High Beta Stocks List 2010
The oldest of America, pay dividends – Part 4
In parts 1-3 of this series we have identified the oldest title pay dividends to U.S., and outlines four of them – Agua York – (YORW), DuPont – (DD), Lorillard – (LO), and Valspar – (VAL). In the latter article presents two companies Additional worth considering: Colgate-Palmolive (CL), and John Wiley & Sons (Again, here the members of the Club Old Timer "
Lorillard – 1760 – Consumer Goods
BANK OF NY? 1784 – The Bank
CIGNA – 1792 – Insurance
WASHINGTON TRUST – 1800 – Community Bank
DUPONT – 1802 – Diversified industrial chemicals
Colgate-Palmolive – 1806 – Consumer Goods
Valspar – 1806 – Industrial
John Wiley & Sons – 1807 – Editorial
HARTFORD GROUP – 1810 – Insurance
CITIGROUP – 1812 – Bank
YORK WATER – 1816 – Utility
Colgate-Palmolive (CL) is a member of the prestigious S & P Dividend Aristocrats group, which has increased its dividend payments 47 consecutive years. (This group requires at least 25 consecutive years of dividend increases).
CL focuses on four areas: oral care, personal care, home care and nutrition for animals. He has seen strong growth in Latin America, which contributed 26% of sales for the 2009 March quarter. CL has a dominant market share toothpaste and manual toothbrushes, and has also seen their market shares in other categories such as: liquid cleaners, mouthwash, soaps, dish detergents.
The company recently completed a program of four years of restructuring that should help sustain growth in consistent gains.
In its consumer base – household products by peer groups, the CL is second in size to the giant Procter & Gamble (PG). Its dividend yield of 2.39%, makes the bottom end of the seven stocks that pay dividends in this group. Its dividend payout ratio is a conservative 41%.
Currently sells for $ 73.65, the meeting of just 8.5% below its 52 weeks of $ 80.49. In P & G, CL is often used as an action defense because it was a low beta of about 0.54. (If you look at the comparison of CL compared with the S & P 500 which are generally movements versa).
As has a half implied volatility (about 25), Credit Lyonnais options are not very juicy. For example, the sale of January 1, 2010 Call $ 75 (CLAO), paid $ 3.80, an additional 5.2% to just under 6 months.
By selling covered call options, also $ .88/share must receive dividends before maturity, which adds another 1.2% at 6 months of his statement.
Your goal here is if its possible third actions are assigned, you net an additional $ 1.35 – (strike price $ 75 less $ 73.65 your cost basis).
On the contrary, if they had fear of withdrawal, you might consider selling puts. The U.S. dollars 70.00 set in January 2010 (CLMN) is currently $ 3.20, which would give a gain of 66.80 dollars, which is just below the average price of this stock to 52 weeks.
John Wiley & Sons (JW / A) is a very old edition, which operates in three segments: scientific, technical, medical and scientific professionals / Business and higher education.
It has recently been downgraded JP Morgan, and has a dividend yield of 1.72% modest ($ .56/share).
Debt / Equity: 1.60%
Long-term debt / equity: 1.47%
Currently, the March 2010 $ 35.00 Call (KQWCG), is $ 2.10 an increase of 6.46% on JW / A current stock price $ 32.49. Want to collect an additional $ .28/share before maturity.
In addition, whether their actions have been assigned / sale, you should have a further $ 2.51/share ($ 35 strike price less $ 32.49 cost sharing), which is a potential gain 7.72% assigned.
Static Performance: 7.33% $ 2.38/share
Affected yield potential: 7.72% $ 2.51/share
The total return potential of 8 months: 15.05%
Although the performance of + 15% is quite tasty for a term of investment is only eight months, you should be well advised to dig further on why JP Morgan dismantling of the new Wiley.
This article is written for informational purposes only, and the author is not liable for any errors, acts or omissions of third parties as a result of reading this article.
About the Author
Robert Hauver publishes The Double Dividend Stock Alert. a monthly newsletter that features “high yield investing for low risk investors”. If you’re looking for “the place where high yield meets low risk”, visit: www.DoubleDividendStocks.com
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