Sunday, February 15, 2015

These Two Dividend Stocks Should Not Be Ignored!

Microsoft (MSFT)
Market Cap 359.9B
P/E ration (ttm) 17.7
Dividend Yield 2.83%
  • With a recent dip after earnings, the stock looks reasonable priced compared to the broader market
  • The new management team is pushing new software which could help promote some growth
  • Microsoft has been acquiring small start ups like Sunrise, Revolution Analytics, and Hockey App
  • Cloud and device sales have continued to gain momentum, which has led to successfully replacing the revenue lost from the Windows operates system

Dunkin' Brands (DNKN)
Market Cap 4.88B
P/E ration (ttm) 29.75
Dividend Yield 2.27%
  • DNKN has announced it will be introducing a new beverage platform. This will include new fruit and coffee smoothies.
  • A sight drop in quarter over quarter numbers is disappointing (Q4 EPS of $0.46, misses by $0.01. Revenue of $193.21M was a solid +5.5 Y/Y increase.
  • Dunkin declares they will be increasing the dividend by 15.2%. This will bring it up to $0.265/share quarterly dividend. (ex-dividend is March 5th)
  • Baskin-Robbins reports +9.3% increase in U.S. comparable sales growth in Q4.
 How do you feel about these two companies at the moment?



  1. I held MSFT for 5 years and the price was always the same. No gain on price, just the certainty of the Dividend. Now I see it is trying to do something.. I think is not a good investment. I prefer to put that money on AAPL. Lower Yeld but for sure the price will raise.

    1. TEI,
      I agree that AAPL is a better investment and they are the leaders of innovation when it comes to the tech industry. I do think MSFT is a good 2nd technology stock to have. I know most people prefer IBM, but I work with Microsoft products all day. So maybe I am a little more biased. I am hoping they can continue to promote growth with the new management. I certainly wouldn't be against selling the stock if it was stagnant for that many years. I would have done the same thing at that point. You definitely brought up a great point. Thank you for commenting on this.

    2. I cannot imagine a world without AAPL nor MSFT (now the new Windows phone started its sales...)
      Cannot say the same about IBM...
      Anyway I think if you want to buy 3 Tech stocks, these are the 3 names.

  2. DNKN just announced that very nice dividend raise of 15.2% which is a solid raise by any measure. Of the two I prefer DNKN over MSFT as I feel DNKN has more room for future growth relative to MSFT. Thanks for sharing.

    1. DivHut,
      I agree DNKN has the potential for future growth if they play their cards right. I fee like I am a little biased when it comes to DNKN because I live in the Northeast where it is very popular compared to SBUX. However I do prefer SBUX over DNKN. I am hoping DNKN can continue pleasing customers with new drinks and food menu items at great prices because that seems to be working out for them. I had a Starbucks breakfast sandwich yesterday for the first time, and I have to say it blows the Dunkin sandwiches out of the water. I think people are starting to want quality food even if it does cost a couple of bucks more. That's where Dunkin is lacking compared to Starbucks.

  3. Specifically in the vein of dividend growth, SBUX excited me much more than DNKN. SBUX moves into more dayparts, their expertise in mobile payments, and the potential of their teavana and Starbucks reserve brand, I'm a but worried about DNKN's king-term relevance.

    1. Eric,
      I couldn't agree with you more as far as SBUX vs. DNKN goes. I do think SBUX has much more growth and innovation to go. I do like the customer incentive program that DNKN has started (DND Perks), but I don't think this is enough. I still remain optimistic on the future of DNKN. Coffee will certainly always bring in customers no matter what the economy is doing.

  4. I prefer AAPL, but yes could complete a portfolio in regards to techno. Maybe it's my Canadian side ;-), but I'm not convinced about DNKN in regards to growth.

  5. DivGuy,
    I agree that AAPL is probably the better tech company to invest in right now. They are growing substantial and has provided investors with solid returns lately. I know many investors are not convinced that DNKN is a solid company. They prefer Tim Hortons or SBUX. I know BK bought Tim Horton's which was a very interesting acquisition. I am going to have to look into the new Restaurants International company at some point.

  6. I have bad experience with MSFT. Not the stock but MSFT in general.

    I agree that dunking is relatively cheap but my biggest concern is the decline of breakfast and how the CEO will turn the company around. their last earnings weren't anything to rave about.

    1. BDI,
      I agree that Dunkin has to step up their game in order to compete with other restaurants that are now serving breakfast. It seems like that industry is very competitive at the moment. Usually their earnings are up to par but not lately. I am hoping MSFT will start doing something with all that available cash. They have potential at this point.

  7. Mongrel,

    I really like Microsoft. Lots of cash, products that everyone uses, and it looks like the company is starting turn around after drifting for many years. I bought shares back in 2013 and would like to add more.


    1. MDP,
      I agree that MSFT could definitely be a great stock to hold within the next couple of years. There is a lot to look forward to right now with that company. I don't think the low 40's is a bad price for the company considering the overall market. I don't see it staying the low for long. I might buy a few more shares by the end of the week. Thanks for stopping by.