6 Worthy Dividend Stocks Down 10% Or More

Amgen reported financial results on October 27th, [as follows]: 

  • Revenue totaled $5.8 billion, up a mere 2% from the Q3 of 2015. Epogen and Neupogen were the problem on the sales front for Amgen. Sales for the drugs cascaded 31% and 36%, respectively.
  • Earnings growth was more impressive as Amgen posted Q3 earnings per share of $2.68. This was an 8% increase over the $2.44 during the same year-ago period.
  • Their new drugs did much better offsetting the poor performance from Epogen and Neupogen. Revenue for Kyprolis was up 34% year over year while bone disease product Prolia advanced by 18%. 
  • Amgen’s stock price has dropped from a high of $175 to $145 due to the ongoing concern with Epogen and Neupogen but the stock currently trades at just over 11 times next year’s expected earnings.
  • Amgen announced a 27% increase in its dividend to $1.00 from the prior rate of $0.79 per share last December.
  • It offers a five year dividend growth rate of 18%.  
  • Its next dividend increase at the end of this year should easily be in the double-digit range.
  • It currently yields 2.75% and the next dividend will be paid to shareholders on December 8th...

Emerging Market Exposure & Steady Earnings; Colgate-Palmolive (CL)

Colgate-Palmolive is one [of the] world’s largest consumer product companies with exposure to large consumer product categories like shampoo, deodorants, oral care, and home products. The firm has a global reach with international sales at 75% of total revenue and operations in over 200 different countries.

  • With the strong dollar and a move by investors into more cyclically focused companies, Colgate-Palmolive’s stock price has dropped by over 10% in the past three months.  
    • We think the company offers excellent value at the discounted price.
    • 50% of its sales are now from faster growing emerging markets.
    • The firm’s emerging markets sales grew by nearly 8% last year.
    • It also has branched out into pet care with Hill’s, which helps growth and provides added diversification.  
    • Research and development accounts for over 10% of total sales per year and allows the firm to continually refine and produce new products. 

Colgate released financial results in late October [as follows]:

  • The company’s gross profit margin is improving, rising from 58.7% to 60.1% in the third quarter of 2016. 
  • Global sales declined 3.3% to $3,867 million during the quarter.
  • Although price rose 3%, it was more than offset by a 4% drop in overall sales and a near 3% impact from currency.
  • In April of this year, Colgate-Palmolive announced a regular quarterly dividend of $0.39, a 3% increase from the prior rate of $0.38 per share. It offers a 2.37% yield.
  • Its next dividend payment will be made to shareholders in February 2017.  
  • The firm has paid dividends for 52 consecutive years.

Although the stock trades at a premium valuation of 21 times forward earnings, the stock offers an attractive yield, exposure to emerging markets, and a very stable dividend stream.

Outstanding Dividend Growth & Diversified Operations; CVS (CVS)

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Chee Hin Teh 4 years ago Member's comment

Thanks for sharing sir and merry christmas in advance