GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

AT&T and Pfizer Top GuruFocus Dividend Growers of the Week

December 24, 2013 | About:
Monica Wolfe

Monica Wolfe

118 followers

During the past week, GuruFocus recognized five 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 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:

1387813749674.png

PG&E Corp (PCG)

On Dec. 19, PG&E declared a dividend of $0.455 per share, representing a 4.50% dividend yield for the company. This dividend is payable on Jan. 15 to shareholders of the record at the close of business on Dec. 31, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 0.00%
· 5-year: 4.00%
· 3-year: 2.70%

1387821571451.png

PG&E Corporation is a holding Company that conducts its business through Pacific Gas and Electric Company, a public utility operating in northern and central California. The utility's revenues are generated mainly through the sale and delivery of electricity and natural gas to customers.

PG&E’s historical revenue and net income:

1387821707037.png

The analysis on PG&E reports that the company’s revenue has been in decline over the past five years, its dividend yield is at a 5-year high and it has issued $1.5 billion of debt over the past three years.

John Hussman is the largest guru shareholder of PG&E with 50,000 shares, representing a very minor 0.01% of the company’s shares outstanding. Other guru shareholders include Steven Cohen, Ray Dalio and Paul Tudor Jones.

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

1387894916446.png

PG&E Corporation has a market cap of $18.41 billion. Its shares were trading at around $40.98 with a P/E ratio of 25.30, a P/S ratio of 1.16 and a P/B ratio of 1.30. The dividend yield for the company is currently at 4.44%

Equity Residential (EQR)

On Dec. 17, Equity Residential declared a dividend of $0.650 per share, representing a 3.80% dividend yield for the company. This dividend is payable on Jan. 10, to shareholders of the record at the close of business on Dec. 27, 2013.

The company’s historical dividend growth is as follows:

· 10-year: -0.90%
· 5-year: -2.00%
· 3-year: 2.80%

1387895860189.png

The yearly total of this dividend equals approximately 65% of the company’s normalized FFO for 2013. And this dividend has been increased 3.9% from last year.

Equity Residential is an S&P 500 company focused on the acquisition, development and management of quality apartment properties in top United States growth markets. The company provides real estate operations, leasing, legal, financial, accounting, acquisition, disposition, development and other support functions.

Equity Residential’s historical revenue and net income:

1387896158793.png

The company’s third quarter results report:

  • Same store revenues increased 4.1% in Q3 and 4.7% YTD
  • FFO was $0.71 per share, compared to $0.92 per share last year.
  • Same store NOI Increased 4.5% in the quarter and 5.4% this year.
  • Normalized FFO remained the same as last year at $0.73 per share.

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

1387896353124.png

Equity Residential has a market cap of $18.69 billion. Its shares were traded at around $51.85 with a P/E ratio of 8.50, a P/S ratio of 7.00 and a P/B ratio of 1.80. The dividend yield of Equity Residential is currently at 3.80%. The company had an annual average earnings growth of 74.40%.

Pfizer Inc (PFE)

On Dec. 16, Pfizer declared a dividend of $0.260 per share, representing a 3.20% dividend yield for the company. This dividend is payable on March 4 to shareholders of the record at the close of business on Feb. 7, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 2.70%
· 5-year: -7.20%
· 3-year: 3.20%

1387896469244.png

This dividend represents the 301st consecutive quarterly dividend paid by Pfizer.

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:

1387896560600.png

The company recently acquired Polocard, which is Poland’s leading over-the-counter heart attack prevention medication.

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

1387896584764.png

Pfizer has a market cap of $196.7 billion. Its shares are currently trading at around $30.35 per share with a P/E ratio of 8.40, a P/S ratio of 3.84 and a P/B ratio of 2.60. The company’s dividend yield is currently at 3.16 and it has seen annual average earnings growth of 6.30% over the past ten years.

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

AT&T (T)

On Dec. 13, AT&T declared a dividend of $0.460 per share, representing a 5.30% dividend yield for the company. This dividend is payable on Feb. 3 to shareholders of the record at the close of business on Jan. 10, 2013.

The company’s historical dividend growth is as follows:

· 10-year: 5.00%
· 5-year: 2.40%
· 3-year: 2.40%

1387897468141.png

The company, through its subsidiaries and affiliates, provides wireless and wireline telecommunications services in the United States and internationally. The company has three reportable segments: Wireless, Wireline and Other.

AT&T’s historical revenue and net income:

1387897530813.png

The analysis on AT&T reports that the company’s had operating loss over the past three years, its dividend yield is near a 1-year high and both its P/E and P/B ratios are at historic lows.

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

1387897549014.png

AT&T has a market cap of $182.75 billion. Its shares are currently trading at around $34.69 with a P/E ratio of 24.40, a P/S ratio of 1.48 and a P/B ratio of 2.10. The dividend yield for AT&T stocks is at 5.19%. The company had an annual average earnings growth of 1.50% over the past ten years.

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

Try a free 7-day premium membership.


Rating: 3.3/5 (4 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide