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?

 

These two dividend growth stocks should not be ignored!

House of Frankenstein Wax Museum, Lake George, NY.

The Walt Disney Company (DIS)

1. Its all about brand power when you talk about Disney. For children and teenagers it's all about Star Wars and the Marvel characters. Even I still enjoy the Star Wars and Marvel movies. The Disney movies and animated TV series drive the merchandising and the theme parks. You couldn't ask for a wider moat. I think this might be one of the best growth stories among all my large cap stocks. Long term winner even at current valuation.
2. Did I mention Star Wars? Well Episode 7 has a release date of December 15, 2015. Probably a good idea to pick up some shares before then. 
3. Dividend Yield is only a meager 1% or .86 cents per share, however this is more of a growth pick. The other thing is that (DIS) only pays dividend once a year in December. 
4. The company owns ESPN and its a major revenue source and did I mention the highly successful acquisitions including Marvel and Pixar? 
5. P/E is slightly high at 21.98 but I still wouldn't bet against the mouse.

Anheuser-Busch InBev (BUD)

1. (BUD) is by far the largest selling domestic beer. Tough times doesn't mean people will cut back on drinking habit or custom. 
2. P/E of 13.33 and dividend yield of 1.8%. (BUD) only pays out dividend once a year in April. 
3.  It has relatively safe exposure to emerging markets, especially in Latin America. This will only increase when it owns the rest of Modelo.
4. Great company. Buying up huge Mexican brands. Not even a recession can hold back beer consumption. In good times people will drink. In bad times people will drink.
5. So what about the ever growing craft beer market? (BUD) is nobody's fool. Yes, the only segment of the beer industry that's growing is craft beer, but AB-InBev is a  company that will find a way to make profit. The recent acquisition of Goose Island is enough proof that AB-InBev understands the need to focus on quality.  I would not be surprised to see AB-InBev buy up some more small breweries in the future. This way they will be able to tap into the growing Craft popularity. 

What do you think of these two companies? Do you currently own any shares? Would you consider a future buy?

My next purchase on Loyal3 should be?

I have reviewed the 55+ stocks that Loyal3 have to offer and came up with a short watch list.

Ticker	Price	P/E	Yield
APPL	$90.91	15.2	2.07%
K	$67.24	12.86	2.74%
WMT	$75.68	15.71	2.54%
TGT	$58.29	19.72	3.57%
UL	$45.62	20.26	3.25%
KO	$41.69	22.18	2.93%
MCD	$101.92	18.5	3.18%
PEP	$89.10	20.14	2.94%
MDLZ	$37.49	35.22	1.49%
MSFT	$41.68	15.63	2.69%
DPS	$60.03	18.1	2.73%

This is a notable list of dividend growth stocks that I plan on adding to my portfolio at some point in my life. This week I plan on adding a small position with at least one of these on the list and I am asking my fellow readers/bloggers for advice. If you were to pick from this elite list, which would you buy at current prices?  Please cast your vote to the right of my blog. It will be interesting to see what people are leaning towards this week. Thanks for reading and voting!

 

 

 

What to buy in June, 2014?

With May now behind us, we can start to focus on which purchases to make in June. You really have to do your research if you want to find a good value in the market right now. There are a ton of stocks I would love to add to my portfolio, however many of them are close to their 52 week highs in price. I have made a list and I’m checking it twice! One of these will most likely be added to my portfolio in the next week or two.

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!