A Good Mix Of Dividend And Growth Plays To Analyze

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 |  Includes: ARCC, BIDU, BK, GOLD, JNJ
by: Tactical Investor

This list is meant to serve as a starting point for investors. A considerable amount of data has been provided and so it should be relatively easy for an investor to scroll down the list and decide if the stock merits further attention. Investors should not base their decision on yield alone. There are many stocks that offer extremely high yields, but their performance over the years has been anything but spectacular. In some cases the total rate of return has been negative for the past 3-5 years. One should look at the robustness of the company, the dividend growth rate, the sustainability of the dividend and finally one should take a look at the company's dividend history. Companies with stellar records will do everything possible to avoid cutting the dividend in order to maintain this record. To help the novice investor to get started, we have put out this guide, which could prove to be useful in the selection process: "Our suggested guidelines when searching for new investment ideas."

Company: Baidu Inc (NASDAQ:BIDU)

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Basic overview

1. 52 week change = -9.39%

2. Quarterly revenue growth = 75%

3. Quarterly earnings growth rate = 75.9&

4. Book value = 9.00

5. Profit margins = 45%

6. Operating margins = 51%

7. Beta = 1.85

8. Gross margins = 72%

9. Long term debt to equity = 0.11

10. Sales vs 1 year ago = 91%

11. 5 year sales growth rate = 64%

12. 5 year EPS growth rate = 73%

Growth

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  1. Net Income ($mil) 12/2011 = 1026
  2. Net Income ($mil) 12/2010 = 522
  3. Net Income ($mil) 12/2009 = 218
  4. EBITDA ($mil) 12/2010 = 668
  5. EBITDA ($mil) 12/2009 = 293
  6. Cash Flow ($/share) 12/2010 = 2.35
  7. Cash Flow ($/share) 12/2009 = 1.01
  8. Sales ($mil) 12/2011 = 2304
  9. Sales ($mil) 12/2010 = 1202
  10. Sales ($mil) 12/2009 = 652
  11. Annual EPS before NRI 12/2007 = 0.25
  12. Annual EPS before NRI 12/2008 = 0.44
  13. Annual EPS before NRI 12/2009 = 0.63
  14. Annual EPS before NRI 12/2010 = 1.53
  15. Annual EPS before NRI 12/2011 = 3.02

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Performance

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  1. Next 3-5 Year Estimate EPS Growth rate = 45.35
  2. ROE 5 Year Average = 41.72
  3. Return on Investment = 47.92
  4. Debt/Total Cap 5 Year Average = 3.35
  5. Current Ratio = 4.7
  6. Current Ratio 5 Year Average = 3.43
  7. Quick Ratio = 4.5
  8. Cash Ratio = 3.46

Company: Bank of New York Mellon (NYSE:BK)

Basic overview

  1. Operating margins = 27%
  2. Profit margin = 15.44%
  3. Beta = 1.30
  4. Short ratio= 2.4
  5. Quarterly revenue growth = -5%
  6. Quarterly earnings growth = - 36%
  7. Relative Strength 52 weeks = 40
  8. Sales vs 1 year ago = 5.9%
  9. 5 year sales growth rate = 3.08%
  10. Book value = $28.81

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

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Dividend History

  1. Dividend Yield = 2.3
  2. Dividend Yield 5 Year Average = 2.10
  3. Dividend 5 year Growth 12/2011 = - 15%

Dividend Sustainability

  1. Payout Ratio = 0.28
  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 = 72

Notes

Consider waiting for a test of the $118-$120 ranges before getting in. A weekly close above 133 will be a rather bullish development and could result in a test of the $145-$150 ranges.

Company: Randgold Resources GOLD

Basic overview

  1. Levered free cash flow = - 113M
  2. Operating cash flow = 513M
  3. Quarterly revenue growth = 7.10
  4. Quarterly earnings growth rate = 3.7%
  5. Book value = 25.91
  6. Profit margins = 35%
  7. 52 week change = - 3.4%
  8. Beta = 0.45
  9. Gross margins = 41%
  10. Long term debt to equity = 0.00
  11. Sales vs 1 year ago = 123%
  12. 5 year sales growth rate = 31%

Growth

  1. Net Income ($mil) 12/2011 = 433
  2. Net Income ($mil) 12/2010 = 121
  3. Net Income ($mil) 12/2009 = 84
  4. EBITDA ($mil) 12/2011 = 485
  5. EBITDA ($mil) 12/2010 = 145
  6. EBITDA ($mil) 12/2009 = 134
  7. Cash Flow ($/share) 12/2011 = 4.19
  8. Cash Flow ($/share) 12/2010 = 1.33
  9. Cash Flow ($/share) 12/2009 = 1.25
  10. Sales ($mil) 12/2011 = 1127
  11. Sales ($mil) 12/2010 = 485
  12. Sales ($mil) 12/2009 = 433
  13. Annual EPS before NRI 12/2007 = 0.6
  14. Annual EPS before NRI 12/2008 = 0.54
  15. Annual EPS before NRI 12/2009 = 0.84
  16. Annual EPS before NRI 12/2010 = 1.13
  17. Annual EPS before NRI 12/2011 = 4.27

Dividend history

  1. Dividend Yield = 0.4
  2. Dividend Yield 5 Year Average = 0.21
  3. Dividend 5 year Growth = 24%

Dividend sustainability

  1. Payout Ratio = 0.04
  2. Payout Ratio 5 Year Average = 0.12

Performance

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  1. Next 3-5 Year Estimate EPS Growth rate = 9.14
  2. 5 Year History EPS Growth = 45.39
  3. ROE 5 Year Average = 25.41
  4. Return on Investment = 19.86
  5. Current Ratio = 5.5
  6. Current Ratio 5 Year Average = 4.99
  7. Quick Ratio = 4.00
  8. Cash Ratio = 2.79
  9. Interest Coverage Quarterly = 222
  10. Retention rate = 96%

Company: Johnson & Johnson (NYSE:JNJ)

Basic overview

  1. Levered free cash flow = 10.02B
  2. Operating cash flow = 15.6B
  3. Quarterly revenue growth = -0.7%
  4. Quarterly earnings growth rate = -49%
  5. Book value = 21.97
  6. Profit margins = 13%
  7. 52 week change = 6%
  8. Beta = 0.48
  9. Gross margins = 73.5%
  10. Long term debt to equity = 0.19
  11. Sales vs 1 year ago= 5.6%
  12. 5 year sales growth rate = 1.5%
  13. 5 year EPS growth rate -3.49%

Growth

  1. Net Income ($mil) 12/2011 = 9672
  2. Net Income ($mil) 12/2010 = 13334
  3. Net Income ($mil) 12/2009 = 12266
  4. EBITDA ($mil) 12/2011 = 16090
  5. EBITDA ($mil) 12/2010 = 20341
  6. EBITDA ($mil) 12/2009 = 18980
  7. Cash Flow ($/share) 12/2011 = 6.23
  8. Cash Flow ($/share) 12/2010 = 5.91
  9. Cash Flow ($/share) 12/2009 = 5.68
  10. Sales ($mil) 12/2011 = 65030
  11. Sales ($mil) 12/2010 = 61587
  12. Sales ($mil) 12/2009 = 61897
  13. Annual EPS before NRI 12/2007 = 4.15
  14. Annual EPS before NRI 12/2008 = 4.55
  15. Annual EPS before NRI 12/2009 = 4.63
  16. Annual EPS before NRI 12/2010 = 4.76
  17. Annual EPS before NRI 12/2011 = 5

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Dividend history

  1. Dividend Yield = 3.60
  2. Dividend Yield 5 Year Average = 3.10
  3. Dividend 5 year Growth = 7.8

Dividend sustainability

  1. Payout Ratio = 0.74
  2. Payout Ratio 5 Year Average 12/2011 = 0.43

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 6.57
  2. 5 Year History EPS Growth = 4.38
  3. ROE 5 Year Average = 26.32
  4. Return on Investment = 19.16
  5. Debt/Total Cap 5 Year Average = 14.33
  6. Current Ratio = 1.7
  7. Current Ratio 5 Year Average = 1.94
  8. Quick Ratio = 1.20
  9. Cash Ratio = 1.64
  10. Interest Coverage = 20.00

Company: Ares Cap Cp (NASDAQ:ARCC)

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Basic overview

  1. EPS vs 1 year ago = 146%
  2. Beta = 1.83
  3. Long term debt to equity = 0.64
  4. Sales vs 1 year ago = -30%
  5. 5 year sales growth rate = 40%
  6. Sales vs quarter 1 year ago = 31%

Growth

  1. Net Income ($mil) 12/2011 = 319
  2. Net Income ($mil) 12/2010 = 692
  3. Net Income ($mil) 12/2009 = 203
  4. EBITDA ($mil) 12/2011 = 437
  5. EBITDA ($mil) 12/2010 = 318
  6. EBITDA ($mil) 12/2009 = 163
  7. Cash Flow ($/share) 12/2011 = 1.68
  8. Cash Flow ($/share) 12/2010 = 1.41
  9. Cash Flow ($/share) 12/2009 = 1.3
  10. Sales ($mil) 12/2011 = 634
  11. Sales ($mil) 12/2010 = 483
  12. Sales ($mil) 12/2009 = 245
  13. Annual EPS before NRI 12/2007 = 1.43
  14. Annual EPS before NRI 12/2008 = 1.42
  15. Annual EPS before NRI 12/2009 = 1.35
  16. Annual EPS before NRI 12/2010 = 1.43
  17. Annual EPS before NRI 12/2011 = 1.56

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Dividend history

  1. Dividend Yield = 8.9
  2. Dividend Yield 5 Year Average = 13.00
  3. Dividend 5 year Growth = - 2.1

Dividend sustainability

  1. Payout Ratio = 0.86
  2. Payout Ratio 5 Year Average = 1.08

Performance

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  1. Next 3-5 Year Estimate EPS Growth rate = 11.5
  2. ROE 5 Year Average = 10.03
  3. Current Ratio = 1.3
  4. Current Ratio 5 Year Average = 1.94
  5. Quick Ratio = 1.32
  6. Cash Ratio = 0.73
  7. Interest Coverage Quarterly = 3.8

Conclusion

In general, if you like a company, but find that the stock is trading above your entry point, then you should consider selling puts at strikes you would not mind owning the stock at. The benefit of this strategy is that it provides you with the chance to get into a stock at a predetermined price or get paid for trying to. As the markets are overbought and trending higher on low volume, long-term investors should consider waiting for a much stronger decline before committing large amounts of money to any given play.

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.

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

Additional disclosure: EPS, company vs industry, EPS surprises charts/data obtained from zacks.com. A major portion of the historical data used in this article was obtained from zacks.com Forecast revisions, growth estimates and earnings vs expectations data sourced from smartmoney.com.