Friday, January 28, 2011

Friday Night Round Table

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Greetings everyone!  Today marks the end of the last official week of January and I wanted to share my thoughts on currently "big" companies that are undervalued or the stock price has taken a large hit recently, thus offering a higher yield than usual.  To begin my brief discussion we will start with:

Johnson and Johnson (JNJ): A dividend Aristocrat, their stock has dropped around $3 due to recalls on products, lawsuits being filed as well as a decrease in revenue and profits, year over year.  However, from a company standpoint - keeping your investors happy is what they need to do in this situation, thus their dividend, in my opinion, still stands strong and they have excess cash in storage.  Their price at $60.01, brings their yield to 3.60%; which based on my analysis 4 weeks ago, they had a yield of 3.49%.  Thus, it is an even more attractive investment for new/current shareholders.

Intel (INTC): Even after their stock price surged close to $22 after they announced their stock buyback plan and dividend increase, they had a pullback today, thus finishing off at $21.46 per share with a current yield of 3.37%.  With my previous article about INTC, their yield was 2.99%, thus it is much higher.

WWE (WWE): You read it.  The World Wrestling Entertainment has taken a beating due to disappointing earnings guidance.  However, with a dividend yield of 12.03% and the Royal Rumble coming and Wrestlemania, my brothers (die hard fans) say that this should help the company's revenue and that the loyal fan base is still there.  It will be interesting to see what will happen.  They are priced at $11.97, which is around $2 - $2.50 less than what it has normally traded at over the last 52 weeks or so.

AT&T (T): This is difficult.  Despite solid results, Verizon (VZ) and the Apple's (AAPL) iPhone seem to extremely threaten good old AT&T.  Their price has plummeted as well, finishing the week off at $27.49, pushing the yield to an astounding 6.26% (I analyzed them earlier when their yield was at 6.05%).  Does ATT last?  They are making now a bigger push for android phones, which is obvious due to the "non" exclusivity of the iPhone.  I know we are all about cell phone's and wireless coverage - but AT&T still has Cable, Internet, Land Line, U-Verse etc.  - question I have is - are these products of old age and are on a decline as well?  Being in the Dow 30, AT&T has to have something.

Lorillard (LO): They have dropped, in the last month, about $8 - roughly from mid $82 to $74.65, thus pumping the yield to 6.03% (According to google finance).  They are a cigarette company, and I know some people may be upset for me writing about them, but their yield is very strong.  I may do a further evaluation in the upcoming weeks on them.

Hudson City Bancorp (HCBK): They have dropped tremendously as well to $10.98 due to low mortgage interest rates and the uncertainty of these rate fluctuations in the future.  Their yield currently stands at 5.48%.

What do all of you think of these stocks?  Any other High dividend yielders that look attractive going into the weekend?

Disclosure: I do not hold nor recommend anything. This is actual data, analysis, however I base no investor recommendation. However, I personally would add/start a position on this firm, however my direction is different from anyone else's. Thank you for your understanding.

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