Dividend stocks to watch: It is happy that when an investor buys a stock which constantly rewards its shareholders, we call such a play dividend stock. Some dividend stocks are stable and safe while some are un-sustainable and wavy. Among the four dividend stocks below, some are eligible for a solid dividend while some may seem to be a little risky, so, let’s take a look at these cash returners and find out which may suggest a buying opportunity.
AGL Resources Inc. (GAS) rewards the investors at a dividend yield of 4.59% on the basis of the latest closing price of $40.09. The payout ratio of 108.00% seems to restrain future growth of the dividend amounts, but as a matter of fact, the company has grown its payout amounts for the ninth consecutive years. The average dividend growth rate over the past five years is 2.73%. The most recent dividend of $0.46 per share will come in on September 1, 2012 with the ex-date on August 15, 2012. The company has been paying dividends since 1954.
The energy services holding company’s most recent quarterly revenue increased 82.93% to $686 million from a year ago’s $375 million. Inventory as a percentage of current assets slipped to 29.2% from 33.94% in the same period of last year.
The current GAS stock price is 9.57% above its 52-week low of $36.59 and 8.24% off its 52-week high of $43.69. AGL Resources has a market cap of $4.71 billion and a P/E ratio of 23.09.
United Parcel Service, Inc. (UPS) returns cash to the shareholders at a dividend yield of 2.98% based on the latest closing price of $76.44. Payout ratio is 55.00%, implying large space for future hike of distributions. The company has lifted its payout amount for two years in a row. The average dividend growth rate over the past five years is 3.00%. The most recent dividend of $0.57 per share will be payable on September 5, 2012 with the ex-date on August 16, 2012. The package delivery company has been paying dividends since 1999.
The Atlanta-based shipping giant released Q2 2012 EPS of $1.15, up 5.5% from a year ago’s $1.09. Revenue was up 1.2% to $13.35 billion. The company lowered its guidance for full year earnings to $4.50 to $4.70 from the previously estimated $4.75 to $5.00 per share, given the weak global economies.
The current GAS stock price is 25.00% above its 52-week low of $61.12 and 6.54% off its 52-week high of $81.79. United Parcel Service has a market cap of $73.26 billion and a P/E ratio of 18.94.
Duke Energy Corp (DUK) pay distributions at a yield of 4.61% on the basis of the latest closing price of $66.44. The payout ratio of 89% is relatively high, limiting future growth in dividend amounts. The company paid an average annual yield of 5.20% over the past five years. The most recent dividend of $0.765 per share will be paid on September 17, 2012 with the ex-date on August 15, 2012. The energy company has been paying dividends since 1926.
The company reported earnings of $0.27 per share for Q2 2012, 71.88% lower than the consensus estimate of $0.96 while revenue was up 8% from a year ago. The company has been a leader in moving its production toward renewable energy fuel sources and has a competitive advantage in the form of a barrier to entry in the utility business that keeps its dominance intact
The current DUK stock price is 22.02% above its 52-week low of $54.45 and 6.59% off its 52-week high of $71.13. Duke Energy has a market cap of $46.78 billion and a P/E ratio of 19.76.
Koss Corporation (KOSS) yields at 4.68% with a payout ratio of 47%. The company paid an average dividend yield of 5.50% over the past five years. The most recent dividend of $0.06 per share was paid on July 16, 2012 with the ex-date on Jun 27, 2012. The home entertainment products manufacturer has been paying dividends since 2001.
The most recent financial results for Q1 2012 showed revenue down 2.20% compared to a year ago while earnings up 39.90% year-over-year.
The current KOSS stock price is 13.50% above its 52-week low of $4.52 and 23.55% off its 52-week high of $6.71. Koss has a market cap of $37.89 million and a P/E ratio of 9.98.