Short sellers have increased their bets against the stable high-dividend stocks that are in most Americans’ retirement accounts and mutual funds. The end-of-September short interest saw year highs in a few cases. Only a few of our key dividend holdings saw the short interest decline from the previous period.
We tracked the short interest in the following top dividend stocks: Altria Group Inc. (NYSE: MO), American Electric Power Co. Inc. (NYSE: AEP), Annaly Capital Management Inc. (NYSE: NLY), AT&T Inc. (NYSE: T), Duke Energy Corp. (NYSE: DUK), General Electric Co. (NYSE: GE), Kimberly-Clark Corp. (NYSE: KMB), Kinder Morgan Energy Partners L.P. (NYSE: KMP), Merck & Co. Inc. (NYSE: MRK), Procter & Gamble Co. (NYSE: PG), Reynolds American Inc. (NYSE: RAI) and Verizon Communications Inc. (NYSE: VZ).
As we have said before, it takes much more conviction to short sell a stock that has a very high dividend. On top of having to pay a broker loan-call rate to borrow the stock, the dividend payouts have to be paid and the ex-dividend dates play into the equation as well. We compared the short interest settlement dates of September 13 versus September 30 and added color on each.
Top 5 Regional Bank Stocks To Watch Right Now: Airgas Inc.(ARG)
Airgas, Inc., through its subsidiaries, distributes industrial, medical, and specialty gases, as well as hardgoods in the United States. The company offers various gases, including nitrogen, oxygen, argon, helium, and hydrogen; welding and fuel gases, such as acetylene, propylene, and propane; and carbon dioxide, nitrous oxide, ultra high purity grades, special application blends, and process chemicals. Its hardgoods products comprise welding consumables and equipment, safety products, and construction supplies, as well as maintenance, repair, and operating supplies. The company also engages in the rental of gas cylinders, cryogenic liquid containers, bulk storage tanks, tube trailers, and welding and welding related equipment. In addition, the company manufactures and distributes liquid carbon dioxide, dry ice, nitrous oxide, ammonia, refrigerant gases, and atmospheric merchant gases. It serves repair and maintenance, industrial manufacturing, energy and infrastructure co nstruction, medical, petrochemical, food and beverage, retail and wholesale, analytical, utilities, and transportation industries. The company operates an integrated network of approximately 1100 locations, including branches, retail stores, packaged gas fill plants, specialty gas labs, production facilities, and distribution centers. Additionally, it provides retail solutions to retail customers, such as florists, grocers, restaurants and bars, tire and automotive service centers, and others. The company markets its products through multiple sales channels, including branch-based sales representatives, retail stores, strategic customer account programs, telesales, catalogs, e-business, and independent distributors. Airgas, Inc. was founded in 1982 and is based in Radnor, Pennsylvania.
Advisors' Opinion:- [By Monica Gerson]
Airgas (NYSE: ARG) is expected to report its Q2 earnings at $1.22 per share on revenue of $1.28 billion.
The Boeing Company (NYSE: BA) is estimated to report its Q3 earnings at $1.55 per share on revenue of $21.68 billion.
- [By Ben Levisohn]
The one problem: Air Products & Chemicals valuation. “[Air Products & Chemicals] has generally been at a discount to [Praxair] in the last five years due to its mix and more volatile performance, but closed the gap last year on activist involvement and potential restructuring,” Yang and Amadeo note.�Air Products & Chemicals trades at 21 times 2015 earnings, in line with Airgas’s (ARG) P/E ratio of 21.5 but well above Praxair’s 18.5 times.
Best High Dividend Companies To Watch In Right Now: Compliance Energy Corp (CEC)
Compliance Energy Corporation (Compliance) is an exploration and development company. The Company is engaged in the acquisition, exploration and development of mineral resource properties. Compliance�� main projects are its freehold coal holdings on Vancouver Island, British Columbia and four non-coal exploration properties on Vancouver Island. Through the Comox Joint Venture (CJV), CEC owns 60% of the Raven Underground Coal project. The Company�� main properties are its approximately 29,000 hectares of freehold coal and mineral interests and 2,046 hectares of Crown Coal licenses in the Comox Coal Basin on Vancouver Island, British Columbia. Through the Comox Joint Venture agreement, Compliance owns 60% of interests and Itochu International and LG International own 20% respectively. Advisors' Opinion:- [By Geoff Gannon] ominal GDP Growth: Village Supermarket (VLGEA)
Over the last 10 years ��population growth, inflation, and real output per person growth has been so low it�� hard to tell the difference between companies growing at the rate of inflation, along with the population, or along with the economy.
You have to squint really hard to see any difference in the revenue growth records of DNB, Chuck E. Cheese, and Village.
This will not be true in all countries and at all times.
A literally no growth company like Earthlink is actually shrinking. It just happens to look like it�� staying perfectly flat because inflation is hiding the company�� real decay rate. In real terms, the company has been shrinking by about 3% a year for the last 10 years. So, Earthlink is not a no growth company. It�� shrinking.
That�� a bad sign. And, frankly, I don�� know how to value Earthlink. You would need to evaluate it as a turnaround or something ��not as a business that�� simplly stuck in place. I don�� know how to do that.
So, Earhtlink goes into the ��oo hard��pile.
Dun & Bradstreet and CEC Entertainment are actual no growth businesses. This is hidden by their constant share buy backs. So, if you look at their earnings per share growth they look kind of like Peter Lynch�� idea of a ��low growth��company or even a ��talwart�� They aren��. They��e no growth businesses.
The same is pretty much true with Village Supermarket. Although this is complicated. The nature of their business ��high volume, low cost groceries ��means they can appear to be a no growth business when they are actually just keeping prices down and increasing volume. You would need to check their sales numbers more carefully. Grocery stores often discuss inflation in their annual reports. Village Supermarket always does this.
(The annual report is Exhibit 13 of the 10-K at EDGAR).
So, in reality, Village Supermarket may be a
- [By Hibah Yousuf]
CEC Entertainment, (CEC) the owner of Chuck E. Cheese, announced that private equity firm Apollo Global Management (APO) was buying it for $1.3 billion.
- [By Lauren Pollock]
An affiliate of buyout firm Apollo Global Management LLC(APO) agreed to purchase CEC Entertainment Inc.(CEC), the parent of Chuck E. Cheese’s, for about $950 million, following a review of the company’s strategic alternatives by CEC’s board. Apollo plans to pay $54 in cash per CEC share. Shares topped the offer price in premarket trading, rising 13% to $54.59.
Best High Dividend Companies To Watch In Right Now: W.P. Carey & Co. LLC(WPC)
W. P. Carey & Co. LLC, together with its subsidiaries, provides long-term sale-leaseback and build-to-suit transactions for companies worldwide and manages a global investment portfolio. It invests primarily in commercial properties that are each triple-net leased to single corporate tenants, which requires each tenant to pay substantially all of the costs associated with operating and maintaining the property. The company also operates as an advisor to publicly owned, non-actively traded real estate investment trusts, which are sponsored by it under the Corporate Property Associates brand name, as well as invests in similar properties. As of March 31, 2010, its portfolio comprised full or partial ownership interest in 167 properties that totaled approximately 14 million square feet. W. P. Carey & Co. LLC was founded in 1973 and is based in New York, New York.
Advisors' Opinion:- [By Eric Volkman]
W.P Carey (NYSE: WPC ) is shelling out a few more coins to reward its shareholders. The company has declared a $0.84-per-share dividend for its Q2, which will be paid on July 15 to shareholders of record as of July 1.
- [By Dividends4Life]
W. P. Carey Inc. (WPC) is an independent equity real estate investment trust. The firm also provides long-term sale-leaseback and build-to-suit financing for companies. September 19th the company increased its quarterly dividend 2.4% to $0.86 per share. The dividend is payable October 15, 2013 to stockholders of record as of September 30, 2013. The yield based on the new payout is 5.2%.
- [By Shauna O'Brien]
Real estate investment trust W.P. Carey Inc. (WPC) announced on Tuesday that it has acquired an UK government office facility for $72 million.
WPC has acquired an office facility from the Department of State for Communities and Local Government (DCLG) located in Manchester, UK. This office is leased to the DCLG on a 15 year triple net lease and is currently occupied by the UK’s tax department.
Jennifer Lucas, Director of WPC commented: “The recent staff consolidation into the facility demonstrates that this is an important location for HMRC and supports our proven business model of acquiring key operating assets let to single tenants on long-term net-leases.”
W.P. Carey shares were mostly flat during pre-market trading Tuesday. The stock is up 27% YTD.
Best High Dividend Companies To Watch In Right Now: Impax Laboratories Inc.(IPXL)
Impax Laboratories, Inc., a specialty pharmaceutical company, engages in the development, manufacture, and marketing of bioequivalent pharmaceutical products. The company operates in two divisions, Global Pharmaceuticals and Impax Pharmaceuticals. The Global Pharmaceuticals division develops, manufactures, sells, and distributes generic pharmaceutical products. It provides its generic pharmaceutical prescription products directly to wholesalers and retail drug chains; and generic pharmaceutical over-the-counter and prescription products through unrelated third-party pharmaceutical entities. The Impax Pharmaceutical division develops proprietary brand pharmaceutical products that address central nervous system disorders, including Alzheimer?s disease, attention deficit hyperactivity disorder, depression, epilepsy, migraines, multiple sclerosis, Parkinson?s disease, and schizophrenia, as well as promotes third-party branded pharmaceutical products. As of May 2, 2011, the com pany marketed 101 generic pharmaceuticals, which represent dosage variations of 29 different pharmaceutical compounds; and another 16 of its generic pharmaceuticals representing dosage variations of 4 different pharmaceutical compounds. It markets and sells its generic pharmaceutical prescription drug products in the continental United States and the Commonwealth of Puerto Rico. The company has a strategic alliance agreement with Teva Pharmaceuticals Curacao N.V. Impax Laboratories, Inc. was founded in 1993 and is headquartered in Hayward, California.
Advisors' Opinion:- [By Eric Ho]
These heavy hitters include Sanofi's (NYSE: SNY ) Renagel, Fresenius' Phoslo, and generic calcium acetate versions of Phoslo. Additionally, Impax Laboratories (NASDAQ: IPXL ) intends to market a generic sevelamer product following for Renagel's 2014 patent expiration.
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