 percent increase to $0.3650/share. The dividend is... more
11 Low Beta Dividend Champions With Rising Operating Cash Flow
If you're an income investor, the following list might offer an interesting starting point for your own analysis.Below is a list of dividend champions - companies identified by the DrIP Investing Resource Center as those that have increased dividends for more than 25 consecutive years. From a universe of about 100 of those identified as dividend champions, we found eleven companies that have seen significantly rising operating cash flows during the most recent quarter.Are you looking for income opportunities? If so, this list can offer a very interesting starting point. Look at the data below for guidance.Accounting data sourced from Google Finance, all other data sourced from Finviz.The list has been sorted by the change in operating cash flow.1. Exxon Mobil Corp. (XOM): Major Integrated... more
Australian Utilities: Over-the-Top Yields From Down Under
In the search for good yields with inflation protection, many investors have neglected to look overseas, and particularly at the lower half of the globe.Australia has a number of utilities that sport tasty yields, well supported by cash flow and mostly adjusted for inflation. Tops in this sector is the Duet Group (DUETF.PK), with a whopping 12.7% payout. As Paul Hogan might say: “Now that’s a yield.” Company Symbols Market Cap. EV/EBITDA Yield Price/Book Main Business APA Group APA.AX APAJF.PK 2.2 Billion 10.3 8.4% 1.6 Gas transmission and distribution Duet Group DUE.AX DUETF.PK 1.4 Billion 8.1 12.7% 0.9 Gas transmission and distribution; electric... more
Finding Big Dividends in Unusual Places
When looking for outsized dividends, investors typically turn to the old standbys: Utilities, Master Limited Partnerships, Real Estate Investment Trusts and Business Development Companies. I decided to look for dividend opportunities outside of the typical industries. What I found was a restaurant, an apparel manufacturer, a publisher, a technology company, and even a company that deals in collectibles. It is important to note that I am not recommending you run out and buy any of the companies mentioned in this article. It is simply an exercise to show that you can find potentially good investments in places that many investors would never think to look. Of course the key to dividends is having a company with stable or increasing cash flow that can support a long-term stream of payouts... more
Top 9 Energy Stocks with Great Dividends
The political chaos in North Africa and Middle East caused Brent oil price to hit $110 a barrel for the first time since 2008. Although IMF spokesman David Hawley stated that much of the increase in oil prices through early January reflected increasing global demand as the world economy recovers from the financial crisis; there is a possibility that the retail price per gallon might reach a new record high above $4. Legendary investors George Soros and Jim Rogers are among the several hedge fund managers who are bullish about commodities. T. Boone Pickens has been investing in energy stocks. Boone Pickens is extremely bullish about 10 energy stocks and he added new money in these holdings during the most recent quarter. John Burbank’s Passport Capital is also extremely bullish about... more
The Best Stocks to Hold Forever
Is there anything worse than buying into a stock that was "sure" to go up a few percent and then holding on and watching the price erode for years? It's gut-wrenching. I've done it, too. I used to trade in and out of risky companies and refused to take a loss, hoping the stock would "come back" someday. Someday didn't usually arrive. But I've reformed: Now I buy for the long term and let the businesses work for me. Allow me to explain and then offer you seven stocks that make an airtight core that can create wealth forever. A simple questionAre you really in the market for the long term? Here's a quick test: "I buy on the assumption that they could close the market the next day and not reopen it for five years." Would you agree or disagree? That's the buying strategy of superinvestor... more
Highest-Yielding Tech Stocks You'd Actually Want to Own
The power of dividend investing is pretty well-known these days. Higher-yielding stocks tend to offer higher returns over time than low- or no-yield stocks, according to research from Jeremy Siegel and others. In fact, the 20 best-performing survivor stocks from the original S&P 500 in 1957 are all dividend payers. What's more, reinvesting dividends acts as a "bear-market protector and return accelerator," according to Siegel. The extra shares purchased and accumulated at higher dividend yields during down periods act as a protector in falling markets, and these extra shares rising in value turn into a "return accelerator" when prices rise.... more
The Prudent Yield-Hog: Pushing The Envelope
On March 1, I introduced a strategy known as the Prudent Yield Hog, which is designed to do what many income-seekers desire most but are constantly warned against: chasing the highest yields available. The key to this strategy is working from a "pre-qualified" list compiled based on a screen and ranking system designed to weed out the highest-risk situations. (See Appendix, below.) But even within this framework, approaches can vary regarding where on the risk-reward scale they fall. The list of stocks I presented on March 1 was middle-of-the-ground by yield-hog standards. Today, I want to dial up the yield and risk as far as I feel comfortable. The key to adjusting yield and risk with the Prudent Yield Hog is a screening rule requiring, in the mid-level (default) version of the model,... more
The Highest Yielding Dividend Champions
The U. S. Dividend Champions document—produced by frequent SA contributor David Fish—is rightly taking its place as the best compilation of stocks with long-term dividend-increase streaks. Its advantages over the better-known Dividend Aristocrats list from S&P are numerous: Its methodology is more thorough, its information is more comprehensive, it is not restricted to stocks on the S&P 500 index, it includes ADRs, and its rules are well explained and observed religiously. David’s “CCC” document—updated monthly—is a gift to all dividend investors. I thank him for graciously allowing me to produce occasional articles based on his work that provide snapshots from different angles. The phrase “high yield” always seems to attract attention. Last July, I... more