There was big news out of the market for dividend and income investors last week. Two of the bluest blue chips, Microsoft (MSFT) and McDonald's (MCD), both announced big dividend increases.
Microsoft pleased the Street with a 22% increase to its dividend, climbing to $1.12 annually that equates to a current yield of 3.4%. Microsoft also announced another $40 billion share buyback program to replace its existing $40 billion authorization that is set to expire on Sep 30. McDonalds announced a dividend increase of its own, raising its payout by 5% to 81 cents per share, lifting its current yield to 3.3%.
But that got me thinking: Which companies from the S&P 500 are the most shareholder friendly, with the biggest dividend increases in the last 5 years? Here is a list of the top 5 companies from the last 5 years with the biggest dividend increases.
Top 10 Blue Chip Companies To Own In Right Now: Visa Inc.(V)
Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services. It also offers a range of payments platforms, which enable credit, charge, deferred debit, debit, and prepaid payments, as well as cash access for consumers, businesses, and government entities. The company provides its payment platforms under the Visa, Visa Electron, PLUS, and Interlink brand names. In addition, it offers value-added services, including risk management, issuer processing, loyalty, dispute management, value-added information, and CyberSource-branded services. The company is headquartered in San Francisco, California.
Advisors' Opinion:- [By Matt Koppenheffer and David Hanson]
Both Visa (NYSE: V ) and MasterCard (NYSE: MA ) have consistently outperformed for investors, based on what many see as a rock-solid simple investing thesis: that these companies have nowhere to go but up as the world switches from cash transactions to credit. But is that thesis just a little too simple to be safe? And can the growth ahead really justify these very pricey multiples? In this video, Fool financial analysts Matt Koppenheffer and David Hanson discuss which of these two hot financial stocks is a more attractive buy today.
- [By Chris Hill]
Shares of Visa (NYSE: V ) rose to an all-time high this week after the company reported stronger-than-expected second-quarter earnings. Earlier in the week, Mastercard (NYSE: MA ) reported a 12% increase in first-quarter profits, but shares fell on lower-than-expected revenues. In this installment of Motley Fool Money, our analysts discuss Visa, MasterCard, and the future of electronic payments.
- [By Rich Smith]
Good news
The good news, though, is that in many cases at least you can get the same peace of mind from an extended warranty (even if you never get to use it) by simply buying with a credit card. Most products you buy, after all, come with a manufacturer's warranty built right in. And depending on the card you use to buy an item, MasterCard (NYSE: MA ) or Visa (NYSE: V ) for example will often automatically double the length of any manufacturer's warranty, adding as much as a year to your warranty period free of charge. - [By Jonas Elmerraji]
You don't have to be an expert technical analyst to figure out what's going on in shares of Visa (V) right now. The preeminent payment network is currently bouncing higher in a well-defined uptrend that's propelled shares since the start of 2013. This week, with shares testing that trendline support level for an eighth time, we're coming up on an ideal time to be a buyer.
But don't buy shares of Visa anticipating a move higher. Instead, wait for the bounce. Buying off a support bounce makes sense for two big reasons: it's the spot where shares have the furthest to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before you know you're wrong). And by actually waiting for the bounce to happen first, you're ensuring the Visa can actually still catch a bid along that line.
Remember, trendlines do eventually fail, and when this one does, you don't want to be holding the bag. We could very well get our bounce today in Visa. If you decide to buy, keep a tight stop in place.
Top 10 Blue Chip Companies To Own In Right Now: Apple Inc.(AAPL)
Apple Inc., together with subsidiaries, designs, manufactures, and markets personal computers, mobile communication and media devices, and portable digital music players, as well as sells related software, services, peripherals, networking solutions, and third-party digital content and applications worldwide. The company sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. In addition, it sells third-party Mac, iPhone, iPad, and iPod compatible products, including application software, printers, storage devices, speakers, headphones, and other accessories and peripherals through its online and retail stores; and digital content and applications through the iTunes Store. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative markets. As of September 25, 2010, it had 317 retail stores, including 233 stores in the United States and 84 stores internationally. The company, formerly known as Apple Computer, Inc., was founded in 1976 and is headquartered in Cupertino, California.
Advisors' Opinion:- [By Evan Niu, CFA]
Over the past seven months, Apple (NASDAQ: AAPL ) has been engulfed in an endless spiral of negativity. Whereas once the Mac maker could do no wrong, overwhelming investor fear about deceleration and market saturation got the best of Apple, quickly turning it into a shunned stock.
- [By Jared Cummans]
After much anticipation surrounding its latest devices, on Tuesday Apple (AAPL) finally detailed the next products in its iPhone pipeline.
As many had expected, the company announced not one, but two new models. The iPhone 5S is the newest device with a number of upgrades over the older device. One of its most unique new features is a fingerprint scanner built into the home button that gives the user added security and ease of use.
The second model that was shown was the iPhone 5C. This product will feature a price point of just $99 and will be marketed mainly towards overseas markets that wish to utilize the iPhone technology but not at the hefty price tag that comes with the device in the U.S. This move looks to directly chip away at Android devices, which have been dominating emerging markets for some time now.
Investors were apparently unimpressed with the new devices, as Apple’s stock was down $11.53, or 2.33%, at Tuesday’s close.
- [By Dan Caplinger]
Over the past month, U.S. lawmakers have focused their attention on the tax-avoidance strategies that Apple (NASDAQ: AAPL ) has put in place to minimize its U.S. corporate income tax bill. With sophisticated corporate structuring designed to take advantage of various U.S. and foreign tax laws, companies can successfully navigate differences in the way nations handle international taxation to minimize their tax exposure.
- [By Daniel Sparks]
Apple's (NASDAQ: AAPL ) event this Tuesday has been confirmed. The company is expected to launch a new version of its full-sized iPad and iPad Mini. Let's look at what we know and, more importantly, what we don't know. Despite the company's hyperactive rumor mill, there are still several intriguing mysteries.
Top Performing Stocks To Watch Right Now: Colgate-Palmolive Company(CL)
Colgate-Palmolive Company, together with its subsidiaries, manufactures and markets consumer products worldwide. It offers oral care products, including toothpaste, toothbrushes, and mouth rinses, as well as dental floss and pharmaceutical products for dentists and other oral health professionals; personal care products, such as liquid hand soap, shower gels, bar soaps, deodorants, antiperspirants, shampoos, and conditioners; and home care products comprising laundry and dishwashing detergents, fabric conditioners, household cleaners, bleaches, dishwashing liquids, and oil soaps. The company offers its oral, personal, and home care products under the Colgate Total, Colgate Max Fresh, Colgate 360 Advisors' Opinion:
- [By Eric Volkman]
It's one of the steadiest dividend payers on the market, and it's continuing to fly level. Colgate-Palmolive (NYSE: CL ) has declared a fresh quarterly common stock dividend, which is to be $0.34 per share, paid on August 15 to shareholders of record as of July 23. That amount matches the firm's previous distribution; this was paid in May. Prior to that, Colgate-Palmolive handed out $0.31 per share.
- [By Dan Caplinger]
Investors have always been interested in stocks that pay dividends, but lately, low interest rates on bonds and other fixed-income investments have made solid dividend payers even more valuable. Among the most promising dividend stocks in the market is Colgate-Palmolive (NYSE: CL ) , and one big reason is that it is one of the few exclusive companies to make the list of Dividend Aristocrats. In order to become a member of this elite group, a company must have raised its dividend payouts to shareholders every single year for at least a quarter-century. Only a few dozen stocks manage to make the cut, and those that do tend to stay there for a long time.
Top 10 Blue Chip Companies To Own In Right Now: McDonald's Corporation(MCD)
McDonald?s Corporation, together with its subsidiaries, operates as a worldwide foodservice retailer. It franchises and operates McDonald?s restaurants that offer various food items, soft drinks, coffee, and other beverages. As of December 31, 2009, the company operated 32,478 restaurants in 117 countries, of which 26,216 were operated by franchisees; and 6,262 were operated by the company. McDonald?s Corporation was founded in 1948 and is based in Oak Brook, Illinois.
Advisors' Opinion:- [By Tim McAleenan Jr.]
Mankiw mentions that investors should get European exposure. Why not just buy McDonald's (MCD) stock? That accounts for 40% of McDonald's sales and operating profit, and gives investors exposure to Europe. McDonald's has 1,400 restaurants in Germany and over 1,200 chains in France. In fact, part of McDonald's explanation for weak earnings numbers lately has been the strength of the dollar against the euro. If you want to bet on a strengthening euro, you could do it on the backs of Big Macs and McNuggets by purchasing shares of a company that would allow a strengthening euro to translate into growing quarterly dividend checks in your pocket.
- [By Rick Munarriz]
Starbucks (NASDAQ: SBUX ) turned heads a few years ago when it began offering smoothies, and McDonald's (NYSE: MCD ) followed suit in 2010 by adding the frosty fruit beverages to its McCafe line. Burger King Worldwide (NYSE: BKW ) became the latest player to throw marketing muscle behind its smoothie offerings.
- [By Rick Munarriz]
The allure may be obvious. Average ticket prices could head higher as customers trade up from sodas and beers. However, McDonald's (NYSE: MCD ) also thought that it could boost sales and woo new customers by adding premium beverages. It hasn't exactly worked out well lately. Comps turned negative in October for the first time in a decade, and customer complaints are growing.�
Top 10 Blue Chip Companies To Own In Right Now: International Business Machines Corporation(IBM)
International Business Machines Corporation (IBM) provides information technology (IT) products and services worldwide. Its Global Technology Services segment provides IT infrastructure and business process services, including strategic outsourcing, process, integrated technology, and maintenance services, as well as technology-based support services. The company?s Global Business Services segment offers consulting and systems integration, and application management services. Its Software segment offers middleware and operating systems software, such as WebSphere software to integrate and manage business processes; information management software for database and enterprise content management, information integration, data warehousing, business analytics and intelligence, performance management, and predictive analytics; Tivoli software for identity management, data security, storage management, and datacenter automation; Lotus software for collaboration, messaging, and so cial networking; rational software to support software development for IT and embedded systems; business intelligence software, which provides querying and forecasting tools; SPSS predictive analytics software to predict outcomes and act on that insight; and operating systems software. Its Systems and Technology segment provides computing and storage solutions, including servers, disk and tape storage systems and software, point-of-sale retail systems, and microelectronics. The company?s Global Financing segment provides lease and loan financing to end users and internal clients; commercial financing to dealers and remarketers of IT products; and remanufacturing and remarketing services. It serves financial services, public, industrial, distribution, communications, and general business sectors. The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to International Business Machines Corporation in 1924. IBM was founded in 1910 and is based in Armonk, New York.
Advisors' Opinion:- [By Stoyan Bojinov]
The New York-based information technology juggernaut, IBM Corp. (IBM), made two announcements on Tuesday that resonated well among shareholders.
First, the company’s board of directors approved an additional $15 billion to be used for stock repurchases. This brings the total amount designated for share buybacks to over $20 billion, seeing as how there were approximately $5.6 billion left at the end of September 2013 from the prior repurchase authorization. According to company officials, IBM expects to request another repurchase authorization at the October board meeting in 2014.
The second piece of good news on the day was a declared dividend, adding to the company’s flawless quarterly payout record since 1916. IBM announced a regular quarterly cash dividend of $0.95 per share, payable on December 10, 2013 to shareholders on record as of November 8, 2013.
IBM shares rallied on Tuesday, gaining a solid 2.69% as the trading session drew to a close. The stock is down nearly 5% YTD.
- [By Holly LaFon]
Financially, BMC has a history of strong earnings, revenue and cash flow growth. Revenue has increased each of the last 10 years to a record $2 billion in fiscal 2011, and cash flow reached $743 in 2011, compared to $613 in 2010. Earnings have also steadily increased over the last 10 years, reaching a record $456 million in fiscal 2011. Operating margins reached their highest level of the decade in the quarter ended Sept. 30, 2011, at 30.9% and its net margin was at 20.6%, lower than 22.2% in 2010, but higher than the previous years of the decade. The record earnings and stock price drop pushed BMC�� P/E to historically low levels in 2011, though higher than competitors Microsoft (MSFT) and IBM (IBM):
- [By Trustamind]
Warren Buffett surprised everyone when he announced that Berkshire (BRK.A) (BRK.B) bought 5.5% shares of IBM (IBM) last November. No matter how bizarre it looks, there was sound logic behind Buffett�� decision, as he explained in his interview with CNN.
- [By Matt Thalman]
Consider that the mother of all server companies, IBM (NYSE: IBM ) just announced quarterly earnings this past week and missed on the top and bottom lines. It was the company's first earnings miss since 2005. The main reason for the miss was weak demand in the IT hardware segment, and analysts think this is a bad sign moving forward for the whole industry, not just for IBM.
Top 10 Blue Chip Companies To Own In Right Now: Philip Morris International Inc(PM)
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.
Advisors' Opinion:- [By Fede Zaldua]
Imperial trades cheaply and pays a great, sustainable and for-ever-growing 4.5% cash dividend yield. The company's 2014 10.4 times P/E multiple represents a 40% discount to what most European consumer staples sell for. Besides, the owner of brands such as Davidoff and Gauloises, trades at a much more conservative level than its direct tobacco peers. Philip Morris International (PM) and British American Tobacco (BTI) sell for 2014 15 and 14.2 times earnings, respectively.
- [By Sean Williams]
Russia's move could pose a threat to global cigarette producers such as Philip Morris International (NYSE: PM ) and British American Tobacco. Although both tobacco producers operate around the globe, a dramatic shift in curbing smoking from the world's third-largest tobacco consumer is bound to sting. In Philip Morris' case, according to Trefis, Russia accounted for approximately 6% of its total revenue last year, and the Eastern Europe, Middle East and Africa region accounted for roughly one-quarter of sales.�
- [By Bill Maurer]
Philip Morris (PM):
Philip Morris saw a surprise short interest drop of more than 20% during the final two weeks of March. More than 2.5 million of the roughly 12.2 million shares short were covered, stopping the recent rise in short interest that you can see in the chart below.
Top 10 Blue Chip Companies To Own In Right Now: Chevron Corporation(CVX)
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.
Advisors' Opinion:- [By Dan Carroll]
Among blue-chip stocks, oil majors have surged higher. ExxonMobil (NYSE: XOM ) shares have jumped 1.2% to rank among the top Dow leaders, and fellow firm Chevron (NYSE: CVX ) has seen its stock rise 1.6%. Chevron got a boost today when a Canadian court turned away a $19 billion Ecuadorian claim against the company that stems from alleged pollution in the 1970s and '80s. While that's one less headache for Chevron, Exxon has run into trouble despite its stock's surge: The company's dealing with a small oil leak in Missouri from the same pipeline that leaked in Arkansas in March. While the spill is minuscule, it's another PR hit for a company that could use some good news.
- [By Lee Jackson]
Chevron Corp. (NYSE: CVX), in addition to benefiting from Syria-related higher oil prices, announced last week that it will make large investments in Argentina�� shale oil and gas fields. The UBS price target for the stock is $125. The Thomson/First Call estimate is at $135. Investors are paid a solid 3.3% dividend.
- [By David Smith]
The second "Gasland" also touches down briefly in Queensland, Australia, where anti-fracking protests have begun. It then moves to a description of "demonstrations across Europe". Named as specific sites are the U.K., Bulgaria, Romania, France, and Canada. Little did we know that our neighbors to the north had hightailed it across the pond. Poland, where Chevron (NYSE: CVX ) has undertaken an ambitious shale drilling program is essentially unmentioned.
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