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Lockheed Martin Leads GuruFocus' Dividend Growers of the Week

September 30, 2013 | About:
Monica Wolfe

Monica Wolfe

122 followers
During the past week, GuruFocus recognized four 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 four companies come from various industries and sectors of the market, but they all fit the necessary criteria needed to qualify them as dividend growers.

A comparison of the companies’ historical dividend growth:

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Intel Corp (INTC)

On Sept. 25, Intel declared a dividend of $0.225 per share, representing a 4.00% dividend yield for the company. This dividend is payable on Dec. 1 to shareholders of the record at the close of business on Nov. 7, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 25.3%

· 5-year: 13.4%

· 3-year: 15.8%

[url=www.gurufocus.com]1380561896353.png[/url]

Intel is a semiconductor chip maker, which develops advanced integrated digital technology products, mainly integrated circuits, for industries such as computing and communications.

Intel’s historical revenue and net income:

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The company plans to report their third quarter earnings on Oct. 15.

Intel also recently announced that their Intel Capital division has made an investment into Recon Instruments which is the Canadian technology company that is behind the world’s first consumer Heads-up Display products for sports. Intel believes that “Recon will accelerate product development, marketing and global sales, as well as gain access to Intel Capital’s expertise in manufacturing, operations and technology.”

The analysis on Intel reports that the company’s operating margin is expanding, its price is nearing a 1-year high, the company has issued $11.3 billion of debt over the past three years and its revenue has been in decline over the past year.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Intel has a market cap of $114.83 billion. Its shares are currently trading at around $23.05 with a P/E ratio of 12.50, a P/S ratio of 2.20 and a P/B ratio of 2.10. The company had an annual average earnings growth of 8.7% over the past ten years.

GuruFocus rated Intel the business predictability rank of 3.5-star.

ConAgra Foods (CAG)

On Sept. 26, ConAgra Foods declared a dividend of $0.25 per share, representing a 3.30% dividend yield for the company. This dividend is payable on Dec. 3 to shareholders of the record at the close of business on Oct. 31, 2013.

The company’s historical dividend growth is as follows:

· 10-year: -0.9%

· 5-year: 7.4%

· 3-year: 7.8%

[url=www.gurufocus.com]1380563189265.png[/url]

ConAgra Foods is one of North America's largest packaged food companies with branded and private branded food found in 99 percent of America’s households, as well as a strong commercial foods business serving restaurants and foodservice operations globally.

ConAgra Foods’ historical revenue and net income:

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The analysis on ConAgra reports that the company has issued $3.8 billion of debt over the past three years. It also notes that they company’s dividend is at a 1-year high and its P/B and P/S ratios are nearing historic lows.

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ConAgra Foods has a market cap of $12.75 billion. Its shares are currently trading at around $30.20 with a P/E ratio of 16.30, a P/S ratio of 0.80 and a P/B ratio of 2.30. The company had an annual average earnings growth of 3.7% over the past ten years.

Lockheed Martin (LMT)

On Sept. 26, Lockheed Martin declared a dividend of $1.33 per share, representing a 3.60% dividend yield for the company. This dividend is payable on Dec. 27 to shareholders of the record at the close of business on Dec. 2, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 22.4%

· 5-year: 21.7%

· 3-year: 21%

[url=www.gurufocus.com]1380572472124.png[/url]

This most recent dividend represents an increase of $0.18 per share or a 16% increase.

“Our focus on strong performance, program execution and delivering on commitments to our customers enables us to generate value for our shareholders,” said President and CEO Marillyn Hewson. “We’re proud to deliver to our shareholders the 11th consecutive annual double-digit increase of the Lockheed Martin quarterly dividend rate.”

Lockheed Martin is a security company that is principally engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems and products. It also provides a range of management, engineering, technical, scientific, logistic, and information services.

Lockheed Martin’s historical revenue and net income:

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Alongside the dividend, the company also released that it had increased its share repurchase authority by $3 billion.

Lockheed Martin’s CEO, Marillyn Hewson, was awarded Corporate Responsibility Magazine’s Responsible CEO of the Year Award. The award is presented to various CEOs who have visible exceeded standards in the areas of employee relations, environmental impact, human rights, philanthropy and corporate responsibility practices.

The Peter Lynch Chart suggests that the company is currently undervalued:

1380574275405.png

The analysis on Lockheed Martin reports that the company’s revenue has slowed down over the past year, the price near a 10-year high and the P/S ratio is also nearing a 5-year high.

Lockheed Martin has a market cap of $40.94 billion. Its shares are currently trading at around $127.55 with a P/E ratio of 14.30, a P/S ratio of 0.90 and a P/B ratio of 59.40. Lockheed Martin had an annual average annual earnings growth of 11.5% over the past ten years.

GuruFocus rated Lockheed Martin the business predictability rank of 3-star.

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

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Rating: 3.1/5 (7 votes)

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