Energy Transfer Partners Among 3 Long-Term Dividend Prospects To Consider

| About: Energy Transfer (ETP)
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In the learning to fish series, we provide investors with suggested guidelines for choosing a potential candidate and one candidate is selected as our play of choice. We provide reasons for this choice and in doing so hope to impart some understanding to those who are new to the field of dividend investing. The suggested guidelines can be accessed here "Our suggested guidelines when searching for new investment ideas." These are not absolute rules; they are just suggestions and there are always exceptions to the rule. The goal is to try to satisfy as many of them as possible. For example, Energy Transfer Partners does not meet with all the criteria but EPS per share is projected to increase over the next few years, and it does sport a great yield so it potentially could make for a good long-term play. On the other hand, Randgold Resources (NASDAQ:GOLD) easily fulfills all the listed criteria.

Company: Energy Transfer Partners (NYSE:ETP)

Basic Key ratios

  1. Percentage Held by Insiders = 3
  2. Relative Strength 52 weeks = 56
  3. Dividend 5-year Growth = 1.81
  4. Cash Flow 5-year Average = 4.97
  5. Dividend Yield 5-Year Average = 7.65

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
  1. EBITDA ($mil) 12/2011 = 1631
  2. EBITDA ($mil) 12/2010 = 1398
  3. EBITDA ($mil) 12/2009 = 1520
  1. Cash Flow ($/share) 12/2011 = 5.67
  2. Cash Flow ($/share) 12/2010 = 5.34
  3. Cash Flow ($/share) 12/2009 = 6.32
  1. Sales ($mil) 12/2011 = 6850
  2. Sales ($mil) 12/2010 = 5885
  3. Sales ($mil) 12/2009 = 5417
  1. Annual EPS before NRI 12/2007 = 3.31
  2. Annual EPS before NRI 12/2008 = 4.09
  3. Annual EPS before NRI 12/2009 = 2.51
  4. Annual EPS before NRI 12/2010 = 1.47
  5. Annual EPS before NRI 12/2011 = 1.48

Dividend history

  1. Dividend Yield = 8.00
  2. Dividend Yield 5 Year Average 12/2011 = 7.65
  3. Annual Dividend 12/2011 = 3.58
  4. Forward Yield = 8.11
  5. Dividend 5 year Growth 12/2011 = 1.81

Dividend sustainability

  1. Payout Ratio 09/2011 = 3.41
  2. Payout Ratio 5 Year Average 12/2011 = 1.68
  3. Change in Payout Ratio = 1.73

Performance

  1. Percentage Change Price 52 Weeks Relative to S&P 500 = -7.1
  2. Next 3-5 Year Estimate EPS Growth rate = 12.05
  3. 5 Year History EPS Growth 12/2011 = -19.3
  4. ROE 5 Year Average 12/2011 = 19.14
  5. Return on Investment 12/2011 = 4.83
  6. Debt/Total Cap 5 Year Average 12/2011 = 56.88
  7. Current Ratio 12/2011 = 1.1
  8. Current Ratio 5 Year Average = 1.15
  9. Quick Ratio = 0.61
  10. Cash Ratio = 0.19
  11. Interest Coverage Quarterly = 9.33

Valuation

  1. Book Value Quarterly = 32.91
  2. Price/ Book = 1.34
  3. Price/ Cash Flow = 7.77

Company: Regency Energy (NYSE:RGP)

Basic Key ratios

  1. Percentage Held by Insiders = 0.1
  2. Number of Institutional Sellers 12 Weeks = 1
  3. Relative Strength 52 weeks = 50
  4. Dividend 5-year Growth = 3.32
  5. Cash Flow 5-year Average = 1.43
  6. Dividend Yield 5-Year Average = 8.32

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) 12/2011 = 1.61
  5. Cash Flow ($/share) 12/2010 = 0.57
  6. Cash Flow ($/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

Dividend history

  1. Dividend Yield = 8.2
  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: Randgold Resources

Basic Key ratios

  1. Relative Strength 52 weeks = 59
  2. Dividend 5-year Growth = 18.31
  3. Cash Flow 5-year Average = 1.23
  4. Dividend Yield 5-Year Average = 0.21

Growth

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

Dividend history

  1. Dividend Yield = 0.50
  2. Dividend Yield 5 Year Average 12/2011 = 0.21
  3. Dividend 5 year Growth 12/2011 = 18.31

Dividend sustainability

  1. Payout Ratio 09/2011 = 0.04
  2. Payout Ratio 5 Year Average 12/2011 = 0.12

Performance

  1. Next 3-5 Year Estimate EPS Growth rate = 9.14
  2. 5 Year History EPS Growth 12/2011 = 45.39
  3. ROE 5 Year Average 12/2011 = 25.41
  4. Return on Investment 12/2011 = 19.86
  1. Current Ratio 12/2011 = 5.47
  2. Current Ratio 5 Year Average = 4.99
  3. Quick Ratio = 3.52
  4. Cash Ratio = 2.79
  5. Interest Coverage Quarterly = 222

Conclusion

The markets are extremely oversold, and some sort of relief rally could take hold soon. However, we still believe there is more downside to this market before a multi-month bottom takes hold. Long-term investors can use strong pullbacks to slowly start deploying money into long-term investments. A great way to get into a stock at a price of your choosing is to sell puts at strikes you would not mind owning the stock at. Investors looking for even more investment ideas might find these articles to be of interest: General Electric: An Option Strategy That Could Potentially triple your yield and Kimberly Clark: A Great Strategy To Potentially Double your yield.

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 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.