The following companies recently reported positive earnings for the past quarter, exceeding their revenue and earnings estimates. These companies all pay dividends between 2% and 4.2%. Investors looking to add income producing stocks to their portfolios may want to consider a company from this list.
Weyerhaeuser Company (WY) is a $16.3 billion global company that is primarily all about wood and wood related products. The company is involved in the growing and harvesting of trees, building homes, and manufacturing forest products. Weyerhaeuser manages 6.4 million acres of commercial forestland and has licenses on 13.9 million acres of forestland.
Weyerhaeuser's revenue for Q4 2012 of $2 billion exceeded estimates by $220 million and was 23.8% higher than Q4 2011. Its earnings per share for Q4 of $0.26 exceeded estimates by 23.8% and increased 102% year-over-year.
The stock pays a dividend of 2.2%. However, the stock had a great run up recently and looks a bit overvalued with a trailing PE of 42.34, a forward PE of 21.63, and a PEG of 5.73. Investors may want to wait for a more attractive entry point before jumping in right here.
Procter & Gamble (PG) is a 3.1% yielding stock with a market cap of over $200 billion. This well-known consumer goods company offers a variety of beauty, health, grooming, baby care, fabric care, and other home care products.
Procter & Gamble's revenue increased 3% year-over-year to $22.2 billion. Earnings per share of $1.22 increased 140% year-over-year and beat estimates by 9.9%. The company increased its EPS estimates for 2013 to be $3.97 to $4.07 which was up from previous estimates of $3.80 to $4.00.
The company looks fairly valued with a forward PE ratio of 17.04, a PEG of 2.36, and a price to book ratio of 3.02. Over the past 10 years, the company increased its book value per share from $5 to its current level of about $24. PG is a great dividend paying stock that beats the market over the long-term.
Honeywell (HON) is a 2.4% yielding stock with a market cap of $53.5 billion. This diverse industrial goods company offers products for aerospace, automation and control, performance materials, and transportation systems.
Honeywell's Q4 report showed a revenue increase to $9.58 billion which was 1% higher year-over-year. The quarterly revenue beat estimates by $60 million. Earnings per share of $1.10 beat estimates by 0.9%. The company beat its earnings estimates in all four quarters of 2012.
The company looks fairly valued on the low end with a forward PE ratio of 12.58, a PEG of 1.33, and a price to book ratio of 4.12. The company is expected to grow earnings annually at over 10% for the next five years. Assuming dividends are reinvested, investors should expect to achieve a CAGR of 12% - 13% annually for the next five years.
Kimberly-Clark (KMB) is a 3.4% yielding diverse consumer products company that offers products that many use multiple times per day. The company's brands include: Huggies, Pull-Ups, Kotex, Depend, Scott, Kleenex, Cottonelle, Viva, and more.
Kimberly-Clark reported Q4 earnings per share of $1.37 which beat estimates by $0.02. Revenue of $5.3 billion beat estimates by $110 million. The company beat its earnings estimates for all four quarters of 2012.
The company is fairly valued with a forward PE ratio of 14.56 and a PEG ratio of 2.13. KMB is expected to grow earnings annually at 7.25% for the next five years. If dividends are reinvested, investors should expect a $10,000 investment in the stock to be worth over $16,000 in five years.
EQT Midstream Partners (EQM) is a 4.2% yielding Pittsburgh based Master Limited Partnership ((MLP)). The partnership provides natural gas transmission, storage and gathering services in Pennsylvania and West Virginia.
EQM reported Q4 earnings per share of $0.57, which beat estimates by $0.17. Revenue of $41.8 million also beat estimates by $3.4 million.
EQM looks attractively valued as it trades at 2.58 times its net asset value per share. For the past twelve months, the partnership has brought in $55.75 million in operating cash flow. It's expected to grow earnings annually at 6.3% for the next five years. An excellent resource for investors considering owning an MLP can be found here.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.