"Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years," Warren Buffett has famously said. Easier said than done, but it's an aim to strive for -- especially for dividend investors who are counting on dividend stocks to provide them with reliable income for years to come. On that note, here are two stock ideas that might fit the mold.
Starbucks (NASDAQ: SBUX )
With a dividend yield of just 1.32%, Starbucks isn't typically referred to as a dividend stock. But investors with a long time horizon who buy Starbucks at today's price may lock in a substantial yield for the future.
Currently, Starbucks pays out just 42% of earnings in dividends, leaving plenty of breathing room for dividend growth in the future. In fact, Starbucks has already made a habit of increasing its dividend every year since it announced its first dividend in 2010.
Top 5 Dividend Stocks To Own For 2014: Cinemark Holdings Inc(CNK)
Cinemark Holdings, Inc. and its subsidiaries engage in the motion picture exhibition business. As of June 30, 2011, it operated 436 theatres with 4,983 screens in 39 states of the United States, as well as in Brazil, Mexico, and 11 other Latin American countries. The company is headquartered in Plano, Texas.
Advisors' Opinion:- [By Jeff Reeves]
Cinemark Holdings Inc. (NYSE: CNK) owns movies theaters across the United States and Latin America, with a total of about 5,000 screens in America alone.
Current Yield: 4% (84 cents a share annually)
Dividend History: In June 2010, Cinemark paid a quarterly dividend of 18 cents a share. This July, it will pay 21 cents, for a nearly 17% increase.
Dividend Outlook: According to Bloomberg, the three-year expected dividend growth rate of CNK is 2.5%.
Recent Performance: Cinemark has surged over 20% so far in 2011, more than doubling the market. It is approaching a new 52-week high as of this publication.
Strong Outlook for Shares: Cinemark has seen improving revenue each year since 2007, connecting with movie-goers despite the recession. That’s in part because of growth and acquisitions — most recently it plans to buy a 12-screen cinema in South Carolina. The movie industry may not be booming right now, but CNK could cash in big time when box office receipts improve thanks to its growth over the last few years.
Top 5 Dividend Stocks To Own For 2014: Intel Corporation(INTC)
Intel Corporation engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks, desktops, servers, workstations, storage products, embedded applications, communications products, consumer electronics devices, and handhelds. The company also provides system on chip products that integrate its core processing functionalities with other system components, such as graphics, audio, and video, onto a single chip. In addition, it offers chipset products that send data between the microprocessor and input, display, and storage devices, including keyboard, mouse, monitor, hard drive, and CD, DVD, or Blu-ray drives; motherboards designed for desktop, server, and workstation platforms, and that has connectors for attaching devices to the bus; and wired and wireless connectivity products consisting of network adapters and embedded wireless cards used to translate and transmit data across networks. Further, the company provides NAND flash memory products primarily used in portable memory storage devices, digital camera memory cards, and solid-state drives; software products comprising operating systems, middleware, and tools used to develop, run, and manage various enterprise, consumer, embedded, and handheld devices; and software development tools that enable the creation of applications. Additionally, it develops computing platforms, which are integrated hardware and software computing technologies designed to offer an optimized solution. The company sells its products principally to original equipment manufacturers, original design manufacturers, PC components and other products users, and other manufacturers of industrial and communications equipment. It has a strategic alliance with Scientific Conservation Inc. Intel Corporation was founded in 1968 and is based in Santa Clara, California.
Advisors' Opinion:- [By Peter Hughes]
My top stock pick for 2013 is Intel Corp. (INTC), the largest micro-chip maker in the world, designing, developing and manufacturing microprocessors for the global market.
The stock sold off sharply (declining 33% from its April high to a low in late November) in reaction to the company lowering guidance for the second half of 2012 on slowing global economies. We believe the sell-off was overdone.
Intel is the dominant force in the computer processor arena, having long-held the lead in new technology and chip performance.
Smaller rival AMD very occasionally emerges as a potential threat only to see Intel leapfrog ahead again. And Intel was faulted for being slow to recognize the demand for smaller chips used in smartphones and tablets, an area currently dominated by ARM Holdings.
But Intel is moving more aggressively into that area with its ‘Atom' chips, and acquired Infineon's wireless connectivity chip business in 2011 to support that undertaking.
Intel has a strong balance sheet and cash flow that allows it to maintain an immense budget for R&D and the capital expenditures necessary to sustain its industry-leading manufacturing technologies, and a history of introducing new processor architectures every two years.
The company is in solid financial shape. At the current price the shares are selling at less than 10 times estimated 2013 earnings, and pay an annual dividend of 4.2%.
In our view, the stock is very oversold, and the stock will rebound nicely in 2013. Our upside target is $27. We suggest a ‘mental' protective stop at $17.20.
10 Best Cheap Stocks To Invest In 2014: Raytheon Company(RTN)
Raytheon Company, together with its subsidiaries, provides electronics, mission systems integration, and other capabilities in the areas of sensing, effects, and command, control, communications, and intelligence systems, as well as mission support services in the United States and internationally. It operates in six segments: Integrated Defense Systems, Intelligence and Information Systems, Missile Systems, Network Centric Systems, Space and Airborne Systems, and Technical Services. The Integrated Defense Systems segment provides integrated naval, air, and missile defense and civil security response solutions. The Intelligence and Information Systems segment offers intelligence, surveillance and reconnaissance, advanced cyber solutions, weather and environmental solutions, and information-based solutions for law enforcement and homeland security. The Missile Systems segment develops and produces weapon systems, including missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, and directed energy effectors for the armed forces of the U.S. and other allied nations. The Network Centric Systems segment provides net-centric mission solutions, including integrated communications systems, command and control systems, combat systems, and operations and precision components for the U.S. federal, state, and local government customers, as well as civil customers. The Space and Airborne Systems segment designs and develops integrated systems and solutions for missions, including intelligence, surveillance, and reconnaissance; precision engagement; unmanned aerial operations; and space. The Technical Services segment provides training, logistics, engineering, product support, and operational support services for the mission support, homeland security, space, civil aviation, counterproliferation, and counterterrorism markets. Raytheon Company was founded in 1922 and is based in Waltham, Massachusetts.
Advisors' Opinion:- [By Stephen]
The shares closed at $39.31, up $0.48, or 1.24%, on the day. Its market capitalization is $13.90 billion. About the company: Raytheon Company operates in defense, homeland security and other government markets. The Company provides electronics, mission systems integration in the areas of sensing, effects, command, control, communications and intelligence systems, and mission support services. Raytheon provides products and services worldwide.
Top 5 Dividend Stocks To Own For 2014: Kimberly-Clark Corporation(KMB)
Kimberly-Clark Corporation, together with its subsidiaries, engages in the manufacture and marketing of various health care products worldwide. The company operates in four segments: Personal Care, Consumer Tissue, K-C Professional & Other, and Health Care. The Personal Care segment provides disposable diapers, training and youth pants, and swimpants; baby wipes; and feminine and incontinence care products, and related products. It offers its products primarily for household use under various brand names, including Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, and Poise. The Consumer Tissue segment offers facial and bathroom tissue, paper towels, napkins, and related products for household use under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Hakle, and Page brands. The K-C Professional & Other segment offers facial and bathroom tissue, paper towels, napkins, wipers, and a range of safety products for the away-from-home marketplace und er Kimberly-Clark, Kleenex, Scott, WypAll, Kimtech, KleenGuard, Kimcare, and Jackson brand names. The Health Care segment offers disposable health care products, such as surgical drapes and gowns, infection control products, face masks, exam gloves, respiratory products, pain management products, and other disposable medical products under the Kimberly-Clark, Ballard, and ON-Q brand names. The company sells its products to supermarkets; mass merchandisers; drugstores; warehouse clubs; variety and department stores; retail outlets; manufacturing, lodging, office building, food service, and health care establishments; and high volume public facilities. It markets its products through wholesalers, distributors, and direct sales. The company was founded in 1872 and is based in Dallas, Texas.
Advisors' Opinion:- [By Chuck]
Kimberly-Clark Corporation (KMB), together with its subsidiaries, engages in the manufacture and marketing of various health care products worldwide. The company operates in four segments: Personal Care, Consumer Tissue, K-C Professional & Other, and Health Care. The company has raised distributions for 38 consecutive years and yields 4.20%. The company is attractively valued at the moment at14.30 times earnings.
- [By James K. Glassman]
52-Week High: $88.25
52-Week Low: $69.44
Annual Revenue: $20.9 billion
Projected 2013 Earnings Growth: 6.9%
When it comes to ratings from the Value Line Investment Survey, my financial bible, you can't do better than a stock that's rated "1" for timeliness, "1" for safety and "A++" for financial strength. Kimberly-Clark (symbol: KMB), maker of Kleenex, Huggies and other consumer products, is one of the few stocks that rings every bell. It yields 3.4%, trades at a reasonable 15 times estimated 2013 earnings and is much less volatile than the overall market. Plus, Value Line's analysts expect earnings to rise 16% in 2013. Who says you can't have it all? - [By JON C. OGG]
Kimberly-Clark Corporation (NYSE: KMB) is at $64.07 and analysts have a consensus price target objective of $70.46. It carries a 4.4% dividend yield and the stock is down 6.4% from its 52-week high. The price to book value is about 4. S&P carries a “A” rating on its local long-term system. Kleenex, Huggies, Kotex, Depend, and on… Hard to live without.
- [By Jeff Reeves]
Kimberly-Clark Corp. (NYSE: KMB) is a paper products giant, best known for brands such as Kleenex, Scott, Huggies and Kotex. It sells products in more than 150 countries.
Current Yield: 4.1% ($2.80 a share annually)
Dividend History: In July 2010, Kimberly-Clark paid a quarterly dividend of 66 cents a share. This July, it will pay 70 cents, or a 6% increase. Also, the company has paid dividends since 1935.
Dividend Outlook: According to Bloomberg, the three-year expected dividend growth rate of KMB is 5.6%.
Recent Performance: Kimberly-Clark has tracked the market so far in 2011, but has been rallying strongly in the past 30 days. KMB stock is up against a new 52-week high as of this writing.
Strong Outlook for Shares: Part of the reason Kimberly-Clark has been on a tear is because it raised revenue guidance in its April 25 earnings report. The company’s global reach grants it stability, and its big brand names and connection with consumers means KMB products will be in demand even if the economy sours.
Top 5 Dividend Stocks To Own For 2014: NGP Capital Resources Company(NGPC)
NGP Capital Resources Company is a business development company specializing in investments in small and mid size and middle market companies. The firm typically invests in acquisitions, buyouts, growth and development, revitalization, restructuring, recapitalizations, and special situations. It invests in energy companies with a focus on oil and gas exploitation, development, and production business; upstream businesses that acquire, develop, and produce oil, natural gas, and coal; midstream businesses that gather, process, store, and transport oil and natural gas; power generation and distribution; oil field services and other energy services; and alternative energy and other similar energy related businesses. The firm primarily invests between $10 million and $100 million in its portfolio companies. It invests in the form of secured, senior, and subordinate debt; convertible debt; preferred equity; project equity; production payments, net profits interests, and similar investments; and mezzanine loans and may receive equity investments in portfolio companies in connection with such investments. The firm makes asset and project based investments in private companies and can also invest in public companies. NGP Capital Resources Company was founded in 2004 and is based at Houston, Texas. It is a subsidiary of NGP Energy Capital Management.
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