Ticker
|
Price
|
P/E
|
Dividend
|
Ex-Dividend Date
|
Market Cap
|
SDRL
|
38.44
|
7.12
|
10.5%
|
6/10/14
|
$18.0B
|
BAX
|
74.23
|
20.28
|
2.8%
|
6/04/14
|
$40.3B
|
OMI
|
34.53
|
19.70
|
2.9%
|
6/12/14
|
$2.2B
|
RCI
|
40.82
|
13.81
|
4.1%
|
6/11/14
|
$21.0B
|
This has been a very tough list to pick from and I’m just
waiting to see what happens to these companies this week. So let’s take a look
at why these made my watch list for June 2014.
SDRL
- Consistent winner especially with its 10.5% yield and low P/E ratio
- Has a healthy and new mix of shallow-water and deep-water rigs.
- A lot of debt but that’s because they are expanding it’s business.
- Consistently raising dividends each year.
- SDRL has been able to maintain over 95% of it’s fleet under contract.
- $2 Billion in debt paid over the last year.
BAX
- A safe bet with increasing sustainable dividend.
- Plans to split into two companies, one focused on medical products and the other on biosciences.
- Financials are strong; company is well diversified and located in 55 countries.
OMI
- Fortune 500 company in business for over 125 years and sales growing for almost every year.
- It supplies basic medical supplies and goods that are always needed no matter what the economy is doing.
- OMI outperforms the market in most cases and is recession resistant.
- Demand for medical supplies will increase as baby boomers age.
RCI
- Undervalued with high dividend growth.
- RCI has a near monopoly in Canada and has multiple channels of making money.
- Lots of room for growth, and very well managed. They invest significantly in their systems.
Hope you enjoyed this article and check back soon!
I have SDRL and BAX on my watch list. I like them both long term, just wish the prices were a bit lower. As for OMI and RCI, I am not familiar with either one but will take a look at them after this post. Thanks for sharing your thoughts.
ReplyDeleteCheers! AFFJ
AFFJ,
DeleteI feel like SDRL will keep going up for at least a year or two. They will probably get a correction at some point after that and drop 15-20% but that's expected. BAX is a safe bet but I missed out on the ex-dividend date. Thanks for sharing!
If you BAX today, you will get the dividend next month
ReplyDeleteI picked up some SDRL in April around $33 after some extensive research. The things that I like about SDRL, order backlog of $19 billion, solid increase in operating cash folow, newest operating fleet out of the competition resulting in higher day rates for them, signed a $1.1B contral with TOT, and have an agreement with Roseneft which will increase their exposure to the Russian drilling arena, increased their dividend $.02 cents to $1.00 with a 10.5% dividend yield. The things that are worrisome are their debt load at $12.45b, rate of borrowing, day rates falling, and rig utilization falling. I believe SDRL will be a buy though with having a younger fleet, and securing new contracts with higher day rates because of their new fleet.
ReplyDeleteHey Trevor,
DeleteNice buy in April. I was skeptical at first about SDRL, however I think the pros outweigh the cons here. You have made all valid points as to why SDRL is a good buy still. They might not be a long term (30 Years) investment for my portfolio, but only time will tell. This could be a company that exceeds my expectations. The only other thing that concerns me is the dividend is very high. I'm expecting a correction at some point. Thanks for sharing your thoughts!
Hi thanks for sharing this.
ReplyDelete