Southern Copper Among 4 Interesting Dividend Plays To Mull Over

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Includes: CLF, PBR, RGP, SCCO
by: Tactical Investor

We still believe there is more downside to this market before a multi-month bottom takes hold. If any of the plays mentioned below are of interest, our suggestion would be to use strong pullbacks to slowly build up positions in the relevant plays. A lot of key ratios will be used in this article, and it would be helpful if investors got a handle on some of them; the more important ones were covered in detail in our recent article "4 Interesting Dividend Plays To Reflect On".

Company: Southern Copper (NYSE:SCCO)

Basic overview

  1. 5 year sales growth rate = 1.88%
  2. Profit margins = 35%
  3. Operating margins = 54%
  4. Quarterly revenue growth rate= 12.7%
  5. Quarterly earnings growth rate = 29.9%
  6. Relative Strength 52 weeks = 46
  7. Cash Flow 5 -year Average = 2.22

Growth

  1. Net Income ($mil) 12/2011 = 2336
  2. Net Income ($mil) 12/2010 = 1554
  3. Net Income ($mil) 12/2009 = 929
  4. Net Income Reported Quarterly ($mil) = 537
  1. EBITDA ($mil) 12/2011 = 3923
  2. EBITDA ($mil) 12/2010 = 2873
  3. EBITDA ($mil) 12/2009 = 1776
  4. Cash Flow ($/share) 12/2011 = 3.09
  5. Cash Flow ($/share) 12/2010 = 2.14
  6. Cash Flow ($/share) 12/2009 = 1.4
  1. Sales ($mil) 12/2011 = 3193
  2. Sales ($mil) 12/2010 = 5150
  3. Sales ($mil) 12/2009 = 3734
  1. Annual EPS before NRI 12/2007 = 2.48
  2. Annual EPS before NRI 12/2008 = 1.58
  3. Annual EPS before NRI 12/2009 = 1.08
  4. Annual EPS before NRI 12/2010 = 1.81
  5. Annual EPS before NRI 12/2011 = 2.76

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Dividend history

  1. Dividend Yield = 7.20
  2. Dividend Yield 5 Year Average 12/2011 = 5.81
  3. Dividend 5 year Growth 12/2011 = 0.04

Dividend sustainability

  1. Payout Ratio 06/2011 = 1.01
  2. Payout Ratio 5 Year Average 12/2011 = 0.87

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 17.58
  2. EPS Growth Quarterly(1)/Q(-3) = -115.51
  3. ROE 5 Year Average 12/2011 = 42.76
  4. Current Ratio 06/2011 = 3.12
  5. Current Ratio 5 Year Average = 3.5
  6. Quick Ratio = 2.47
  7. Cash Ratio = 1.58
  8. Interest Coverage Quarterly = 19.38

Suggested strategy

If you are wiling to wait and take the risk of looking for an extreme entry, then wait for a test of 25 before deploying new funds into this play. Another option would be to wait for a test of 25 and then sell puts at strikes you would not mind owning the stock at. Even if you sold a put at 25, you will probably get in at a much better price than buying the shares outright at 25. If the stock is assigned to your account, your final price will be the strike price minus the premium you were paid.

Company: Petroleo Brasileiro S.A. (NYSE:PBR)

Basic overview

  1. 5 year sales growth rate = 11.67%
  2. Profit margins = 12.18%
  3. Operating margins = 17.06%
  4. Quarterly revenue growth rate= 14.7%
  5. Quarterly earnings growth rate = -20.9%
  6. Relative Strength 52 weeks = 26
  7. Cash Flow 5-year Average = 7.06

Growth

  1. Net Income ($mil) 12/2011 = 20121
  2. Net Income ($mil) 12/2010 = 20055
  3. Net Income ($mil) 12/2009 = 15308
  4. Net Income Reported Quarterly ($mil) = 5212
  1. EBITDA ($mil) 12/2011 = 37259
  2. EBITDA ($mil) 12/2010 = 35582
  3. EBITDA ($mil) 12/2009 = 29409
  4. Cash Flow ($/share) 12/2011 = 8.03
  5. Cash Flow ($/share) 12/2010 = 7.63
  6. Cash Flow ($/share) 12/2009 = 8.61
  1. Sales ($mil) 12/2011 = 141798
  2. Sales ($mil) 12/2010 = 121779
  3. Sales ($mil) 12/2009 = 92817
  1. Annual EPS before NRI 12/2007 = 1.52
  2. Annual EPS before NRI 12/2008 = 4.32
  3. Annual EPS before NRI 12/2009 = 3.36
  4. Annual EPS before NRI 12/2010 = 4.08
  5. Annual EPS before NRI 12/2011 = 2.96

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Dividend history

  1. Dividend Yield = 1.2
  2. Dividend Yield 5 Year Average 12/2011 = 0.46
  3. Dividend 5 year Growth 12/2011 = 18.07

Dividend sustainability

  1. Payout Ratio 09/2011 = 0.1
  2. Payout Ratio 5 Year Average 12/2011 = 0.05

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 4.5
  2. 5 Year History EPS Growth 12/2011 = -46.01
  3. ROE 5 Year Average 12/2011 = 22.04
  4. Current Ratio 12/2011 = 1.92
  5. Current Ratio 5 Year Average = 1.48
  6. Quick Ratio = 1.36
  7. Cash Ratio = 0.85
  8. Interest Coverage Quarterly = N/A

Company: Regency Energy (NYSE:RGP)

Basic overview

  1. 5 year sales growth rate = 4.77%
  2. Profit margins = 5.8
  3. Operating margins = 3.44
  4. Quarterly revenue growth rate= 12.6%
  5. Quarterly earnings growth rate = 102%
  6. Number of Institutional Sellers 12 Weeks = 1
  7. Relative Strength 52 weeks = 50
  8. Cash Flow 5-year Average = 1.43

Growth

  1. Net Income ($mil) 12/2011 = 72
  2. Net Income ($mil) 12/2010 = -6
  3. Net Income ($mil) 12/2009 = 140
  4. Net Income Reported Quarterly ($mil) = 29
  1. EBITDA ($mil) 12/2011 = 357
  2. EBITDA ($mil) 12/2010 = 127
  3. EBITDA ($mil) 12/2009 = 336
  4. Cash Flow ($/share) 12/2010 = 0.57
  5. Cash Flow ($/share) 12/2009 = 3.14
  1. Sales ($mil) 12/2011 = 1434
  2. Sales ($mil) 12/2010 = 717
  3. Sales ($mil) 12/2009 = 1089
  1. Annual EPS before NRI 12/2008 = 1.24
  2. Annual EPS before NRI 12/2009 = 1.72
  3. Annual EPS before NRI 12/2010 = N/A
  4. Annual EPS before NRI 12/2011 = 0.32

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Dividend history

  1. Dividend Yield = 8.10
  2. Dividend Yield 5 Year Average 12/2011 = 8.32
  3. Annual Dividend 12/2011 = 1.8
  4. Dividend 5 year Growth 12/2011 = 3.32

Dividend sustainability

  1. Payout Ratio 09/2011 = 5.11
  2. Payout Ratio 06/2011 = 6.28
  3. Payout Ratio 5 Year Average 12/2011 = 2.94
  4. Payout Ratio 5 Year Average 09/2011 = 2.94
  5. Payout Ratio 5 Year Average 06/2011 = 2.94
  6. Change in Payout Ratio = 2.17

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 32.7
  2. ROE 5 Year Average 12/2011 = 3.89
  3. ROE 5 Year Average 09/2011 = 3.89
  4. Return on Investment 12/2011 = 1.67
  5. Debt/Total Cap 5 Year Average 12/2011 = 43.9
  6. Current Ratio 12/2011 = 1.17
  7. Current Ratio 5 Year Average = 0.97
  8. Quick Ratio = 0.8
  9. Cash Ratio = 0.42
  10. Interest Coverage Quarterly = 1.98

Valuation

  1. Book Value Quarterly = 24.06
  2. Price/ Book = 0.9
  3. Price/ Cash Flow = 13.51

Company: Cliffs Natural (NYSE:CLF)

Basic overview

  1. 5 year sales growth rate = 25.6%
  2. Profit margins = 22%
  3. Operating margins = 31%
  4. Quarterly revenue growth rate= 6.9%
  5. Quarterly earnings growth rate = 11.2%
  6. Percentage Held by Insiders = 0.57
  7. Number of Institutional Sellers 12 Weeks = 3
  8. Dividend 5-year Growth = 35.25
  9. Cash Flow 5-year Average = 6.08

Growth

  1. Net Income ($mil) 12/2011 = 1619
  2. Net Income ($mil) 12/2010 = 1020
  3. Net Income ($mil) 12/2009 = 205
  4. Net Income Reported Quarterly ($mil) = 376
  1. EBITDA ($mil) 12/2011 = 2913
  2. EBITDA ($mil) 12/2010 = 1695
  3. EBITDA ($mil) 12/2009 = 572
  1. Cash Flow ($/share) 12/2011 = 14.76
  2. Cash Flow ($/share) 12/2010 = 9.91
  3. Cash Flow ($/share) 12/2009 = 2.89
  1. Sales ($mil) 12/2011 = 6794
  2. Sales ($mil) 12/2010 = 4682
  3. Sales ($mil) 12/2009 = 2342
  1. Annual EPS before NRI 12/2007 = 2.57
  2. Annual EPS before NRI 12/2008 = 6.55
  3. Annual EPS before NRI 12/2009 = 1.13
  4. Annual EPS before NRI 12/2010 = 7.49
  5. Annual EPS before NRI 12/2011 = 11.74

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Dividend history

  1. Dividend Yield = 4.8
  2. Dividend Yield 5 Year Average 12/2011 = 0.89
  3. Dividend 5 year Growth 12/2011 = 35.25

Dividend sustainability

  1. Payout Ratio 09/2011 = 0.11
  2. Payout Ratio 5 Year Average 12/2011 = 0.1

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 14.99
  2. 5 Year History EPS Growth 12/2011 = 35.66
  3. ROE 5 Year Average 12/2011 = 28.06
  4. Current Ratio 12/2011 = 1.15
  5. Current Ratio 5 Year Average = 1.94
  6. Quick Ratio = 0.88
  7. Cash Ratio = 0.68
  8. Interest Coverage Quarterly = 4.97

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: EPS and Price Vs industry charts obtained from zacks.com. A major portion of the historical data used in this article was obtained from zacks.com.

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