Freeport-McMoran (FCX), came out with some big announcements today: a 2-1 stock split and a $1/share special dividend. FCX closed up 2% today at $110.66 on the news.
The stock split was approved by the board of directors today and will take place in February 2011. As for the special dividend, the payments will be sent out on December 30 for all shareholders that hold the stock as of December 20. You have some time to get a stake in FCX to reap this special dividend.
Freeport's stock is able to boost its regular dividend from $1.20 to $2 and issue a special dividend based on its huge profits from the rising copper prices. The stock is up 38% this year and is positioning itself to move higher. Freeport is stepping up production to meet the demand for copper and is certainly reaping the benefits. Copper is expected to continue its climb after it closed at a record high yesterday, in the wake of higher demand and the construction of housing.
These events are fantastic but it also tells us, the investor, that Freeport cares about its shareholders and really want to return value to the shareholders. This is always a classic sign of a great, well-run company.
Fundamental Analysis
P/E: 14
Forward P/E: 11
Price/Sales: 2.84
PEG: 1.28
Price/Book: 4.4
ROE: 39%
Total Debt/Equity: 41
Revenue: 18B
Dividend yield: 3% (regular+special)
Earnings Growth (this year): 43%
Earnings Growth (next 5 years): 8%
Based on the fundamentals, it isn't oversold but the 8% growth over next 5 years isn't super attractive. However, you have to look at the some of the good signs: low P/E, low P/S, good ROE, great dividend. Remember, this is the bare bones fundamental analysis, more in depth would be needed to assume this is a good investment for you. Personally, FCX is a great way to play the rising demand of copper. They have solid management that know how to please the shareholders and they will continue to position themselves to profit nicely from copper and gold. FCX is one of my favorite mining stocks out there.
Trade: Pick up some FCX before December 20 to get in on that special dividend. I am bullish on FCX until copper's demand decreases. I would then scale back. In short, if you buy FCX, you have to be able to watch the copper and gold futures to monitor price movements and how they will affect the stock and its earnings.
Disclosure: plan on buying FCX in near future
Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. These trades and ideas are the opinions of the crew of Invest Chief. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.
Showing posts with label dividends. Show all posts
Showing posts with label dividends. Show all posts
Thursday, December 9, 2010
Sunday, December 5, 2010
Boosting Returns With These Dividend Stocks
There are many basics that you need for a well diversified portfolio. You need your techs like Intel (INTC), your energies Exxon Mobil (XOM), your food and drink Coca-Cola (KO), etc. What is very important for a basic portfolio to have is high yielding dividend stocks. Dividends are important because they can not only boost returns but they can also help cover losses sustained in the stock.
I put the stocks in bold for a reason, they all pay decent yielding dividends, 2.7%-3%.Yes, 3% is a good dividend but there are some stable companies paying huge dividends, 6-8%.
I recommend Verizon Communications (VZ), Eli Lilly (LLY), Waste Management (WM), Bristol-Myers Squibb (BMY), National Presto Industries (NPK).
Verizon Communications (VZ):
Verizon is the well known cell phone corporation that operates all over the US. Verizon recently introduced its new 4G experience which will be a huge growth driver over the next few years. VZ has benefited greatly from the Android phones this year, boosting sales. The big news for VZ is the fact that they may be getting the Apple iPhone in the coming year.
Dividend Yield: 6%
Price/Sales: .86
Eli Lilly (LLY)
Eli Lilly is a biotechnology company that develops drugs for mostly neuropsychological disorders such as schizophrenia, manic episodes, bipolar medications, ADHD, depression, etc. Although LLY is a strong company, its sales forecasts have been lowered because most of its cash cow drugs will be expiring. However, LLY is known for innovation and they are paying you pretty well to wait out any turbulence.
Dividend Yield: 5.7%
Price/Sales: 1.66
Waste Management (WM)
WM is a garbage company, literally. Waste Management offers collection, transfer, recycling, disposal, and waste-to-energy services. WM are the leaders of the trash industry with a market cap of 16.56B, nearly 5.5B larger than its next closest competitor Republic Services (RSG). WM has an expected growth of over 12% in 2011.
Dividend Yield: 3.6%
Price/Sales: 1.35
Bristol-Myers Squibb (BMY)
BMY is another pharmaceutical company that innovates drugs for serious diseases such as "affective (psychiatric) disorders, Alzheimer’s/dementia, cardiovascular (primarily atherosclerosis/thrombosis), diabetes, hepatitis, HIV/AIDS, obesity, oncology, rheumatoid arthritis and related diseases, and solid organ transplant". As you can tell by the list there are some very serious diseases on there: HIV/AIDS, Alzheimer's to name a few. BMY has had many successful drugs to combat these diseases and the stocks performance over the years shows that. BMY is one of the huge leaders in the biotech/pharmaceutical industry.
Dividend Yield: 5%
Price/Sales: 2.28
National Presto Industries (NPK)
A small, diversified company that makes diapers, cooking appliances and ammunition. NPK has a sizable insider holding of the stock at over 30%. Their balance sheets are clean of debt but the best part is they pay a regular dividend...and a special dividend every year. Thereby making a very sizable yield that is pretty attractive. NPK is estimated to grow over 11% in 2011. NPK is also estimated to make 157.75M this quarter, up 4.5% from last year.
Dividend Yield (Total): 6.5%
Price/Sales: 1.73
As you can see there are some nice dividends that were recommended that will surely boost your returns and give you some working capital while you earn capital gains. It is always important to have a great, big dividend yield to provide security in volatile times.
Announcements:
Dislosure: Long XOM
Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. These trades and ideas are the opinions of the crew of Invest Chief. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.
I put the stocks in bold for a reason, they all pay decent yielding dividends, 2.7%-3%.Yes, 3% is a good dividend but there are some stable companies paying huge dividends, 6-8%.
I recommend Verizon Communications (VZ), Eli Lilly (LLY), Waste Management (WM), Bristol-Myers Squibb (BMY), National Presto Industries (NPK).
Verizon Communications (VZ):
Verizon is the well known cell phone corporation that operates all over the US. Verizon recently introduced its new 4G experience which will be a huge growth driver over the next few years. VZ has benefited greatly from the Android phones this year, boosting sales. The big news for VZ is the fact that they may be getting the Apple iPhone in the coming year.
Dividend Yield: 6%
Price/Sales: .86
Eli Lilly (LLY)
Eli Lilly is a biotechnology company that develops drugs for mostly neuropsychological disorders such as schizophrenia, manic episodes, bipolar medications, ADHD, depression, etc. Although LLY is a strong company, its sales forecasts have been lowered because most of its cash cow drugs will be expiring. However, LLY is known for innovation and they are paying you pretty well to wait out any turbulence.
Dividend Yield: 5.7%
Price/Sales: 1.66
Waste Management (WM)
WM is a garbage company, literally. Waste Management offers collection, transfer, recycling, disposal, and waste-to-energy services. WM are the leaders of the trash industry with a market cap of 16.56B, nearly 5.5B larger than its next closest competitor Republic Services (RSG). WM has an expected growth of over 12% in 2011.
Dividend Yield: 3.6%
Price/Sales: 1.35
Bristol-Myers Squibb (BMY)
BMY is another pharmaceutical company that innovates drugs for serious diseases such as "affective (psychiatric) disorders, Alzheimer’s/dementia, cardiovascular (primarily atherosclerosis/thrombosis), diabetes, hepatitis, HIV/AIDS, obesity, oncology, rheumatoid arthritis and related diseases, and solid organ transplant". As you can tell by the list there are some very serious diseases on there: HIV/AIDS, Alzheimer's to name a few. BMY has had many successful drugs to combat these diseases and the stocks performance over the years shows that. BMY is one of the huge leaders in the biotech/pharmaceutical industry.
Dividend Yield: 5%
Price/Sales: 2.28
National Presto Industries (NPK)
A small, diversified company that makes diapers, cooking appliances and ammunition. NPK has a sizable insider holding of the stock at over 30%. Their balance sheets are clean of debt but the best part is they pay a regular dividend...and a special dividend every year. Thereby making a very sizable yield that is pretty attractive. NPK is estimated to grow over 11% in 2011. NPK is also estimated to make 157.75M this quarter, up 4.5% from last year.
Dividend Yield (Total): 6.5%
Price/Sales: 1.73
As you can see there are some nice dividends that were recommended that will surely boost your returns and give you some working capital while you earn capital gains. It is always important to have a great, big dividend yield to provide security in volatile times.
Announcements:
- Look for an upcoming interview with hedge fund manager Tim Ayles for his outlook for 2011 and how to set up your portfolio for success in the new year.
- Be sure to check out the "recommended ebook buys" section of the left side of the webpage to get in on some great financial ebooks that will make you money
- Also check out the book at the beginning of this post that can be purchased through Amazon. Aftershock by Robert Reich is a well done book about the 2008 crisis but way more indepth than most books about the crisis. Check it out, it is only $12.43, normally $25.
Dislosure: Long XOM
Disclaimer: Invest Chief is not held accountable to any loses sustained by stocks recommended. It is always important to do your own research of the stock before you invest. These trades and ideas are the opinions of the crew of Invest Chief. Invest Chief receives absolutely no compensation from companies that are recommended. We are a private organization, dedicated to promoting financial well being and prosperity.
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