Greetings,
Last week I highlighted two great dividend plays for 2011, Abbott Laboratories (ABT) and Midstream Magellan Partners (MMP). This week I will look briefly at three more high quality, dividend-paying companies.
Lowe's (LOW): Lowe's is the second-largest home-improvement retailer in the world and operates about 1,700 stores throughout the United States, Canada, and Mexico. The company's stores offer products and services for home decorating, maintenance, repair, and remodeling. Lowe's targets retail do-it-yourself and do-it-for-me customers, as well as commercial business clients. It is currently trading at $26.12 a share and has a forward PE ratio of 15.8 making it attractively valued at the moment. Phillip Davidson of American Century Equity Income (TWEIX), states Lowe's is "buying back stock and has started much more aggressive dividend payout strategies. In fact, Lowe's recently increased its dividend by more than 20%." Current yield of 1.7%.
Southern Company (SO): Southern generates and distributes electricity to more than 4.4 million customers in the Southeast. It owns four electric utilities in Alabama, Georgia, Florida, Mississippi and has more than 42,000 megawatts of generating capacity. It currently has a forward P/E of 13.9 with a yield of 4.81%. SO was recently upgraded from NEUTRAL to BUY at BofA/Merill. SO currently makes up 6.74% of my portfolio. If the price drops to $35, I would consider adding to my position.
AT&T (T): AT&T is the dominant local phone company in 22 states, serving about 48 million local phone lines and 16 million high-speed Internet users. The firm also provides phone and data services, such as Web hosting and data transport, to businesses nationwide, notably large corporations. AT&T owns 100% of AT&T Mobility, the second-largest U.S. wireless carrier with 90 million customers. Richard Dalhberg and Scott Davis of Columbia Dividend Income (LBSAX) believe "there's another step to the wireless story. There's more data use ahead. And AT&T has one of the best networks in the US." With a yield of 6.04%, you don't need much capital appreciation.
Lowe's and AT&T are currently on my watchlist of stocks and will most likely be added to my portfolio this year. See a complete list of my holdings here
Full disclosure: Long ABT, SO.
Nice information, many thanks to the author. It is incomprehensible to me now, but in general, the usefulness and significance is overwhelming. Thanks again and good luck!
ReplyDelete