Friday, April 20, 2007

Revenue <= Market Cap

I like to run this scan when looking for (potentially) undervalued stocks which pay a dividend. These stocks make good candidates for dollar-cost-averaging when patience over momentum is the name of the game. This was today's output from the MSN Stock screener:

From this list I like the look of:

Olin Corporation (OLN). It pays a regular dividend of $0.20 a share per Q but hasn't raised it since 1999.

AmeriGas Partners (APU) has kept its dividend steady at $0.55 a share per Q which would have been great value when the stock traded at $14 back in 2000 - this translates to a 7% yield now.

Suburban Propane Partners (SPH) has unfortunately got a dose of caffeine and has gone from $24.61 to $45.65 in little over a year, but it pays a healthy dividend of $0.6875 a share per Q.

Heineken (HINKY) has enjoyed 4 splits over the last 10-years and has managed to bust out of its $14-20 range held since 1998. It is a more erratic dividend payer, generally paying a smaller dividend in April ($0.10) and a larger one in September ($0.15). There is good potential for capital growth and if it can raise the dividend in sync with price it will have good prospects, not to mention 12 Bn in 2006 revenues for a 6 Bn market cap.

CenterPoint Energy (CNP) is one I am taking a small position in. It peaked in 2001 at $48.42 a share but didn't start paying dividends until 2002, a little before bottoming at $6 and change. It's current rally started at $12 in 2006. It most recently raised its quarterly dividend from $0.15 to $0.17 a share. It did drop its quarterly dividend from $0.10 to $0.07 in 2005, so it is by no means certain it will be able to hold the dividend payment at its current rate.

ING Groep N.V. (ING) has seen steady share growth since making 2003 lows around $15. It paid two dividends of $0.80 and $0.75 in 2006 which has increased each year. $40 should be good support given it was resistance in 2000/2001, so any temporary trips into the $30-40 should be viewed as accumulation opportunities.

Tupperware (TUP) doesn't have any dramatic price action, trading much as it has since 1999, and has stuck with its $0.22 per quarter dividend for a long long time. It's boring, but if it drops back into the teens it should be gobbled up with confidence.

Imperial Sugar Company (IPSU) got into the dividend game late (2005) and started with low quarterly payments of $0.05 per share per quarter. It paid a once off dividend of $3 in late 2006 to skew its figures but if the stock drops back to the low $20s it may be worth adding to your portfolio. It paid $0.07 per share for its most recent quarter.

As a side-note. Followers of my Trade-Ideas scan performance will have noted a slowing in today's buying; the top 8 picks covered a 8 minutes with a "20-appearance" list coming in at just over 2 hours.

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