During the traditionally weak period that May through October brings to the markets, I like to look at dividend paying stocks to add to my portfolio. With so many companies out there today paying dividends, it is hard to sort through the countless numbers of research reports and choose just a few solid ones. Let’s look at just four dividend paying stocks this week that have attractive yields as well as healthy free cash flow.
Altera Corp. (ALTR) is a leading supplier of programmable semiconductors and related products that mainly serve customers in the telecom and wireless, industrial automation, military, networking and computer storage sectors.
First quarter sales were up 33 percent from the first quarter of 2010 at $535.8 million and new product sales increased 13 percent sequentially. First quarter net income was $224.1 million, $0.68 per diluted share, compared with net income of $231.6 million, $153.2 million, $0.50 per diluted share, in the first quarter of 2010. First quarter cash flow from operating activities was $297.0 million. Altera ended the quarter with $3.1 billion in cash and short-term investments.
“Despite the anticipated slow down in first quarter sales following a remarkable 2010 growth year, we experienced double-digit sequential growth in our 40-nm based devices, as these products are now entering the best part of their growth phase," said John Daane, President, CEO and Chairman of the Board.
Altera has free cash flow of 292.10 million with its current annual dividend yield at 0.55% ($0.24 per share) and has continually raised their dividend since 2007.
Carbo Ceramics, Inc. (CRR) manufactures and supplies ceramic proppants primarily used in the hydraulic fracturing of natural gas and oil wells in the United States and internationally. CRR also sells fracture simulation software, as well as provides fracture design, engineering, and consulting services to oil and natural gas companies.
Revenue for the first quarter of 2011 increased 22 percent, or $27.4 million, when compared with the first quarter of 2010. Operating profit for the first quarter of 2011 increased 60 percent, or $17.3 million, compared with the first quarter of 2010. This increase is due to higher sales volume, an increase in the average proppant selling price. Net income for the first quarter of 2011 increased 59 percent, or $11.2 million, compared with the first quarter of 2010.
CEO Gary Kolstad commented on the outlook for the Company stating, "We see industry activity remaining at high levels for the remainder of the year, which should provide continued opportunity for CARBO."
Carbo Cermics has free cash flow of 11.36 million with its current dividend yield at 0.54% ($.80 per share) and has continually raised the dividend since 1997.
Companhia de Bebidas Das Americas (ABV) engages in the production, distribution and sale of beer, draft beer, carbonated soft drinks, malt and other non-alcoholic and non-carbonated products in the Americas. The company provides its products under the brand names of Skol, Brahma, Antarctica, Guarana Antarctica, Gatorade, Brahva, Brahva Beats, Extra, Brahma Light, Brahma Ice, Quilmes, Stella Artois, Red Rock, Pepsi-Cola, Seven UP, Zenda, Concordia, Triple Kola, Quilmes Cristal, Brahma, Andes, Pacena, Taquina, Huari, Becker, Baltica, Pilsen, Patricia, Labatt Blue, Alexander Keiths, and Kokanee.
During the first quarter 2011, net revenue totaled $6,562.1 million over $ 6,121.4 million in first quarter 2010, a 7.2 percent increase. Net sales grew 10.5 percent, driven mainly by price increases across the regions, with net revenue growing 10.4 percent for the period.
“Our results in Brazil this quarter were positive despite the softer industry. We were able to increase our EBITDA margin as a result of our double digit top line growth and productivity initiatives”, says João Castro Neves, CEO for Ambev.
Ambev has free cash flow of 402.61 million with the current annual dividend yield at 4.60% ($1.47 per share) and has continually paid out a dividend since inception.
Chevron Corp. (CVX) engages in petroleum, chemicals, mining, power generation and energy operations worldwide. The Upstream segment is involved in the exploration, development and production of crude oil and natural gas. 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.
Chevron reported earnings of $6.2 billion ($3.09 per share, diluted) for the first quarter 2011, compared with $4.6 billion ($2.27 per share, diluted) in the 2010 first quarter, an amazing increase of 35 percent. Sales and other operating revenue in the first quarter 2011, were $58 billion, up 23 percent from $47 billion in the year-ago period, mainly due to higher prices for crude oil and refined products.
“Our first quarter financial performance was strong,” said Chairman and CEO John Watson. “Current quarter earnings from upstream operations benefited from higher prices for crude oil, while downstream operations benefited from improved margins on refined petroleum products. We continue to operate safely, advance our major capital projects and restructure our downstream portfolio.”
Chevron has free cash flow of $5.17 billion with the current annual dividend yield at 3.07% ($3.12 per share) and has continually paid out a dividend for the past 41 years.
This is just a first look at a few dividend paying stocks that also add diversification to a portfolio. I look forward to researching the next four.