Wednesday, October 8, 2014

5 Best Dividend Stocks To Own Right Now

Before Tuesday’s opening bell, a number of big name dividend stocks were the subject of analyst moves. Below, we highlight the important analyst commentary for investors.

Keybanc Upgrades Heico

HEICO Corp (HEI) was upgraded to “Buy” from “Hold” at Keybanc due to accelerated growth in the commercial aerospace aftermarket. Keybanc has a price target of $68 on Heico, suggesting the HEI’s stock will rise by 24%. HEI has a dividend yield of 0.22%.

JP Morgan Downgrades Kansas City Southern

Kansas City Southern (KSU) was downgraded to “Neutral” from “Overweight” at JP Morgan, JPM sees KSU facing regulatory risk in Mexico. KSU has a dividend yield of 1.17%.

5 Best Building Product Stocks To Own Right Now: Altria Group(MO)

Altria Group, Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes, smokeless products, and wine in the United States and internationally. It offers cigarettes under the Marlboro, Virginia Slims, Parliament, Benson & Hedges, Basic, and L&M brands; smokeless tobacco products under the Copenhagen, Skoal, Red Seal, Husky brands, and Marlboro snus brands; and machine-made large cigars and pipe tobacco. The company also produces and sells blended table wines under the Chateau Ste Michelle and Columbia Crest names; and distributes Antinori and Villa Maria Estate wines and Champagne Nicolas Feuillatte in the United States. In addition, it maintains a portfolio of leveraged and direct finance leases in rail and surface transport, aircraft, electric power, real estate, and manufacturing. The company sells its tobacco products to wholesalers, including distributors; large retail organizations, such as chain stores; and the armed services. Altria Group, Inc. markets its wine products to restaurants, wholesale clubs, supermarkets, wine shops, and mass merchandisers. The company was founded in 1919 and is headquartered in Richmond, Virginia.

Advisors' Opinion:
  • [By Melvin Backman]

    Reynolds American (RAI) fell 2.6% in early trading, and Lorillard (LO), which Reynolds agreed to buy last week, is down 2%. Philip Morris (PM) shares fell nearly 1%, and Altria Group (MO) was down about 1.5%.

  • [By Dan Caplinger]

    A new cigarette tax
    The Obama budget would hike federal taxes on cigarettes by $0.94 per pack. Altria (NYSE: MO  ) and other cigarette manufacturers would inevitably get hurt by such an increase, as it would add yet another impediment to cigarette demand that has already been falling sharply for decades.

  • [By Albert Alfonso]

    In terms of creating value for its shareholders, Altria (MO) has to be near the top of the list. Unlike some of its other domestic tobacco peers, Altria does offer some diversification, due to its large stake in SABMiller and other alcohol related holdings. Altria currently offers a $0.44 per share quarterly dividend. At current prices, Altria yields slightly under 5%.

  • [By Vinay Singh]

    According to Euromonitor, 4% of the global smoking market will have switched over to e-cigarettes by 2050. Bloomberg projects e-cigarette to surpass traditional cigarette sales by 2047. By some estimates, e-cigarettes are already projected to become a $1.7 billion industry in the U.S. by the end of this year. This is why tobacco companies depend on e-cigarettes now. Altria Group (MO), Reynolds American, and Lorillard (LO) have started selling e-cigarettes in order to make up for declining sales of cigarettes as awareness about the dangers of tobacco spreads. Let's take a look at the moves they have been making.

5 Best Dividend Stocks To Own Right Now: Lorillard Inc(LO)

Lorillard, Inc., through its subsidiaries, engages in the manufacture and sale of cigarettes in the United States. The company offers 43 different product offerings under the Newport, Kent, True, Maverick, and Old Gold brand names. Lorillard, Inc. sells its products primarily to wholesale distributors, who in turn service retail outlets, chain store organizations, and government agencies, including the United States? Armed Forces. The company was founded in 1760 and is headquartered in Greensboro, North Carolina.

Advisors' Opinion:
  • [By Rupert Hargreaves]

    E-cigs, widely considered to be the "next big thing" in the world of big tobacco with sales eventually outpacing those of traditional cigarettes, are running into trouble. With�big tobacco companies like Altria (NYSE: MO  ) , Reynolds American (NYSE: RAI  ) , and Lorillard (NYSE: LO  ) falling over themselves to get in on the action, regulators have started to take notice.

  • [By Laura Brodbeck]

    Stocks moving in the Premarket included:

    Walt Disney Co (NYSE: DIS) gained 0.79 percent in premarket trade after falling 2.60 percent last week. Lorillard Inc�(NYSE: LO) was up 0.75 percent in premarket trade after gaining 1.67 percent on Friday. Carnival Corp�(NYSE: CCL) rose 0.73 percent in premarket trade after choppy trading took the stock down 2.73 percent over the past five days. JP Morgan Chase and Co�(NYSE: JPM) was down 0.09 percent in premarket trade after losing 4.38 percent last week. Earnings

    Notable earnings releases expected on Monday include:

  • [By Garrett Cook]

    Shares of Lorillard (NYSE: LO) got a boost, shooting up 4.42 percent to $65.88. Lorillard confirmed that Lorillard and Reynolds American (NYSE: RAI) are engaged in discussions regarding RAI's potential acquisition of Lorillard. Cowen & Company initiated coverage on Lorillard with a Underperform rating.

  • [By Rich Duprey]

    The FDA originally sought to prevent their importation but lost several court cases and now says so long as they're not marketed as therapeutic, they're�legal.�Lorillard� (NYSE: LO  ) �has�become a big e-cig manufacturer, with more than $39 million in sales and enjoying a 30% share of the market. Goldman Sachs estimates it will be a $1 billion in industry sales in a few years, which may prove too lucrative an option for Altria (NYSE: MO  ) , the biggest tobacco company and one still on the e-cig sidelines. Reynolds American (NYSE: RAI  ) plans to play all sides, as it will soon introduce both e-cigs and NRT gum.

5 Best Dividend Stocks To Own Right Now: Waste Management Inc.(WM)

Waste Management, Inc., through its subsidiaries, provides waste management services to residential, commercial, industrial, and municipal customers in North America. It offers collection, transfer, recycling, and disposal services. The company also owns, develops, and operates waste-to-energy and landfill gas-to-energy facilities in the United States. Its collection services involves in picking up and transporting waste and recyclable materials from where it was generated to a transfer station, material recovery facility, or disposal site; and recycling operations include collection and materials processing, plastics materials recycling, and commodities recycling. In addition, it provides recycling brokerage, which includes managing the marketing of recyclable materials for third parties; and electronic recycling services, such as collection, sorting, and disassembling of discarded computers, communications equipment, and other electronic equipment. Further, the company e ngages in renting and servicing portable restroom facilities to municipalities and commercial customers under the Port-o-Let name; and involves in landfill gas-to-energy operations comprising recovering and processing the methane gas produced naturally by landfills into a renewable energy source, as well as provides street and parking lot sweeping services. Additionally, it offers portable self-storage, fluorescent lamp recycling, and medical waste services for healthcare facilities, pharmacies, and individuals, as well as provides services on behalf of third parties to construct waste facilities. The company was formerly known as USA Waste Services, Inc. and changed its name to Waste Management, Inc. in 1998. Waste Management, Inc. was incorporated in 1987 and is based in Houston, Texas.

Advisors' Opinion:
  • [By Chris Hill]

    Waste Management (NYSE: WM  ) reported a slight decline in first-quarter profits but revenues increased. Shares of the trash giant hit their highest point since 1999. In this installment of Motley Fool Money, our analysts talk about the future of Waste Management.

5 Best Dividend Stocks To Own Right Now: Cummins Inc.(CMI)

Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, electric power generation systems, and engine-related component products worldwide. It operates in four segments: Engine, Power Generation, Components, and Distribution. The Engine segment offers a range of diesel and natural gas powered engines under the Cummins and other customer brand names for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, agricultural, construction, mining, marine, oil and gas, rail, and governmental equipment markets. This segment also provides new parts and service, as well as remanufactured parts and engines. The Power Generation segment offers power generation systems, components, and services, including diesel, natural gas, gasoline, and alternative-fuel electrical generator sets for use in recreational vehicles, commercial vehicles, recreational marine applications, and home stand-by or residential applications. This segment also provides components that make up power generation systems, such as engines, controls, alternators, transfer switches, and switchgears. The Components segment supplies filtration products, turbochargers, aftertreatment systems, intake and exhaust systems, and fuel systems for commercial diesel applications. This segment offers filtration and exhaust systems for on-and off-highway heavy-duty and mid-range equipment, as well as supplies filtration products for industrial and passenger car applications. This segment also develops after treatment and exhaust systems to help customers meet emissions standards and fuel systems. The Distribution segment provides parts and services, as well as service solutions, including maintenance contracts, engineering services, and integrated products. The company sells its products to original equipment manufacturers, distributors, and other customers. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana.

Advisors' Opinion:
  • [By Ben Levisohn]

    Shares of Navistar have dropped 4.1% to $31.89 at 2:02 p.m. today, while Oshkosh (OSK) has fallen 0.2% to $57.76 and Cummins (CMI) has gained 1.2% to $144.13.

  • [By Michael Flannelly]

    Early on Wednesday, analysts at both UBS and BMO Capital raised their price targets and earnings estimates on diesel engines manufacturer Cummins Inc. (CMI).

    The analysts at UBS raised the numbers on CMI to reflect better growth from market positions and new products. As such, they now see shares of CMI reaching $146, which suggests a 10.6% upside to the stock’s Tuesday closing price of $131.96.

    At BMO Capital, the analysts raised CMI’s earnings estimates through 2015 as distribution acquisitions should add to earnings. Furthermore, the analysts rate CMI as “Outperform” and see shares reaching $146 as well.

    Cummins shares were down 20 cents, or 0.15%, during pre-market trading on Wednesday. The stock is up 21.79% year-to-date.

  • [By Jayson Derrick]

    Analysts at Credit Suisse maintained an Outperform rating on Cummins (NYSE: CMI) with a price target raised to $167 from a previous $161. Shares lost 1.14 percent, closing at $143.70.

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