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Two Energy Companies Reported as Dividend Growers of the Week

July 11, 2013 | About:
Monica Wolfe

Monica Wolfe

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During the past week, GuruFocus recognized two companies as dividend growers. In order to be qualified for this list, the company had to:

· Have a dividend yield of greater than 3%.

· Have a strong history of stable and increasing dividends.

· Maintain Guru ownership.

· Have a market cap of greater than $10 billion.

The following two companies come from the oil and energy sectors and both meet the requirements to be considered a GuruFocus dividend grower.

A comparison of the companies’ historical dividend growth:



Spectra Energy Corp. (SE)

On July 8, Spectra Energy Corp. declared a dividend of $0.305 per share, representing a 3.40% dividend yield for the company. This dividend is payable on Sept. 9 to shareholders of the record at the close of business on Aug. 9, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 0%

· 5-year: 4.2%

· 3-year: 3.2%


The company’s dividend yield has increased yearly since February 2007. Spectra has declared 25 dividends since the company’s incorporation in 2006.

Spectra Energy is a Fortune 500 company based out of Houston, Texas. The company’s operations in the U.S. and Canada include more than 22,000 miles of natural gas, natural gas liquids and crude oil pipelines, approximately 305 billion cubic feet of natural gas storage, as well as natural gas gathering and processing and local distribution operations. The company also has a 50% ownership in DCP Midstream (DPM).

Spectra’s historical price, revenue and net income:



The analysis on Spectra Energy reports:

· The company has issued $4.1 billion of debt in the past three years.

· The revenue has been in decline over the past year.

· The P/S ratio is at a 5-year high.

· The operating margin is consistently expanding.

Spectra Energy has a market cap of $23.96 billion; its shares were traded at around $35.50 with a P/E ratio of 24.70 and a P/S ratio of 4.60. The company had an annual average earnings growth of 3.7% over the past 10 years.

Spectra Energy’s price is sitting at a 52-week high as well as a 10-year high.

There are
seven gurus that hold a stake in Spectra Energy. Click here to see their holding histories.

Plains All American Pipeline LP (PAA)

On July 8, Plains All American Pipeline declared a dividend of $0.588 per share, representing a 4.00% dividend yield for the company. This dividend is payable on Aug. 14 to shareholders of the record at the close of business on Aug. 2, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 7.7%

· 5-year: 4.6%

· 3-year: 3.9%



The dividend has been consistently increasing since March 2000 as you can see in the quarterly chart below:



Plains All American Pipeline is engaged in the transportation, storage, terminalling and marketing of crude oil and refined products, as well as in the processing, transportation, fractionation, storage and marketing of natural gas liquids. Plains All American is also headquartered in Houston, Texas.

Plains All American Pipeline’s historical price, revenue and net income:



The analysis on All American Pipeline reports:

- The company has issued $1.9 billion of debt in the past three years.

- The revenue has slowed in the past year.

- The price is sitting near a 10-year high of $59.34.

Plains All American Pipeline has a market cap of $19.08 billion; its shares were traded at around $56.31 with a P/E ratio of 17.70 and a P/S ratio of 0.50. The company had an annual average earnings growth of 14.8% over the past ten years. GuruFocus rated Plains All American Pipeline the
business predictability rank of 2-star.

John Keeley, Chuck Royce and Jim Simons all hold a stake in PAA. Click here to see their holding histories.

To view a complete list of high yielding dividend stocks found among the gurus’ portfolios, click here.


Rating: 2.0/5 (1 vote)

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