Kinder Morgan Energy Partners: Dividend Stock Analysis
Kinder Morgan Energy Partners, L.P. (KMP) owns and manages energy transportation and storage assets in North America. Kinder Morgan is a dividend achiever as well as a component of the S&P 500 index. It has increased distributions for the past 14 years.For the past decade this dividend stock has delivered annualized total returns of 19.50 % to its unitholders.At the same time company has managed to deliver an 11.30% average annual increase in its cash flow per share since 2000. The company has several projects worth $6 billion in its pipeline, which should add to incremental distributable cash flow per unit over the next few years. The Rockies Express Pipeline and the Kinder Morgan Louisiana Pipeline would help KMP benefit from increased natural gas production in the Rockies. The... more
Surging Earnings Should Drive Valuations, And Dividend Payouts and Yields, Much Higher
As I peruse the many headlines that I read day in and day out, I am seeing more and more about companies raising their dividends. Early last year, I noted that good companies were starting to boost dividends, and now they continue but have even been joined by companies still laden with debt (like Carnival (CCL)) yesterday, which announced a 150% hike that boosts the yield from less than 1% to over 2%).In early October, I shared what might have been viewed as an outrageously bullish forecast but that now looks not just aggressive but attainable, suggesting we could see 1500 on the S&P 500 by the end of the year. In that article, I shared a rather simple argument focused on a slight PE expansion and moderate earnings growth teaming up to produce my expected outcome. Today, I would like to... more
The Dividend Run Isn't Over Over: Three Stocks to Consider
2010 was the year dividends came back in vogue and as public chatter gained momentum, many high quality, dividend paying equities enjoyed a nice run. Verizon (VZ) picked up around 16% for the year to compliment its 5%+ yield. Utility stalwart Southern Company (SO) turned in over 14% plus yield not included. Even outliers like Cream of Wheat maker B&G Foods (BGS) climbed nearly 50%. Throw in the yield and you’re better than 57%. Numbers like that, naturally, generate talk of whether the whole dividend investing idea is done at least for the near term. Don’t count on it. Two years ago when nervous Nellies were paying the government for the privilege of owning treasuries, investors who could make a fist started sniffing around underloved dividend stocks. The 10 year was paying a beggarly... more
Apple Should Announce Dividend
In my prior Seeking Alpha article, I predicted that Apple, Inc. (AAPL) would announce a dividend contemporaneously with its earnings on Tuesday. Apple did not, and I was wrong. But the rationale for a one-time dividend is still intact.Nothing has changed since earnings, except that my belief based on such earnings is even stronger now. Apple had blow-out earnings of $6.43 per share, while raising forward guidance to $4.90, handily above even the highest of analyst expectations. In addition, Apple generated operating cash of $9.8 billion, resulting in cash and marketable securities (taken together, "cash") of $59 billion, a number that will certainly rise by $3 billion to $5 billion more even with anticipated capital expenditures in the current quarter.... more
10 Highest-Yielding Dividend Champions
As the baby boomer generation approaches their retirement years, their thirst for income-producing investments is extremely high. Finding quality investments that produce enough income to meet their retirement needs is a challenge. Fixed income investments, historically an important component of a balanced investment portfolio, are producing disappointing and even inadequate yields. Couple this with the reality that a fixed income yield doesn't increase, and the prospects for a comfortable retirement appear dim. Dividend paying common stocks with yields greater than the 4.54% that 30 year Treasury bonds are paying are available. Better yet, many can be found amongst the Dividend Champions, a list of 98 companies that have distinguished themselves by raising their dividends for 25 (or... more
Wisconsin Energy (WEC) Announces Two-for-One Stock Split; Declares Quarterly Dividend;
Wisconsin Energy Corporation (NYSE: WEC) today announced a two-for-one stock split on their common shares. The new quarterly dividend will be $0.52 a share on a pre-split basis. After the split, the quarterly dividend rate will be $0.26 a share. The dividend is payable March 1, 2011, to shareholders of record as of February 14, 2011. The ex-dividend date is February 10, 2011.... more
Granite Construction (GVA) Declares $0.13 Quarterly Dividend; 2% Yield
Granite Construction Incorporated (NYSE: GVA) announced today that its Board of Directors has declared a quarterly cash dividend of $0.13 per common share, $0.52 annualized. The dividend is payable on April 15, 2011 for shareholders of record at the close of business on March 31, 2011. The ex-dividend date is March 29, 2011. Yield on the dividend is 2%.... more
How Long Can Newmont Mining's Dividends Last?
Whether you're a beginning investor or a near-retiree, the importance of purchasing stocks that pay dividends cannot be overstated. Not only do companies that have quarterly or annual payouts provide you with a steady stream of income, they also have the potential for capital appreciation. Simply put, dividend stocks can give your portfolio what almost no other investment can -- both income and growth. At The Motley Fool, we're avid fans of dividends -- and not just because we like that steady stream of cash. Studies have shown that from 1972 to 2006, stocks in the S&P 500 that don't pay dividends have earned an average annual return of 4.1%; dividend stocks, however, have averaged a whopping 10.1% per year. That is an incredible difference -- one that you'd be crazy to not take... more
How Long Can Costco's Dividends Last?
Whether you're a beginning investor or a near-retiree, the importance of purchasing stocks that pay dividends cannot be overstated. Not only do companies that have quarterly or annual payouts provide you with a steady stream of income, they also have the potential for capital appreciation. Simply put, dividend stocks can give your portfolio what almost no other investment can -- both income and growth. At The Motley Fool, we're avid fans of dividends -- and not just because we like that steady stream of cash. Studies have shown that from 1972 to 2006, stocks in the S&P 500 that don't pay dividends have earned an average annual return of 4.1%; dividend stocks, however, have averaged a whopping 10.1% per year. That is an incredible difference -- one that you'd be crazy to not take... more
Hormel Foods' Dividends May Not Last Forever
Whether you're a beginning investor or a near-retiree, the importance of purchasing stocks that pay dividends cannot be overstated. Not only do companies that have quarterly or annual payouts provide you with a steady stream of income, they also have the potential for capital appreciation. Simply put, dividend stocks can give your portfolio what almost no other investment can -- both income and growth. At The Motley Fool, we're avid fans of dividends -- and not just because we like that steady stream of cash. Studies have shown that from 1972 to 2006, stocks in the S&P 500 that don't pay dividends have earned an average annual return of 4.1%; dividend stocks, however, have averaged a whopping 10.1% per year. That is an incredible difference -- one that you'd be crazy to not take... more