Tobacco companies have always offered high dividends, and have been associated with strong balance sheets. Lorillard (LO), despite hailing from an unhealthy industry, is poised to continue raising its safely maintained dividends. The company will find plenty of tobacco huffers in the developing world, if it can build out its international presence. Below is some insight into the company.
Lorillard�� flagship brands include Newport, Kent, True, Maverick, Old Gold, Blu electronic cigarettes (e- cigs) and the recently acquired British e-cig brand SKYCIG. Lorillard's flagship cigarette Newport is by far the most popular brand of mentholated cigarettes. Lorillard produces cigarettes for both the premium and discount segments of the domestic cigarette market. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and expanding profit margins.
Good Numbers
Lorillard's performance has been boosted by strength across the tobacco sector. Yield-starved investors look to tobacco stocks for their hefty dividend yields to generate income for their portfolios.
Top Managed Healthcare Stocks To Own For 2015: Delaware Investments Dividend & Income Fund Inc. (DDF)
Delaware Investments Dividend and Income Fund, Inc. is a close-ended balanced mutual fund launched by Delaware Management Holdings, Inc. It is managed by Delaware Management Business Trust. The fund invests in the public equity and fixed income markets of the United States. It seeks to invest 65 percent of its corpus in stocks and 35% in fixed income securities. The fund primarily invests in value stocks of large cap companies. It also invests in convertible securities, preferred stocks, other equity-related securities, and real estate investment trusts. For the fixed income component of the fund�s portfolio the fund invests in high yield corporate bonds rated BB or lower in terms of quality. It benchmarks the performance of its portfolio against the S&P 500 Index. Delaware Investments Dividend and Income Fund, Inc. was formed on March 25, 1993 and is domiciled in the United States.
Advisors' Opinion:- [By Dividends4Life]
According to a Gabelli Funds report, managed distribution policies offer several advantages, including:1. Lower difference between the fund�� market price and its NAV per share.2. Provides support during periods when the stock market is in a decline.3. Provides a measurable performance target for the investment adviser.Below are several high-yield funds from CEFA that have a managed distribution policy (yields as of December 16):Aberdeen Australia Eqty (IAF)- Distribution Yield: 10.4%- Income Yield: 3.46%Bexil Advisers LLC� (DNI)- Distribution Yield: 11.1%- Income Yield: 3.56%BlackRock En Capital&Inc (CII)- Distribution Yield: 8.78%- Income Yield: 2.34%Cornerstone Strat Value (CLM)- Distribution Yield: 18.77%- Income Yield: 1.83%Cornerstone Total Return (CRF)- Distribution Yield: 19.10%- Income Yield: 0.85%Delaware Inv Div & Inc (DDF)- Distribution Yield: 6.70%- Income Yield: 5.26%Gabelli Equity Trust (GAB)- Distribution Yield: 7.58%- Income Yield: 1.54%Gabelli Utility Trust (GUT)- Distribution Yield: 9.45%- Income Yield: 2.84%MFS Special Value Trust (MFV)- Distribution Yield: 9.60%- Income Yield: 5.73%Nuveen Tx-Adv TR Strat (JTA)- Distribution Yield: 6.70%- Income Yield: 3.12%TCW Strategic Income (TSI)- Distribution Yield: 10.54%- Income Yield: 7.88%Zweig Total Return (ZTR)- Distribution Yield: 7.27%- Income Yield: 1.95%As noted in the Gabelli report, a managed distribution policy may create confusion regarding the true current yield since the reported yield includes the return of capital portion. You can see the disparity above between the income yield and the distribution (reported) yield.If you are looking for a sustainable and growing dividend, you may want to consider some blue-chip dividend stocks such as these with a Free Cash Flow Payout less than 50%, 50+ years of consecutive dividend increases and a 2%+ yield:3M Co. (MMM) is a diversified global company provides enhanced product functionality in electronics, health care, industrial, consumer
Top 10 High Dividend Companies To Own For 2014: Union Pacific Corporation(UNP)
Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. It has approximately 31,953 route miles linking Pacific Coast and Gulf Coast ports with the Midwest and eastern United States gateways, and provides several corridors to Mexican gateways. The company offers freight transportation services for agricultural products, including whole grains and related commodities, food, beverage products, corn for ethanol products and its by-products, animal feeds, fruits and vegetables, frozen meat, and poultry products; and automotive products, such as imported and finished vehicles, and automotive parts and materials. It also provides transportation services for chemicals, such as industrial chemicals, plastics, and liquid petroleum products; energy products comprising coal and coke; industrial products, including lumber products, paper and consumer goods, furniture and appliances, and nonferrous and i ndustrial minerals, as well as steel and construction products, such as rock, cement, and roofing materials; and intermodal containers. Union Pacific Corporation was founded in 1862 and is based in Omaha, Nebraska.
Advisors' Opinion:- [By Chris Hill]
Shares of PepsiCo (NYSE: PEP ) hit an all-time high on Thursday in the wake of quarterly earnings, and the strength in its snack division. Shares of Verizon (NYSE: VZ ) gain after the company reports a 16% jump in quarterly profits. Shares of Union Pacific (NYSE: UNP ) hit an all-time high, as first quarter profits rose 11%. And shares of eBay (NASDAQ: EBAY ) slip over concerns about earnings guidance. In this installment of Investor Beat, our analysts discuss four stocks making moves.
- [By Monica Gerson]
Union Pacific (NYSE: UNP) is projected to report its Q3 earnings at $2.47 per share on revenue of $5.58 billion.
Fifth Third Bancorp (NASDAQ: FITB) is expected to report its Q3 earnings at $0.41 per share on revenue of $1.55 billion.
Top 10 High Dividend Companies To Own For 2014: iShares 20+ Year Treasury Bond ETF (TLT)
iShares Lehman 20+ Year Treasury Bond Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the long-term sector of the United States Treasury market as defined by the Lehman Brothers 20+ Year U.S. Treasury Index (the Index). The Index includes all publicly issued, the United States Treasury securities that have a remaining maturity greater than 20 years, are non-convertible, are denominated in United States dollars, are rated investment grade (Baa3 or better) by Moody�� Investors Service, are fixed rate, and have more than $150 million par outstanding. Excluded from the Index are certain special issues, such as flower bonds, targeted investor notes, state and local government series bonds, and coupon issues that have been stripped from assets that are already included in the Index.
The Index is a market capitalization-weighted index. The Fund invests in a representative sample of the securities in the Index, which has a similar investment profile as the Index. The Fund�� investment advisor is Barclays Global Fund Advisor.
Advisors' Opinion:- [By Chris Ciovacco]
Similarities To 2007-2008?
One way to evaluate any situation in the markets is to compare the present day to previous bearish market turns and look for similarities. The Junk Bond Spyder ETF (JNK) can be used as an excellent proxy for the high-yield debt markets. Since JNK did not start trading until 2008, to go back to the stock market's October 2007 peak, the graph below uses a mutual fund (FIHBX) as a proxy for JNK. The top of the chart shows the S&P 500 for comparison purposes. The ratio of junk debt to conservative debt is below the S&P 500. When the bond ratio rises, demand for junk bonds is greater than demand for conservative Treasuries. Were the debt markets a step ahead of stocks in 2007? Yes, as you can see below, bond investors started to migrate away from junk bonds toward more conservative Treasuries (TLT) well before stocks peaked (falling ratio). The credit markets correctly forecasted the coming risks in June 2007, or four months before a major bear market began in October. - [By Tom Aspray]
The bond market, as represented by the iShares 20+ Year Treasury Bond ETF (TLT) is still up just over 5% as the yield on the 10-Year T-Note is still locked in it's trading range. The generally bullish job report last Friday should allow the Fed to stay on its tapering course for the near future.
- [By Dan Caplinger]
But bond investments have seen huge losses. Consider how broad-based the bond-market massacre has been:
Broad measures of the overall bond market have shown definite signs of weakness, with iShares Core U.S. Bond (NYSEMKT: AGG ) falling more than 3% since the end of April and the actively managed PIMCO Total Return (NYSEMKT: BOND ) down almost 4% over that time frame. Longer-term-focused bonds have posted even worse results, with iShares 20+ Treasury (NYSEMKT: TLT ) having fallen more than 8% since late April. Inflation-protected bonds are generally seen providing some defense against rising interest rates, but iShares Barclays TIPS Bond (NYSEMKT: TIP ) has fallen by more than 7%. Even niche areas of the bond market have seen big losses, with the municipal-bond-focused iShares S&P Municipal Bond (NYSEMKT: MUB ) down almost 5%, while the emerging-market bond ETF WisdomTree Emerging Markets Local Debt has fallen 10%.A combination of factors has led to some of these declines, with the strong U.S. dollar hurting international bonds. But the driving force behind all of the drops comes from rising interest rates, and investors need to understand the threat that those rates pose to the future of their bond investments.
- [By Adam Aloisi]
The following chart takes a comparative look at some widely held ETFs/CEFs holding different types of bonds. The objective is to visualize not only how much these products cost, but also to break down the percent of total yield depleted by management fees. I define total yield as current annualized yield plus net fees - in other words the yield of the fund if there were no management fees attached. The funds we will examine are aforementioned BND, iShares 20+ Treasury Bond (TLT), iShares High-Yield Corporate (HYG), Nuveen Municipal Value (NUV), Eaton Vance Limited Duration (EVV) and Alliance Bernstein Global High-Yield (AWF).
Top 10 High Dividend Companies To Own For 2014: Senomyx Inc.(SNMX)
Senomyx, Inc. engages in the discovery and development of novel flavor ingredients in the savory, sweet, salt, bitter, and cooling areas using proprietary taste receptor-based assays and screening technologies. The company has product discovery, development, and commercialization collaborations with seven food, beverage, and ingredient companies, including Ajinomoto Co., Inc.; Firmenich SA; Kraft Foods, Inc.; Nestle SA; and PepsiCo, Inc. Senomyx, Inc. licenses flavor ingredients to its collaborators on an exclusive or co-exclusive basis. The company was founded in 1998 and is based in San Diego, California.
Advisors' Opinion:- [By Jake L'Ecuyer]
Leading and Lagging Sectors
Healthcare stocks gained Wednesday, with Senomyx (NASDAQ: SNMX) leading advancers after the company announced a research agreement with PepsiCo (NYSE: PEP). Among the leading sector stocks, gains came from Pernix Therapeutics Holdings (NASDAQ: PTX), Albany Molecular Research (NASDAQ: AMRI) and Gentiva Health Services (NASDAQ: GTIV).
Top 10 High Dividend Companies To Own For 2014: Fidus Investment Corp (FDUS)
Fidus Investment Corporation, incorporated on February 14, 2011, provides customized mezzanine debt and equity financing solutions to lower middle-market companies. The Company�� investment objective is to provide attractive risk-adjusted returns by generating both current income from its debt investments and capital appreciation from its equity related investments.
The Company seeks to maintain a diversified portfolio of investments in order to help mitigate the potential effects of adverse economic events related to particular companies, regions or industries. The Company�� investment advisor is Fidus Capital, LLC.
Advisors' Opinion:- [By BDC Buzz]
Fidus Investment (FDUS) is one of the newer business development companies ("BDCs") but its stock performance has been strong with a steady climb to higher than average multiples. This is most likely due to its higher than average 'total return' of around 16%. Last quarter FDUS grew its net asset value ("NAV") per share more than any of the other 25 BDCs that I follow and announced a special dividend on top of its regular dividends which is currently yielding around 8%. The company announced that it received approval for a second SBIC license giving it access to cheap long-term growth capital to grow the portfolio and dividends. FDUS also reported realized gains in Q3 from exited investments that could provide for some large upcoming special dividends. I believe that investors should look beyond the current lower than average dividend yield and higher than average pricing multiples, and consider the potential total return for FDUS over the coming quarters. I will also address my key concerns for the company and some things to watch for through the end of the year.
Top 10 High Dividend Companies To Own For 2014: CenterPoint Energy Inc (CNP)
CenterPoint Energy, Inc., incorporated on February 2, 2001, is a domestic energy delivery company. The Company�� business segments include Electric Transmission and Distribution, Natural Gas Distribution, Competitive Natural Gas Sales and Services, Interstate Pipelines, Field Services and Other Operations. The Company serves metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas. The company also owns a 58.3% interest in a midstream partnership it jointly controls with OGE Energy Corp. with operations in natural gas and liquids-rich producing areas of Oklahoma, Texas, Arkansas and Louisiana.
The Company is a public utility holding company. The Company�� indirect wholly-owned subsidiaries include CenterPoint Energy Houston Electric, LLC (CenterPoint Houston), which engages in the electric transmission and distribution business in a 5,000-square mile area of the Texas Gulf Coast that includes the city of Houston and CenterPoint Energy Resources Corp. (CERC Corp. and, together with its subsidiaries, CERC), which owns and operates natural gas distribution systems in six states. Subsidiaries of CERC Corp. own interstate natural gas pipelines and gas gathering systems and provide various ancillary services. A wholly owned subsidiary of CERC Corp. offers variable and fixed-price physical natural gas supplies primarily to commercial and industrial customers and electric and gas utilities.
Electric Transmission & Distribution
CenterPoint Houston is a transmission and distribution electric utility that operates wholly within the state of Texas. CenterPoint Houston delivers electricity from power plants to substations, from one substation to another and to retail electric customers taking power at or above 69 kilovolts in locations throughout CenterPoint Houston's certificated service territory. CenterPoint Houston constructs and maintains transmission facilities and provides transmission services under tariffs approved by the Pu! blic Utility Commission of Texas (Texas Utility Commission).
In the Electric Reliability Council of Texas, Inc. (ERCOT), end users purchase their electricity directly from certificated REPs. CenterPoint Houston delivers electricity for REPs in its certificated service area by carrying lower-voltage power from the substation to the retail electric customer. CenterPoint Houston's distribution network receives electricity from the transmission grid through power distribution substations and delivers electricity to end users through distribution feeders. CenterPoint Houston's operations include construction and maintenance of distribution facilities, metering services, outage response services and call center operations. CenterPoint Houston provides distribution services under tariffs approved by the Texas Utility Commission. Texas Utility Commission rules and market protocols govern the commercial operations of distribution companies and other market participants.
CenterPoint Houston is a member of ERCOT. Within ERCOT, prices for wholesale generation and retail electric sales are unregulated, but services provided by transmission and distribution companies, such as CenterPoint Houston, are regulated by the Texas Utility Commission. ERCOT serves as the regional reliability coordinating council for member electric power systems in of Texas. ERCOT membership is open to consumer groups, investor and municipally-owned electric utilities, rural electric cooperatives, independent generators, power marketers, river authorities and REPs. The ERCOT market includes of the State of Texas, other than a portion of the panhandle, portions of the eastern part of the state bordering Arkansas and Louisiana and the area in and around El Paso.
ERCOT market operates under the reliability standards set by the North American Electric Reliability Corporation (NERC) and approved by the Federal Energy Regulatory Commission (FERC). These reliability standards are administered by the Texas Regi! onal Enti! ty (TRE), a functionally independent division of ERCOT. The Texas Utility Commission has primary jurisdiction over the ERCOT market to ensure the adequacy and reliability of electricity supply across the state's main interconnected power transmission grid. The ERCOT independent system operator (ERCOT ISO) is responsible for operating the bulk electric power supply system in the ERCOT market. The ERCOT ISO also serves as agent for procuring ancillary services for those members who elect not to provide their own ancillary services.
CenterPoint Houston's electric transmission business, along with those of other owners of transmission facilities in Texas, supports the operation of the ERCOT ISO. The transmission business has planning, design, construction, operation and maintenance responsibility for the portion of the transmission grid and for the load-serving substations it owns, primarily within its certificated area. CenterPoint Houston participates with the ERCOT ISO and other ERCOT utilities to plan, design, obtain regulatory approval for and construct new transmission lines necessary to increase bulk power transfer capability and to remove existing constraints on the ERCOT transmission grid.
CenterPoint Houston's integrated utility business was restructured in accordance with the Texas electric restructuring law and its generating stations were sold to third parties. CenterPoint Houston serves nearly all of the Houston/Galveston metropolitan area. At December 31, 2012, CenterPoint Houston's customers consisted of approximately 75 REPs, which sell electricity to over two million metered customers in CenterPoint Houston's certificated service area, and municipalities, electric cooperatives and other distribution companies located outside CenterPoint Houston's certificated service area. All of CenterPoint Houston's properties are located in Texas. Its properties consist primarily of high-voltage electric transmission lines and poles, distribution lines, substations, service ce! nters, se! rvice wires and meters.
As of December 31, 2012, CenterPoint Houston owned 28,011 pole miles of overhead distribution lines and 3,713 circuit miles of overhead transmission lines, including 373 circuit miles operated at 69,000 volts, 2,124 circuit miles operated at 138,000 volts and 1,216 circuit miles operated at 345,000 volts. As of December 31, 2012, CenterPoint Houston owned 21,151 circuit miles of underground distribution lines and 26 circuit miles of underground transmission lines, including two circuit miles operated at 69,000 volts and 24 circuit miles operated at 138,000 volts. As of December 31, 2012, CenterPoint Houston owned 233 substation sites having a total installed rated transformer capacity of 54,325 megavolt amperes. CenterPoint Houston operates 14 regional service centers located on a total of 291 acres of land. These service centers consist of office buildings, warehouses and repair facilities that are used in the business of transmitting and distributing electricity.
Natural Gas Distribution
CERC Corp.'s natural gas distribution business (Gas Operations) engages in regulated intrastate natural gas sales to, and natural gas transportation for, approximately 3.3 million residential, commercial and industrial customers in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas. The largest metropolitan areas served in each state by Gas Operations are Houston, Texas; Minneapolis, Minnesota; Little Rock, Arkansas; Shreveport, Louisiana; Biloxi, Mississippi; and Lawton, Oklahoma. Gas Operations also provides unregulated services in Minnesota consisting of heating, ventilating and air conditioning (HVAC) equipment and appliance repair, and sales of HVAC, hearth and water heating equipment. Gas Operations actively engages in commodity price stabilization pursuant to annual gas supply plans presented to and/or filed with each of its state regulatory authorities. Gas Operations uses various third-party storage services or owned natural ga! s storage! facilities to meet peak-day requirements and to manage the daily changes in demand due to changes in weather and may also supplement contracted supplies and storage from time to time with stored liquefied natural gas and propane-air plant production.
Gas Operations owns and operates an underground natural gas storage facility with a capacity of seven billion cubic feet It has a working capacity of two billion cubic feet available for use during a normal heating season and a maximum daily withdrawal rate of 50 million cubic feet . It also owns nine propane-air plants with a total production rate of 200,000 Dekatherms per day and on-site storage facilities for 12 million gallons of propane (one billion cubic feet natural gas equivalent). It owns a liquefied natural gas plant facility with a 12 million-gallon liquefied natural gas storage tank (one billion cubic feet natural gas equivalent) and a production rate of 72,000 Dekatherms per day. Gas Operations has entered into various asset management agreements associated with its utility distribution service in Arkansas, Louisiana, Mississippi, Oklahoma and Texas. As of December 31, 2012, Gas Operations owned approximately 72,000 linear miles of natural gas distribution mains, varying in size from one-half inch to 24 inches in diameter. Generally, in each of the cities, towns and rural areas served by Gas Operations, it owns the underground gas mains and service lines, metering and regulating equipment located on customers' premises and the district regulating equipment necessary for pressure maintenance.
Interstate Pipelines
CERC's pipelines business operates interstate natural gas pipelines with gas transmission lines primarily located in Arkansas, Illinois, Louisiana, Missouri, Oklahoma and Texas. CERC's interstate pipeline operations are primarily conducted by two wholly owned subsidiaries that provide gas transportation and storage services primarily to industrial customers and local distribution companies, includ! ing Cente! rPoint Energy Gas Transmission Company, LLC (CEGT) is an interstate pipeline that provides natural gas transportation, natural gas storage and pipeline services to customers principally in Arkansas, Louisiana, Oklahoma and Texas and includes the 1.9 billion cubic feet per day pipeline from Carthage, Texas to Perryville, Louisiana, which CEGT operates as a separate line with a fixed fuel rate, and CenterPoint Energy-Mississippi River Transmission, LLC (MRT) is an interstate pipeline that provides natural gas transportation, natural gas storage and pipeline services to customers principally in Arkansas, Illinois and Missouri. CenterPoint Southeastern Pipelines Holding, LLC, a wholly owned subsidiary of CERC, owns a 50% interest in Southeast Supply Header, LLC (SESH). SESH owns a one billion cubic feet per day, 274-mile interstate pipeline that runs from the Perryville Hub in Louisiana to Coden, Alabama.
Field Services
CERC's field services business operates gas gathering, treating and processing facilities and also provides operating and technical services and remote data monitoring and communication services. CERC's field services operations are conducted by a wholly owned subsidiary, CenterPoint Energy Field Services, LLC (CEFS), and subsidiaries of CEFS. CERC's field services business provides natural gas gathering and processing services for certain natural gas fields in the Mid-continent region of the United States that interconnect with CEGT's and MRT's pipelines, as well as other interstate and intrastate pipelines. As of December 31,2012, CERC's field services business gathered an average of approximately 2.4 billion cubic feet per day of natural gas. In addition, CERC's field services business has the capacity available to treat up to 2.5 billion cubic feet per day and process 625 million cubic feet per day of natural gas. CEFS, through its ServiceStar operating division, provides remote data monitoring and communications services to affiliates and third parties. CERC's ! field ser! vices business owns and operates approximately 4,600 miles of gathering lines and processing plants that collect, treat and process natural gas primarily from three regions located in producing fields in Arkansas, Louisiana, Oklahoma and Texas.
Other Operations
The Company�� other operations business segment includes office buildings and other real estate. It is used in its business operations and other corporate operations that support all of its business operations.
Advisors' Opinion:- [By Garrett Cook]
Utilities shares gained around 0.83 percent in today’s trading. Meanwhile, top gainers in the sector included Consolidated Water Co (NASDAQ: CWCO), up 4.3 percent, CenterPoint Energy (NYSE: CNP), up 2.1 percent.
- [By Robert Rapier]
Last month in Play Ball: More IPOs on Deck, I mentioned that the next master limited partnership to IPO could be Enable Midstream Partners (NYSE: ENBL). Enable Midstream was formed in May 2013 as a joint venture by affiliates of CenterPoint Energy (NYSE: CNP), OGE Energy (NYSE: OGE) and ArcLight Capital Partners.
- [By Garrett Cook]
Utilities shares gained around 0.83 percent in today’s trading. Meanwhile, top gainers in the sector included Consolidated Water Co (NASDAQ: CWCO), up 4.5 percent, CenterPoint Energy (NYSE: CNP), up 2.4 percent.
Top 10 High Dividend Companies To Own For 2014: EMS Seven Seas ASA (EMS)
EMS Seven Seas ASA, formerly known as Eitzen Maritime Services ASA, is a Norway-based company active in the shipping industry. It is operational through two divisions: Ship Management and Ship Supply, servicing clients within the military, merchant, fisheries, offshore and cruise market segments. The Ship Management (and Insurance) unit provides technical management, crewing, newbuilding and project consultancy services, ship agency services and marine insurance brokering. It has its main operations in the Baltic, Russia, India and Singapore. Ship Supply provides provisions, duty free products, stores, spares and marine products and equipment to the merchant marine, offshore, fishing fleet, military and cruise market. This segment operates in Norway, Germany, the Netherlands, Spain, the United Arab Emirates (UAE), Djibouti and Singapore. Eitzen Maritime Services ASA is active internationally through its subsidiaries. Advisors' Opinion:- [By victorselva]
In a macro view, revenues in the electronic equipment and instrument sub-industry will remain strong due to the rise in equipment and instrument manufacturers. Distributors, electronic manufacturing service (EMS) companies and original equipment manufacturers (OEM) are going to increase orders as the economy improves in the future. With this promising outlook, let's take a look at Gabelli麓s last trade and try to explain to investors the reasons of this appealing investment opportunity.
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