A Grab Bag Of 6 Dividend Payers

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Includes: BMY, C, CAT, INTC, JNJ, PG
by: Hawkinvest

This might be a good time to re-balance your portfolio by selling some bonds and increasing exposure to stocks. A recent CNBC article stated:

Investors should shift from intermediate-term fixed income to large-cap equities ahead of a run-up in the markets expected later this year or in the first half of 2012, said Scott Wren, senior equity strategist at Wells Fargo Advisors .... "This global economic recovery is going to continue and we want to be able to take advantage of it," said Wren. Wells Fargo began advising investors to shift from intermediate-term fixed income investments to stocks of large-capitalized companies.

Many investors and analysts consider a "large cap" to be any company with a market capitalization of over $10 billion. With the stock market making wild swings, some investors are seeking stability in larger companies that pay dividends as a safe haven from the volatility, which is more common in small companies that pay no dividend.

Large capitalization companies trading at low price to earnings values and pay dividends which could rise in the future include Johnson & Johnson (NYSE:JNJ), a global maker of healthcare and medical products. This company owns well known brands such as Listerine, Motrin, Band-aid, Reach, Splenda, Tylenol, Lubriderm, Sudafed and many more. The current market capitalization for JNJ is about $177 billion.

Current share price: $64.64

The 52-week range is $57.50 to $68.05
Earnings estimates for 2011: $4.95
Earnings estimates for 2012: $5.26
Annual dividend: $2.28 per share, which yields 3.6%
Procter & Gamble (NYSE:PG) is a global maker of consumer goods. This company owns well known brands such as Head & Shoulders, Olay, Pantene, Braun, Fusion, Gillette, and many more. These types of products remain in high demand regardless of the global economic situation and the dividend pays you to wait for better times and stock valuations. The current market capitalization for PG is about $171 billion.
Current share price: $62.38
The 52-week range is $57.56 to $67.72
Earnings estimates for 2011: $4.23
Earnings estimates for 2012: $4.61
Annual dividend: $2.10 per share, which yields 3.4%
Bristol Myers (NYSE:BMY) is a leading pharmaceutical company. The dividend yield is almost 5% and the revenues at BMY are not likely to be impacted by the market correction. This stock has been very strong in a weak market and recently hit a new 52-week high. The current market capitalization for BMY is about $50 billion.
Current share price: $29.29
The 52-week range is $24.97 to $29.35
Earnings estimates for 2011: $2.25 per share
Earnings estimates for 2012: $2.04 per share
Annual dividend: $1.32 per share, which yields 4.6%
Caterpillar, Inc. (NYSE:CAT) is a leading maker of heavy equipment which includes machinery for agricultural, mining and construction. This stock has come well off of recent highs and now looks like a solid long term value. Growing demand for agricultural equipment should benefit Caterpillar in the future. The current market capitalization for CAT is about $55 billion.
Current share price: $85.70
The 52-week range is $63.34 to $116.55
Earnings estimates for 2011: $6.79 per share
Earnings estimates for 2012: $9.25 per share
Annual dividend: $1.84 per share, which yields 2.2%
Intel Corporation (NASDAQ:INTC) is a leading maker of chips used in notebooks, netbooks, desktops, mobile phones, consumer electronics devices, etc. Many investors believe that tech stocks hit seasonal lows at the end of September, so it might make sense to wait to buy later this month. The current market capitalization for INTC is about $102 billion.
Current share price: $19.54
The 52 week range is $17.60 to $23.96
Earnings estimates for 2011: $2.38 per share
Earnings estimates for 2012: $2.50 per share
Annual dividend: 84 cents per share, which yields 4.3%
Citigroup, Inc. (NYSE:C) is a banking and financial services giant. Almost every financial stock has been in declining and Citigroup is no different. With so many negative headlines against banks, it might pay to watch this stock for signs of a bottom before buying. The current market capitalization for C is about $80 billion.
Current share price: $27.70
The 52-week range is $26.25 to $51.50
Earnings estimates for 2011: $4.10 per share
Earnings estimates for 2012: $5.22 per share
Annual dividend: 4 cents per share, which yields 0.1%
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.