The stock market recently logged its biggest one-day dip in over a year. Worries over the Federal Reserve's policies had investors on edge, with many choosing to sell rather than stick through the volatility.�Dividend stocks have been hit particularly hard thanks to fears that they'll lose their draw once interest rates begin creeping up.
However, there's a much better investment strategy than trying to guess which asset class Wall Street will favor next: Stick with your plan and try to use swings in market sentiment to your advantage.
With that in mind, here are three promising dividend stocks that have gotten a lot cheaper lately.
Campbell Soup (NYSE: CPB )
This convenience-food company has been on a buying binge. Campbell spent $1.55 billion last year on Bolthouse Farms, and recently closed a few smaller deals, including one for Plum Organics, the No. 2 brand of organic baby food in the U.S. That aggressive acquisition strategy has given Campbell's sales a shot in the arm. Last quarter, for example, revenue jumped by 15% almost entirely thanks to new sales from the Bolthouse Farms brand.
10 Best Restaurant Stocks To Own Right Now: Altria Group(MO)
Altria Group, Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes, smokeless products, and wine in the United States and internationally. It offers cigarettes under the Marlboro, Virginia Slims, Parliament, Benson & Hedges, Basic, and L&M brands; smokeless tobacco products under the Copenhagen, Skoal, Red Seal, Husky brands, and Marlboro snus brands; and machine-made large cigars and pipe tobacco. The company also produces and sells blended table wines under the Chateau Ste Michelle and Columbia Crest names; and distributes Antinori and Villa Maria Estate wines and Champagne Nicolas Feuillatte in the United States. In addition, it maintains a portfolio of leveraged and direct finance leases in rail and surface transport, aircraft, electric power, real estate, and manufacturing. The company sells its tobacco products to wholesalers, including distributors; large retail organizations, such as chain stores; and the armed services. Altria Group, Inc. markets its wine products to restaurants, wholesale clubs, supermarkets, wine shops, and mass merchandisers. The company was founded in 1919 and is headquartered in Richmond, Virginia.
Advisors' Opinion:- [By Sean Williams]
Some might see this action as all the more reason to hunker down at home with Altria (NYSE: MO ) , which commands nearly half of all premium brand market share in the U.S. and has one of the safest-yielding dividends imaginable. However, I contend that the U.S.' antismoking regulations are too strict and poised to get even stricter as the years progress. Furthermore, President Obama's 2014 budget proposes a 93% federal government tax increase per pack to $1.95 from $1.01. In my opinion, the geographic diversification of Philip Morris will trump the domestic concerns Altria will face in the coming decade any day of the week!
- [By James E. Brumley]
Seeing the writing on the wall, Lorillard Inc. acquired Blu Ecigs (the ones Jenny McCarthy is promoting) in April of 2012. Reynolds American is now wading waist-deep into e-cig waters, launching a nationwide rollout of its Vuse line of electronic cigarettes latte last ear... complete with television ads (the first time in decades cigarettes have been on TV ads, though Blu followed shortly after that). Altria Group Inc. (NYSE:MO) finally got into the game last August with its MarkTen brand... the last of the major U.S. big tobacco names to get into the electronic cigarette game. And, Imperial Tobacco Group PLC (OTCMKTS:ITYBY) is putting the finishing touches on its acquisition of Dragonlite International's e-cig division.
- [By Vinay Singh]
According to Euromonitor, 4% of the global smoking market will have switched over to e-cigarettes by 2050. Bloomberg projects e-cigarette to surpass traditional cigarette sales by 2047. By some estimates, e-cigarettes are already projected to become a $1.7 billion industry in the U.S. by the end of this year. This is why tobacco companies depend on e-cigarettes now. Altria Group (MO), Reynolds American, and Lorillard (LO) have started selling e-cigarettes in order to make up for declining sales of cigarettes as awareness about the dangers of tobacco spreads. Let's take a look at the moves they have been making.
Best Dividend Stocks For 2014: S&P GSCI(GD)
General Dynamics Corporation, an aerospace and defense company, provides business aviation; combat vehicles, weapons systems, and munitions; military and commercial shipbuilding; and communications and information technology products and services worldwide. Its Aerospace group designs, manufactures, and outfits various large and mid-cabin business-jet aircraft; provides maintenance, repair work, fixed-based operations, and aircraft management services; and performs aircraft completions for aircraft. The company?s Combat Systems group offers tracked and wheeled military vehicles, weapons systems, and munitions. Its product lines include wheeled combat and tactical vehicles; battle tanks and infantry vehicles; munitions and propellant; rockets and gun systems; and axle and drivetrain components and aftermarket parts. This group also manufactures and supplies engineered axles, suspensions, and brakes for heavy-load vehicles for military and commercial customers. The company Advisors' Opinion:
- [By Rich Smith]
Armaments destined for the Iraqi military include Textron (NYSE: TXT ) Bell 412 EP transport helicopters -- a dozen of them. Also, 50 M1135 Stryker wheeled armored personnel carriers from General Dynamics (NYSE: GD ) , outfitted for survivability in a chemical warfare environment. And finally, a shipment of spare parts to be used in maintaining everything from Humvees to howitzers to heavy equipment for salvaging damaged tanks from the battlefield.
- [By Chad Tracy]
Let's take a look at three stocks in the aerospace and defense sector that look more attractive at today's prices.
General Dynamics (NYSE: GD) General Dynamics is currently trading around $86 per share, which is close to its 52-week high of $87.85. Yet earnings support this valuation, and the company's forward price-to-earnings (P/E) ratio is only 11, compared with an industry average of 18. The current price to book value is 2.5. The company also carries very little debt, with a debt-to-equity ratio of 0.3.General Dynamics generates huge revenue through its contracts with the U.S. government. Its marine systems division owns three of the six submarine shipyards in the U.S. Long-term contracts with the U.S. government are estimated to be worth $78 billion for attack submarines and $140 billion for ballistic missile submarines.
- [By Rich Smith]
According to the DSCA, contractors General Dynamics (NYSE: GD ) , Boeing (NYSE: BA ) , and Wyle Laboratories are in line to perform avionics software upgrades and engine component improvements and to sell ground support equipment, spare parts, technical documentation, and other "technical and logistics support services" to Kuwait for an estimated $200 million.
- [By Rich Smith]
Perhaps appropriately for an arms merchant, General Dynamics (NYSE: GD ) stock is exploding this week, up nearly 8.8% since reporting earnings Wednesday morning -- and up about twice as much as the gains o fellow defense contractor Boeing (NYSE: BA ) , which also reported Wednesday.
Best Dividend Stocks For 2014: Agrium Inc.(AGU)
Agrium Inc., together with its subsidiaries, produces and markets agricultural nutrients, industrial products, and specialty products worldwide, as well as involves in the retail supply of agricultural products and services in North and South Americas. The company?s Retail segment markets crop nutrient products, including nitrogen, phosphate, potash, sulphur, and micronutrients; crop protection products, such as herbicides, fungicides, adjuvants, and insecticides; and seeds. This segment also offers agronomic services, as well as product application, soil and leaf tissue testing and analysis, and crop scouting services. This segment operates 1,192 outlets in the United States, Canada, Australia, Argentina, Chile, and Uruguay. The company?s Wholesale segment produces, markets, and distributes nitrogen, phosphate, potash, sulphate, and other crop nutrient products for agricultural and industrial customers. This segment also owns and operates facilities that upgrade ammonia t o other nitrogen products, such as urea, nitric acid, and ammonium nitrate, as well as provides Rainbow plant food products. Agrium?s Advanced Technologies segment produces and markets controlled-release crop nutrients and micronutrients for the agriculture, specialty agriculture, professional turf, horticulture, and consumer lawn and garden markets. The company was formerly known as Cominco Fertilizers Ltd. and changed its name to Agrium Inc. in 1995. Agrium Inc. was founded in 1931 and is headquartered in Calgary, Canada.
Advisors' Opinion:- [By Paul Ausick]
BPC had been one of two major marketing groups for potash. The other, Canpotex, is based in Canada and markets potash production from Potash Corp. of Saskatchewan Inc. (NYSE: POT), Agrium Inc. (NYSE: AGU) and the Canadian arm of Mosaic Co. (NYSE: MOS). The two marketing organizations (cartels?) controlled about two-thirds of the world�� production of potash and had for years maintained high prices for potash by limiting production.
Best Dividend Stocks For 2014: TAL International Group Inc.(TAL)
TAL International Group, Inc. engages in the lease of intermodal containers and chassis. It operates in two segments, Equipment Leasing and Equipment Trading. The Equipment Leasing segment involves in the acquisition, lease, re-lease, and sale of various intermodal transportation equipment, such as dry freight containers, which are used for general cargo, including manufactured component parts, consumer staples, electronics, and apparel; refrigerated containers that are used for perishable items, such as fresh and frozen foods; and special containers, which are used for heavy and oversized cargo, such as marble slabs, building products, and machinery. It also leases chassis, which are used for the transportation of containers and tank containers that are used to transport bulk liquid products, such as chemicals, as well as finances port equipment, which includes container cranes, reach stackers, and other related equipment. The Equipment Trading segment purchases container s from shipping line customers and other sellers of containers, and resells these containers to container traders and users of containers for storage or one-way shipment. As of December 31, 2009, it had a fleet of 701,946 containers and chassis, including 31,137 containers under management for third parties, representing 1,139,523 twenty-foot equivalent units (TEU). The company was founded in 1963 and is headquartered in Purchase, New York.
Advisors' Opinion:- [By ABN]
TAL International Group (TAL) is one of the world's largest lessors of intermodal freight containers for the shipping business with 17 offices in 11 countries and approximately 230 third-party container depot facilities in 40 countries. TAL's fleet consists of approximately 1,238,000 containers and 2,031,000 twenty-foot equivalent units (TEU).
- [By Seth Jayson]
Margins matter. The more TAL International Group (NYSE: TAL ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong TAL International Group's competitive position could be.
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