Owner: Dividends Matter URL:http://www.dividendsmatter.com Join Date: Thu, 31 May 2007 10:52:28 -0500 Rating:0 Site Description: My mission at Dividends Matter is to empower individual investors to gain the knowledge, skill, and confidence required to invest in high quality, dividend paying stocks to generate steadily increasing cash flow and ensure a lifetime of successful investi Site statistics:Click here
Screening for Dividend Paying Stocks 2007-05-30 11:00:21 The first order of business is to screen for high quality dividend paying stocks. This is an endeavour that I have tried before over at Investment Jungle.
There are two basic ways to screen for dividend paying stocks:
1 Develop your own Stock Screen
Stock screens are used to filter the universe of stocks (there are over 10,000!) to a manageable number. By filtering these lists, you will be guaranteeing yourself that the stocks that made it through the filter will exhibit the characteristics that you are looking for (assuming that you set your filter up properly). In my original post, I came up with the following characteristics:
Characteristics of a Quality Dividend
Paying Stock:
1. Determine the historical dividend growth rate. You would like to see a long history of increasing dividends.
2. Strong cash flow growth rate. It takes cash to pay out dividends. Finding a company with a solid cash flow growth rate may help predict a company that will be able to raise its dividend payment Read more:Screening
, Stocks
Welcome to Dividends Matter! 2007-05-27 20:53:46 So to me dividends are important. Management, workers, the banks, the tax collectors, the community - everyone gets paid, even the board of directors. So why not also the shareholder? Dividends should rise as fast as the salary mass of the executive group - or, in fact, faster, since it is the shareholders who take all the financial risk!
This is a quote by Stephen Jarislowsky from his book “The Investment Zoo: Taming the Bulls and the Bears.”
I thought it would be appropriate to start my first post at Dividends Matter with a quote from Mr. Jarislowsky. Why you ask? Simple. I started my first post over at Investment Jungle with a quote from Mr. Jarislowsky as well!
When I originally started Investment Jungle, my goal was to develop an investing strategy by studying and understanding current investing strategies and techniques. And that led me initially into looking at value investing. I attempted to use some of the value investing techniques to find a wonderful divi Read more:Welcome
Stock Analysis - Abbott Laboratories (NYSE:ABT) 2007-06-02 11:00:42 We struck gold with our first stock analysis of Johnson and Johnson. Next up, is AbbottLaboratories
(NYSE:ABT) and another member of the S&P 500 Dividend Aristocrats.
Company Profile:
From Yahoo Finance
Abbott Laboratories engages in the discovery, development, manufacture, and sale of health care products worldwide. It operates in four segments: Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Vascular Products.
Like JNJ, this is just a small excerpt from the whole company profile at Yahoo Finance.
Abbott Laboratories is another large cap stock with a market capitalization of $86B.
Company Fundamentals:
Let’s have a look at the company fundamentals to see the financial health of this company.
The Return on Equity (ROE) is absolutely phenomenal. Management has produced a 10 year ROE of 31.09% and a 5 year ROE of 27.13%. The last year is sitting right around the 5 year average at 27.13%. Absolutely fantastic.
Looking at the book value growth rate, t Read more:Stock
, Analysis
Stock Analysis - Johnson and Johnson (NYSE:JNJ) 2007-05-31 11:00:51 For my first stock analysis, I have chosen the S&P 500 Aristocrat known as Johnson
and Johnson (NYSE:JNJ).
Company Profile:
From Yahoo Finance:
Johnson & Johnson engages in the manufacture and sale of various products in the health care field worldwide.
The company profile is much longer than that. For the full text, please visit Yahoo Finance. Needless to say, J&J offers well known consumer products (BAND-AID, TYLENOL), pharmaceuticals and medical devices and diagnostics.
J&J is a large cap stock with a market capitalization of $183B.
Company Fundamentals
Some of the fundamentals that I like to look at are: Return on Equity (ROE), Book Value Growth Rate, Earnings Growth Rate and Sales Growth Rate.
As far as Return on Equity goes, this company is absolutely incredible! They have consistently - for the entire decade - had returns over 25%! The 10 year average sits at 26.98% and the 5 year average at 28.48%. This shows that J&J has excellent management running t Read more:Stock
, Analysis
Dividend Analysis - Coca-Cola Co (NYSE:KO) 2007-06-05 11:00:00 Let’s check out a stock that is held by the Oracle of Omaha, Warren Buffett - The Coca-Cola Company (NYSE:KO). Of course, this stock is an S&P 500 Dividend
Aristocrat.
Company Profile:
I think everybody knows this one, but what the heck.
From Yahoo Finance:
The Coca-Cola Company engages in the manufacture, distribution, and marketing of nonalcoholic beverage concentrates and syrups worldwide. The company offers nonalcoholic beverages, principally carbonated soft drinks, as well as noncarbonated beverages. Its beverage products comprise bottled and canned soft drinks and beverages products. The company markets its nonalcoholic beverages under various brand names, including Coca-Cola, Diet Coke, Fanta, and Sprite.
This is a large cap stock with a market capitalization of $121.66B.
Company Fundamentals:
Let’s have a look at the company fundamentals to make sure that any dividend that they are paying is sustainable and growing.
First stop is to check the Return on Equit Read more:Analysis
Carnivals and Festivals - June 4, 2007 2007-06-04 19:11:53 This is the first appearance of Dividends Matter in a carnival or festival! Dividends Matter was featured in 3 carnivals this week:
Festival of Stocks #39 hosted at Stock Rake
Investors Blog Network Festival #8 hosted at Online Stock Trading
Carnival of Wealth Building #4 hosted at Home Equity Loan Lowdown
All the hosts did a super job. Check them out! You will be glad you did.
Read more:Carnivals
Book Review: Beating the S&P with Dividends 2007-06-09 11:00:22 Pros:
1. A good primer on dividends.
2. Identified characteristics of solid dividend paying stocks.
Cons:
1. No road map or system to choosing solid dividend paying stocks.
Rating: ** (2 out of 5)
In hopes of finding techniques to analyze dividend paying stocks, I picked up “Beating the S&P with Dividends” by Peter O’Shea and Jonathan Worrall. The subtitle of the book is “How to build a superior portfolio of dividend yielding stocks.” Perfect. That is exactly what I would like to do!
The book was basically split into 3 sections:
Facts about Dividends
The book starts with a primer on dividends. It discusses such topics as what a dividend is, why companies pay dividends, how dividends are taxed, and it looks back at how dividends have grown in the past during the different market cycles. This information is useful to an investor just starting out and will definitely get you excited about investing in dividend paying stocks.
Choosing the Right Div
Reader Stock Pick - Southern Copper Company (NYSE:PCU) 2007-06-07 11:00:42 Dividends Matter reader John suggested that I have a look at SouthernCopper
Company which trades on the NYSE under the symbol PCU. He likes the fact that PCU is paying out 6.60%. That sounds like a pretty healthy dividend yield. Let’s check it out.
Company Profile:
From ADVFN Financials:
The Company is an integrated producer of copper and other minerals, and operates mining, smelting and refining facilities in Peru and Mexico.
This is a large cap stock with a market capitalization of $27.28B.
Company Fundamentals:
Let’s see how PCU is able to pay such a generous dividend.
Looking at the Return on Equity, we can see a Jekyll and Hyde happening. For 7 of the 10 years, management had a very pedestrian ROE under 7%. However, for the last 3 years, management has done a superb job at rates of 34% and higher! In 2006, the ROE was a whopping 55.25%. If we were considering investing in this stock, we would definitely have to see what caused this ROE to increase so dramati Read more:Reader
, Stock
Reader Stock Pick: Procter and Gamble Company (NYSE:PG) 2007-06-12 11:00:18 An anonymous Dividends Matter reader requested that we have a look at an old stalwart of the dividend stock world - Procter
& Gamble
Company. This company has been paying dividends continuously since 1891! Let’s check it out.
Company Profile:
From Yahoo Finance:
The Procter & Gamble Company and its subsidiaries engage in the manufacture and marketing of various consumer products worldwide. It operates in seven segments: Beauty; Health Care; Fabric Care and Home Care; Pet Health, Snacks and Coffee; Baby Care and Family Care; Blades and Razors; and Duracell and Braun.
P&G has many well known brands such as Duracell, Braun, Head & Shoulders, Crest, Tide, and Pampers. The list goes on and on and on. They definitely have brand recognition wrapped up!
P&G is a large cap stock with a market capitalization of $198.54B.
Company Fundamentals:
Let’s start off with our faithful Return on Equity (ROE). Let’s just say that things have been stellar for 9 Read more:Stock
, Reader
Carnival Monday - June 11, 2007 2007-06-11 11:00:10 Dividends Matter was featured in the following carnivals and festivals:
Festival of Stocks #40 hosted at Investment Jungle.
Carnival
of Long Term Investing #6 hosted at Forex Reader.
Drop by these hosts and check out the great articles!
Read more:Monday
Dividend Analysis: Anheuser-Busch Companies Inc (NYSE:BUD) 2007-06-15 11:00:54 Let’s have a look at the King of Beers - Anheuser-BuschCompanies
Inc which is listed on the NYSE under the most appropriate symbol of BUD. This is an S&P Dividend
Aristocrat which means that BUD has been increasing its dividend for the last 25 consecutive years! Not to mention that Mr. Warren Buffett himself owns stock in BUD.
Company Profile:
From Yahoo Finance
Anheuser-Busch Companies, Inc., through its subsidiaries, engages in the production and distribution of beer. The company operates in four segments: Domestic Beer, International Beer, Packaging, and Entertainment. The Domestic Beer segment offers beer under the Budweiser, Michelob, Busch, and Natural brand names. The segment also offers specialty beers, non-alcohol brews, malt liquors, specialty malt beverages, energy drinks, ale, and malt-based products, such as caffeine, gingseng, and guarana.
This is a large cap stock with a market capitalization of $40.05B.
Company Fundamentals:
These are the best return on Read more:Analysis
Dividend Analysis - Enbridge Inc. (TSE:ENB) 2007-06-13 11:00:01 Not wanting to leave my Canadian readers out in the cold, today’s analysis looks at Enbridge Inc which trades on the TSE under the symbol ENB. This stock is a member of the Mergent Canadian Dividend
Achievers which means that it has increased its annual regular dividend each of the last 5 years or more.
Note: Enbringe Inc. also trades on the NYSE under the symbol ENB. However, this analysis will be done from the TSE data.
Company Profile:
From Yahoo Finance:
Enbridge, Inc. transports and distributes crude oil and natural gas in North America and internationally. It operates in five segments: Liquids Pipelines, Gas Pipelines, Sponsored Investments, Gas Distribution and Services, and International. The Liquids Pipelines segment operates a common carrier pipeline and feeder pipelines that transport crude oil and other liquid hydrocarbons. The Gas Pipelines segment consists of investments in natural gas pipelines, including the U.S. portion of the Alliance Pipeline, Vector Pipelin Read more:Analysis
Dividend Analysis - 3M Company (NYSE:MMM) 2007-06-19 08:00:44 Today, we will be looking at a perennial dividend payer - 3M Company. 3M Company most aptly trades under the symbol MMM on the NYSE. It is included in the following indexes: Dow Jones Composite, Dow Jones Industrial, S&P 100, S&P 500 and S&P 1500 Super Comp.
Company Profile:
From Yahoo Finance
3M Company operates as a diversified technology company. It operates in six segments: Industrial and Transportation; Health Care; Display and Graphics; Consumer and Office; Safety, Security, and Protection Services; and Electro and Communications. Industrial and Transportation segment offers tapes, coated and nonwoven abrasives, adhesives, specialty materials, supply chain execution software solutions, closures for disposable diapers, and components and products that are used in the manufacture, repair, and maintenance of automotive, marine, aircraft, and specialty vehicles. Health Care segment provides medical and surgical supplies, skin health and infection prevention products, dr Read more:Dividend
, Analysis
Valuing a Dividend Yielding Stock 2007-06-18 08:00:46 Having earned degrees in both Engineering and Commerce, I have a penchant for number crunching. As such, once I find a stock that interests me, I like (no, no, need!) to determine a price that is reasonable for that stock. I do not want to just hand over whatever Mr. Market happens to be asking for on any particular day. I want to ensure that I limit my downside and that when I buy from Mr. Market, I am catching him in a depressed mood.
This of course forces me to put a value on a stock. And that value is the highest amount I should be willing to pay Mr. Market for that particular stock. I have currently been using 1 technique to value a stock. But I plan to add 2 more techniques to my analysis.
Dividend
Yield
My current method for calculating the value of a stock is to look at the stock’s yield chart. Over the last 10 years, I look at the high and low dividend yield for each year. From this data, I am able to calculate the average high and average low dividend yields fo Read more:Stock
Dividend Analysis - IGM Financial Inc. (TSE:IGM) 2007-06-16 08:00:03 Next up is another great dividend paying stock: IGM Financial
Inc. It trades on the TSE under the symbol IGM. Let’s see how this stock can help us build a superior portfolio of dividend yielding stocks!
Company Profile:
From ADVFN Financials
Offers financial planning, mutual funds and a comprehensive range of other investment products and financial services.
IGM is a large cap stock with a market capitalization of $14.17B.
Company Fundamentals:
Management has done a superb job and achieved an amazing 10 year return on equity (ROE) of 20.27%. And although slightly lower, the 5 year average is 19.25%. That is pretty consistent performance from management.
Equity growth rate has been quite consistent over the 10 year period. In 2001, there was a whopping 68.59% increase in equity that year. Taking that growth rate out, the rest of the 9 years show a pretty steady growth rate in the 10% range. Not fantastic, but definitely sure and steady.
The earnings growth rate has also bee Read more:Dividend
, Analysis
Dividend Analysis - Power Corporation (TSE:POW) 2007-06-22 08:00:53 Heading back over to Canada, next up is Power Corporation
which trades on the TSE as POW. Reminds me of the old Batman series with Adam West! Pow! Bam! Kerbang! Ok. Enough with the nostalgia. Let’s see if this stock is worthy of joining our dividend yielding portfolio.
Company Profile:
From ADVFN Financials
A diversified management and holding company that holds interests, directly or indirectly, in companies that are active in the financial services, communications and other business sectors.
This company has 15,500 employees and has a current market capitalization of $16B.
Company Fundamentals:
Return on Invested Capital has been steady as clockwork on this stock. The 5 year average is 10.40% and that looks about right for the 10 year average as well.
Return on Equity has also been super consistent. The 10 year average is 12.12% and the 5 year average is 12.61%. Stability in a dividend payer is the key. So far so good.
Looking at the equity growth rate, I think the word Read more:Dividend
, Analysis
Dividend Analysis - Pfizer Inc. (NYSE:PFE) 2007-06-20 08:00:48 Today we will look at another S&P 500 Dividend
Aristocrat - Pfizer
Inc. which trades on the NYSE under the symbol PFE. It is currently sporting a very high dividend yield at 4.4%. So let’s have a look at this one.
Company Profile:
From Yahoo Finance
Pfizer, Inc. engages in the discovery, development, manufacture, and marketing of prescription medicines for humans and animals in the United States, Europe, Canada, Asia, and Latin America.
For a more detailed list of the company, check the listing at Yahoo Finance. This is definitely a large cap stock with a market capitalization of $183.95B.
Company Fundamentals:
I always like starting with the Return on Invested Capital to see how well management is using its capital. I see that management has done an excellent job, but the return has been steadily decreasing over the 10 year period. From 1999 to 2002, ROIC was better than 35% each year. Since then, they have had a much lower ROIC in the mid teens range. The 5 year aver Read more:Analysis
Dividend Analysis - General Electric Company (NYSE:GE) 2007-06-26 08:00:12 If there is safety in size, then we have found ourselves a winner! Next up is GeneralElectric
Company which trades on the NYSE under the symbol GE. It is, of course, a member of the S&P 500 Dividend
Aristocrats and has raised its dividend for the last 25 consecutive years.
Company Profile:
From Yahoo Finance
General Electric
Company (GE) is a diversified industrial corporation. Its Infrastructure segment produces jet engines, turboprop and turbo shaft engines, for use in military and commercial aircraft; wind turbines; aircraft engine derivatives; gas and steam turbines, and generators; oil and natural gas compressors and turbines; diesel-electric locomotives and parts; and productivity solutions for industrial and municipal water systems. It offers various financial products and services aviation and energy sectors. The company’s Commercial Finance segment provides loans, leases, and other financial services to manufacturers, distributors, and end-users for various equip Read more:Analysis
Dividend Analysis - Automatic Data Processing Inc. (NYSE:ADP) 2007-06-25 08:00:48 Continuing our search for a stock to add to our portfolio of superior dividend yielding stocks, I will analyze Automatic Data Processing
Inc. which trades on the NYSE under the symbol ADP. It is a member of the S&P 500 Dividend
Aristocrat which means that it has increased it yearly dividend for the last consecutive 25 years. That is a record worth evaluating. Let’s have a look.
Company Profile:
From Yahoo Finance
Automatic Data Processing, Inc. provides computerized transaction processing, data communication, and information services worldwide. It operates in three segments: Employer Services, Securities Clearing and Outsourcing Services, and Dealer Services. The Employer Services segment offers a range of human resource information, payroll processing, and benefit administration products and services. The Securities Clearing and Outsourcing Services segment offers clearing, custody, customer financing, securities lending, trade execution, and outsourcing solutions to br Read more:Analysis
Reader Request: Telecom Sao Paulo (NYSE:TSP) 2007-06-24 20:40:44 I received a request from Dividends Matter reader Darsh to have a look at Telecom
Sao Paulo
which trades on the NYSE under the symbol TSP. This is in fact a foreign company trading with an American Depository Receipt. Darsh was excited about this one because of a 9% dividend yield.
When I began to analyze this stock, the very first thing I noticed was that my data provider had lots of missing information. I went to my other sources such as ADVFN Financials and Yahoo Finance. And these sites were all reporting different numbers from each other as well as my original data!
For example, ADVFN Financials and Yahoo Finance both had the dividend yield listed at 2.3%. My own data source had a dividend yield of 7.5%. And Darsh was under the impression that there was a 9% dividend yield.
Other key numbers such as earnings per share and book value were inconsistent as well. And I had some extremely strange dividend payout ratios where 5 of the 8 years that I had some data for were over 1 Read more:Reader
Dividend Analysis - National Bank of Canada (TSE:NA) 2007-06-23 08:00:49 Banks have always been known for their steadily increasing dividends. So for today, we will take a look at National
Bank of Canada
which trades on the TSE under the symbol NA.
Company Profile:
From ADVFN Financials
Provides comprehensive financial services to consumers, small and medium-sized enterprises, and large corporations and has branches in every province in Canada. It is also represented in the U.S. and Europe through its subsidiaries and alliances.
There are 14,381 employees working at the National Bank which has a market capitalization of $9.88B.
Company Fundamentals:
Unfortunately, I always find it hard finding the Return on Invested Capital numbers for Canadian companies. And National Bank is no exception. I was able to find last year’s ROIC which was 12.2% and the 5 year average which was 13.97%.
However, I do have the Return on Equity numbers which parallel the ROIC assuming that there isn’t a large amount of leverage. In this case, we see a nice steady tr Read more:Dividend
, Analysis
Dividend Analysis - Bank of Nova Scotia (TSE:BNS) 2007-06-29 08:00:51 Heading back to Canada, let’s have a look at the Bank of Nova Scotia. This stock trades on the TSE under the symbol BNS.
Company Profile:
From ADVFN Financial
The Bank is a full-service financial institution, active in both domestic and international markets. In Canada the Bank provides a full range of retail, commercial, corporate, investment and wholesale banking services.
Market capitalization is $51.45B.
Company Fundamentals:
As usual, collecting information on the Canadian companies is quite a bit harder.
For the return on invested capital, I was only able to obtain the 5 year average of 15% and last year’s ROIC of 18.06%. Both are a healthy size and seems to be increasing.
I do have the return on equity numbers. So lets have a look at those. The 10 year average is 16.85%, the 5 year average is 17.94% and last year’s ROE was 20.73%. So this has confirmed that the trend is headed upwards.
The equity growth rate has been fairly consistent. The 9 year average i Read more:Dividend
, Analysis
Dividend Analysis - Wal Mart Stores Company (NYSE:WMT) 2007-06-27 08:00:01 The next heavy weight on our list of potential dividend yielding stocks is the mighty Wal Mart Stores which trades on the NYSE under the symbol WMT. Of course, you can count this stock as a member of the S&P 500 Dividend
Aristocrats.
Company Profile:
Has anybody NOT been in a Wal Mart store?
From Yahoo Finance
Wal-Mart Stores, Inc. operates retail stores in various formats worldwide. It operates through three segments: Wal-Mart Stores, Sam’s Club, and International. The International segment includes various formats of retail stores and restaurants, including discount stores, supercenters, and Sam’s Clubs that operate in Argentina, Brazil, Canada, the People’s Republic of China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, and the United Kingdom.
This is a large cap stock with a market capitalization of $197B and over 1,900,000 employees! Holy jumping! That is a lot of people.
Company Fundamentals:
Right off the bat, let Read more:Analysis
Stock Analysis - McDonald’s Corporation (NYSE:MCD) 2007-07-03 08:00:17 The next S&P 500 Dividend Aristocrat to take the Dividends Matter stage is McDonald
’s Corporation
which trades on the NYSE under the symbol MCD.
Company Profile:
From Yahoo Finance
McDonald’s Corporation operates as a foodservice retailer worldwide. It operates and franchises McDonald’s restaurants, which offer various food items, and soft drinks and other beverages. As of December 31, 2006, it operated approximately 31,045 restaurants in 118 countries.
McDonald’s has a market cap of $61.34B.
Company Fundamentals:
Return on invested capital is steady and sitting right around 10%. McDonald’s return on equity numbers look better. The 10 year average is 17.32% and the 5 year average is 16.72%. Last year’s ROE was 18.30%. This difference between the ROIC and the ROE is attributed to McDonald’s successfully using leverage. Their total debt is almost 36% of their capital.
Equity growth rate has been steady. Over the 10 year period, the eq Read more:Stock
, Analysis
Carnival Monday - July 2, 2007 2007-07-02 19:11:19 Another carnival Monday
has arrived! And Dividends Matter has been featured in the following carnivals:
Festival of Stocks #43 hosted at Tips from Rick
Festival of Stocks #42 hosted at Fat Pitch Financials
Carnival
of Personal Finance #106 hosted at The Digerati Life
Investors Blog Network Festival #10 hosted at BioHealth Investor
That wraps it up for this edition of Carnival Monday! Enjoy.
BCE Inc (TSE:BCE) - Did Private Equity Over Pay? 2007-07-02 08:00:10 As we all know, Canada’s largest telecom - BCE Inc. - has been having an auction. And as of Saturday, it looks like the deal is done. The winning offer comes from the group headed by the Ontario Teachers Pension Plan which includes Providence Equity
Partners and Madison Dearborn Partners LLC. The final price is set at $42.75 per share. I thought it would be interesting to run the BCE Inc. numbers and see if these private equity players over payed for this company.
Company Profile:
From BCE Inc. website
BCE is Canada’s largest communications company, providing the most comprehensive and innovative suite of communication services to residential and business customers in Canada.
Under the Bell brand, the Company’s services include local, long distance and wireless phone services, high-speed and wireless Internet access, IP-broadband services, information and communications technology services (or value-added services) and direct-to-home satellite and VDSL television Read more:Private
Valuation Method: Accounting for Dividends with Present Value 2007-06-30 08:00:15 As you know, I have been using 3 different valuation methods to determine a model price for a stock.
However, the one method I am still working on is the present value methodology. My concern is that it does not currently take dividends into account. And all the stocks that we analyze here at Dividends Matter pay regular, steady and increasing dividends!
For example, let’s assume that we had a theoretical stock that paid 15% every year in dividends. And let us further assume that you paid $100 for the stock today and in 10 years from now, it is still worth the exact same $100. Obviously, using my current analysis, when I discount the future stock price of $100 today at 15%, I will get a value of $24.72.
Assuming that there were no dividends, then by paying $24.72 today and having the stock price reach $100 in 10 years, I would in fact have achieved a 15% rate of return.
But this imaginary stock pays me a 15% dividend every year. So in fact, I should be willing to pay $10 Read more:Present
, Value
Dividend Analysis - Wells Fargo & Co (NYSE:WFC) 2007-07-06 08:00:18 Dividends Matter reader Brian asks “What about WellsFargo
?” Good question. Let’s have a look.
Wells Fargo
& Co. trades on the NYSE under the symbol WFC.
Company Profile:
From Yahoo Finance
Wells Fargo & Company, through its subsidiaries, provides banking and financial products and services in the United States. The company operates in three segments: Community Banking, Wholesale Banking, and Wells Fargo Financial. As of March 24, 2007, it provided its services through approximately 6000 branches.
This is a large cap stock with a market capitalization of $117.96B.
Company Fundamentals:
I love to start an analysis by looking at the return on invested capital. Unfortunately, I was only able to find the 5 year average of 6.50% and the 2006 ROIC of 6.38%.
However, I was able to find the return on equity numbers. The 10 year average is 17.40% and the 5 year average is 18.39%. Very consistent ROE numbers throughout the 10 year period. I like consistency in my Read more:Dividend
, Analysis
Dividend Analysis - Washington Mutual Inc (NYSE:WM) 2007-07-05 08:00:00 Today, we will be analyzing a stock with a nice, big, fat juicy dividend yield - WashingtonMutual
Inc. It trades on the NYSE under the symbol WM and currently has a dividend yield of 5.04%!
Company Profile:
From Yahoo Finance
Washington Mutual
, Inc., together with its subsidiaries, operates as a consumer and small business banking company in the United States. It operates in four segments: Retail Banking, Card Services, Commercial, and Home Loans. As of December 31, 2006, the company operated 2,225 retail banking stores and 472 lending stores and centers in 36 states.
This is a large cap stock with a market capitalization of $38.54B.
Company Fundamentals:
Unfortunately, I wasn’t able to find long term return on invested capital numbers, but the ones I did find are rather disappointing. The 5 year average ROIC is 5.10% and last year’s ROIC in 2006 was 3.42%.
Return on equity was much more impressive. The 10 year average is 15.98% and the 5 year average is slightly lower Read more:Dividend
, Analysis
Dividend Analysis: Progressive Corporation (NYSE:PGR) 2007-07-04 08:00:49 Our next S&P Dividend
Aristocrat deals with insurance - ProgressiveCorporation
which trades on the NYSE under the symbol PGR.
Company Profile:
From Yahoo Finance
The Progressive Corporation, through its subsidiaries, provides personal and commercial automobile insurance and other specialty property-casualty insurance products and related services in the United States.
This is a large cap company with a market capitalization of $17.60B.
Company Fundamentals:
I always like to start with a look at the return on invested capital. Unfortunately, I was not able to obtain much data. The 5 year average is 19.70% and last year’s ROIC was 20.51%.
However, PGR does not have much debt - only 14.6% of capital. So the return on equity numbers should pretty much be identical to the ROIC. The 10 year average ROE is 17.67%. The 5 year average is 23.39% and last year’s ROE in 2006 was 22.94%. These are all very strong, very healthy numbers. Management has been doing a very good j Read more:Analysis
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