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Only stocks that met the following criteria were included in this list. Additionally, when it comes to stocks that pay out dividends novice investors should not obsess about the yield factor only. High yields are generally not associated with safe long-term investors, and unusually high yields are usually a sign that all is not well with the company.

  1. Net income should be generally trending upwards for the past 3 years
  2. EPS should be trending upwards for the past 3 years
  3. Sales should be trending upwards for the past 3 years
  4. Cash flow per share should be trending upwards for the past 3 years
  5. Annual EPS before NRI should be generally trending upwards for the past 3 years
  6. EBITDA should be generally trending upwards for the past 3 years
  7. 3-5 year projected EPS growth rate of 6.75 or higher
  8. If the company has a positive levered free cash flow, it should be viewed as "icing on the cake"

Noble Energy meets with all the above requirements and then some.

  • Net income has increased from $-131 million in 2009 to $453 million in 2011
  • It has a strong revenue growth rate of 30%
  • A beta of 1.20 which makes it a good candidate for covered writes
  • Daily finance list the quarterly earnings growth rate at 1700%
  • Institutions strongly support this stock; percentage held by institutions is 95%
  • EBITDA has increased from $636 million in 2009 to $1.74 billion in 2011
  • Cash flow per share has increased from $8.11 in 2009 to $10.83 in 2011
  • Sales surged from $2.3 billion in 2009 to $3.7 billion in 2011
  • Annual EPS before NRI has risen from $3.37 in 2009 to $5.31 in 2011
  • A good long term debt to equity ratio of 0.54
  • A strong 5 year dividend growth rate of 11%
  • An excellent interest coverage ratio of 12.69
  • A projected 3-5 year EPS growth rate of 25%
  • Projected year over year growth rates of 22 and 24% in 2012 and 2013 respectively
  • The Leviathan field, discovered by a consortium lead by Noble Energy and Israel's Delek Energy in 2010 off Israel's Mediterranean coast is considered to be the largest deepwater natural gas find of the past decade. Reserves are estimated at about 17 trillion cubic feet. The consortium now is hoping to find around 600 million barrels of oil hidden in a layer beneath the gas.
  • $100K invested for 10 years would have grown to $509K

Company: Noble Energy (NYSE:NBL)

Basic Key ratios

Percentage Held by Insiders = 2.7

Growth

  1. Net Income ($mil) 12/2011 = 453
  2. Net Income ($mil) 12/2010 = 725
  3. Net Income ($mil) 12/2009 = -131
  4. 12months Net Income this Quarterly/12 months Net Income 4Q's ago = 39.84
  5. Quarterly Net Income this Quarterly/same Quarter year ago = 1778.57
  6. EBITDA ($mil) 12/2011 = 1745
  7. EBITDA ($mil) 12/2010 = 1986
  8. EBITDA ($mil) 12/2009 = 636
  9. Annual Net Income this Yr/ Net Income last Yr = -37.52
  10. Cash Flow ($/share) 12/2011 = 10.83
  11. Cash Flow ($/share) 12/2010 = 9.3
  12. Cash Flow ($/share) 12/2009 = 8.11
  1. Sales ($mil) 12/2011 = 3763
  2. Sales ($mil) 12/2010 = 3022
  3. Sales ($mil) 12/2009 = 2313
  1. Annual EPS before NRI 12/2009 = 3.37
  2. Annual EPS before NRI 12/2010 = 4.22
  3. Annual EPS before NRI 12/2011 = 5.31

Dividend history

  1. Dividend Yield = 0.9
  2. Dividend Yield 5 Year Average 12/2011 = 0.96
  3. Forward Yield = 0.89
  4. Dividend 5 year Growth 12/2011 = 11.5

Dividend sustainability

  1. Payout Ratio 09/2011 = 0.16
  2. Payout Ratio 06/2011 = 0.17
  3. Payout Ratio 5 Year Average 12/2011 = 0.15
  4. Payout Ratio 5 Year Average 09/2011 = 0.15
  5. Payout Ratio 5 Year Average 06/2011 = 0.14
  6. Change in Payout Ratio = 0.01

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = 6.15
  2. Next 3-5 Year Estimate EPS Growth rate = 25.04
  3. EPS Growth Quarterly(1)/Q(-3) = -129.63
  4. 5 Year History EPS Growth 12/2011 = -4.36
  5. ROE 5 Year Average 12/2011 = 15.8
  6. Return on Investment 06/2011 = 9.01
  7. Debt/Total Cap 5 Year Average 12/2011 = 28.3
  8. Current Ratio 12/2011 = 0.99
  9. Current Ratio 5 Year Average = 1.39
  10. Quick Ratio = 1.07
  11. Cash Ratio = 0.72
  12. Interest Coverage Quarterly = 12.69

Valuation

  1. Book Value Quarterly = 42.14
  2. Price/ Book = 2.34
  3. Price/ Cash Flow = 9.09

Company: Anadarko Petrol (NYSE:APC)

Basic Key ratios

Percentage Held by Insiders = 0.19

Growth

  1. Net Income ($mil) 12/2011 = -2649
  2. Net Income ($mil) 12/2010 = 761
  3. Net Income ($mil) 12/2009 = -135
  4. 12months Net Income this Quarterly/12 months Net Income 4Q's ago = -371.65
  5. Quarterly Net Income this Quarterly/same Quarter year ago = 898.15
  1. EBITDA ($mil) 12/2011 = 1245
  2. EBITDA ($mil) 12/2010 = 6210
  3. EBITDA ($mil) 12/2009 = 4126
  4. Annual Net Income this Yr/ Net Income last Yr = -448.1
  5. Cash Flow ($/share) 12/2011 = 11.07
  6. Cash Flow ($/share) 12/2010 = 9.32
  7. Cash Flow ($/share) 12/2009 = 6.25
  1. Sales ($mil) 12/2011 = 13967
  2. Sales ($mil) 12/2010 = 10984
  3. Sales ($mil) 12/2009 = 9000
  1. Annual EPS before NRI 12/2007 = 8.34
  2. Annual EPS before NRI 12/2008 = 6.92
  3. Annual EPS before NRI 12/2009 = -0.96
  4. Annual EPS before NRI 12/2010 = 1.81
  5. Annual EPS before NRI 12/2011 = 3.38

Dividend history

  1. Dividend Yield = 0.49
  2. Dividend Yield 5 Year Average 12/2011 = 0.63
  3. Forward Yield = 0.49
  4. Dividend 5 year Growth 12/2011 = 0

Dividend sustainability

  1. Payout Ratio 06/2011 = 0.11
  2. Payout Ratio 5 Year Average 12/2011 = 0.2
  3. Change in Payout Ratio = -0.1

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = -7.94
  2. Next 3-5 Year Estimate EPS Growth rate = 27.15
  3. EPS Growth Quarterly(1)/Q(-3) = -126.03
  4. 5 Year History EPS Growth 12/2011 = N/A
  5. ROE 5 Year Average 12/2011 = 6.93
  6. Return on Investment 06/2011 = 4.94
  7. Debt/Total Cap 5 Year Average 12/2011 = 39.25
  8. Current Ratio 06/2011 = 1.42
  9. Current Ratio 5 Year Average = 1.25
  10. Quick Ratio = 1.42
  11. Cash Ratio = 0.75
  12. Interest Coverage Quarterly = N/A

Valuation

  1. Book Value Quarterly = 38.12
  2. Price/ Book = 1.74
  3. Price/ Cash Flow = 6.59

Company: Continental Resources (NYSE:CLR)

Basic Key ratios

  1. Percentage Held by Insiders = 68.59
  2. Number of Institutional Sellers 12 Weeks = 2

Growth

  1. Net Income ($mil) 12/2011 = 429
  2. Net Income ($mil) 12/2010 = 168
  3. Net Income ($mil) 12/2009 = 71
  4. 12months Net Income this Quarterly/12 months Net Income 4Q's ago = 1634.3
  5. Quarterly Net Income this Quarterly/same Quarter year ago = 150.36
  1. EBITDA ($mil) 12/2011 = 1156
  2. EBITDA ($mil) 12/2010 = 554
  3. EBITDA ($mil) 12/2009 = 342
  4. Cash Flow ($/share) 12/2011 = 4.84
  5. Cash Flow ($/share) 12/2010 = 3.26
  6. Cash Flow ($/share) 12/2009 = 1.83
  1. Sales ($mil) 12/2011 = 1650
  2. Sales ($mil) 12/2010 = 839
  3. Sales ($mil) 12/2009 = 626
  1. Annual EPS before NRI 12/2007 = 1.47
  2. Annual EPS before NRI 12/2008 = 1.9
  3. Annual EPS before NRI 12/2009 = 0.61
  4. Annual EPS before NRI 12/2010 = 1.84
  5. Annual EPS before NRI 12/2011 = 2.71

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = 38.02
  2. EPS Growth Quarterly(1)/Q(-3) = -166.04
  3. ROE 5 Year Average 12/2011 = 27.58
  4. Return on Investment 12/2011 = N/A
  5. Debt/Total Cap 5 Year Average 12/2011 = 30.41
  6. Current Ratio 06/2011 = 0.84
  7. Current Ratio 5 Year Average = 0.93
  8. Quick Ratio = 0.81
  9. Cash Ratio = 0.11

Valuation

  1. Book Value Quarterly = 12.79
  2. Price/ Book = 7.06
  3. Price/ Cash Flow = 18.67

Company: Cheniere Energy (NYSEMKT:LNG)

Basic Key ratios

  1. Percentage Held by Insiders = 4.6
  2. Number of Institutional Sellers 12 Weeks = 5

Growth

  1. Net Income ($mil) 12/2011 = -199
  2. Net Income ($mil) 12/2010 = -76
  3. Net Income ($mil) 12/2009 = -161
  4. 12months Net Income this Quarterly/12 months Net Income 4Q's ago = -160.83
  5. Quarterly Net Income this Quarterly/same Quarter year ago = 32.87
  1. EBITDA ($mil) 12/2011 = 148
  2. EBITDA ($mil) 12/2010 = 274
  3. EBITDA ($mil) 12/2009 = 157
  4. Annual Net Income this Yr/ Net Income last Yr = -160.83
  5. Cash Flow ($/share) 12/2011 = -1.34
  6. Cash Flow ($/share) 12/2010 = 0.21
  7. Cash Flow ($/share) 12/2009 = -1.52
  1. Sales ($mil) 12/2011 = 290
  2. Sales ($mil) 12/2010 = 292
  3. Sales ($mil) 12/2009 = 181
  1. Annual EPS before NRI 12/2007 = N/A
  2. Annual EPS before NRI 12/2008 = N/A
  3. Annual EPS before NRI 12/2009 = N/A
  4. Annual EPS before NRI 12/2010 = N/A
  5. Annual EPS before NRI 12/2011 = N/A

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = 109.71
  2. Return on Investment 06/2011 = -9.05
  3. Current Ratio 06/2011 = 1.01
  4. Current Ratio 5 Year Average = 3.18
  5. Quick Ratio = 1
  6. Cash Ratio = 1
  7. Interest Coverage Quarterly = 0.1

Notes

This stock would fall under the "average category"

Company: Kodiak Oil&Gas (NYSE:KOG)

Basic Key ratios

  1. Percentage Held by Insiders = 4.8
  2. Number of Institutional Sellers 12 Weeks = N/A

Growth

  1. Net Income ($mil) 12/2011 = 4
  2. Net Income ($mil) 12/2010 = -2
  3. Net Income ($mil) 12/2009 = -3
  4. 12months Net Income this Quarterly/12 months Net Income 4Q's ago = 261.39
  5. Quarterly Net Income this Quarterly/same Quarter year ago = -673.49
  1. EBITDA ($mil) 12/2011 = 51
  2. EBITDA ($mil) 12/2010 = 6
  3. EBITDA ($mil) 12/2009 = 1
  4. Annual Net Income this Yr/ Net Income last Yr = 261.25
  5. Cash Flow ($/share) 12/2011 = 0.32
  6. Cash Flow ($/share) 12/2010 = 0.07
  7. Cash Flow ($/share) 12/2009 = 0.01
  1. Sales ($mil) 12/2011 = 120
  2. Sales ($mil) 12/2010 = 25
  3. Sales ($mil) 12/2009 = 11
  1. Annual EPS before NRI 12/2007 = -0.05
  2. Annual EPS before NRI 12/2008 = -0.1
  3. Annual EPS before NRI 12/2009 = -0.02
  4. Annual EPS before NRI 12/2010 = 0.03
  5. Annual EPS before NRI 12/2011 = 0.17

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = 33.1
  2. Next 3-5 Year Estimate EPS Growth rate = 50
  3. EPS Growth Quarterly(1)/Q(-3) = 5-100.00
  4. ROE 5 Year Average 12/2011 = -7.06
  5. Return on Investment 12/2011 = N/A
  6. Debt/Total Cap 5 Year Average 12/2011 = 5.93
  7. Current Ratio 06/2011 = 1.76
  8. Current Ratio 5 Year Average = 3.93
  9. Quick Ratio = 1.5
  10. Cash Ratio = 0.98

Valuation

  1. Book Value Quarterly = 3.34
  2. Price/ Book = 2.6
  3. Price/ Cash Flow = 26.9

Conclusion

The markets are finally correcting as projected and traders should expect the second quarter to be volatile. Investors can use strong pullbacks to deploy money into long term positions.

Disclaimer

This list of stocks is meant to serve as a starting point. Please do not treat this as a buying list. It is imperative that you do your due diligence and then determine if any of the above plays meet with your risk tolerance levels. The Latin maxim caveat emptor applies - let the buyer beware

Source: Noble Energy Among Our 5 Interesting Candidates

Additional disclosure: EPS and EPS surprise charts obtained from zacks.com. A major portion of the historical data used in this article was obtained from zacks.com. Earnings and growth estimates sourced from dailyfinance.com.