Sunday, November 13, 2011

Stocks that Pay Dividends!

3 Stocks you want to get NOW! :)

1) Johnson & Johnson (JNJ) is one of just four companies that carry a AAA grade on its debt. The company offers a 3.6% yield and has been very reliable--it's made steady payments since 1944 and has increased its dividend annually for the last 49 years. I think the company can accelerate its earnings growth over the next few years thanks to breakthroughs from its biopharmaceutical businesses. The company's pipeline includes potential new treatments for Alzheimer's disease, prostate cancer, hepatitis C, and a stroke prevention medicine. In our view, shares do not fully reflect the value of J&J's pipeline potential, and as a result we believe shares are attractively valued. Meanwhile, J&J should be affected less and less by major patent expirations on earlier products. Stock Price: $64.36 - Dividend Yield: 3.6%

2) AT&T (T) pays a 5.8% dividend. The telecommunications giant had made payouts since 1984 and has increased dividends steadily over the last 26 years, if completed, AT&T's merger with T-Mobil USA will make it No. 1 wireless operator in the U.S.(At press time, the U.S. Justice Department filed an antitrust lawsuit to block the proposed acquisition) The union should bring about operating savings that will fully offset the purchase price. Over the past 5 years, AT&T has grown its dividend about 5% per year on average. We expect a 2% growth rate in the next five years. We expect a 2% growth in a stabilizing economy thanks to AT&T's wireless and television businesses. Stock Price: $28.79 - Dividend Yield: 5.8%

3) Kinder Morgan Energy Partners (KMP) which operates oil and gas pipelines and storage facilities, pays a 6.6% dividend yield. Kinder Morgan has some 28,000 miles of pipelines used to transport natural gas and refined oil. The company has paid a dividend since 1992 and has increased its payout to investors the last 14 years running. We think Kinder Morgan can generate low double-digit income earnings growth this year, reflecting acquisitions and increased demand for storage capacity. For the past decade this dividend stock has delivered annualized total returns of 19.5%. What's more: A $10,000 investment in Kinder Morgan 20 years ago would be worth $190,000 today. In the next year, the company plans to build up its energy transportation and storage assets--one reason we think it is insulated from any decrease in oil or gas prices.
Stock Price: $70.56 - Dividend Yield: 6.6%

No comments: