Dividend stocks are everywhere, but many just downright stink. In some cases, the business model is in serious jeopardy, or the dividend itself isn't sustainable. In others, the dividend is so low, it's not even worth the paper your dividend check is printed on. A�solid dividend�strikes the right balance of growth, value, and sustainability.
Today, and one day each week for the rest of the year, we're going to look at one dividend-paying company that you can put in your portfolio for the long term without too much concern. This isn't to say that these stocks don't share the same macro risks that other companies have, but they are a step above your common grade of dividend stock. Check out�last week's selection.
This week, I'll show you why handbag and accessories maker Coach (NYSE: COH ) could make for a smart play over the long run.
An ongoing retail fail
The retail environment over the past five years has been about as consistent as I am when I'm playing cricket while intoxicated. There have been ample reasons for consumers to go out and make purchases, including exceptionally low lending rates, which have greatly reduced the APR percentage consumers pay on their credit cards, and deep discounts from retailers that don't want to sit on unwanted inventory. Conversely, consumer spending habits are still tepid at best because of the expectation for higher taxes and a still slow-growth environment rife with high unemployment rates.
Top 5 Chemical Stocks To Own For 2015: Kohlberg Capital Corporation(KCAP)
Kohlberg Capital Corporation is a private equity and venture capital firm specializing in buyouts and mezzanine investments. It focuses on mature and middle market companies. The firm structures its investments through senior debt, second lien debt, secured and unsecured subordinated debt, mezzanine debt, and equity. It invests in all sectors except cyclical industries. The firm invests equity in both minority and control transactions alongside other equity investors. It invests through its own balance sheet. Kohlberg Capital Corporation is based in the New York, New York.Advisors' Opinion:
- [By Monica Gerson]
KCAP Financial (NASDAQ: KCAP) is projected to report its Q4 earnings at $0.25 per share on revenue of $13.27 million.
Home Inns & Hotels Management (NASDAQ: HMIN) is estimated to post its Q4 earnings at $2.18 per share on revenue of $1.54 billion.
Top 10 Dividend Stocks For 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 Rich Smith]
The common factor in all these variants is Australia's intention to use Raytheon's� (NYSE: RTN ) AN/BYG-1 advanced submarine combat control system to fight the boats. As for the rest of the plan, the country has time to work out the details. According to the white paper, the RAN's Collins-class fleet is good for 28 years of service life per sub, suggesting they won't start going obsolete until 2024 at the earliest.
Top 10 Dividend Stocks For 2014: Chevron Corporation(CVX)
Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The Upstream segment involves in the exploration, development, and production of crude oil and natural gas; processing, liquefaction, transportation, and regasification associated with liquefied natural gas; transportation of crude oil through pipelines; and transportation, storage, and marketing of natural gas, as well as holds interest in a gas-to-liquids project. The Downstream segment engages in the refining of crude oil into petroleum products; marketing of crude oil and refined products primarily under the Chevron, Texaco, and Caltex brand names; transportation of crude oil and refined products by pipeline, marine vessel, motor equipment, and rail car; and manufacture and marketing of commodity petrochemicals, plastics for industrial uses, and fuel and lubricant additives. It a lso produces and markets coal and molybdenum; and holds interests in 13 power assets with a total operating capacity of approximately 3,100 megawatts, as well as involves in cash management and debt financing activities, insurance operations, real estate activities, energy services, and alternative fuels and technology business. Chevron Corporation has a joint venture agreement with China National Petroleum Corporation. The company was formerly known as ChevronTexaco Corp. and changed its name to Chevron Corporation in May 2005. Chevron Corporation was founded in 1879 and is based in San Ramon, California.Advisors' Opinion:
- [By Dan Caplinger]
Lately, energy stocks have made a nice comeback. After lagging the Dow for the first half of 2013, both ExxonMobil (NYSE: XOM ) and Chevron (NYSE: CVX ) have started out July on the right foot, with Exxon hitting a new five-year high today and Chevron approaching its own all-time record-high share price.
- [By Douglas A. McIntyre]
The calculus of oil prices is only part of what is factored into big oil stocks. Exxon may have a disadvantage against Chevron Corp. (NYSE: CVX) and BP PLC (NYSE: BP) in terms of exploration prospects and access to the biggest booming market — shale. Investors who want to look out five years or more, already may have gambled on possible winners. Shares in each of the other oil giants have bested the S&P during the past month.
- [By Tony Daltorio]
Although it may be hard to believe, the shale revolution is not being led by the major oil companies such as Exxon Mobil Corp. (NYSE: XOM), Chevron Corp. (NYSE: CVX), and Royal Dutch Shell plc (NYSE: RDS.A).
- [By Tyler Crowe]
While it may be easy to complain about energy prices in the U.S., it's nothing compared to what people pay in Europe. Yet, despite high prices and the discovery of shale resources, countries that do have resources can't seem to get things figured out. This week, Chevron's (NYSE: CVX ) plan to explore for natural gas in Ukraine was put on hold as local authorities have to each give their approval before the national government can issue a license to the company. Also, Chevron might not have much to look forward to. Royal Dutch Shell (NYSE: RDS-A ) , the company who already has permission to drill in Ukraine, needs to hand over 31% to 60% of the gas it produces to the government.�
Top 10 Dividend Stocks For 2014: Philip Morris International Inc(PM)
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. Its international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims, L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White. The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece; and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union, Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company is based in New York, New York.Advisors' Opinion:
- [By Dividend Growth Investor]
Altria Group (MO) was able to spin-off its Kraft Foods division in 2007. Shareholders in Altria received shares in Kraft for each share of Altria stock they held. In 2008, this was followed by the spin-off of Phillip Morris International (PM), which represented the international tobacco business of Altria Group.
- [By Ben Levisohn]
Shares of Lorillard have jumped 4.6% to $51.29 at 1:32 p.m. today, while Reynolds American has gained 2.5% to $52.12 and British American Tobacco has dropped 1.1% to $107.62. Altria Group (MO), meanwhile, has risen 0.4% to $36.43 and Philip Morris International (PM) has declined 0.9% to $80.21.
- [By Ben Levisohn]
Phillip Morris (PM) gained 2.8% to $86.56 after boosting its dividend by 10.6%.
Restoration Hardware (RH) dropped 12% to $68.04 despite what many considered to be a solid earnings�report. Not Barron’s.
- [By Kelley Wright]
Tobacco is a controversial business; but for Philip Morris International (PM), it's a market basically unaffected by economic slowdowns or rising commodity prices, which means it is stable and defensive; a combination we can live with. We also like the $3.76 dividend, outstanding growth, and a five-year average return on equity of over 160.
Top 10 Dividend Stocks For 2014: PetroChina Company Limited(PTR)
PetroChina Company Limited produces and distributes oil and gas in the People?s Republic of China. It operates in four segments: Exploration and Production, Refining and Chemicals, Marketing, and Natural Gas and Pipeline. The Exploration and Production segment explores, develops, produces, and markets crude oil and natural gas, oilsands, and coalbed methane. As of December 31, 2010, it had 11,278 million barrels of proved reserves of crude oil; and 65,503 billion cubic feet of proved reserves of natural gas. The Refining and Chemicals segment engages in the refining of crude oil and petroleum products; and production and marketing of petrochemical products, derivative petrochemical products, and other chemical products. This segment?s product line comprises processed crude oil, gasoline, kerosene, diesel, ethylene, synthetic resins, synthetic fiber materials, polymers, synthetic rubber, and urea. The Marketing segment involves in the marketing of refined products and tradi ng businesses. It operated 17,996 service stations. The Natural Gas and Pipeline segment engages in the transmission of natural gas, crude oil, and refined products; and the sale of natural gas. It had a total length of 56,840 kilometers (km) of oil and gas pipelines, including 32,801 km of natural gas pipelines, 14,782 km of crude oil pipelines, and 9,257 km of refined product pipelines. The company was founded in 1988 and is headquartered in Beijing, the People?s Republic of China. PetroChina Company Limited is a subsidiary of China National Petroleum Corporation.Advisors' Opinion:
- [By Daniel Inman]
In Hong Kong, China Petroleum & Chemical Corp. (HK:386) � (SNP) �posted a 20% rise in its third-quarter net profit from a year earlier, helping to lift the company�� stock by 1.7%. PetroChina Co. (HK:857) � (PTR) , however, dropped 0.6% after reporting a 19% increase in net profit over the same period.
Top 10 Dividend Stocks For 2014: Vornado Realty Trust(VNO)
Vornado Realty Trust is a privately owned real estate investment trust. The trust engages in investment, ownership, and management of commercial real estate. It invests in the real estate markets of United States. The trust primarily invests in office, industrial and retail properties. Vornado Realty Trust is based in New York, New York.Advisors' Opinion:
- [By Robert Hsu]
And Vornado Realty Trust (NYSE: VNO) is one of these big buyers.
The Manhattan-based real estate investment trust (REIT) owns more than 28 million square feet of high-end office, retail, and residential space in its home town. (You can tour its New York properties right here.)
Top 10 Dividend Stocks For 2014: ENSCO plc(ESV)
Ensco plc, together with its subsidiaries, provides offshore contract drilling services to the oil and gas industry. The company engages in the drilling of offshore oil and natural gas wells by providing its drilling rigs and crews under contracts with international, government-owned, and independent oil and gas companies. As of February 15, 2010, it owned and operated 42 jackup rigs, 4 ultra-deepwater semisubmersible rigs, and 1 barge rig. The company also has 4 ultra-deepwater semisubmersible rigs under construction. It operates in Asia, the Middle East, Australia, New Zealand, Europe, Africa, and North and South America. The company was formerly known as Ensco International plc and changed its name to Ensco plc in March 2010. Ensco plc was founded in 1975 and is based in London, the United Kingdom.Advisors' Opinion:
- [By Ben Levisohn]
Yes, it’s true. With offshore drillers like Noble (NE) Rowan (RDC) and Ensco (ESV) all down more than 20% this year, Societe General now have “neutral” stance on the group. The bank cut its ratings on Noble, Ensco and Rowan, as well.
- [By Ben Levisohn]
Ameren Corp. (AEE)
Arthur J. Gallagher (AJG)
E.I. DuPont de Nemours & Co. (DD)
Enterprise Products Partners LP (EPD)
General Mills (GIS)
H&R Block (HRB)
Hancock Holding (HBHC)
Kraft Foods Group (KRFT)
Magellan Midstream Partners LP (MMP)
MarkWest Energy Partners L P (MWE)
Microchip Technology (MCHP)
NextEra Energy (NEE)
Regency Centers (REG)
TELUS Corp. (TU)
West Corp. (WSTC)
Williams Companies (WMB)
- [By John Buckingham, Chief Investment Officer, Al Frank Asset Management, Inc. (AFAM)]
Ensco PLC (ESV) is the world's second largest offshore driller. The firm operates across six continents with one of the newest jackup and deepwater fleets in the contract drilling industry.