Seeking Alpha
Dividend investing
Profile| Send Message|
( followers)  

High dividend investing is one proven strategy many investors use to mitigate risk and produce income in either volatile or bear markets. With the continued market uncertainty, dividend stocks are the place to be for more consistent income. These stocks have low beta and great dividend growth in the next few years. They also have a very bullish consensus among analysts following the stock. Here is a list of low beta dividend stocks with a bullish outlook to place on your watch list.

Lorillard, Inc. (LO) manufactures and sells cigarettes in the United States. It markets approximately 43 product offerings in various brand names, including Newport, Kent, True, Maverick and Old Gold. LO has a market cap of $17.8 billion. LO is trading at $136.04 with a PE of 17. In August 2011, LO's directors approved an additional share repurchase program for up to $750 million of its common stock. As of December 31, 2011, the program had approximately $187 million remaining. LO has a current dividend yield of 4.55%, which was increased 19% in February 2011. LO has a 1-year beta of 0.39. EPS are projected to increase 12.5% in 2012 and 11.3% in 2013. LO has an equity summary score of 9.7 out of 10 for a Very Bullish outlook. The First Call Consensus with 11 Analysts is a Buy.

In mid-October 2011, Abbott Laboratories (ABT) announced a planned split up of the company, to be accomplished through the spin-off to shareholders of the research based pharmaceuticals business (estimated sales of $18 billion) as a separate concern. Abbott will retain its legacy medical products operations (sales of $22 billion), comprising diagnostics, devices, nutritionals and generic drug operations. We believe this move will result in higher valuations for each company, with investors better able to focus and appreciate the respective growth potential of each firm. We expect the planned tax-free spin-off, subject to customary approvals, to be completed by the end of 2012. ABT has a market cap of $93.8 billion. ABT is trading at $59.72 with a PE of 20. ABT has a current dividend yield of 3.42%, which was increased 16% in the past year. ABT has a 1-year beta of 0.41. EPS are projected to increase 7.5% in 2012. ABT has an equity summary score of 9.3 out of 10 for a Very Bullish outlook. The First Call Consensus with 23 Analysts is a Buy.

Dr Pepper Snapple Group, Inc. (DPS) engages in the ownership, manufacture, and distribution of non-alcoholic beverages in the United States, Canada, Mexico, and the Caribbean. For 2012, we forecast revenue growth of 2.5%, to approximately $6.1 billion, on modest price increases and flat to slightly higher volume, paced by flavored carbonated soft drink share gains. We think growth will continue to be driven by single-serve wins in fountain and continued expansion of the cold drink program. DPS is targeting approximately 20,000 new cold drink placements and 20,000 to 30,000 incremental valves. EPS are projected to increase 5.0% in 2012 and 8.0% in 2013. DPS has a market cap of $8.4 billion. DPS is trading at $39.00 with a PE of 14. DPS has a current dividend yield of 3.45%, which was increased 36% in the past year. DPS has a 1-year beta of 0.49. DPS has an equity summary score of 9.6 out of 10 for a Very Bullish outlook.

Enterprise Products Partners L.P. (EPD) provides midstream energy services to producers and consumers of natural gas, natural gas liquids, crude oil, refined products, and petrochemicals in the United States, Canada, and Gulf of Mexico. We expect rising pipeline volumes to boost earnings and cash flow over the next several years, as EPD has a large portfolio of organic projects that we think offer potentially high returns at relatively low risk. EPD has a market cap of $43.7 billion. EPD is trading at $49.73 with a PE of 20. EPD has a 1-year beta of 0.56. EPD declared a fourth-quarter 2011 distribution of $0.62 per unit, a 5.1% increase from a year earlier. We expect EPD to declare cash distributions per unit of $2.58 in 2012, up 6.0% from 2011. EPD has an equity summary score of 9.1 out of 10 for a Very Bullish outlook. The First Call Consensus with 21 Analysts is a Buy.

(click to enlarge)

Source: 4 Low-Beta Dividend Stocks With A Bullish Outlook