One of the standard ways professional investors judge the attractiveness of a stock is by analyzing its “valuation.” That can take many forms, but the most common way is the Price to Earnings (P/E) Ratio, which simply divides the stock’s current price by its Earnings Per Share during a past time period or estimated for a future period. Analysts then compare a stock’s P/E Ratio to other stocks in its peer group, the stock market in general, or the stock’s own history. However, when analyzing and investing in stocks with a primary objective of earning a significant portion of your return from dividends (as opposed to price gains), standard valuation measures may be less helpful.
That’s why several years ago, we started using the YARP approach to equity valuation. It has become a significant input to my dividend stock investment process, and I will introduce it to you now. The end-goal is to determine whether a stock’s yield today is at a good value versus its own history. This is similar to comparing other valuation measures versus the stock’s historical levels. Or is it?
Best Dividend Stocks To Buy Right Now: S&P Smallcap 600(PH)
- [By Charles Mizrahi, President and CEO, Hampton Investors, Inc.]
Parker Hannifin (PH) generates strong revenue from its aerospace division, while its primary industrial segment is lagging.
Overall, we like the company’s balanced portfolio. PH had solid order rates this past year with backlog of $3.6 billion between its industrial and aerospace segments.
Best Dividend Stocks To Buy Right Now: Cummins Inc.(CMI)
- [By Chris Lange]
The S&P 500 stock posting the largest daily percentage loss ahead of the close Friday was Cummins Inc. (NYSE: CMI) which traded down about 5% at $159.44. The stocks 52-week range is $134.06 to $181.79. Volume was over 3.5 million versus the daily average of 1.2 million shares.
- [By Shane Hupp]
Cummins (NYSE:CMI) had its price objective cut by Credit Suisse Group from $205.00 to $175.00 in a research note released on Wednesday. They currently have an outperform rating on the stock.
- [By Reuben Gregg Brewer]
Ever walk past a construction site? It’s hard not to be enthralled by all the heavy construction machinery moving things around. With the world’s developing economies still building at a relatively fast pace and developing economies, like the United States, in desperate need of upgrading their aging infrastructure, the companies behind that construction machinery could be just as exciting as a construction site in the years ahead. Which is why Caterpillar Inc. (NYSE:CAT), Cummins Inc. (NYSE:CMI), and Terex Corporation (NYSE:TEX) are three of the top construction machinery stocks to look at right now.
Best Dividend Stocks To Buy Right Now: Nucor Corporation(NUE)
- [By Jon C. Ogg]
Then there are the steel plays. United States Steel Corp. (NYSE: X) was up 7.4% at $27.61 late on Monday. It has a market cap of $4.5 billion. Over the past five trading days the stock has gained 30%. Nucor Corp. (NYSE: NUE) was last seen up 1% at $59.34. Nucor has a total market cap of $18.8 billion. Over the past fivetrading days the stock has gained 17%.
- [By Merrick Weingarten]
Steel stocks were up big on Tuesday ahead of the Department of Commerce hearing on the Section 232 probe. The DoC is set to come out with more details regarding the impact steel imports has on U.S. national security.
United States Steel Corporation (NYSE: X): Up 5.27 percent. AK Steel Holding Corporation (NYSE: AKS): Up 9.55 percent. Nucor Corporation (NYSE: NUE): Up 3.54 percent. Steel Dynamics, Inc. (NASDAQ: STLD): Up 4.08 percent. Worthington Industries, Inc. (NYSE: WOR): Up 3.29 percent.
A Jefferies research analyst suggested a high probability of the DoC institutes more incremental trade defense measures but noted most of the investigation remains unknown going into Wednesday.
- [By Lee Jackson]
This top steel company could do very well if the economy sees a solid pickup this year and the administration’s infrastructure push remainsin place. Nucor Corp. (NYSE: NUE) and its affiliates are manufacturers of steel products, with operating facilities primarily in the United States and Canada. The company alsois North America’s largest recycler.
- [By ]
Cramer and the AAP team note that seven of the companies in their portfolio are reporting this week, including Abbott Laboratories (ABT) , Nucor (NUE) and Honeywell (HON) . Find out what they’re telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
- [By Jason Hall, Brian Stoffel, and Brian Feroldi]
With that idea in mind, we asked three of our top contributors to write about a stock they see as being a bargain today, and they gave us mortgage industry software lynchpinEllie Mae Inc(NYSE:ELLI), real estate holding companyStore Capital Corp(NYSE:STOR), and steelmaker extraordinaireNucor Corporation(NYSE:NUE).
Best Dividend Stocks To Buy Right Now: ONEOK Inc.(OKE)
- [By Lee Jackson]
The volatile price of natural gas over the past year has weighed some on this top energy stock. ONEOK Inc. (NYSE: OKE) primarily engages in natural gas transportation, storage and natural gas and NGLs gathering, processing and fractionation in the Bakken, Mid-Continent and Permian. The company recently closed the roll-up of its underlying master limited partnership, ONEOK Partners.
- [By Garrett Cook]
Citi maintains Buy ratings on Targa Resources (NYSE: TRGP), ONEOK (NYSE: OKE) and Oneok Partners (NYSE: OKS) citing the companies stories around natural gas liquids (NGLs).
- [By Reuben Gregg Brewer]
Investing in retirement requires a different focus, usually one that includes a prominent place for dividend income. If dividend-paying stocks are what you’re looking for, then you should take a closer look at high-yielding Duke Energy Corporation (NYSE:DUK), ONEOK, Inc. (NYSE:OKE), and W.P. Carey Inc. (NYSE:WPC). They offer dividend yields of 4%, 5%, and 6%, respectively… income that could materially increase your retirement “paycheck” and help to supplement Social Security.
- [By Matthew DiLallo]
Energy infrastructure companies ONEOK (NYSE:OKE) and TransCanada (NYSE:TRP) are both emerging from the energy market downturn as stronger entities. Each made smart acquisitions, with TransCanada buying U.S. gas pipeline company Columbia Pipeline Group, while ONEOK is in the process of gobbling up its MLP,ONEOK Partners (NYSE:OKS). While these deals enhanced the growth profiles of both companies, TransCanada still stands out as the better buy for long-term income investors. Here’s why.
Best Dividend Stocks To Buy Right Now: Littelfuse Inc.(LFUS)
- [By Ethan Ryder]
Littelfuse (NASDAQ:LFUS) was upgraded by stock analysts at ValuEngine from a “hold” rating to a “buy” rating in a report issued on Thursday.
- [By Stephan Byrd]
Littelfuse (NASDAQ: LFUS) and ABB Group (NYSE:ABB) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.