5 Dividend Plays For You To Judge

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 |  Includes: DHR, ETP, NMM, NS, TX
by: Tactical Investor

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 the 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." Navios Maritime Partners would fall under the "speculative category" but it appears to be putting in a bottom and could make for a good long-term investment for those willing to take a risk. Furthermore, it does offer a rather enticing yield of 13.3%.

Company: Danaher Corp (NYSE:DHR)

Brief Overview

  1. Percentage Held by Insiders = 16.8
  2. Levered Free Cash Flow = 1.83B
  3. Number of Institutional Sellers 12 Weeks = 2
  4. Relative Strength 52 weeks = 55
  5. Cash Flow 5-year Average = 2.57
  6. Profit Margin = 13.77%
  7. Operating Margin = 17.51%
  8. Quarterly Revenue Growth = 31%
  9. Quarterly Earnings Growth = 42.8%
  10. Operating Cash Flow = $2.8B
  11. Beta = 1.08
  12. Percentage Held by Institutions = 67.8%
  13. Short Percentage of Float = 2.3%

Growth

  1. Net Income ($mil) 12/2011 = 1793
  2. Net Income ($mil) 12/2010 = 1152
  3. Net Income ($mil) 12/2009 = 1152
  4. Net Income Reported Quarterly ($mil) = 613
  5. EBITDA ($mil) 12/2011 = 2735
  6. EBITDA ($mil) 12/2010 = 1777
  7. EBITDA ($mil) 12/2009 = 1777
  8. Cash Flow ($/share) 12/2011 = 2.99
  9. Cash Flow ($/share) 12/2010 = 2.35
  10. Cash Flow ($/share) 12/2009 = 2.35
  11. Sales ($mil) 12/2011 = 13203
  12. Sales ($mil) 12/2010 = 11185
  13. Sales ($mil) 12/2009 = 11185
  14. Annual EPS before NRI 12/2007 = 1.92
  15. Annual EPS before NRI 12/2002 = 2.12
  16. Annual EPS before NRI 12/2009 = 1.77
  17. Annual EPS before NRI 12/2010 = 1.77
  18. Annual EPS before NRI 12/2011 = 2.31

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Dividend history

  1. Dividend Yield = 0.2
  2. Dividend Yield 5 Year Average 03/2012 = 0.18
  3. Annual Dividend 12/2011 = 0.08
  4. Dividend 5 year Growth 03/2012 = 13.72

Dividend sustainability

  1. Payout Ratio 03/2012 = 0.03
  2. Payout Ratio 5 Year Average 03/2012 = 0.03
  3. Payout Ratio 5 Year Average 12/2011 = 0.03

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 14.57
  2. 5 Year History EPS Growth 03/2012 = 9.1
  3. ROE 5 Year Average 03/2012 = 13.04
  4. ROE 5 Year Average 12/2011 = 13.45
  5. Return on Investment 03/2012 = 9.24
  6. Debt/Total Cap 5 Year Average 03/2012 = 21.22
  7. Current Ratio 03/2012 = 1.67
  8. Current Ratio 12/2011 = 1.5
  9. Current Ratio 5 Year Average = 1.64
  10. Quick Ratio = 1.08
  11. Cash Ratio = 0.35
  12. Interest Coverage Quarterly = 18.66

Notes

The stock appears to be putting in a bottom. Consider selling puts with strikes in the 48-50 ranges to lower your entry cost. You could sell puts with 2-6 months of time left on them. The further out you go, the higher the premium.

Company: Navios Maritime Partners LP (NYSE:NMM)

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Brief Overview

  1. Percentage Held by Insiders = 9.23%
  2. Levered Free Cash Flow = -5.89M
  3. Cash Flow 5-year Average = 2.4
  4. Profit Margin = 34.18%
  5. Operating Margin = 40.94%
  6. Quarterly Revenue Growth = 12.1%
  7. Quarterly Earnings Growth = 2%
  8. Operating Cash Flow = 133.98M
  9. Beta = 1.48
  10. Percentage Held by Institutions = 24.6%

Growth

  1. Net Income ($mil) 12/2011 = 65
  2. Net Income ($mil) 12/2010 = 61
  3. Net Income ($mil) 12/2009 = 34
  4. Net Income Reported Quarterly ($mil) = 17
  5. EBITDA ($mil) 12/2011 = 139
  6. EBITDA ($mil) 12/2010 = 109
  7. EBITDA ($mil) 12/2009 = 59
  8. Cash Flow ($/share) 12/2011 = 2.86
  9. Cash Flow ($/share) 12/2010 = 2.49
  10. Cash Flow ($/share) 12/2009 = 2.24
  11. Sales ($mil) 12/2011 = 187
  12. Sales ($mil) 12/2010 = 143
  13. Sales ($mil) 12/2009 = 93
  14. Annual EPS before NRI 12/2007 = 0.15
  15. Annual EPS before NRI 12/2008 = 1.56
  16. Annual EPS before NRI 12/2009 = 1.66
  17. Annual EPS before NRI 12/2010 = 1.51
  18. Annual EPS before NRI 12/2011 = 1.4

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Dividend history

  1. Dividend Yield = 13.30
  2. Dividend Yield 5 Year Average = 11.33

Dividend sustainability

  1. Payout Ratio = 4.73
  2. Payout Ratio 5 Year Average = 1.08

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 5
  2. ROE 5 Year Average = 24.89
  3. Current Ratio = 1.29
  4. Current Ratio 5 Year Average = 2.26
  5. Quick Ratio = 1.10
  6. Cash Ratio = 1.04
  7. Interest Coverage = 7.50

Notes

Only individuals willing to take on a bit of risk should consider this play as it is more speculative in nature. It does, however, offer a great yield and it has held up much better than many of its peers. Additionally, net income, EBITDA, sales and cash flow have all be trending upward for the past three years. It also sports a decent quick ratio of 1.10, a current ratio of 1.20 and pretty good interest coverage ratio of 7.50

Consider waiting for a test of the $12.00 ranges before jumping in. Alternatively, if you are bullish, you could sell puts at strikes you would not mind owning the stock at. You will either get in at a price of your choosing, or you will get paid for trying to via the premium.

Company : Ternium SA (NYSE:TX)

Levered Free Cash Flow = 228.45M

Brief Overview

  1. Relative Strength 52 weeks = 28
  2. Cash Flow 5-year Average = 5.57
  3. Profit Margin = 5.09%
  4. Operating Margin = 13.93%
  5. Quarterly Revenue Growth = 2.2%
  6. Quarterly Earnings Growth = -22%
  7. Operating Cash Flow = 691.89M
  8. Beta = 2.04
  9. Short ratio = 1.10

Growth

  1. Net Income ($mil) 12/2011 = 650
  2. Net Income ($mil) 12/2010 = 780
  3. Net Income ($mil) 12/2009 = 767
  4. Net Income Reported Quarterly ($mil) = 160
  5. EBITDA ($mil) 12/2011 = 1472
  6. EBITDA ($mil) 12/2010 = 1642
  7. EBITDA ($mil) 12/2009 = 921
  8. Cash Flow ($/share) 12/2011 = 6.27
  9. Cash Flow ($/share) 12/2010 = 5.8
  10. Cash Flow ($/share) 12/2009 = 3.61
  11. Sales ($mil) 12/2011 = 9157
  12. Sales ($mil) 12/2010 = 7382
  13. Sales ($mil) 12/2009 = 4959
  14. Annual EPS before NRI 12/2007 = 0.39
  15. Annual EPS before NRI 12/2008 = 2.93
  16. Annual EPS before NRI 12/2009 = 1.58
  17. Annual EPS before NRI 12/2010 = 3.1
  18. Annual EPS before NRI 12/2011 = 3.42

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Dividend history

  1. Dividend Yield = 3.9
  2. Dividend Yield 5 Year Average = 3.49
  3. Dividend 5 year Growth = N/A

Dividend sustainability

  1. Payout Ratio = 0.32
  2. Payout Ratio 5 Year Average = 0.26

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 2
  2. ROE 5 Year Average 12/2012 = 12.66
  3. 8. Current Ratio 12/2011 = 2.01
  4. 9. Current Ratio 5 Year Average = 3
  5. Quick Ratio = 1.74
  6. Cash Ratio = 1.37
  7. Interest Coverage Quarterly = 8.28

Company : Energy Transfer Partners (NYSE:ETP)

Brief Overview

  1. Percentage Held by Insiders = 3
  2. Relative Strength 52 weeks = 53
  3. Cash Flow 5-year Average = 4.97
  4. Profit Margin = 23.75%
  5. Operating Margin = 17.56%
  6. Quarterly Revenue Growth = -22.6%
  7. Quarterly Earnings Growth = 350.9%
  8. Operating Cash Flow = 1.31B
  9. Beta = 0.95
  10. Levered Free Cash Flow = -543.81M
  11. Percentage Held by Institutions = 21.8%
  12. Short Percentage of Float = 3.1%

Growth

  1. Net Income ($mil) 12/2011 = 669
  2. Net Income ($mil) 12/2010 = 617
  3. Net Income ($mil) 12/2009 = 792
  4. Net Income Reported Quarterly ($mil) = 1115
  5. EBITDA ($mil) 12/2011 = 1631
  6. EBITDA ($mil) 12/2010 = 1398
  7. EBITDA ($mil) 12/2009 = 1520
  8. Cash Flow ($/share) 12/2011 = 5.67
  9. Cash Flow ($/share) 12/2010 = 5.34
  10. Cash Flow ($/share) 12/2009 = 6.32
  11. Sales ($mil) 12/2011 = 6850
  12. Sales ($mil) 12/2010 = 5885
  13. Sales ($mil) 12/2009 = 5417
  14. Annual EPS before NRI 12/2007 = 3.31
  15. Annual EPS before NRI 12/2008 = 4.09
  16. Annual EPS before NRI 12/2009 = 2.51
  17. Annual EPS before NRI 12/2010 = 1.47
  18. Annual EPS before NRI 12/2011 = 1.48

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Dividend history

  1. Dividend Yield = 8.0
  2. Dividend Yield 5 Year Average = 7.9
  3. Dividend 5 year Growth = 1.56

Dividend sustainability

  1. Payout Ratio = 0.75
  2. Payout Ratio 5 Year Average = 1.68

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 12.05
  2. ROE 5 Year Average = 19.14
  3. Current Ratio = 1.10
  4. Current Ratio 5 Year Average = 1.15
  5. Quick Ratio = 0.61
  6. Cash Ratio = 0.19
  7. Interest Coverage Quarterly = 9.33

Important facts investors should be aware in regards to investing in MLPs

Payout ratios are not that important when it comes to MLPs generally pay a majority of their cash flow as distributions. Payout ratios are calculated by dividing the dividend/distribution rate by the net income per share, and this is why the payout ratio for MLPs is often higher than 100%. The more important ratio to focus on is the cash flow per unit. If one focuses on the cash flow per unit, one will see that in most cases, it exceeds the distribution declared per unit.

MLPs are not taxed like regular corporations because they pay out a large portion of their income to partners (as an investor you are basically a partner and are allocated units instead of shares) usually through quarterly distributions. The burden is thus shifted to the partners who are taxed at their ordinary income rates. As ordinary income tax rates of investors are typically lower than the income tax assessed on corporations, this arrangement is advantageous to the MLPs and generally most investors.

MLPs issue a Schedule K-1 to their investors. Unrelated business income (UBI) above $1,000 is taxable in an IRA. This information will appear Box 20 in the schedule K-1. UBI is typically a very small number usually well below $1000 and in some cases negative. If the MLP pays out distributions in excess of the income it generates, the distribution is classified as a "return of capital" and tax deferred until you sell your units. For more information, on this topic investors can visit the National Association of Publicly Traded Partnerships

Company: Nustar Energy (NYSE:NS)

Brief Overview

  1. Levered Free Cash Flow = -123.01M
  2. Cash Flow 5-year Average = 5.74
  3. Profit Margin = 3.1%
  4. Operating Margin = 4.33%
  5. Quarterly Revenue Growth = 40.6%
  6. Quarterly Earnings Growth = -7.5%
  7. Operating Cash Flow = 250.65M
  8. Beta = 0.77
  9. Percentage Held by Institutions = 29.7%
  10. Short Percentage of Float = 0.7%

Growth

  1. Net Income ($mil) 12/2011 = 222
  2. Net Income ($mil) 12/2010 = 239
  3. Net Income ($mil) 12/2009 = 225
  4. Net Income Reported Quarterly ($mil) = 26
  5. EBITDA ($mil) 12/2011 = 478
  6. EBITDA ($mil) 12/2010 = 483
  7. EBITDA ($mil) 12/2009 = 461
  8. Cash Flow ($/share) 12/2011 = 5.57
  9. Cash Flow ($/share) 12/2010 = 5.64
  10. Cash Flow ($/share) 12/2009 = 5.82
  11. Sales ($mil) 12/2011 = 6575
  12. Sales ($mil) 12/2010 = 4403
  13. Sales ($mil) 12/2009 = 3856
  14. Annual EPS before NRI 12/2007 = 2.58
  15. Annual EPS before NRI 12/2008 = 4.07
  16. Annual EPS before NRI 12/2009 = 3.03
  17. Annual EPS before NRI 12/2010 = 2.89
  18. Annual EPS before NRI 12/2011 = 2.97

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Dividend history

  1. Dividend Yield = 8.4
  2. Dividend Yield 5 Year Average = 7.80
  3. Dividend 5 year Growth = 3.86

Dividend sustainability

  1. Payout Ratio = 1.7
  2. Payout Ratio 5 Year Average 12/2011 = 1.36

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 6.45
  2. ROE 5 Year Average = 8.87
  3. Current Ratio = 0.92
  4. Current Ratio 5 Year Average = 1.77
  5. Quick Ratio = 0.65
  6. Cash Ratio = 0.07
  7. Interest Coverage Quarterly = 2.33

Conclusion

A great way to get into a stock that you are bullish on is to sell puts at strikes you would not mind owning the stock at. Investors looking for other ideas might find this article to be of interest Silver Wheaton: Get In At $20 Or Grab An Extra 13% .

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.

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

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.