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GuruFocus' Weekly Dividend Growers Pt. 2

October 28, 2013 | About:
Monica Wolfe

Monica Wolfe

119 followers
During the past week, GuruFocus recognized 10 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 five companies were declared at the later of last week. The companies come from various industries and sectors of the market, but they all fit the necessary criteria needed to qualify them as dividend growers. The other five dividend growers are featured in Part I of this article.

A comparison of the companies’ historical dividend growth:

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Pfizer (PFE)

On Oct. 24, Pfizer declared a dividend of $0.24 per share, representing a 3.10% dividend yield for the company. This dividend is payable on Dec. 3 to shareholders of the record at the close of business on Nov. 8, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 2.70%

· 5-year: -7.20%

· 3-year: 3.20%

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Pfizer is a global pharmaceutical firm which develops and produces medicines and vaccines for a range of conditions which include areas of immunology, inflammation, oncology, cardiovascular and metabolic diseases, neuroscience and pain.

Pfizer’s historical revenue and net income:

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The analysis on Pfizer reports that the company’s revenue has been in decline over the past year, the dividend yield is near a 5-year low, the price is near a 5-year high and its operating margin is expanding.

The company is set to release their third quarter results on Oct. 29 before market open. In the last quarter it posted positive earnings of 3.70%.

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

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Pfizer has a market cap of $203.51 billion. Its shares are currently trading at around $30.74 with a P/E ratio of 8.40, a P/S ratio of 4.00 and a P/B ratio of 2.60. The company had an annual average earnings growth of 4.80% over the past ten years.

There are currently 33 gurus that hold a position in Pfizer.

GuruFocus rated Pfizer the business predictability rank of 3-star.

Magellan Midstream Partners LP (MMP)

On Oct. 25, Magellan Midstream Partners declared a dividend of $0.558 per share, representing a 3.40% dividend yield for the company. This dividend is payable on Nov. 14 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: 9.20%

· 5-year: 6.60%

· 3-year: 7.90%

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This most recent quarterly distribution represents the 46th distribution increase since the company’s IPO in 2001.

Magellan Midstream is mainly engaged in the transportation, storage and distribution of refined petroleum products. It owns a petroleum products pipeline system, petroleum products terminals and an ammonia pipeline system.

Magellan Midstream’s historical revenue and net income:

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The analysis on Magellan reports that the company’s revenue has been in decline over the past five years, they have issued $611.34 million of debt over the past three years, its price is near a 10-year high and its operating margin is expanding.

The company is set to release its third quarter results on Oct. 31.

Magellan also recently announced that it has plans to construct a new origin at Barnhart, Texas to accept crude oil shipments. This stop falls along the company’s Longhorn pipeline. This new origin is expected to begin receiving in 2015 and will cost about $25 million.

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

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Magellan Midstream Partners has a market cap of $13.4 billion. Its shares are currently trading at around $59.11 with a P/E ratio of 28.40, a P/S ratio of 8.00 and a P/B ratio of 8.60. The company had an annual average earnings growth of 7.30% over the past ten years.

Magellan is held by two gurus.

Williams Partners LP (WPZ)

On Oct. 25, Williams Partners declared a dividend of $0.878 per share, representing a 6.30% dividend yield for the company. This dividend is payable on Nov. 12 to shareholders of the record at the close of business on Nov. 5, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 0%

· 5-year: 6.60%

· 3-year: 7.30%

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The company increased its distribution this quarter by 8.7%, up from the third quarter 2012 distribution. It also represents a 1.7% increase from last quarter’s dividend.

Williams Partners is engaged in natural gas transportation, gathering, treating and processing, storage, NGL fractionation and oil transportation. The company was formed to own, operate and acquire a diversified portfolio of complementary energy assets

Williams Partners’ historical revenue and net income:

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The analysis on Williams Partners reports that the company’s revenue has been in decline for the past three years, its price is near a 1-year high, they have issued $1.9 billion of debt over the past three years, its operating margin is expanding and its price is near a 3-year high.

Williams Partners will release their third quarter results on Oct. 30.

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

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Williams Partners has a market cap of $22.85 billion. Its shares are currently trading at around $52.10 with a P/E ratio of 16.60, a P/S ratio of 2.70 and a P/B ratio of 2.50.

The company is currently held by three gurus.

Dominion Resources (D)

On Oct. 25, Dominion Resources declared a dividend of $0.563 per share, representing a 3.40% dividend yield for the company. This dividend is payable on Dec. 20 to shareholders of the record at the close of business on Dec. 6, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 6.10%

· 5-year: 7.20%

· 3-year: 6.40%

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Dominion Resources is provider of electricity, natural gas and related services to customers mainly in the eastern region of the U.S. It manages its daily operations through three operating segments: Dominion Virginia Power of DVP, Dominion Energy and Dominion Generation.

Dominion Resources’ historical revenue and net income:

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The analysis on Dominion reports that the company’s revenue has been in decline over the past five years, it has issued $4.5 billion of debt over the past three years and its price is at a 10-year high.

Earlier this month Dominion Resources acquired a solar project in Somers, Ct., which is capable of producing 5 megawatts of electricity. They acquired this project from Kyocera in a deal that closed Oct. 22.

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

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Dominion Resources has a market cap of $37.25 billion. Its shares are currently trading at around $64.34 with a P/E ratio of 151.40, a P/S ratio of 2.90 and a P/B ratio of 3.40. The company had an annual average earnings growth of 1.30% over the past ten years.

There are currently nine gurus with a position in Dominion Resources.

Entergy Corp (ETR)

On Oct. 25, Entergy declared a dividend of $0.83 per share, representing a 4.90% dividend yield for the company. This dividend is payable on Dec. 2 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: 8.60%

· 5-year: 3.10%

· 3-year: 3.40%

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Entergy Corporation is an integrated energy Company engaged primarily in electric power production and retail electric distribution operations.

Entergy’s historical revenue and net income:

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The analysis on Entergy reports that the company has issued $1.8 billion in debt over the past three years and that its price is nearing a 3-year high.

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

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Entergy has a market cap of $12.14 billion. Its shares are currently trading at around $68.11 with a P/E ratio of 12.70, a P/S ratio of 1.10 and a P/B ratio of 1.30. The company had an annual average earnings growth of 7.90% over the past ten years.

There are currently nine gurus that hold a stake in Entergy.

Check out Part I of this week’s Dividend Growers.

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

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Rating: 2.5/5 (6 votes)

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