Many investors, such as Warren Buffett, praise defensive investing. As Buffett's mentor Benjamin Graham recommended, investing with a margin of safety can be highly valuable in especially inflationary environments.
Defensive investors prefer high dividend yielding stocks since these stocks provide better protection in loose monetary environments. On the other hand, high dividend yields are not the only important criteria that investors seek in defensive stocks. Conservative investors also look for consistent dividend growth in each high dividend yielding stock. We think the stocks that have long records of increasing dividend payments are appealing to defensive investors that demand consistency and some inflation protection.
We compiled a list of mega-cap U.S. stocks that achieved consistent dividend growth and paid high current dividend yields. The market data are sourced from Fidelity. All companies in this list increased their dividend payments every year since 2005. These stocks have market capitalizations above $5 billion and 12-month dividend yields of at least 4%.
Good Stocks To Buy 2015:Advanced Semiconductor Engineering Inc. (ASX)
Advanced Semiconductor Engineering, Inc., together with its subsidiaries, provides semiconductor packaging and testing services for semiconductor companies. The company primarily offers semiconductor packaging, interconnect materials production, front-end engineering testing, wafer probing, and final testing services. It provides various leadframe-based package types, such as quad flat package, thin quad flat package, and bump chip carrier and quad flat no-lead package; package types based on substrates, including flip-chip BGA and other BGA types; and various other advanced packages comprising wafer-level products, advanced chip scale packages, and advanced wafer level packages, as well as copper wire bonding solutions, flip-chip packages, and flexible packages. The company?s testing services comprise front-end engineering testing, wafer probing, and final testing of logic/mixed-signal/radio frequency/discrete final testing, and memory final testing, as well as other test-related services, such as burn-in testing, module sip testing, dry pack, tape and reel, and electric interface board and mechanical test tool design. Advanced Semiconductor offers its semiconductors primarily for the communications, computers, consumer electronics, industrial, and automotive sectors. It also provides drop shipment services for the shipment of semiconductors directly to end users; and integrated solutions for electronics manufacturing services in relation to computers, peripherals, communications, industrial, automotive, and storage and server applications. The company offers its products and services primarily in Taiwan, the United States, Austria, Belgium, France, Germany, Singapore, the Philippines, the People?s Republic of China, Korea, Malaysia, and Japan. Advanced Semiconductor Engineering, Inc. was founded in 1984 and is based in Kaohsiung, Taiwan.Good Stocks To Buy 2015:New Energy Systems Group. (NEWN)
New Energy Systems Group, through its subsidiaries, manufactures and distributes lithium battery shells and related products primarily in China. It develops, customizes, and produces steel and aluminum battery shells and caps. The company principally serves large lithium battery manufacturers. It also engages in the research, manufacture, and sale of mobile backup power systems for mobile phones, laptops, solar, MP4, PMPs, PDAs, DC, and digital applications. The company was formerly known as China Digital Communication Group and changed its name to New Energy Systems Group in November 2009. New Energy Systems Group was incorporated in 2001 and is based in Shenzhen, China.Good Stocks To Buy 2015:Genuine Parts Company (GPC)
Genuine Parts Company distributes automotive replacement parts, industrial replacement parts, office products, and electrical/electronic materials in the United States, Puerto Rico, Canada, and Mexico. The company operates in four segments: Automotive Parts Group, Industrial Parts Group, Office Products Group, and Electrical/Electronic Materials Group. The Automotive Parts Group segment distributes automotive replacement parts for imported vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, and heavy duty equipment. This segment also distributes accessory items used in the automotive aftermarket, such as repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, industrial concerns, and individuals. It owns and operates automotive parts distribution centers and automotive parts stores under the NAPA name. The Industrial Parts Group segment distributes industrial replacement parts and related supplies, such as bearings, mechanical power transmission, industrial automation, hose, hydraulic and pneumatic components, industrial supplies, and material handling products. This segment serves various industries, including the food, forest products, primary metal, paper, mining, automotive, petrochemical, and pharmaceutical industries. The Office Products Group segment involves in the wholesale distribution of a line of office and other business related products that are used in the daily operation of businesses, schools, offices, and institutions. The Electrical/Electronic Materials Group segment distributes insulating and conductive materials, assembly tools, test equipment, and custom fabricated parts. This segment provides distribution services to original equipment manufacturers, motor repair shops, and assembly markets. The company was founded in 1928 and is headquartered in Atlanta, Georgia.Good Stocks To Buy 2015:Curtiss-Wright Corporation (CW)
Curtiss-Wright Corporation, together with its subsidiaries, designs, manufactures, and overhauls precision components and systems. It operates in three segments: Flow Control, Motion Control, and Metal Treatment. The Flow Control segment designs, manufactures, and distributes engineered products, including valves, pumps, motors, generators, instrumentation, shipboard systems, and control electronics that manage the flow of liquids and gases, generate power, provide electronic operating systems, and monitor or provide critical functions for naval defense, power generation, oil and gas, and general industrial markets. The Motion Control segment designs, develops, manufactures, and maintains mechanical actuation and drive systems, specialized sensors, motors, electronic controller units, and embedded computing components and control systems for ground defense, aerospace defense, commercial aerospace, and general industrial markets. The Metal Treatment segment provides metallurgical processing services comprising shot peening, laser peening, specialty coatings and heat treating for commercial and defense aerospace, oil and gas, power generation, automotive, transportation, construction equipment, and miscellaneous metal working industries. The company operates primarily in the United States, the United Kingdom, and Canada. Curtiss-Wright Corporation was founded in 1929 and is headquartered in Parsippany, New Jersey.Good Stocks To Buy 2015:AVX Corporation (AVX)
AVX Corporation, together with its subsidiaries, manufactures and supplies passive electronic components and interconnect products worldwide. The company operates through three segments: Passive Components, Kyocera Electronic Devices (KED) Resale, and Connectors. The Passive Components segment offers surface mount and leaded ceramic capacitors, radio frequency (RF) thick and thin film components, tantalum capacitors, film capacitors, ceramic and film power capacitors, super capacitors, EMI filters, thick and thin film packages, varistors, thermistors, inductors, and resistive products. The KED Resale segment sells ceramic capacitors, frequency control devices, SAW devices, sensor products, RF modules, actuators, acoustic devices, and connectors. The Connectors segment manufactures and sells electronic connectors, inter-connect systems, and memory connectors. The company?s products are used in electronic devices to store, filter, and regulate electric energy. AVX Corporation markets its products through its direct sales force and independent manufacturers? representatives to customers in various industries, such as telecommunications, information technology hardware, automotive electronics, medical devices and instrumentation, industrial instrumentation, defense and aerospace electronic systems, and consumer electronics. The company was founded in 1972 and is based in Fountain Inn, South Carolina. AVX Corporation is a subsidiary of Kyocera Corporation.Good Stocks To Buy 2015:TECO Energy Inc. (TE)
TECO Energy, Inc., an electric and gas utility company, through its subsidiaries, engages in the generation, purchase, transmission, distribution, and sale of electric energy. It provides retail electric service to approximately 672,000 customers in West Central Florida with a net winter system generating capability of 4,684 megawatts. The company also engages in the purchase, distribution, and marketing of natural gas. It serves approximately 336,000 residential, commercial, industrial, and electric power generation customers in Florida. In addition, the company owns mineral rights, owns or operates surface and underground mines, and owns interests in coal processing and loading facilities. TECO Energy, Inc. was founded in 1899 and is headquartered in Tampa, Florida.Good Stocks To Buy 2015:Pfizer Inc. (PFE)
Pfizer Inc., a biopharmaceutical company, offers prescription medicines for humans and animals worldwide. The company's Biopharmaceutical segment?s provides Lipitor for elevated LDL-cholesterol levels in the blood; Enbrel for rheumatoid arthritis, polyarticular juvenile rheumatoid arthritis, psoriatic arthritis, plaque psoriasis, and ankylosing spondylitis; Lyrica for post-herpetic neuralgia, diabetic peripheral neuropathy, fibromyalgia, neuropathic pain, adjunctive treatment of epilepsy, and general anxiety disorder, as well as for use as an adjunctive therapy for adult patients with partial onset seizures; Prevnar/Prevenar for invasive pneumococcal disease; Celebrex for osteoarthritis and rheumatoid arthritis, and acute pain; Viagra for erectile dysfunction; Xalabrands for reducing elevated eye pressure; Effexor XR for depressive, generalized anxiety, social anxiety, and panic disorders; and Norvasc for hypertension. It also offers Zyvox for gram-positive pathogens; Premarin for menopausal symptoms; Sutent for renal cell carcinoma; Geodon/Zeldox for schizophrenia; Detrol/Detrol LA for overactive bladder; Zosyn/Tazocin, an intravenous antibiotic; Genotropin for growth hormone deficiency; Vfend, an antifungal agent; and Protonix for gastroesophageal reflux disease; Chantix/Champix for aid smoking cessation; BeneFIX, ReFacto AF, and Xyntha for lifelong bleeding disorder; Caduet for cardiovascular events; Revatio for pulmonary arterial hypertension; Pristiq for depressive disorder; Aricept for Alzheimer?s disease; and Spiriva for breathing problems. The company?s Diversified segment offers animal health products, such as vaccines, anti-infectives, anti-inflammatories, antiemetics, and parasiticides; consumer healthcare products, such as dietary supplements, pain management, respiratory, and personal care; nutrition products; and gelatin, liquid, softgel, non-animal, and fish gelatin capsules. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.Advisors' Opinion:
By Curtis At 2012-2-23
Pfizer(PFE) is the world's largest pharmaceutical company, having purchased Wyeth in 2009.
Pfizer reported quarterly results yesterday, posting 47 cents of adjusted earnings, which exceeded analysts' consensus target by 2.4%. Its top-line tally of nearly $18 billion beat expectations by 3.9%. Pfizer's stock rallied as much as 6% intraday on the solid report. Pfizer has been a consensus value pick for more than a year. It is perhaps the cheapest Dow stock, trading at a forward P/E of 8.2 and a book value multiple of 1.7, 31% and 73% peer group discounts.
Jefferies had a positive reaction to Pfizer's quarterly report. Although the drug-maker's 2011 guidance missed researchers' consensus, it sees share repurchases and a decrease in research and development expenses as catalysts for the stock. Furthermore, 2012 earnings guidance came in ahead of Jefferies' estimate. Pfizer has solidified its position as the pharmaceutical leviathan and a focus internally, rather than on further acquisition activity, should improve operating results going forward. Jefferies' $22 target suggests a 2011 return of 15%.
Bullish Scenario: JPMorgan expects Pfizer to rise 25% to $24.
Bearish Scenario: Citigroup predicts a fall of 12% to $17.
By Glenn At 2012-1-12
Pfizer is the world's largest drug maker, but shares have taken a beating this year due to the patent expiration of Lipitor, the company's top-selling cholesterol drug. Still, Pfizer has other drugs in the pipeline that will likely soften the blow, including Apixaban, an anti-coagulant that may be superior to existing treatments and addresses a $7 billion market.
Earnings growth for Pfizer is projected to slow to only 3% a year, but the trade-off is a 4% dividend yield. In December, Pfizer increased its dividend by 10% to an $0.88 annual rate. The new dividend rate is payable March 6, 2012, to shareholders of record on Feb. 3, 2012. The company has paid dividends for 73 years and posted 29 consecutive years of increases, before cutting the dividend in 2009 to pay for the Wyeth acquisition.
By Dave Friedman At 2011-10-23
On 3/31/11 Maverick Capital reported holding 20,151,225 shares with a market value of $409,271,369. This comprised 4.35% of the total portfolio. On 6/30/11, Maverick Capital held 19,938,805 shares with a market value of $410,739,391. This comprised 4.01% of the total portfolio. The net change in shares for this position over the two quarters is -212,420. About the company: Pfizer Inc. is a research-based, global pharmaceutical company that discovers, develops, manufactures, and markets medicines for humans and animals. The Company’s products include prescription pharmaceuticals, non-prescription self-medications, and animal health products such as anti-infective medicines and vaccines.
By Smart Money At 2011-9-15
Forward P/E: 7.0.
Five-year average forward P/E: 11.1.
Discount to five-year average: 41%.
Pfizer (PFE) investors are grappling with plenty of uncertainty, including its $68 billion merger with Wyeth (WYE) and the fact that blockbuster cholesterol drug Lipitor will face competition from generics in just three years.
Nevertheless, the New York company's foundation remains solid, based on strong cash flow from its diverse portfolio of drugs, says Morningstar's Conover.
"I think one of the things keeping a lid on Pfizer is that it's a defensive stock, and as the market starts to accelerate there is a shift toward stocks that will outperform in up times," he says. Conover also said he thinks proposed health care reforms will be less harmful than the market fears. If he's right, investor relief could provide a catalyst for Pfizer and other pharma stocks.
By Newsy Stocks At 2011-9-15
Pfizer Inc. (NYSE: PFE) a biopharmaceutical company, offers prescription medicines for humans and animals worldwide. The company has a total market capitalization of $144.03 billion and in the last 1-year the stock has given a return of 12.6 percent. The company has a dividend yield of 4.33 percent, and has a price of profit (POP) of 8. The stock is trading at a P/E of 17.24, higher than the industry’s average P/E of 13.65. The PEG ratio of the stock is 2.22 years, higher than industry’s PEG of 1.09 years. The average 5 years historical earnings growth is 1.50 percent and is expected to grow at 4 percent for the next 5 years. Its quarterly revenue growth is estimated at 2.92 percent. The stock has a P/B value of 1.68x percent. Analyst at Argus brokerage firm has given it a buy rating on $23.43 price target. Based on the price target the stock is trading at a discount of 21.91 percent. PFE was trading at 1.07 percent to $18.85 a share.
By Jim Cramer At 2011-9-7
You can change the CEO, you can buy another company, but you can't buy growth and Pfizer doesn't have it. We've got a nice yield and that's going to buoy the stock, or at least keep it from going down much lower. But headway? Way too much off-patent exposure. They don't call it a cliff for nothing. The growth is so minuscule and the multiple will follow it down, despite the best efforts of a new CEO, who surely has to be better than the last one. I see th! e stock at $16 next year and it will, again, not be the Dow stock to own.
By Larry Gellar At 2011-8-31
As featured on this week’s cover of Fortune, Pfizer has been attracting some attention lately. The key events that have sparked this stock in the past year are related to executive turmoil. Specifically, CEO Ian Read took over in December after what has been dubbed by some as the “career assassination” of Jeff Kindler. While Pfizer’s other executives weren’t Kindler’s biggest fans, many investors are now questioning Ian Read’s moves or lack thereof. In particular, shareholders across the country are calling for Pfizer to spin off its remaining non-pharmaceutical businesses. While Ian Read has announced that a couple of these non-pharmaceutical businesses will be sold, that is not enough in the eyes of some. Additionally, Pfizer has been the victim of a weak R&D department, although there is some excitement to be found in upcoming products such as Axitinib, Crizotinib, and Tofacitinib. In many ways, it is difficult to forecast a company like Pfizer’s future success because some products literally take a decade to go from start to finish. Compared with other pharmaceuticals, we like Merck (MRK) over Pfizer, and also believe that Bristol-Myers Squibb (BMY) may be a better choice as well. Note that at 2.46, Pfizer has a rather unattractive PEG right now.
Good Stocks To Buy 2015:Internap Network Services Corporation (INAP)
Internap Network Services Corporation provides information technology (IT) infrastructure services. The company operates through two segments, Data Center Services and IP Services. The Data Center Services segment provides colocation services, which include physical space for hosting customers? IT infrastructure network and other equipment, as well as offers associated services, such as redundant power and network connectivity, environmental controls, and security. This segment also offers managed hosting services that enable its customers to own and manage the software applications and content, as well as provides and maintains the hardware, operating system, collocation, and bandwidth. The IP services segment provides patented performance Internet protocol (IP) service; XIP acceleration-as-a-service solution; and flow control platform, a premise-based intelligent routing hardware product for customers, who run their own multiple network architectures, known as multi-homing. In addition, this segment offers content delivery network services that enable its customers to stream and distribute media and content, such as video, audio software, and applications to audiences through points of presence, as well as offers capacity-on-demand services to handle events and unanticipated traffic spikes. Internap Network Services Corporation provides its services and products through 76 IP service points, which include 20 CDN POPs and 1 standalone CDN POP, as well as through 37 data centers across North America, Europe, and the Asia-Pacific region. It serves the entertainment and media, financial services, business services, software, hosting and information technology infrastructure, and telecommunications industries. The company was founded in 1996 and is based in Atlanta, Georgia.Advisors' Opinion:
By Harding At 2011-9-11
Internap Network Services Corporation is an Internet solutions and data Center Company providing a suite of network optimization and de! livery s ervices and products that manage deliver and distribute applications. Its EPS forecast for the current year is 0.12 and next year is 0.21. According to consensus estimates, its topline is expected to grow 2.85% current year and 9.34% next year. It is trading at a forward P/E of 34.33. Out of eight analysts covering the company, three are positive and have buy recommendations and five have hold ratings.
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