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Top Dividend Stocks from Kenneth Fisher

January 05, 2012 | About:
Mara Kohn

Mara Kohn

4 followers
Ken Fisher is CEO and chief investment officer of Fisher Investments. Also, he has been contributing to the “Portfolio Strategy” column at Forbes. Ken is a prestigious investor thanks to his numerous, accurate market calls, often in direct opposition to Wall Street's expectations. Ken has also written three major finance books, including the 1984 Dow Jones best seller, "Super Stocks."

Fisher Investments bases its strategy based on the idea that supply and demand of securities is determined by their prices. In addition, the management team believes that the information has already been estimated. Fisher always says: "To add value it is necessary to identify information not widely known, or to interpret widely known information differently and correctly from other market participants."

Here are some top dividend stocks:

Telefonica SA (TEF):

Telefonica is the incumbent fixed-line and wireless telephone operator in Spain and the Czech Republic. It is also well positioned in the UK and Germany. It also has operations in Latin America. As regards Latin America, it represents a large market for Telefonica. Indeed, the firm increased its size in the continent.

Its recent acquisition is Vivo. As it has been mentioned before, Telefonica is present in Europe. For instance in Italy, it holds a large stake through Telecom Italy and has also penetrated in Asia, through China Unicom.

The firm has been able to generate an important economic moat. It has cash flow that it is using to increase dividend payout, to buy back stock, reduce debt and make acquisitions.

Banco Santander SA (STD):

Banco Santander is one of the planet's largest financial institutions with thousands of offices across the globe. Its main focus is retail banking. It also has a wholesale bank and a fledgling insurance and asset management venture. Most of its revenue comes from Europe, particularly Spain, where the bank was first set up. But STD also has operations in Brazil, the UK, and Latin America, which account for roughly 25%, 20%, and 15%, respectively, as well as the U.S.

STD is a well-diversified financial institution. Its presence in several countries has enabled the bank to stand firm in the face of the economic crisis. Last but not least, Santander maintains sound credit standards and adequate reserves which help it offset loan losses.

Southern Copper Corporation (SCCO):

Southern Copper is one of the world's largest copper producers. The firm has 132 billion pounds in reserves thus ranking as one of the largest companies in the copper industry. Mexican conglomerate Grupo Mexico owns 80% of Southern Copper's outstanding shares.

SCCO balance sheet is low leveraged. This has helped the firm to resist the last financial crisis. Furthermore it has a conservative capital structure which is valuable amid the ups and downs of highly cyclical copper prices.

Nokia Oyj (NOK):

Nokia is the world's largest manufacturer of mobile devices and a leader in mobile network equipment and software. The company provides equipment and services to network operators, service providers and corporations.

Nokia has many advantages in the wireless handset market. These advantages include massive scale and extremely broad distribution.

Should management be able to profit from those strengths in the high end of the handset market, Nokia could be a big smartphone player.

Financially speaking, Nokia is in good shape and has a solid technology portfolio and strong R&D capabilities. The firm will surely develop new products.

Transocean Ltd (RIG):

Transocean is an offshore drilling company. Its fleet includes 135 vessels which operate in Brazil, Nigeria, the North Sea and other demanding environments.

Transocean's debt/capital ratio will be 36%, and its EBITDA will stand at five times its interest expense. Thanks to the largest offshore drilling fleet, it will surely receive large revenue from customers willing to exploit large discoveries under the sea floor.

The firm has inventories for $24 billion, which provides stability. In addition, management is always thinking about building wealth for shareholders. In fact, a few years ago it returned $15 billion to them.

In terms of future expectations, the deepwater will surely expand substantially in the coming years because of large discoveries, and Transocean has positioned itself as the prime beneficiary. The net asset value of Transocean's rig fleet is $21.5 billion, or $61 per share.

Rating: 2.4/5 (15 votes)

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