In the past year, we have been big fans of private equity stocks and business development companies. These specialty finance companies are growing fast and increasing their dividends.
They are taking full advantage of the Fed�� easy money policies and the banking industry�� reluctance to finance small businesses.
Kohlberg Kravis Roberts & Co. (KKR) is a New York-based global private equity investment firm specializing in acquisitions, leveraged buyouts, managed buyouts, special situations, growth equity, as well as mature and middle market investments.
It is the best of breed, beating out its competitors in practically every category: return on equity (20.3%), operating cash flow ($6.2 billion) and dividend yield of 6%.
Best Food Companies To Own For 2015: Pitney Bowes Inc(PBI)
Pitney Bowes Inc. provides mail processing equipment and integrated mail solutions worldwide. It offers a suite of equipment, supplies, software, services, and solutions for managing and integrating physical and digital communication channels. The company?s Small & Medium Business Solutions group engages in the sale, rental, and financing of mail finishing, mail creation, and shipping equipment and software; provision of supply, support, and other professional services; and provision of payment solutions. Its Enterprise Business Solutions group sells, supports, and offers other professional services for high-speed production mail systems, and sorting and production print equipment; and sells and provides support services for non-equipment-based mailing, customer relationship and communication, and location intelligence software. This group also offers facilities management services; secure mail services; reprographic document management services; and litigation support and eDiscovery services, as well as provides presort mail services and cross-border mail services; and direct marketing services. Pitney Bowes Inc. markets its products and services through its sales force, direct mailings, outbound telemarketing, and independent distributors and dealers to various business, governmental, institutional, and other organizations. The company, formerly known as Pitney Bowes Postage Meter Company, was founded in 1920 and headquartered in Stamford, Connecticut.
Advisors' Opinion:- [By Ben Levisohn]
Combine Yellen’s dovishness–if it really is dovishness–with idiosyncratic company news, and some stocks were guaranteed to take off. Iron Mountain (IRM), for instance, gained 12% this week after the IRS said it had ended a working group considering REIT conversions and would now turn to its application. Pitney Bowes (PBI), meanwhile, rose 11% this week after activist investor Jana Partners revealed it had accumulated a large stake in the stock. Macy’s (M) advanced 11% after reporting much better earnings than forecast by analysts. Marathon Petroleum (MPC) finished the week up 10% as the difference between the price of oil here in the U.S. and the price abroad widened. Rounding out the top-five: J.C. Penney (JCP). The beaten-down retailer rose 9.7% this week, getting a boost from positive analyst comments and hedge-fund purchases.
Top Dividend Stocks To Own Right Now: Pacific Gas & Electric Co.(PCG)
PG&E Corporation, through its subsidiaries, operates as a public utility company that engages in electricity and natural gas distribution primarily in northern and central California. The company also involves in the generation, procurement, transmission, and distribution of electricity; and procurement, transportation, storage, and distribution of natural gas. It owns and operates electricity generation facilities, transmission and distribution lines, and substations; and an integrated natural gas transportation, storage, and distribution system, as well as has underground natural gas storage fields in California. The company serves residential, commercial, industrial, agricultural, public street and highway lighting, and other electric utility customers. As of December 31, 2009, it served approximately 5.1 million electricity distribution customers and approximately 4.3 million natural gas distribution customers. The company also operated 18,650 circuit miles of intercon nected transmission lines and 141,213 circuit miles of distribution lines for electricity; and 42,142 miles of distribution pipelines, 6,438 miles of backbone and local transmission pipelines, and 3 storage facilities for natural gas. PG&E Corporation was founded in 1905 and is based in San Francisco, California.
Advisors' Opinion:- [By Richard Stavros]
At present, when looking at the top five utilities with the largest capital expenditure programs, we found many firms were barely exceeding their cost of capital, while there were a few that weren’t. According to Bloomberg analytics, those that earned above their cost of capital were: Duke Energy Corp (NYSE: DUK) (1.32 percent), American Electric Power (1.12 percent), NextEra (0.64 percent) and Southern Company (2.94 percent), while those firms not earning their cost of capital were Dominion (-2.27 percent) and PG&E Corp (NYSE: PCG) (-0.36 percent).
- [By Richard Stavros]
Last August, PG&E Corp (NYSE: PCG), issued a callable 30-year bond (due Aug. 15, 2042) that yielded 3.75 percent at 99 (CUSIP: 694308HA8). But six months later, the bond was trading at a discount of 86.76 and yielding 4.586 percent, according to the last trade recorded by FINRA-Morningstar.
- [By Jayson Derrick]
Pacific Gas & Electric (NYSE: PCG) confirmed that it faces a possible $1.1 billion fine over the San Bruno blast. Shares lost 1.93 percent, closing at $45.70.
- [By Richard Stavros]
According to the Ceres ranking, NV Energy Inc, which was acquired late last year by Warren Buffett�� MidAmerican Energy Holdings Co, Xcel Energy Inc (NYSE: XEL), PG&E Corp (NYSE: PCG), Sempra Energy (NYSE: SRE) and Edison International (NYSE: EIX) ranked the highest for renewable energy sales. Renewable resources accounted for roughly 17 percent to 21 percent of their retail electricity sales in 2012.
Top Dividend Stocks To Own Right Now: Public Storage(PSA)
Public Storage operates as a real estate investment trust (REIT). It engages in the acquisition, development, ownership, and operation of self-storage facilities in the United States and Europe. The company?s self-storage facilities offer storage spaces for lease on a month-to-month basis for personal and business use. Public Storage also has interests in commercial properties containing commercial and industrial rental space; facilities that lease storage containers; and ancillary operations, which include reinsurance of policies against losses to goods stored by its self-storage tenants, retail operations comprising merchandise sales and truck rental operations. As of December 31, 2008, the company had interests in 2,012 self-storage facilities with approximately 127 million net rentable square feet in 38 states; and 181 self-storage facilities with approximately 10 million net rentable square feet in 7 western European nations. It also had direct and indirect equity int erests in approximately 21 million net rentable square feet of commercial space located in 11 states in the U.S. As a REIT, the company would not be subject to federal income tax to the extent that it distributes at least 90% of its taxable income to its shareholders. Public Storage was founded in 1971 and is based in Glendale, California.
Advisors' Opinion:- [By Will Ashworth]
In my mind you can�� go wrong operating at the higher end of the customer food chain. Look for AHP to buy some interesting properties over the next year or two.
Pure-Play REITs: Public Storage (PSA)PSA is the world�� largest owner and operator of self-storage facilities with over 1 million customers. As America�� preoccupation with owning stuff has grown exponentially in recent years, PSA’s business has come along for the ride.
- [By Mike Deane]
Public Storage (PSA) announced its third quarter earnings after the bell on Thursday, posting an increase in net income and revenues.
PSA Earnings in Brief
-Public Storage announced total quarterly revenues of $419 million, which were up from last year’s $397 million, but below the average analyst estimate of $464.58 million.
-The company’s net income came in at $231.4 million, or $1.34 per share, which was up from last year’s Q3 net income of $202.5 million, or $1.18 per share.
-PSA’s core FFO per share was up from last year’s $1.76 to $1.92 for the most recent quarter; this beat analysts’ estimates of $1.89.Dividend Raise
Public Storage announced that its board has approved to raise its dividend 12% to $1.40 per common share. This is a 15 cent raise from the company’s previous quarterly payout of $1.25 and brings the annualized payout to $5.60. The new dividend is payable on December 30 to all shareholders on record as of December 13.
Share Performance
PSA stock was down 66 cents, or 0.39%, on the day, but was up steeply in after-hours trading. YTD, the company’s stock is up 14.74%.
- [By Laura Brodbeck]
Friday
Earnings Expected From: Chevron Corporation (NYSE: CVX), OM Group, Inc. (NYSE: OMG), Public Storage (NYSE: PSA) Economic Releases Expected: �US ISM manufacturing index, Canadian manufacturing PMI, British manufacturing PMI, Norwegian unemployment ratePosted-In: Bank Of England Federal ReserveNews Eurozone Commodities Previews Global Economics Federal Reserve After-Hours Center Markets Trading Ideas Best of Benzinga
- [By Lawrence Meyers]
I also like both Public Storage (PSA) and its Series T preferred stock.
As a result of the financial crisis, many people lost their homes. What happens when people get evicted from a house? They downsize. That�� one reason we��e seen apartment REIT stock prices appreciate, but that�� also why Public Storage has done so well. You can�� fit a household�� worth of stuff into an apartment, so you rent storage for all those extra-large sofas. Housing remains troubled, and with people increasingly being moved into part-time jobs or leaving the workforce, this overall secular trend is continuing.
Top Dividend Stocks To Own Right Now: Reynolds American Inc(RAI)
Reynolds American Inc. (RAI), through its subsidiaries, manufactures and sells cigarette and other tobacco products in the United States. It offers cigarettes under the brand names of CAMEL, PALL MALL, WINSTON, KOOL, DORAL, SALEM, MISTY, and CAPRI; and cigarettes and other tobacco products under the NATURAL AMERICAN SPIRIT brand name, as well as manages various licensed brands, including DUNHILL and STATE EXPRESS 555. The company also provides smokeless tobacco products, including moist snuff under GRIZZLY and KODIAK brand names; pasteurized tobacco under CAMEL Snus brand name; milled tobacco under the brand name of CAMEL Dissolvables; other tobacco products, such as little cigars under WINCHESTER and CAPTAIN BLACK brand names; and roll-your-own tobacco under the brand name of BUGLER. RAI sells its products primarily through distributors, wholesalers, and other direct customers, including retail chains, as well as distributes its cigarettes to public warehouses. The compan y was founded in 1875 and is headquartered in Winston-Salem, North Carolina.
Advisors' Opinion:- [By abirk]
Reynolds American (RAI) is another good player in the tobacco industry. The company raised $2.55 billion in debt in late October to pay off existing debts and repurchase shares. This certainly doesn�� go in favor of the company. RAI has a high PEG of 2, which reflects that the company offers expensive growth in comparison to its peers.
- [By Rupert Hargreaves]
E-cigs, widely considered to be the "next big thing" in the world of big tobacco with sales eventually outpacing those of traditional cigarettes, are running into trouble. With�big tobacco companies like Altria (NYSE: MO ) , Reynolds American (NYSE: RAI ) , and Lorillard (NYSE: LO ) falling over themselves to get in on the action, regulators have started to take notice.
- [By Aaron Smith]
The stock price for Reynolds American (RAI), parent company of R.J. Reynolds Tobacco Co., fell about 3%. Other Big Tobacco stocks followed suit, with shares of Altria Group (MO) slipping about 2%. Philip Morris (PM) falling about 1% and Lorillard (LO) dropping nearly 3%.
- [By Jim Royal]
If you need a reason to avoid America's big tobacco companies Altria (NYSE: MO ) and Reynolds American (NYSE: RAI ) , the recently proposed budget by President Obama might just be enough. The new budget proposes nearly doubling the federal tax rate from $1.01 to $1.95 per pack.
Top Dividend Stocks To Own Right Now: Genuine Parts Company (GPC)
Genuine Parts Company distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, Canada, and Mexico. The company operates in four segments: Automotive Parts Group, Industrial Parts Group, Office Products Group, and Electrical/Electronic Materials Group. The Automotive Parts Group segment distributes automotive replacement parts for imported vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, and heavy duty equipment. This segment also distributes accessory items used in the automotive aftermarket, such as repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, industrial concerns, and individuals. It owns and operates automotive parts distribution centers and automotive parts stores under the NAPA name. The Industrial Parts G roup segment distributes industrial replacement parts and related supplies, such as bearings, mechanical power transmission, industrial automation, hose, hydraulic and pneumatic components, industrial supplies, and material handling products. This segment serves various industries, including the food, forest products, primary metal, paper, mining, automotive, petrochemical, and pharmaceutical industries. The Office Products Group segment involves in the wholesale distribution of a line of office and other business related products that are used in the daily operation of businesses, schools, offices, and institutions. The Electrical/Electronic Materials Group segment distributes insulating and conductive materials, assembly tools, test equipment, and custom fabricated parts. This segment provides distribution services to original equipment manufacturers, motor repair shops, and assembly markets. The company was founded in 1928 and is headquartered in Atlanta, Georgia.
Advisors' Opinion:- [By gurujx]
Genuine Parts Co (GPC) Reached the 52-Week High of $88.55
Genuine Parts Company is a Georgia corporation incorporated on May 7, 1928. Genuine Parts Co has a market cap of $13.56 billion; its shares were traded at around $88.55 with a P/E ratio of 20.20 and P/S ratio of 0.93. The dividend yield of Genuine Parts Co stocks is 2.56%. Genuine Parts Co had an annual average earnings growth of 6.60% over the past 10 years. GuruFocus rated Genuine Parts Co the business predictability rank of 5-star.
- [By Lawrence Meyers]
Genuine Parts Company (GPC) is a $12 billion company with 1,100 Napa Auto Parts stores in the US, Canada, and Mexico.�It holds $250 million in debt and $197 million in cash. �Free cash flow improved to $800 million in FY12 from $600 million in FY11. GPC has a projected long term-growth rate of 10%, and trades at a FY13 P/E of 19, so I consider it vastly overvalued.
- [By Dividends4Life]
According to a Gabelli Funds report, managed distribution policies offer several advantages, including:1. Lower difference between the fund�� market price and its NAV per share.2. Provides support during periods when the stock market is in a decline.3. Provides a measurable performance target for the investment adviser.Below are several high-yield funds from CEFA that have a managed distribution policy (yields as of December 16):Aberdeen Australia Eqty (IAF)- Distribution Yield: 10.4%- Income Yield: 3.46%Bexil Advisers LLC� (DNI)- Distribution Yield: 11.1%- Income Yield: 3.56%BlackRock En Capital&Inc (CII)- Distribution Yield: 8.78%- Income Yield: 2.34%Cornerstone Strat Value (CLM)- Distribution Yield: 18.77%- Income Yield: 1.83%Cornerstone Total Return (CRF)- Distribution Yield: 19.10%- Income Yield: 0.85%Delaware Inv Div & Inc (DDF)- Distribution Yield: 6.70%- Income Yield: 5.26%Gabelli Equity Trust (GAB)- Distribution Yield: 7.58%- Income Yield: 1.54%Gabelli Utility Trust (GUT)- Distribution Yield: 9.45%- Income Yield: 2.84%MFS Special Value Trust (MFV)- Distribution Yield: 9.60%- Income Yield: 5.73%Nuveen Tx-Adv TR Strat (JTA)- Distribution Yield: 6.70%- Income Yield: 3.12%TCW Strategic Income (TSI)- Distribution Yield: 10.54%- Income Yield: 7.88%Zweig Total Return (ZTR)- Distribution Yield: 7.27%- Income Yield: 1.95%As noted in the Gabelli report, a managed distribution policy may create confusion regarding the true current yield since the reported yield includes the return of capital portion. You can see the disparity above between the income yield and the distribution (reported) yield.If you are looking for a sustainable and growing dividend, you may want to consider some blue-chip dividend stocks such as these with a Free Cash Flow Payout less than 50%, 50+ years of consecutive dividend increases and a 2%+ yield:3M Co. (MMM) is a diversified global company provides enhanced product functionality in electronics, health care, industrial, consumer
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