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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 it 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." If you have a position in a stock and are looking to add to it, then consider selling puts at strikes where you would not mind owning the stock. The benefit of this strategy is that you either get in at a price of your choosing or you get paid for your efforts.

Company: Hormel Foods Corporation (HRL)

Brief Overview

  1. Levered Free Cash Flow = 349.67M
  2. Percentage Held by Insiders = 0.68
  3. Short Ratio = 6.8
  4. 5 year sales growth rate = 5.42
  5. 5 year EPS growth rate = 11.44
  6. Relative Strength 52 weeks = 62
  7. Cash Flow 5-year Average = 1.71
  8. Profit Margin = 5.85%
  9. Operating Margin = 8.58%
  10. Quarterly Revenue Growth = 2.7%
  11. Quarterly Earnings Growth = 16.7%
  12. Operating Cash Flow = 427.59M
  13. Beta = 0.37
  14. Percentage Held by Institutions = 32.8%
  15. Short Percentage of Float = 4.8%

Growth

  1. Net Income ($mil) 12/2011 = 474
  2. Net Income ($mil) 12/2010 = 396
  3. Net Income ($mil) 12/2009 = 343
  4. Net Income Reported Quarterly ($mil) = 128
  5. EBITDA ($mil) 12/2011 = 866
  6. EBITDA ($mil) 12/2010 = 777
  7. EBITDA ($mil) 12/2009 = 683
  8. Cash Flow ($/share) 12/2011 = 2.26
  9. Cash Flow ($/share) 12/2010 = 2.01
  10. Cash Flow ($/share) 12/2009 = 1.75
  11. Sales ($mil) 12/2011 = 7895
  12. Sales ($mil) 12/2010 = 7221
  13. Sales ($mil) 12/2009 = 6534
  14. Annual EPS before NRI 12/2007 = 1.07
  15. Annual EPS before NRI 12/2008 = 1.04
  16. Annual EPS before NRI 12/2009 = 1.27
  17. Annual EPS before NRI 12/2010 = 1.51
  18. Annual EPS before NRI 12/2011 = 1.74

Dividend history

  1. Dividend Yield = 2.10
  2. Dividend Yield 5 Year Average 03/2012 = 1.98
  3. Annual Dividend 12/2011 = 0.51
  4. Dividend 5 year Growth 03/2012 = 13.45

Dividend sustainability

  1. Payout Ratio 03/2012 = 0.34
  2. Payout Ratio 5 Year Average 03/2012 = 0.32

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 9.5
  2. 5 Year History EPS Growth 03/2012 = 13.93
  3. ROE 5 Year Average 03/2012 = 16.55
  4. Return on Investment 03/2012 = 15.91
  5. Debt/Total Cap 5 Year Average 03/2012 = 10.84
  6. Current Ratio 03/2012 = 2.94
  7. Current Ratio 5 Year Average = 2.24
  8. Quick Ratio = 1.43
  9. Cash Ratio = 0.81
  10. Interest Coverage Quarterly = 60.08
  11. Retention rate = 66%

Company: ILL Tool Works (ITW)

Levered Free Cash Flow = 1.38B

Brief Overview

  1. Percentage Held by Insiders = 3.21
  2. 5 year EPS growth rate = 3.2%
  3. 5 year sales growth rate = 2.6%
  4. Short Ratio = 3.8
  5. Relative Strength 52 weeks = 49
  6. Cash Flow 5-year Average = 4.2
  7. Profit Margin = 10.71%
  8. Operating Margin = 15.38%
  9. Quarterly Revenue Growth = 6.4%
  10. Quarterly Earnings Growth = -22%
  11. Operating Cash Flow = 2.13B
  12. Beta = 1.25
  13. Percentage Held by Institutions = 78.9%
  14. Short Percentage of Float = 4.2%

Growth

  1. Net Income ($mil) 12/2011 = 2071
  2. Net Income ($mil) 12/2010 = 1503
  3. Net Income ($mil) 12/2009 = 973
  4. Net Income Reported Quarterly ($mil) = 486
  5. EBITDA ($mil) 12/2011 = 3379
  6. EBITDA ($mil) 12/2010 = 2813
  7. EBITDA ($mil) 12/2009 = 2063
  8. Cash Flow ($/share) 12/2011 = 5.4
  9. Cash Flow ($/share) 12/2010 = 4.19
  10. Cash Flow ($/share) 12/2009 = 3.56
  11. Sales ($mil) 12/2011 = 17787
  12. Sales ($mil) 12/2010 = 15870
  13. Sales ($mil) 12/2009 = 13877
  14. Annual EPS before NRI 12/2007 = 3.28
  15. Annual EPS before NRI 12/2008 = 3.04
  16. Annual EPS before NRI 12/2009 = 2.19
  17. Annual EPS before NRI 12/2010 = 3.03
  18. Annual EPS before NRI 12/2011 = 4.08

Dividend history

  1. Dividend Yield = 2.9
  2. Dividend Yield 5 Year Average 03/2012 = 2.75
  3. Annual Dividend 12/2011 = 1.4
  4. Dividend 5 year Growth 03/2012 = 5.89

Dividend sustainability

  1. Payout Ratio 03/2012 = 0.36
  2. Payout Ratio 5 Year Average 03/2012 = 0.45

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 12.02
  2. ROE 5 Year Average 03/2012 = 17.02
  3. ROE 5 Year Average 12/2011 = 17.16
  4. Debt/Total Cap 5 Year Average 03/2012 = 21.06
  5. Current Ratio = 1.96
  6. Current Ratio 5 Year Average = 1.92
  7. Quick Ratio = 1.73
  8. Cash Ratio = 0.78
  9. Interest Coverage Quarterly = 14.26

Company: Bank of New York Mellon (BK)

Basic overview

  1. Operating cash flow = $1.9 Billion
  2. Operating margins = 28.17%
  3. Profit margin = 17%
  4. Beta = 1.15
  5. Short ratio= 1.8
  6. Quarterly revenue growth = -0.1%
  7. Quarterly earnings growth = -1.00%
  8. Relative Strength 52 weeks = 40
  9. Cash Flow 5 -year Average = 3.02
  10. 5 year sales growth rate = 5.18%
  11. Long term debt to equity = 0.66

Growth

  1. Net Income ($mil) 12/2011 = 2516
  2. Net Income ($mil) 12/2010 = 2518
  3. Net Income ($mil) 12/2009 = -1084
  4. EBITDA ($mil) 12/2011 = 4756
  5. EBITDA ($mil) 12/2010 = 4737
  6. EBITDA ($mil) 12/2009 = -1076
  7. Cash Flow ($/share) 12/2011 = 2.75
  8. Cash Flow ($/share) 12/2010 = 2.85
  9. Cash Flow ($/share) 12/2009 = 2.72
  10. Sales ($mil) 12/2011 = 14730
  11. Sales ($mil) 12/2010 = 13875
  12. Sales ($mil) 12/2009 = 13648
  13. Annual EPS before NRI 12/2007 = 2.62
  14. Annual EPS before NRI 12/2008 = 3.24
  15. Annual EPS before NRI 12/2009 = 2.18
  16. Annual EPS before NRI 12/2010 = 2.37
  17. Annual EPS before NRI 12/2011 = 2.09

Dividend history

  1. Dividend Yield = 2.4
  2. Dividend Yield 5 Year Average = 2.10
  3. Dividend 5 year Growth = - 15.6%

Dividend sustainability

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

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 9.75
  2. ROE 5 Year Average = 10.96
  3. Return on Investment = 4.65
  4. Debt/Total Cap 5 Year Average = 39.15
  5. Current Ratio = 0.74
  6. Current Ratio 5 Year Average = 0.77
  7. Quick Ratio = 0.74
  8. Cash Ratio = 0.57
  9. Interest Coverage Quarterly = 6.50
  10. Retention rate = 75%

Company : Tootsie Roll (TR)

Levered Free Cash Flow = 39.76M

Brief Overview

  1. Percentage Held by Insiders = 59.91
  2. 5 year sales growth rate = 1.75%
  3. Short Ratio = 30.7
  4. Relative Strength 52 weeks = 47
  5. Cash Flow 5-year Average = 1.13
  6. Profit Margin = 8.31%
  7. Operating Margin = 10.63%
  8. Quarterly Revenue Growth = 1.3%
  9. Quarterly Earnings Growth = 5.3%
  10. Operating Cash Flow = 68.05M
  11. Beta = 0.74
  12. Percentage Held by Institutions = 39.2%
  13. Short Percentage of Float = 15%

Growth

  1. Net Income ($mil) 12/2011 = 44
  2. Net Income ($mil) 12/2010 = 53
  3. Net Income ($mil) 12/2009 = 53
  4. Net Income Reported Quarterly ($mil) = 9
  5. EBITDA ($mil) 12/2011 = 81
  6. EBITDA ($mil) 12/2010 = 92
  7. EBITDA ($mil) 12/2009 = 81
  8. Cash Flow ($/share) 12/2011 = 1.08
  9. Cash Flow ($/share) 12/2010 = 1.2
  10. Cash Flow ($/share) 12/2009 = 1.18
  11. Sales ($mil) 12/2011 = 528
  12. Sales ($mil) 12/2010 = 517
  13. Sales ($mil) 12/2009 = 496
  14. Annual EPS before NRI 12/2007 = N/A
  15. Annual EPS before NRI 12/2008 = 0.62
  16. Annual EPS before NRI 12/2009 = 0.9
  17. Annual EPS before NRI 12/2010 = 0.89
  18. Annual EPS before NRI 12/2011 = 0.74

Dividend history

  1. Dividend Yield = 1.3
  2. Dividend Yield 5 Year Average 03/2012 = 1.27
  3. Annual Dividend 12/2011 = 0.31
  4. Dividend 5 year Growth 03/2012 = 3.07

Dividend sustainability

  1. Payout Ratio 03/2012 = 0.41
  2. Payout Ratio 5 Year Average 03/2012 = 0.38

Performance

  1. ROE 5 Year Average 03/2012 = 7.42
  2. Debt/Total Cap 5 Year Average 03/2012 = 0.25
  3. Current Ratio = 2.40
  4. Current Ratio 5 Year Average = 3.35
  5. Quick Ratio = 2.41
  6. Cash Ratio = 1.63
  7. Interest Coverage = 501
  8. Retention rate = 59%

Company: Cisco Systems (CSCO)

Basic overview

  1. Levered free cash flow = $9.48 billion
  2. Sales vs 1 year ago = 7.9%
  3. 5 year sales growth = 4.9%
  4. EPS 5 year growth rate = 3.44%
  5. Operating margins = 22.6%
  6. Profit margin = 16%
  7. Beta = 1.46
  8. Short ratio= 1.50
  9. Operating cash flow = $11.23 Billion
  10. Quarterly revenue growth = 6.6%
  11. Quarterly earnings growth = 19.8%

Growth

  1. Net Income ($mil) 12/2011 = 6490
  2. Net Income ($mil) 12/2010 = 7767
  3. Net Income ($mil) 12/2009 = 6134
  4. EBITDA ($mil) 12/2011 = 10939
  5. EBITDA ($mil) 12/2010 = 12068
  6. EBITDA ($mil) 12/2009 = 9807
  7. Cash Flow ($/share) 12/2011 = 1.87
  8. Cash Flow ($/share) 12/2010 = 1.79
  9. Cash Flow ($/share) 12/2009 = 1.49
  10. Sales ($mil) 12/2011 = 43218
  11. Sales ($mil) 12/2010 = 40040
  12. Sales ($mil) 12/2009 = 36117
  13. Annual EPS before NRI 12/2007 = 1.25
  14. Annual EPS before NRI 12/2008 = 1.43
  15. Annual EPS before NRI 12/2009 = 1.17
  16. Annual EPS before NRI 12/2010 = 1.4
  17. Annual EPS before NRI 12/2011 = 1.4

Dividend history

  1. Dividend Yield = 2.00
  2. Dividend Yield 5 Year Average = 0.3

Dividend sustainability

  1. Payout Ratio = 0.19
  2. Payout Ratio 5 Year Average = 0.03

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 8
  2. 5 Year History EPS Growth = 2.37
  3. ROE 5 Year Average = 21.53
  4. Return on Investment = 12.96
  5. Debt/Total Cap 5 Year Average = 20.45
  6. Current Ratio = 3.6
  7. Current Ratio 5 Year Average = 2.93
  8. Quick Ratio = 3.30
  9. Cash Ratio = 2.92
  10. Interest Coverage = 16.5
  11. Retention rate = 81%

Conclusion

The markets are expected to be volatile, but in general, they are projected to trend upwards for most of the summer. The charts are indicating though that a much larger correction awaits this market. This correction could be as strong as the 2009 correction. Long-term investors should either think of lightening up on their holdings toward the end of summer with the intent of redeploying them later or consider selling covered calls. Selling covered calls will provide some downside protection, but this won't amount to much if the correction should turn ugly.

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.

Source: 5 Great Dividend Stocks That Warrant A Closer Look