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Kinder Morgan Leads Dividend Growers of the Week

October 21, 2013 | About:
Monica Wolfe

Monica Wolfe

119 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:

1382376134880.png

Enterprise Products Partners LP (EPD)

On Oct. 14, Enterprise Products Partners declared a dividend of $0.69 per share, representing a 4.30% dividend yield for the company. This dividend is payable on Nov. 7 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: 6.60%

· 5-year: 5.50%

· 3-year: 5.40%

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This is the 37th consecutive quarterly distribution increase for Enterprise Products. This distribution represents a 6.2% increase from the third quarter 2012. It is also the 46th distribution increase since Enterprise’s IPO in 1998.

Enterprise Products Partners is a North American midstream energy company providing a range of services to producers and consumers of natural gas, natural gas liquids, crude oil and certain petrochemicals. In addition, it is engaged in the development of pipeline and other midstream energy infrastructure in the continental U.S.

Enterprise’s historical revenue and net income:

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The company announced last week that they would be expanding it Aegis Pipeline following the strong interest from shippers. The expansion will facilitate delivery of up to 425,000 barrels per day of ethane to the petrochemical corridor along the Gulf Coast.

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

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Enterprise Products Partners has a market cap of $58.54 billion. Its shares are currently trading at around $63.30 with a P/E ratio of 22.90, a P/S ratio of 1.20 and a P/B ratio of 4.10. The company had an annual average earnings growth of 18.30% over the past ten years.

GuruFocus rated Enterprise Products Partners the business predictability rank of 4-star.

Kinder Morgan Energy Partners LP (KMP)

On Oct. 16, Kinder Morgan Energy Partners LP declared a dividend of $1.35 per share, representing a 6.30% dividend yield for the company. This dividend is payable on Nov. 14 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: 7.40%

· 5-year: 5.40%

· 3-year: 4.90%

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The company’s most recent quarterly distribution represents an increase of 7% from the third quarter of 2012. KMP has increased the distribution 49 times since the current management took over the company in 1997.

Kinder Morgan is the largest midstream and third largest energy company in North America. The company’s pipelines transport natural gas, refined petroleum products, crude oil and carbon dioxide. They also store or handle products such as gasoline, jet fuel, ethanol, coal, petroleum coke and steel.

Kinder Morgan’s historical revenue and net income:

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The company also highlighted some results for the first nine months of the year:

· Distributable Cash Flow of $$1.609 billion, up 25% from last year.

· Net income before certain items was $1.946 billion, compared to $1.575 billion in 2012.

· Certain items totaled a net gain of approximately $553 million, versus a loss of $821 million.

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

1382389997009.png

Kinder Morgan Energy Partners has a market cap of $36.2 billion. Its shares are currently trading at around $83.55 with a P/E ratio of 36.60, a P/S ratio of 3.00 and a P/B ratio of 2.10. The company had an annual average growth of 5% over the past ten years.

Mattel (MAT)

On Oct. 16, Mattel declared a dividend of $0.36 per share, representing a 3.30% dividend yield for the company. This dividend is payable on Dec. 13 to shareholders of the record at the close of business on Nov. 27, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 11.60%

· 5-year: 12.90%

· 3-year: 18.20%

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Mattel has offered a quarterly cash dividend since March 1982. The dividend has consistently increased since 1991.

Mattel designs, manufactures and markets toys and family products. The Mattel portfolio consists of products such as: Barbie, Hot Wheels, Monster High, American Girl, Thomas & Friends and Fisher-Price brands.

Mattel’s historical revenue and net income:

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Mattel’s third quarter financials reported:

· Worldwide sales up 6%.

· Operating income of $528.2 million, compared to $487.4 million last year.

· Net income of $422.8 million and an EPS of $1.21, compared to last year’s $365.9 million, or $1.04 per share.

· The company repurchased 6.1 million shares of its common stock for approximately $259 million.

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

1382388387348.png

Mattel has a market cap of $14.72 billion. Its shares are currently trading at around $42.71 with a P/E ratio of 19.10, a P/S ratio of 2.30 and a P/B ratio of 5.00. The company had an annual average earnings growth of 5.80% over the past ten years.

GuruFocus rated Mattel the business predictability rank of 2.5-star.

NextEra Energy (NEE)

On Oct. 9, NextEra Energy declared a dividend of $0.66 per share, representing a 3.10% dividend yield for the company. This dividend is payable on Dec. 16 to shareholders of the record at the close of business on Nov. 29, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 7.80%

· 5-year: 7.80%

· 3-year: 8.30%

1382385004336.png

NextEra is a clean energy company. The company’s principal subsidiaries are Florida Power & Light Company, which is one of the largest rate-regulated electric utilities in the U.S., and NextEra Energy Resources which is the largest generator in North America of renewable energy from the wind and sun.

NextEra’s historical revenue and net income:

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On Friday, NextEra named James Robo as their new Chairman of the Board, effective on Dec. 13, 2013. Robo has been serving as President and CEO of NextEra since July 2012.

NextEra reported that they would release their third quarter results on Nov. 1, 2013, before market open.

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

1382389021511.png

NextEra Energy has a market cap of $35.58 billion. Its shares are currently trading at around $83.78 with a P/E ratio of 20.60, a P/S ratio of 2.50 and a P/B ratio of 2.10. The company had an annual average earnings growth of 6.90% over the past ten years.

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

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Rating: 4.3/5 (3 votes)

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