Dividend investors would be wise to focus not just on a stock's current yield, but also on the long-term growth potential of its dividends. That's because strong businesses that consistently raise their dividend payouts reward shareholders with a steadily rising income stream that essentially equates to a raise every year. And well, who doesn't like a raise?
But there are other reasons to value dividend growth so highly, and they're well supported by research. For instance, a study by C. Thomas Howard published in Advisor Perspectives found that for every percentage point a stock's yield rises, its annual return increases by 0.22 percentage points if it's a large cap, 0.25 if it's a midcap, and 0.46 if it's a small cap. Even better, Howard found that dividend-growing stocks outperformed dividend cutters by 10 percentage points per year from 1973 to 2010 and beat both flat- and no-dividend stocks. And the icing on the cake is that Howard showed that this outperformance came with a third less volatility. Higher returns, less volatility-induced stress, and a steadily growing income stream -- what's not to love?
Top 5 Penny Companies To Buy For 2015: Microchip Technology Incorporated(MCHP)
Microchip Technology Incorporated, together with its subsidiaries, develops, manufactures, and sells semiconductor products for various embedded control applications. It offers a family of microcontroller products that include 8-bit, 16-bit, and 32-bit PIC microcontrollers; and 16-bit dsPIC digital signal controllers, which feature on-board flash memory technology. The company also provides a set of application development tools that enable system designers to program a PIC microcontroller and dsPIC DSC for specific applications. In addition, it offers analog and interface products, which consist of various families with approximately 600 power management, linear, mixed-signal, thermal management, safety and security, and interface products. Further, the company provides memory products comprising serial electrically erasable programmable read-only memory. Its products are used in various applications in automotive, communications, computing, consumer, and industrial contr ol markets. Microchip Technology Incorporated markets its products primarily through a network of direct sales personnel and distributors in the Americas, Europe, and Asia. The company was founded in 1989 and is based in Chandler, Arizona.
Advisors' Opinion:- [By Jon C. Ogg]
Microchip Technology Inc. (NASDAQ: MCHP) was raised to Buy from Neutral with a $46 price target at Goldman Sachs.
Network Appliances Inc. (NASDAQ: NTAP) was downgraded to Equal Weight from Overweight with a new $46 price target by Barclays.
- [By Srdjan Bejakovic]
In the first quarter, semiconductor maker Atmel� (NASDAQ: ATML ) recorded $337 million in revenue, $7 million above the upper end of its own guidance range. Additionally, management claims that 2014 will be a year of growth and increased profitability for the company, driven by continuing demand for microcontrollers and an improving picture in Atmel's touch business. What's lying behind the surprising revenue numbers, and can Atmel prosper in spite of increasing competition from such solid companies as Microchip Technologies� (NASDAQ: MCHP ) and Synaptics (NASDAQ: SYNA ) ?
- [By John Udovich]
If you are looking for a semiconductor stock that�� focus on an area that�� not so cyclical, mid cap microcontroller (MCU) stock Atmel Corporation (NASDAQ: ATML) could be a good choice���meaning its worth taking a closer look at the stock along with other�microcontroller�players like Microchip Technology Inc (NASDAQ: MCHP), STMicroelectronics N.V. (NYSE: STM) and Cypress Semiconductor Corporation (NASDAQ: CY). Microcontrollers are programmable and�embedded�chips that are increasingly�hidden inside a all sorts of products these days e.g. if you have an appliance�with a�LED or LCD screen and a keypad, it contains some kind of�microcontroller plus all new�automobiles contain at least one�and often several. I should mention that we have also recently added Atmel Corporation to our SmallCap Network Elite Opportunity (SCN EO) portfolio and we are down about 5.6% mostly due to the recent market volatility.
Hot Dividend Companies For 2014: Eaton Corporation(ETN)
Eaton Corporation operates as a power management company worldwide. It provides electrical components and systems for power quality, distribution, and control; hydraulics components, systems, and services for industrial and mobile equipment; aerospace fuel, hydraulics, and pneumatic systems for commercial and military use; and truck and automotive drivetrain, and powertrain systems for performance, fuel economy, and safety. The company also manufactures screw-in cartridge valves, custom-engineered hydraulic valves, and manifold systems; and electrical and electromechanical systems. In addition, it designs, manufactures, and distributes intake and exhaust valves for diesel and gasoline engines; supplies electrical components for commercial and residential building applications and industrial controls for industrial equipment applications; and manufactures human machine interfaces, programmable logic controllers, and input/output devices. Further, the company also operates a s a provider of customized enclosures, rack systems, and air-flow management systems to store, power, and secure mission-critical IT data center electronics; and manufacturer, distributor, and service provider of single-phase and three-phase uninterruptible power supply systems. Eaton Corporation was founded in 1916 and is headquartered in Cleveland, Ohio.
Advisors' Opinion:- [By Rex Moore]
IPC believes its technology can disrupt traditional products offered by ABB (NYSE: ABB ) and Eaton (NYSE: ETN ) . Our roving reporter Rex Moore caught up with IPC CEO Paul Bundschuh at the conference, and chatted about where the real opportunities are within the electric-vehicle markets. While electric-car maker Tesla (NASDAQ: TSLA ) has richly rewarded shareholders over the past few months, Paul says investors should be looking on the commercial side of the market.
Hot Dividend Companies For 2014: Paragon Shipping Inc.(PRGN)
Paragon Shipping Inc. provides shipping transportation services worldwide. The company engages in the ocean transportation of various drybulk cargoes and containers. Its fleet consists of 11 drybulk vessels with a total carrying capacity of 747,994 dwt. The company was founded in 2006 and is based in Voula, Greece.
Advisors' Opinion:- [By Roberto Pedone]
Another under-$10 name shipping player that's starting to move within range of triggering a big breakout trade is Paragon Shipping (PRGN), which is engaged in transporting drybulk cargoes, including such commodities as iron ore, coal, grain and other materials along shipping routes worldwide. This stock has been on fire so far in 2013, with shares up sharply by 114%.
If you take a look at the chart for Paragon Shipping, you'll notice that this stock just recently took out its 50-day moving average of $4.19 a share with strong upside volume. Shares of PRGN are showing relative strength today, despite the overall market weakness, which shows this stock is in strong demand at current levels. This move is now starting to push shares of PRGN within range of triggering a big breakout trade
Market players should now look for long-biased trades in PRGN if it manages to break out above some near-term overhead resistance at $4.90 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 25,811 shares. If that breakout triggers soon, then PRGN will set up to re-test or possibly take out its 52-week high at $5.70 a share. If that level gets taken out with volume, then PRGN could easily tag its next major overhead resistance levels at $7 to $8.35 a share.
Traders can look to buy PRGN off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $4.19 a share, or below its 200-day moving average at $3.74 a share. One can also buy PRGN off strength once it clears $4.90 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point. I would add to either position once PRGN takes out its 52-week high at $5.70 a share with strong upside volume flows.
Hot Dividend Companies For 2014: Cinemark Holdings Inc(CNK)
Cinemark Holdings, Inc. and its subsidiaries engage in the motion picture exhibition business. As of June 30, 2011, it operated 436 theatres with 4,983 screens in 39 states of the United States, as well as in Brazil, Mexico, and 11 other Latin American countries. The company is headquartered in Plano, Texas.
Advisors' Opinion:- [By John Udovich]
The shares of small cap IMAX Corporation (NYSE: IMAX) have slipped more than 10% this week on growth concerns - meaning it might be a good idea to take a closer look at the stock plus its performance�verses other cinema stocks like Carmike Cinemas, Inc (NASDAQ: CKEC), Cinemark Holdings, Inc (NYSE: CNK) and Regal Entertainment Group (NYSE: RGC) along with the PowerShares Dynamic Leisure & Entertainment ETF�(NYSEARCA: PEJ).
- [By Sue Chang]
Cinemark Holdings Inc. (CNK) : The movie theater company is well positioned to capitalize on the film�� popularity with movie goers with operations both in the U.S. and Latin America. Shares of Cinemark are up 26% so far this year.
- [By Rich Smith]
As movie-theater operator Cinemark (NYSE: CNK ) exits the Mexican market, another "gringo" is expanding to fill the gap -- from even farther north of the border.
Hot Dividend Companies For 2014: ConAgra Foods Inc.(CAG)
ConAgra Foods, Inc. operates as a food company primarily in North America. It operates in two segments, Consumer Foods and Commercial Foods. The Consumer Foods segment provides branded, private label, and customized food products, which are sold in various retail and foodservice channels. It offers products in various categories, such as meals, entrees, condiments, sides, snacks, and desserts in frozen, refrigerated, and shelf-stable temperature classes. This segment?s principal brands include Alexia, ACT II, Banquet, Blue Bonnet, Chef Boyardee, DAVID, Egg Beaters, Healthy Choice, Hebrew National, Hunt?s, Marie Callender?s, Orville Redenbacher?s, PAM, Peter Pan, Reddi-wip, Slim Jim, Snack Pack, Swiss Miss, Van Camp?s, and Wesson. The Commercial Foods segment provides commercially branded foods and ingredients that are sold to foodservice, food manufacturing, and industrial customers. Its primary products consist of specialty potato products, milled grain ingredients, a ran ge of vegetable products, seasonings, blends, and flavors. This segment sells products under brands, such as ConAgra Mills, Lamb Weston, and Spicetec Flavors & Seasonings. The company was founded in 1919 and is headquartered in Omaha, Nebraska.
Advisors' Opinion:- [By Rich Duprey]
Post's results were also affected by higher interest expenses as a result of last year's spinoff from Ralcorp, which ended up getting acquired by ConAgra (NYSE: CAG ) earlier this year. It carries a load of debt due to breaking away from its former parent, and last October the cereal maker issued $250 million in senior notes, sending interest expense this quarter up to $21.6 million, up 43% from the $15.1 million expense recorded a year ago.
- [By Shauna O'Brien]
Shares of ConAgra Foods Inc (CAG) plummeted on Wednesday morning after the company announced that it is lowering its fourth quarter outlook.
The company reported that it now expects fourth quarter results to be below expectations primarily due to weak Consumer Foods volume performance. CAG now expects to see a net loss of 76 cents per share. On an adjusted basis, EPS is expected to be�55 cents (previously 60 cents). On average, analysts expect to see 62 cents per share in earnings.
“We are disappointed with the Consumer Foods volume performance, which negatively impacted comparable EPS,” noted Gary Rodkin, CEO of CAG.
CAG Dividend SnapshotAs market close on June 17, 2014
Click here to see the complete history of CAG dividends.
ConAgra Foods shares were down $2.00, or 6.09% during premarket trading Wednesday. The stock is down 2.52% YTD.
- [By Dan Caplinger]
But Mondelez has suffered some headwinds. In its most recent earnings report last month, Mondelez reported weakness in its coffee segment, forcing it to cut prices in Europe in order to stay competitive. Moreover, Hershey (NYSE: HSY ) has stepped up its presence in the lucrative emerging market regions, where Mondelez has enjoyed substantial revenue growth. In addition, the rise of private-label offerings from ConAgra (NYSE: CAG ) as it works with grocery store chains to offer competing products to those Mondelez offers has hit the global snack company especially hard, given its many premium-priced snack offerings that especially lend themselves to private-label knockoffs.
Hot Dividend Companies For 2014: Avon Products Inc. (AVP)
Avon Products Inc. manufactures and markets beauty and related products worldwide. Its product categories include color cosmetics, fragrances, skin care, and personal care; fashion jewelry, watches, apparel, footwear, and accessories; and gift and decorative products, housewares, entertainment and leisure, and children?s and nutritional products. Avon Products Inc. markets its products through direct selling and independent representatives, as well as through distributorships. The company was founded in 1886 and is based in New York, New York.
Advisors' Opinion:- [By Lauren Pollock]
Avon Products Inc.(AVP) said it halted a roll-out of a new order management system, saying a pilot program in Canada resulted in “significant business disruptions in the market.” The company said the change will result in additional layoffs and write-downs.
- [By Ben Levisohn]
The market, however, clearly hasn’t taken it that way, as Herbalife’s shares have dropped 4% to $70.21. Direct seller Avon Products (AVP) has fallen 1.2% to $20.67, while nutritional-product retailer GNC Holdings (GNC) has declined 1.6% to $53.81.
- [By Louis Navellier]
Of course, I’d also like to alert you to these big blue chips that have fallen in the eyes of the analyst community before they disappoint with their earnings reports.
Avon Products (AVP): In the past three months, analysts have slashed their estimates by 19%. Avon Products is expected to see sales fall 8.1% and earnings plunge 18.9%. AVP is a sell. Coach (COH): In the past three months, analysts have reduced their estimates by 11%. Coach is now headed towards a 1.1% drop in sales and an 8.9% drop in earnings. COH is a sell. Hess (HES): In the past three months, analysts have slashed their estimates by 19%. Hess is due to post a 75% year-on-year drop in sales and just 7.5% annual earnings growth. HES is a hold. H&R Block (HRB): In the past two months, analysts have slashed their estimates from a profit of 1 cent per share to a loss of 8 cents per share. HRB is a hold. Target (TGT): In the past two months, analysts have cut their estimates by 15%. Target is now expected to see sales retreat 2.8% over last year and earnings fall nearly 16%. TGT is a sell.Now a lot can happen in the weeks between now and these earnings announcements, so there is a chance that some of these will firm up before then. However, in the meantime I see no reason to hold stocks that are underperforming their peers, especially when so many premium stocks are still on sale.
Hot Dividend Companies For 2014: Abbott Laboratories(ABT)
Abbott Laboratories engages in the discovery, development, manufacture, and sale of health care products worldwide. The company offers adult and pediatric pharmaceuticals for rheumatoid and psoriatic arthritis, ankylosing spondylitis, psoriasis, and Crohn's disease; dyslipidemia; HIV infection; prostate cancer, endometriosis and central precocious puberty, and anemia caused by uterine fibroids; respiratory syncytial virus; adult males who have low or no testosterone; secondary hyperparathyroidism; hypothyroidism; and pancreatic exocrine insufficiency, as well as anesthesia products. It also provides diagnostic products, such as immunoassay systems; chemistry systems; assays used for screening and/or diagnosis for drugs of abuse, cancer, therapeutic drug monitoring, fertility, physiological, and infectious diseases; instruments that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infections agents; genomic-b ased tests; hematology systems and reagents; and point-of-care diagnostic systems and tests for blood analysis. In addition, the company offers a line of pediatric and adult nutritional products. Further, it provides coronary, endovascular, vessel closure, and structural heart devices, such as drug-eluting stent systems, coronary metallic stents, balloon dilatation products, coronary guidewires, vessel closure devices, carotid stent systems, percutaneous valve repair systems, and drug eluting bioresorbable vascular products. Additionally, the company provides blood glucose monitoring meters, test strips, data management software, and accessories for people with diabetes; and medical devices for the eye, including cataract surgery, lasik surgery, contact lens, and dry eye products, as well as branded generic pharmaceutical products. Abbott primarily serves retailers, wholesalers, hospitals, and health care facilities. Abbott was founded in 1888 and is headquartered in Abbott Park, Illinois.
Advisors' Opinion:- [By Dan Carroll and Max Macaluso, Ph.D.]
We're into the heart of earnings season, and several of the medical device industry's biggest players have already reported quarterly results. Johnson & Johnson (NYSE: JNJ ) led off among the biggest players, with fellow diversified health care firm Abbott Labs (NYSE: ABT ) and more concentrated company St. Jude Medical (NYSE: STJ ) following suit last week.
- [By MONEYMORNING.COM]
Keith also recommended ABB Ltd (NYSE: ABB) and Abbott Laboratories Inc. (NYSE: ABT). ABB and Abbott are both earlier Private Briefing recommendations. SanDisk was a brand-new recommendation, but one I like a lot; Keith and resident tech guru Michael Robinson also each like the stock.
- [By Rich Smith]
Don't look now, but Abbott Labs (NYSE: ABT ) is about to buy itself a bit more growth.
Simultaneous with its announcement of a $310 million acquisition in the vascular stent space Monday, Abbott also announced that it will be spending a further $250 million -- and perhaps as much as $400 million with subsequent milestone payments -- to acquire privately held cataract surgical equipment maker OptiMedica.
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