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Are These 4 Dividend Plays Worth Getting Into?

Jun 29 2012, 04:29 by: Tactical Investor  |  includes: DIS, HPQ, MT, POT

This list is meant to serve as a starting point for investors. A lot of data has been provided, so it should be relatively easy for an investor to scroll down the list and decide if a stock warrants further attention. If you find the stock appealing, you can dig deeper and see if meets with your investment criteria.

To help the novice investor, we have put out this guideline which could prove to be useful in the selection process: Our suggested guidelines when searching for new investment ideas.

Company: Potash Corp. of Saskatchewan, Inc (POT)

Brief Overview

  1. Long term debt to equity ratio = 0.41
  2. Capital spending 5 year growth rate = 38.5%
  3. Sales vs 1 year ago = 33.30%
  4. Short ratio = 1.80%
  5. Quarterly earnings growth = - 32%
  6. Quarterly revenue growth = 20%
  7. Profit Margins = 36.3%
  8. Operating margins = 45.3%
  9. Beta = 0.97
  10. Operating cash flow = $3.17B
  11. Levered free cash flow = $61.1M
  12. Relative Strength 52 weeks = 39
  13. Cash Flow 5-year Average = 2.32
  14. 5 year sales growth = 10.2%
  15. EPS 5 year growth rate = 24.5%

Growth

  1. Net Income ($mil) 12/2011 = 3081
  2. Net Income ($mil) 12/2010 = 1775
  3. Net Income ($mil) 12/2009 = 981
  4. Net Income Reported Quarterly ($mil) = 491
  5. EBITDA ($mil) 12/2011 = 4787
  6. EBITDA ($mil) 12/2010 = 3043
  7. EBITDA ($mil) 12/2009 = 1503
  8. Cash Flow ($/share) 12/2011 = 4.16
  9. Cash Flow ($/share) 12/2010 = 2.58
  10. Cash Flow ($/share) 12/2009 = 1.46
  11. Sales ($mil) 12/2011 = 8715
  12. Sales ($mil) 12/2010 = 6539
  13. Sales ($mil) 12/2009 = 3977
  14. Annual EPS before NRI 12/2007 = 1.13
  15. Annual EPS before NRI 12/2008 = 3.67
  16. Annual EPS before NRI 12/2009 = 1.08
  17. Annual EPS before NRI 12/2010 = 2.04
  18. Annual EPS before NRI 12/2011 = 3.51

Click to enlarge

Dividend history

  1. Dividend Yield = 1.3
  2. Dividend Yield 5 Year Average = 0.4
  3. Dividend 5 year Growth = 24.6%

Dividend sustainability

  1. Payout Ratio = 0.09
  2. Payout Ratio 5 Year Average = 0.08

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 12.6
  2. 5 Year History EPS Growth = 18.88
  3. ROE 5 Year Average = 33.28
  4. Return on Investment = 24.64
  5. Debt/Total Cap 5 Year Average = 28.56
  6. Current Ratio = 1.10
  7. Current Ratio 5 Year Average = 1.25
  8. Quick Ratio = 0.70
  9. Interest Coverage = 27.7
  10. Retention rate = 91%

Company : Disney Walt (DIS)

Levered Free Cash Flow = 3.30B

Brief Overview

  1. Percentage Held by Insiders = 0.09
  2. Number of Institutional Sellers 12 Weeks = 2
  3. 3 Month Percentage Chg Short Interest = n/a
  4. Short Ratio = 5.3%
  5. Relative Strength 52 weeks = 87
  6. Cash Flow 5-year Average = 2.88
  7. Profit Margin = 12.46%
  8. Operating Margin = 20.07%
  9. Quarterly Revenue Growth = 6.1%
  10. Quarterly Earnings Growth = 21.3%
  11. Operating Cash Flow = 7.47B
  12. Beta = 114%
  13. Percentage Held by Institutions = 67.1%
  14. Short Percentage of Float = 2.9%

Growth

  1. Net Income ($mil) 12/2011 = 4807
  2. Net Income ($mil) 12/2010 = 3963
  3. Net Income ($mil) 12/2009 = 3307
  4. Net Income Reported Quarterly ($mil) = 1143
  5. EBITDA ($mil) 12/2011 = 10227
  6. EBITDA ($mil) 12/2010 = 8749
  7. EBITDA ($mil) 12/2009 = 7755
  8. Cash Flow ($/share) 12/2011 = 3.6
  9. Cash Flow ($/share) 12/2010 = 3.01
  10. Cash Flow ($/share) 12/2009 = 2.72
  11. Sales ($mil) 12/2011 = 40893
  12. Sales ($mil) 12/2010 = 38063
  13. Sales ($mil) 12/2009 = 36149
  14. Annual EPS before NRI 12/2007 = 1.91
  15. Annual EPS before NRI 12/2008 = 2.27
  16. Annual EPS before NRI 12/2009 = 1.82
  17. Annual EPS before NRI 12/2010 = 2.07
  18. Annual EPS before NRI 12/2011 = 2.54

Dividend history

  1. Dividend Yield = 1.26
  2. Dividend Yield 5 Year Average 12/2011 = 1.18
  3. Annual Dividend 12/2011 = 0.4
  4. Dividend 5 year Growth = 8.22

Dividend sustainability

  1. Payout Ratio 03/2012 = 0.22
  2. Payout Ratio 5 Year Average 12/2011 = 0.18

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 12.6
  2. ROE 5 Year Average 12/2011 = 11.86
  3. Current Ratio = 1.14
  4. Current Ratio 5 Year Average = 1.14
  5. Quick Ratio = 1.01
  6. Cash Ratio = 0.5
  7. Interest Coverage Quarterly = 20.75

Company: Hewlett Packard (HPQ)

Levered Free Cash Flow = 4.14B

Brief Overview

  1. Percentage Held by Insiders = 1
  2. Short Ratio = 2.3%
  3. Relative Strength 52 weeks = 21
  4. Cash Flow 5-year Average = 5.47
  5. Profit Margin = 4.21%
  6. Operating Margin = 7.79%
  7. Quarterly Revenue Growth = -3%
  8. Quarterly Earnings Growth = -30.9%
  9. Operating Cash Flow = 9.27B
  10. Beta = 143%
  11. Percentage Held by Institutions = 74.9%
  12. Short Percentage of Float = 2.5%

Growth

  1. Net Income ($mil) 12/2011 = 7074
  2. Net Income ($mil) 12/2010 = 8761
  3. Net Income ($mil) 12/2009 = 7660
  4. Net Income Reported Quarterly ($mil) = 1593
  5. EBITDA ($mil) 12/2011 = 14851
  6. EBITDA ($mil) 12/2010 = 15794
  7. EBITDA ($mil) 12/2009 = 14195
  8. Cash Flow ($/share) 12/2011 = 8.18
  9. Cash Flow ($/share) 12/2010 = 6.92
  10. Cash Flow ($/share) 12/2009 = 5.98
  11. Sales ($mil) 12/2011 = 127245
  12. Sales ($mil) 12/2010 = 126033
  13. Sales ($mil) 12/2009 = 114552
  14. Annual EPS before NRI 12/2007 = 2.93
  15. Annual EPS before NRI 12/2008 = 3.62
  16. Annual EPS before NRI 12/2009 = 3.85
  17. Annual EPS before NRI 12/2010 = 4.58
  18. Annual EPS before NRI 12/2011 = 4.88

Dividend history

  1. Dividend Yield = 2.73
  2. Dividend Yield 5 Year Average 12/2011 = 0.91
  3. 4. Dividend 5 year Growth = 3.8

Dividend sustainability

  1. Payout Ratio 03/2012 = 0.12
  2. Payout Ratio 5 Year Average 03/2012 = 0.09

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 4.2
  2. 5 Year History EPS Growth 03/2012 = 11.67
  3. ROE 5 Year Average 03/2012 = 23.86
  4. Return on Investment 03/2012 = 13.34
  5. Debt/Total Cap 5 Year Average 03/2012 = 23.92
  6. Current Ratio 03/2012 = 1.16
  7. Current Ratio 5 Year Average = 1.15
  8. Quick Ratio = 0.86
  9. Cash Ratio = 0.44
  10. Interest Coverage Quarterly = 9.14
  11. Retention rate = 88%

Company: ArcelorMittal (MT)

Levered Free Cash Flow = $1.00 Billion

Basic overview

  1. Percentage Held by Insiders = 0.06
  2. Free cash flow yield = 8.9%
  3. Relative Strength 52 weeks = 17
  4. Dividend 5-year Growth = -12.59
  5. Cash Flow 5 -year Average = 9.31
  6. Long term debt to equity = 0.44
  7. Beta = 2.54
  8. Quarterly revenue growth =2.3%
  9. Short ratio = 2.4%
  10. Quarterly earnings growth = -99%
  11. Sales vs 1 year ago = 20.4%
  12. EPS 5 year growth rate = 36.7%

Growth

  1. Net Income ($mil) 12/2011 = 2259
  2. Net Income ($mil) 12/2010 = 3005
  3. Net Income ($mil) 12/2009 = 75
  4. EBITDA ($mil) 12/2011 = 9294
  5. EBITDA ($mil) 12/2010 = 7829
  6. EBITDA ($mil) 12/2009 = 1020
  7. Net Income Reported Quarterly ($mil) = -1000
  8. Cash Flow ($/share) 12/2011 = 5.04
  9. Cash Flow ($/share) 12/2010 = 4.64
  10. Cash Flow ($/share) 12/2009 = 4.88
  11. Sales ($mil) 12/2011 = 93973
  12. Sales ($mil) 12/2010 = 78025
  13. Sales ($mil) 12/2009 = 65110
  14. Annual EPS before NRI 12/2009 = 1.5
  15. Annual EPS before NRI 12/2010 = 1.68
  16. Annual EPS before NRI 12/2011 = 1.8

Dividend history

  1. Dividend Yield = 4.5
  2. Dividend Yield 5 Year Average = 2.70
  3. Dividend 5 year Growth = - 6.97

Dividend sustainability

  1. Payout Ratio = 0.44
  2. Payout Ratio 5 Year Average = 0.25

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 21.29
  2. ROE 5 Year Average = 11.19
  3. Current Ratio = 1.60
  4. Current Ratio 5 Year Average = 1.39
  5. Quick Ratio = 0.50
  6. Cash Ratio = 0.31
  7. Interest Coverage Quarterly = 1.7
  8. Retention rate = 66%

Conclusion

Investors should use strong pullbacks to deploy money into stocks they are bullish on. The markets are still in a corrective phase, so investors can use pullbacks to deploy money into new positions. We expect the markets to generally trend upwards until about August at which point they could potentially put in another multi-month top. Investors looking for other ideas might find this article to be of interest: Wells Fargo: In At $27.05 Or Get Paid 9.8% In 7 Months.

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: It is imperative that you do your due diligence and then determine if the above plays meets with your risk tolerance levels. The Latin maxim caveat emptor applies - let the buyer beware.

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

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