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In a holiday shortened week stocks closed slightly lower on Friday but while the Nasdaq was able to finish its third straight week in positive territory, the Dow Jones Industrial Average Index and S&P500 failed to comply. With this bit of news I think I'll be avoiding tech stocks altogether as a contrarian play and looking into some really beaten down stocks in the other sectors. For the week the Dow Jones Industrial Average dropped 0.3% on the week while the S&P500 was down 0.1% and the Nasdaq logged a 0.5% gain on the week, respectively. I've been preaching for quite some time that value dividend stocks are the place to be, I believe there will be more downside to come, and as long as you're in excellent dividend paying value stocks you should be fine.

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 may be correcting itself from 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.

General Electric Company (NYSE:GE)

GE is a diversified technology and financial services company operating in the segments of aircraft engines, power generation, industrial products, water processing, household appliances, medical imagine, and business and consumer financing. On 17Jan14, GE reported fourth quarter 2013 earnings of $0.53 per share. This result was in-line with the consensus of the 15 analysts following the company and beat last year's fourth quarter results by 20.45%. GE's PE ratio is among the lowest of any stock in the misc. capital goods 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 20Feb14 with a $0.22 per share dividend which will be paid on 25Apr14 for a yield of 3.53%. In terms of news pertaining to the company this week, there were no press releases issued during the week by the company.

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 and downward trajectory with a current value of 42.27, while the MACD chart below shows the black line above the red line with decreasing divergence bars, meaning there may be some downward momentum on the stock price. I anticipate the stock to move down for now and wouldn't be initiating a new position here.

(click to enlarge)

Transocean Ltd (NYSE:RIG)

Transocean is an international provider of offshore contract drilling services for oil and gas wells. On 06Nov13, Transocean reported third quarter 2013 earnings of $1.37 per share. This result beat the $1.07 consensus of the 37 analysts covering the company and beat last year's third quarter results by 6.20%. The next earnings announcement is on 26Feb14. Transocean's PE ratio is among the lowest of any stock in the oil well services & equipment industry and signals that investors have not been willing to pay a premium for this company's business prospects, making it a value stock. Additionally, during the past year, earnings growth has outpaced its historical five year growth rate.

The company went ex-dividend on 19Feb14 with a $0.56 per share dividend which will be paid on 19Mar14 for a yield of 5.19%. In terms of news pertaining to the company this week, there were no press releases issued during the week by the company.

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 44.75 with upward trajectory, while the MACD chart below shows the black line above the red line with the divergence bars increasing in height, meaning there may be some bullish momentum coming. I anticipate the stock to move up for now but would only be buying a really small position as half the short-term move up is already gone.

(click to enlarge)

Covidien plc (NYSE:COV)

Covidien plc (COV) is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. On 24Jan14, Covidien reported first quarter 2014 earnings of $1.00 per share. This result beat the $0.94 consensus of the 21 analysts covering the company and missed last year's first quarter results by 9.09%. Covidien's PE ratio is below the medical equipment & supplies industry average and signals that investors are not willing to pay a premium for this stock, making it a value story. However, during the past year, earnings growth has lagged its historical five year growth rate.

The company went ex-dividend on 24Jan14 with a $0.32 per share dividend which was paid on 20Feb14 for a yield of 1.8%. In terms of news pertaining to the company this week, there were no press releases issued during the week by the company.

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 dropping from overbought territory with a current value of 62.54 with downward trajectory, while the MACD chart below shows the black line above the red line with the divergence bars decreasing in height, meaning there is some bearish momentum coming. I anticipate the stock to move down for now and won't be buying any positions at this time.

Conclusion

I've highlighted these names because they have all raised their dividend 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 may be correcting itself. 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: GE Heads A List Of 3 Value Dividend Stocks To Put On Your Radar