These four companies are four of the most well known companies in America today. Each one is on the list of Dividend Aristocrats because each one has been increasing their dividend for at least the last of 25 years. And that's no small feat for any company listed on the exchanges.
Each of these companies have seen several expansions and contractions in the economy over the years that affected their sales and profits yet each of them continued to increase their dividends each and every year. For me that is a huge plus when deciding on whether or not to accumulate shares of the companies. This is done despite the fact that during some years revenues and earnings can be quite volatile. The result is that dividends are often increased by distributing an increasing proportion of the company's earnings. This can be seen in the changing payout ratios in various annual reports.
When the fundamentals of a company change from year to year, or quarter to quarter, the price of the stock is affected too. Smart investors realize this and take advantage of these changes and buy more shares during pullbacks in stock prices. The four stocks below have all pulled back since the beginning of the year for their own reasons. Chevron Corp and ExxonMobil Corp have fallen simply because of the falling price of oil. Proctor and Gamble is going through a reorganization and jettisoning dozens of their product lines. Walmart is under intense competition from other retailers as well as a persistently bad economy affecting their customers more than usual.
Each of these companies have seen several expansions and contractions in the economy over the years that affected their sales and profits yet each of them continued to increase their dividends each and every year. For me that is a huge plus when deciding on whether or not to accumulate shares of the companies. This is done despite the fact that during some years revenues and earnings can be quite volatile. The result is that dividends are often increased by distributing an increasing proportion of the company's earnings. This can be seen in the changing payout ratios in various annual reports.
When the fundamentals of a company change from year to year, or quarter to quarter, the price of the stock is affected too. Smart investors realize this and take advantage of these changes and buy more shares during pullbacks in stock prices. The four stocks below have all pulled back since the beginning of the year for their own reasons. Chevron Corp and ExxonMobil Corp have fallen simply because of the falling price of oil. Proctor and Gamble is going through a reorganization and jettisoning dozens of their product lines. Walmart is under intense competition from other retailers as well as a persistently bad economy affecting their customers more than usual.
Chevron Corporation engages in petroleum, chemicals, and power and energy operations worldwide. The company operates in two segments, Upstream and Downstream. The Upstream segment is involved 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 plant. The Downstream segment engages in refining crude oil into petroleum products; marketing crude oil and refined products; transporting crude oil and refined products through pipeline, marine vessel, motor equipment, and rail car; and manufacturing and marketing commodity petrochemicals and fuel and lubricant additives, as well as plastics for industrial uses. Chevron Corporation is also involved in the cash management and debt financing activities; insurance operations; real estate activities; power and energy services; and technology businesses. The company was formerly known as ChevronTexaco Corporation and changed its name to Chevron Corporation in 2005. Chevron Corporation was founded in 1879 and is headquartered in San Ramon, California.
(Summary) (Company) (Daily Chart)
(Summary) (Company) (Daily Chart)
| 25 June 2015 Price $98.34 1yr Target $113.00 Analysts 19 1yr Cap Gain 14.90% Dividend $4.28 Yield 4.35% 1yr Tot Return 19.25% 1yr EarnGR -8.57% 3yr EarnGR -8.88% 5yr EarnGR 14.11% 1yr DivGR 7.00% 3yr DivGR 10.29% 5yr DivGR 9.73% | Market Cap $184.93 Bil Beta 1.15 EPS (ttm) $9.14 Payout Ratio 46.82% EPS next yr $6.27 P/E 10.76 PEG --- Forward P/E 15.68 Debt/Equity 0.22 ROA 6.50% ROE 11.10% ROI 6.40% Sales $181.50 Bil Income $17.30 Bil Profit Margin 9.53% |
Exxon Mobil Corporation explores for and produces crude oil and natural gas in the United States, Canada/South America, Europe, Africa, Asia, and Australia/Oceania. It also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and specialty products; and transports and sells crude oil, natural gas, and petroleum products. Exxon Mobil Corporation was formerly known as Exxon Corporation and changed its name to Exxon Mobil Corporation in November, 1999. Exxon Mobil Corporation was founded in 1870 and is headquartered in Irving, Texas.
(Summary) (Company) (Daily Chart)
(Summary) (Company) (Daily Chart)
| 25 June 2015 Price $83.93 1yr Target $93.67 Analysts 18 1yr Cap Gain 11.60% Dividend $2.92 Yield 3.47% 1yr Tot Return 15.07% 1yr EarnGR 3.12% 3yr EarnGR -3.33% 5yr EarnGR 13.81% 1yr DivGR 9.52% 3yr DivGR 13.50% 5yr DivGR 10.43% | Market Cap $350.92 Bil Beta 0.85 EPS (ttm) $6.66 Payout Ratio 43.84% EPS next yr $5.35 P/E 12.60 PEG --- Forward P/E 15.69 Debt/Equity 0.19 ROA 8.10% ROE 16.00% ROI 7.90% Sales $357.10 Bil Income $28.36 Bil Profit Margin 7.94% |
The Procter & Gamble Company manufactures and sells branded consumer packaged goods. The company operates through five segments: Beauty; Grooming; Health Care; Fabric Care and Home Care; and Baby, Feminine and Family Care. The Beauty segment offers antiperspirants and deodorants, cosmetics, personal cleansing, skin care, hair care and color, prestige, and professional salon products under the Head & Shoulders, Olay, Pantene, SK-II, and Wella brand names. The Grooming segment provides blades and razors, epilators, pre- and post-shave products, and electronic hair removal devices under the Braun, Fusion, Gillette, Mach3, and Prestobarba brand names. The Health Care segment offers toothbrush, toothpaste, and other oral care products; and gastrointestinal, rapid diagnostics, respiratory, vitamins/minerals/supplements, and other personal health care products. This segment markets its products under the Crest, Oral-B, and Vicks brand names. The Fabric Care and Home Care segment provides laundry additives, fabric enhancers, and laundry detergents; air care, dish care, and surface care products; batteries; and professional products. This segment sells its products under the Ariel, Dawn, Downy, Duracell, Febreze, Gain, and Tide brand names. The Baby, Feminine and Family Care segment offers feminine care and adult incontinence products; baby wipes, diapers, and pants; paper towels, tissues, and toilet papers under the Always, Bounty, Charmin, and Pampers brand names. The company markets its products through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, salons, high-frequency stores, and e-commerce in approximately 180 countries worldwide. The Procter & Gamble Company was founded in 1837 and is headquartered in Cincinnati, Ohio.
(Summary) (Company) (Daily Chart)
(Summary) (Company) (Daily Chart)
| 25 June 2015 Price $79.39 1yr Target $88.06 Analysts 17 1yr Cap Gain 10.92% Dividend $2.65 Yield 3.33% 1yr Tot Return 14.25% 1yr EarnGR 3.88% 3yr EarnGR 0.66% 5yr EarnGR -1.21% 1yr DivGR 7.32% 3yr DivGR 7.32% 5yr DivGR 8.18% | Market Cap $215.39 Bil Beta 0.47 EPS (ttm) $3.37 Payout Ratio 78.63% EPS next yr $4.18 P/E 23.56 PEG 3.50 Forward P/E 18.99 Debt/Equity 0.53 ROA 6.40% ROE 13.70% ROI 11.70% Sales $78.11 Bil Income $9.60 Bil Profit Margin 12.29% |
Wal-Mart Stores, Inc. operates retail stores in various formats worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam’s Club. It operates discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, cash and carry stores, home improvement stores, specialty electronics stores, restaurants, apparel stores, drug stores, and convenience stores, as well as retail Websites, such as walmart.com and samsclub.com. The company’s stores offer meat, produce, deli, bakery, dairy, frozen foods, alcoholic and nonalcoholic beverages, and floral and dry grocery; health and beauty aids, baby products, household chemicals, paper goods, and pet supplies; electronics, toys, cameras and supplies, photo processing services, cellular phones, cellular service plan contracts and prepaid services, movies, music, video games, and books; and pharmacy, optical, over-the-counter drugs, and clinical services. Its merchandise also include stationery, automotive accessories, hardware and paint, sporting goods, fabrics and crafts, and seasonal merchandise; apparel for women, girls, men, boys, and infants, as well as shoes, jewelry, and accessories; and home furnishings, housewares and small appliances, bedding, home décor, outdoor living, and horticulture products. The company also provides financial services and related products, including money orders, prepaid cards, wire transfers, money transfers, check cashing, and bill payment. In addition, it offers brand name merchandise, including hardgoods, softgoods, and selected private-label items, such as Member’s Mark and its own proprietary brands, such as Daily Chef and Simply Right. Further, the company operates banks that provide consumer financing programs. It operates approximately 11,000 stores under 72 banners in 27 countries; and e-commerce websites in 11 countries. The company was founded in 1945 and is headquartered in Bentonville, Arkansas.
(Summary) (Company) (Daily Chart)
(Summary) (Company) (Daily Chart)
| 25 June 2015 Price $71.86 1yr Target $80.50 Analysts 22 1yr Cap Gain 12.02% Dividend $1.96 Yield 2.72% 1yr Tot Return 14.74% 1yr EarnGR 3.48% 3yr EarnGR 3.72% 5yr EarnGR 6.36% 1yr DivGR 2.08% 3yr DivGR 7.14% 5yr DivGR 10.12% | Market Cap $231.43 Bil Beta 0.42 EPS (ttm) $4.89 Payout Ratio 40.08% EPS next yr $5.01 P/E 14.70 PEG 3.39 Forward P/E 14.35 Debt/Equity 0.66 ROA 9.70% ROE 25.00% ROI 14.60% Sales $485.52 Bil Income $15.84 Bil Profit Margin 3.26% |
My Perspective
It may be true that the world really has changed this time around and that these companies will never be the same, but I doubt it. These four companies have been great companies in the past, they've dealt with significant changes in the economy and they've not only survived, but flourished. And I believe they'll once again become great companies in the future. It is simply their present situation that is causing them temporary troubles. I believe these companies will solve these short term problems in the near future.
As a Dividend Growth Investor these are the kind of situations I constantly look for when doing my research. They present unique situations that I can often take advantage of. These four companies are currently paying outstanding dividends. The dividend yield is higher than normal simply because the stocks have pulled back in price. And even though I already own shares in each of these companies, I intend to double up my efforts and accumulate even more shares. Smart investors buy great companies like these to hold for years and years, and allow the dividends to be reinvested.
When great companies goes on sale and dividend yields head higher, I like to accumulate those shares. I believe these four companies are now on sale.
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