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With the market pulling back of late should we begin to worry about a pullback or should we keep some dry powder to pick up stocks that are on our shopping lists? During the holiday shortened trading week, the S&P500 (NYSEARCA:SPY) fell 0.5% during the week while the Dow Jones Industrial Average and the Nasdaq logged a 0.1% loss and 0.6% loss, respectively.

Call me a pessimistic optimist, but for now I will continue the course and purchase value stocks for my dividend portfolio. Value investing is the bread and butter of Warren Buffett's money-making strategy. The essence of value investing is basically purchasing a stock at less than market value based on certain metrics. My philosophy on dividend investing is to utilize the forward price-to-earnings ratio and use a one-year PEG ratio, along with a dividend. I don't necessarily look for a stock with a high yield because I like to see capital appreciation. Because the market is still at all-time highs I maintain that it is difficult to find good stocks these days. That's why I'm highlighting a select set of excellent value companies in my dividend portfolio, which have had ex-dividend dates or paid out a dividend during this past week or early next week that people should place on their radar.

Cisco Systems, Inc. (NASDAQ:CSCO)

Cisco designs, manufactures and sells internet protocol-based networking and other products related to the communications and information technology industry and provides services associated with these products and their use. On 11/13/2013, CSCO reported 1 quarter 2014 earnings of $0.53 per share. This result was in-line with the consensus of the 35 analysts following the company and beat last year's 1 quarter results by 10.42%. Cisco's PE ratio is among the lowest of any stock in the Communications Equipment industry and signals that investors have not been willing to pay a premium for this company's business prospects, making it a value story. Additionally, during the past year, earnings growth has outpaced its historical five year growth rate.

The company went ex-dividend on 02Jan14 with a $0.17 per share dividend which will be paid on 22Jan14 for a yield of 3.09%. It was a pretty quiet week in terms of news pertaining to the company specifically with no press releases being issued.

Let's take a quick look at the technicals here to see if it can be bought at these levels or if a pullback is coming. As we can see, the relative strength index is near overbought territory with a current value of 59.42, while the MACD chart below shows the black line above the red line with decreasing divergence bars, meaning there may be some downward pressure on the stock price. I anticipate the stock to move down a little for now and I will not be buying it.

(click to enlarge)

Union Pacific Corporation (NYSE:UNP)

Union Pacific Corporation owns transportation companies, of which its principal operating company, Union Pacific Railroad Company, connects 23 states in the western 66% of the United States. On 10/17/2013, UNP reported 3rd quarter 2013 earnings of $2.48 per share. This result was in-line with the consensus of the 23 analysts following the company and beat last year's 3rd quarter results by 13.24%. Union Pacific's PE ratio is below the Railroads industry average and signals that investors are not willing to pay a premium for this stock, making it a value story. Additionally, during the past year, earnings growth has outpaced its historical five year growth rate.

The company went ex-dividend on 29Nov13 with a $0.79 per share dividend which was paid on 02Jan14 for a yield of 1.89%. It was a pretty quiet week in terms of news pertaining to the company specifically with no press releases being issued.

Let's take a quick look at the technicals here to see if it can be bought at these levels or if a pullback is coming. As we can see, the relative strength index is near overbought territory with a current value of 64.99, while the MACD chart below shows the black line above the red line with decreasing divergence bars, meaning there may be some downward pressure on the stock price. I anticipate the stock to move down a little for now and I will not be buying it.

(click to enlarge)

The Travelers Companies, Inc. (NYSE:TRV)

Travelers is engaged in providing a range of commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals. On 10/22/2013, TRV reported 3rd quarter 2013 earnings of $2.35 per share. This result beat the $2.07 consensus of the 26 analysts covering the company and beat last year's 3rd quarter results by 5.86%. Traveler's PE ratio is below the Insurance (Prop. & Casualty) industry average and signals that investors are not willing to pay a premium for this stock, making it a value story. Additionally, during the past year, earnings growth has outpaced its historical five year growth rate.

The company went ex-dividend on 06Dec13 with a $0.50 per share dividend which was paid on 31Dec13 for a yield of 2.24%. It was a pretty quiet week in terms of news pertaining to the company specifically with no press releases being issued.

Let's take a quick look at the technicals here to see if it can be bought at these levels or if a pullback is coming. As we can see, the relative strength index is in middle-ground territory with a current value of 53.51, while the MACD chart below shows the black line above the red line with downward trajectory and decreasing divergence bars, meaning there may be some downward pressure on the stock price. I anticipate the stock to drop a little bit more for now so I will not be buying it in the near-term.

(click to enlarge)

Conclusion

I've highlighted these names because they have all raised their dividend or initiated them within the past year and are poised to do so again in the coming years. It is important in this market to be able to hold onto companies which raise their dividend rates or initiated them, because it is a sign that the underlying company is doing well financially. The importance of these stocks I've highlighted is that they are value plays while the broader market is at all-time highs. I believe we are at a point in the market where we have to look for value.

Disclaimer: This article is meant to serve as a journal for myself as to the rationale of why I bought/sold this stock when I look back on it in the future. These are only my personal opinions and you should do your own homework. Only you are responsible for what you trade and happy investing!

Source: Cisco And 2 Other Value Dividend Payers That Should Be On Your Shopping List