Looking for some good ideas for dividend stocks that look like a good value currently. A month ago I had lots of ideas, but they've all gone up to the point where they aren't quite as exciting. Anyways, here are some of the stocks I've been looking at, but like I said none are nearly as exciting as they were a few weeks ago.
INTC
GE
PEP
KO
JNJ
PG
HCBK
XOM
MCD
WIN
RSG
Thoughts of this list and other dividend payers? Does anything still look really attractive after the recent run-up?
Disclosure:HCBK is the only thing on that list I currently own.
Dividend stocks for new money
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George the original one
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I don't think you can go wrong with most of your list and I own (and continue to buy) PEP, JNJ, & PG. Here's what I didn't like and why:
Personally, I would cross off XOM. You can do better in royalty trusts than you can with XOM if you're interested in owning oil stocks. Look at PBT, CRT, MVO, & BPT.
WIN has a crappy dividend history and is paying out more than it earns. In place of it, I'd pick on T or VZ, whichever has the highest current yield (though I find T to be a significantly better run company than VZ, there are many who argue otherwise). If it's solely the high yield that you're after, then substitute a REIT like GTY.
RSG is "ok", but... has their dividend growth stalled permanently or will it go back to the former level of doubling in 3-4 years. If they can't go back to high dividend increases, then there are faster growing companies at that yield (or higher).
Personally, I would cross off XOM. You can do better in royalty trusts than you can with XOM if you're interested in owning oil stocks. Look at PBT, CRT, MVO, & BPT.
WIN has a crappy dividend history and is paying out more than it earns. In place of it, I'd pick on T or VZ, whichever has the highest current yield (though I find T to be a significantly better run company than VZ, there are many who argue otherwise). If it's solely the high yield that you're after, then substitute a REIT like GTY.
RSG is "ok", but... has their dividend growth stalled permanently or will it go back to the former level of doubling in 3-4 years. If they can't go back to high dividend increases, then there are faster growing companies at that yield (or higher).
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George the original one
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Also, you might look into "Buy Don't Hold" and the author's dashboard at http://www.buydonthold.com/category/blog/
I've found the dashboard useful for market timing (blasphemy!).
I've found the dashboard useful for market timing (blasphemy!).
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George the original one
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- Joined: Wed Jul 28, 2010 3:28 am
- Location: Wettest corner of Orygun
OK, Jacob, you might have something going with TOT. My only complaint is that it pays dividends in the European semiannual tradition rather than paying quarterly, thus it's a little harder to analyze unless one looks at them annually.
I struggle with PBI. It turns up on my radar every so often and I end up ultimately rejecting it every time. Part of it is that I can't name any single item that they make which I've actually touched... on the other hand, the direct mail advertising industry must rely on their equipment, yet are they running on decades old stuff or are they actively buying new things?
I struggle with PBI. It turns up on my radar every so often and I end up ultimately rejecting it every time. Part of it is that I can't name any single item that they make which I've actually touched... on the other hand, the direct mail advertising industry must rely on their equipment, yet are they running on decades old stuff or are they actively buying new things?
I like T and VZ, but they just have so much debt. I think at this point I'd lean toward VZ over T as it appears they are finally getting the iPhone.
TOT does look very interesting. I think I will do a bit more research on that one. The 6 month divy could be a little annoying, but it's probably mostly a non-issue.
What does everyone think of HCBK? In my opinion it has the best valuation on my list, but as I said it is already part of my portfolio so it won't be in any of my near term purchases. Their reserves aren't as high as a lot of banks, but they have way more equity in their loans than most banks as well.
TOT does look very interesting. I think I will do a bit more research on that one. The 6 month divy could be a little annoying, but it's probably mostly a non-issue.
What does everyone think of HCBK? In my opinion it has the best valuation on my list, but as I said it is already part of my portfolio so it won't be in any of my near term purchases. Their reserves aren't as high as a lot of banks, but they have way more equity in their loans than most banks as well.
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George the original one
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- Joined: Wed Jul 28, 2010 3:28 am
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HCBK has the hallmarks of a good dividend stock. It doubled its dividend in less than 5 years, unfortunately it did so just before the credit crisis, however it also did not cut the dividend. Payout ratio is currently 53%, yield is 5% when 5-yr historic average yield is 2.9%, PE is under 12 which is typically a good point for banks, currently trading at book value, so current price is certainly indicating it's a bargain now with room for a 50% gain and dividend increase.
Bad news is that it is a bank and new rules enable banks to keep their cockroaches more hidden than in the past. I don't think, in HCBK's case, that the tar from that brush will stick as much as it sticks to the likes of Citibank. Certainly the bargain market price leaves room for an error in judgement.
I see a number of insider sales, the last being 20k shares by a bank director on Aug 5. That seems like a lot of shares to sell, but then insiders hold something like 41.5 million shares, so 20k is a drop in the bucket. Might want to look at how many shares they award to executives and how it compares with other banks.
If one wanted to be more sure of the purchase, then one would ask what the default rate has been and how that compares to other well-run banks (see BOH, for example). Scan the news and comments to see what sort of reputation they have and what dirt might exist. Any bank with a 5% yield is pretty tempting...
Bad news is that it is a bank and new rules enable banks to keep their cockroaches more hidden than in the past. I don't think, in HCBK's case, that the tar from that brush will stick as much as it sticks to the likes of Citibank. Certainly the bargain market price leaves room for an error in judgement.
I see a number of insider sales, the last being 20k shares by a bank director on Aug 5. That seems like a lot of shares to sell, but then insiders hold something like 41.5 million shares, so 20k is a drop in the bucket. Might want to look at how many shares they award to executives and how it compares with other banks.
If one wanted to be more sure of the purchase, then one would ask what the default rate has been and how that compares to other well-run banks (see BOH, for example). Scan the news and comments to see what sort of reputation they have and what dirt might exist. Any bank with a 5% yield is pretty tempting...