Posts Tagged ‘dividend paying stocks’
Tyson Foods, Inc. (TSN) is one of the biggest processors and sellers of meat and countless prepared food products sold in more than 90 countries. John W. Tyson founded the company in 1935 by hauling chickens to market in Kansas City and St. Louis.
Tyson’s total sales last year were $33.0 billion, with the sale of beef products representing 41% of total revenues, followed by chicken at 35%, pork at 14%, and sales in prepared foods at 10%.
Tyson’s most recent quarter (fourth fiscal quarter of 2013), turned out to be a record in terms of sales and earnings per share. The company beat its own expectations for fiscal 2013, handily beating its previous outlook for international sales; operating margins, especially for chicken and beef, also grew substantially. This contributed to a marked improvement in bottom-line earnings and adjusted earnings per share attributable to the company.
Management reported increased demand as well as higher prices in the most recent quarter. Input costs for fiscal 2014 are expected to drop due to higher grain supplies. The company continues to buy back shares, and it recently increased its quarterly dividend by a substantial 50%.
The numbers were exactly what Wall Street wanted to hear. The stock is up approximately 50% since the beginning of the year and has actually broken out of a long consolidation, which is a bullish signal. The company’s long-term stock chart is featured below:
Chart courtesy of www.StockCharts.com
The company’s fiscal fourth-quarter revenues grew seven percent … Read More
Being a buyer in this stock market is increasingly difficult as the main indices continue to push new highs and a lot of companies are fully priced.
While there are lots of corporations whose outlooks are improving going into 2014, expectations for earnings growth combined with dividends offer little in the way of value. That’s why a major stock market correction would be so healthy and helpful for those who wish to be invested in equities.
The Colgate-Palmolive Company (CL) is a blue chip company that’s proven to be an excellent long-term wealth creator for shareholders. The stock’s trailing price-to-earnings (P/E) ratio is currently around 27 and its forward P/E ratio is approximately 21.
The stock just broke the $65.00-per-share level after trading around $53.00 at the beginning of this year and $45.00 at the beginning of 2012. That’s a 44% gain in less than two years without including dividends.
Then there is NIKE, Inc. (NKE), another strong but mature brand that keeps hitting new record-highs on the stock market.
The company’s latest quarterly sales revealed an eight-percent gain to $6.97 billion, while net earnings grew a whopping 38% to $780 million. The company gave a rosy outlook for the next few years and its share price reflects this. About this time last month, the stock was trading around $70.00 a share. Now it’s right close to $80.00.
An institutional investor is paid to play the stock market, and while considering earnings growth potential, valuation, and general stock market conditions, a fund will often buy a stock just because it is going up. The quarterly window dressing of an equity … Read More
When we last looked at Alaska Air Group, Inc. (ALK), the position had pushed to a new record-high on the stock market, and it’s doing so again.
Many Dow Jones transportation stocks continue to exude price strength and in my mind, this action is one confirming factor that the broader stock market can go higher.
There has also been a spike in countless new initial public offerings (IPOs), which only makes sense with the stock market at an all-time high and the world awash in liquidity.
But it is difficult to consider buying stocks right at their highs. If one came into money and wanted to create a stock market portfolio, there’s not a lot of value for your investable dollar. Even income-seeking investors have to contend with high prices for the best dividend paying stocks.
Big investors have been buying dividend-paying blue chips all year and are likely to continue doing so unless there’s a catalyst to sell.
Automatic Data Processing, Inc. (ADP) just announced a solid 10% increase in its cash dividend to stockholders. The company will pay $0.48 a share, up from the previous $0.435 per share, on January 1, 2014 to shareholders of record on December 13, 2013. This is the company’s 39th consecutive year of increased dividends.
Not surprisingly, ADP has been a tremendous stock market winner this year. The position opened in January around $57.00 a share. Now it’s closing in on $77.00, with Street analysts continuing to increase the company’s earnings-per-share outlook for its next fiscal year. (See “Why Cash Is No Longer King.”)
For allocating new monies to … Read More
A large pharmaceutical company is always welcome in a long-term portfolio. Johnson & Johnson is a favorite because of its diverse healthcare offerings, including pharmaceuticals, medical devices, and diagnostics. The company’s consumer products business represents approximately one-fifth of total sales.
Roughly half of Johnson & Johnson’s revenues come from outside the U.S. market. What keeps the company’s sales momentum is its global pharmaceutical business, which grew a solid 10% in the third quarter of 2013 to $7.0 billion. U.S. pharmaceutical sales growth was eight percent, while international sales grew 14% (less two percent for negative currency impact).
What’s most impressive about Johnson & Johnson’s business is its dividend growth. In the first quarter this year, the company’s dividend was $0.61. In the second and third quarters, it was $0.66 a share. This year’s total dividends per share should be $2.59, compared to $1.93 in 2009.
Dividend reinvestment augments investment returns quite significantly with a position that’s increasing its dividends on a regular basis as is the case with Johnson & Johnson. If you bought shares in the company in February of 2012, your simple rate of return excluding dividends paid would be approximately 44%. If the dividends are reinvested, the total return jumps to approximately 53%.
Another company that’s given a performance similar to Johnson & Johnson’s over the long term is Abbott Laboratories (ABT).
The company is worth about a quarter of Johnson & Johnson’s stock market capitalization and has a strong presence in veterinary pharmaceuticals.
Along with beating Wall Street consensus in its latest earnings report, Abbott … Read More
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