Global fast food giant McDonald's (MCD) announced that it will increase its quarterly cash dividend 5% to $0.81 per share--an annual run-rate of $3.24 per share. This is in-line with our prediction that McDonald's next dividend increase would be 5% to $3.24 per annum. Interestingly, this will be the second consecutive year that McDonald's increased its dividend at a single-digit pace.
Why is the dividend growth so depressed?
McDonald's only grew revenue 2% year-over-year during its most recent quarter, while earnings per share were 5% higher than the year-ago period. McDonald's is relatively conservative in terms of capital allocation, so we aren't surprised the company has opted to increase its dividend just 5%. We think the firm wants the flexibility of making dividend payments without having to dip into the cash coffers or taking on additional capital. Truthfully, we'd be more disappointed if McDonald's decided to stretch itself to increase the payout than we are with the 5% growth rate.
Top 5 Energy Companies To Watch In Right Now: DIRECTV(DTV)
DIRECTV provides digital television entertainment in the United States and Latin America. The company provides direct-to-home (DTH) digital television services, as well as multi-channel video programming distribution services in the United States. It offers various channels of digital-quality video entertainment and CD-quality audio programming directly to subscribers' homes or businesses, as well as video-on-demand services; and approximately 160 national high-definition television channels and 4 3D channels. The company also provides premium professional and collegiate sports programming, such as the NFL SUNDAY TICKET package, which allows subscribers to view the NFL games. In addition, it offers DTH digital television services in Latin America and the Caribbean, including Puerto Rico. The company provides its local and international programming under the DIRECTV and SKY brand names. As of December 31, 2010, it served approximately 19.2 million subscribers in the United States; and 8.9 million subscribers in Latin America. The company was founded in 1990 and is based in El Segundo, California.
Advisors' Opinion:- [By Jake L'Ecuyer]
Top Headline
On Sunday, AT&T (NYSE: T) announced its plans to buy DirecTV (NASDAQ: DTV) for $48.5 billion, or $95 per share in a combination of stock and cash. The offer price of $95 per DirecTV share represents a 10 percent premium to closing price of $86.18 on Friday. The deal has a total value of $67.1 billion, including DirecTV's net debt.
10 Best US Stocks To Invest In 2014: Lowe's Companies Inc.(LOW)
Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. The company offers a range of products for maintenance, repair, remodeling, home decorating, and property maintenance. It provides home improvement products in the categories of appliances, lumber, paint, millwork, building materials, lawn and landscape products, flooring, rough plumbing, seasonal living, tools, hardware, fashion plumbing, lighting, nursery, outdoor power equipment, cabinets and countertops, home organization, rough electrical, and home fashion, as well as boards, panel products, irrigation pipes, vinyl sidings, and ladders. The company also offers installation services through independent contractors in various product categories. Lowe's Companies serves homeowners and renters primarily consisting of do-it-yourself customers and do-it-for-me customers; and commercial business customers, who work in the construction, rep air/remodel, commercial and residential property management, or business maintenance professions. As of August 15, 2011, it operated approximately 1,725 home improvement stores in the United States, Canada, and Mexico. The company also offers its products through electronic product catalogs and Lowes.com. Lowe's Companies, Inc. was founded in 1952 and is based in Mooresville, North Carolina.
Advisors' Opinion:- [By Dan Moskowitz]
It's a sad fact that a shareholder friendly company is hard to come by these days. Fortunately, one company that not only continues to deliver financial rewards also happens to almost always act in the best interests of its owners. That company? National home improvement retailer�Home Depot (NYSE: HD ) �. Not only is Home Depot extremely shareholder friendly, but it also appears to be even more so than arch-rival�Lowe's (NYSE: LOW ) which also happens to be among the best of breed when it comes to putting itself in its owners shoes.�
- [By Matt Thalman]
Over the past few years, investors looking to capitalize on the housing recovery poured into shares of homebuilder sticks from Hovnanian to Lennar, and into the two retailers that cater directly to the housing industry: Home Depot (NYSE: HD ) and Lowe's (NYSE: LOW ) . But the housing recovery continues to struggle to move into high gear, and investors are constantly being hit with housing reports indicating that sales are moving higher one month, but lower the next. This pattern has increased the importance of why market participants need to focus more of their attention on earnings and understand that it will take time, but eventually the housing market will once again be a strong aspect of the U.S. economy.
- [By Roland Head]
Investors will also be interested in April's existing-home sales report, which is due at 10 a.m. EDT. Consensus forecasts indicate that 5 million existing-home sales may have been agreed in April, up from 4.92 million in March. A number of major retailers are also due to update the markets today, which may provide further clues about the health of the economy. Earlier this morning, home improvement chain Lowe's (NYSE: LOW ) reported a 3% rise in first-quarter net income to $540 million, or $0.49 per share, but nevertheless missed analysts' consensus forecasts for $0.51 per share. Lowe's said sales fell by 1% during the quarter to $13.1 billion, and the firm's shares have fallen 3% in premarket trading.
10 Best US Stocks To Invest In 2014: Global X China Financials ETF (CHIX)
Global X China Financials ETF (the Fund) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S-BOX China Financials Index (the Underlying Index). The Underlying Index is a free float adjusted, liquidity tested and market capitalization-weighted index that is designed to measure performance of the investable universe of companies in the Financials sector of the Chinese economy, as defined by Structured Solutions AG. Global X Management Company, LLC serves as the investment adviser to the Fund. Advisors' Opinion:- [By pamatlarge]
Investors looking to short a particular sector can choose from several Global X long ETFs. The Global X China Consumer ETF (CHIQ) concentrates its investments in consumer cyclical goods and consumer defense goods. The Global X China Energy ETF (CHIE) primarily holds stocks in coal, oil and utility companies. The Global X China Financials ETF (CHIX) only invests in financial services companies and real estate companies. The Global X China Industrials ETF (CHII) holds stocks in industrial companies and basic materials companies. The Global X China Materials ETF (CHIM) invests in basic materials stocks. The Global X China Technology ETF (CHIB) holds technology stocks as the core of its investments. All of these ETFs are particularly sensitive to sector downturns and general economic contractions.
10 Best US Stocks To Invest In 2014: Dominion Diamond Corp (DDC)
Dominion Diamond Corporation, formerly Harry Winston Diamond Corporation, incorporated on March 26, 2013, is focused on the mining and marketing of rough diamonds to the global market. The Company supplies rough diamonds to the global market from production received from its 40% ownership interest in the Diavik Diamond Mine (the Diavik Diamond Mine) and its 80% interest in the Ekati Diamond Mine (the Ekati Diamond Mine). Both mineral properties are located at Lac de Gras in Canada�� Northwest Territories. On March 26, 2013, the Company completed the sale of its Harry Winston luxury brand business to the Swatch Group Ltd.
The Diavik Joint Venture (the Joint Venture) is an unincorporated joint arrangement between Diavik Diamond Mines Inc. (DDMI - 60%) and Dominion Diamond Diavik Limited Partnership (DDDLP - 40%), where DDDLP owns an undivided 40% interest in the assets, liabilities and expenses. DDMI is the operator (the Operator) of the Diavik Diamond Mine. During 2012, production at the Diavik Diamond Mine was approximately 7.2 million carats, consisting of approximately 4.3 million carats produced from 1.2 million tons of ore from the A-418 kimberlite pipe, 1.9 million carats produced from 0.4 million tons of ore from the A-154 South kimberlite pipe, and 0.9 million carats produced from 0.5 million tons of ore from the A-154 North kimberlite pipe. The Diavik Diamond Mine has three ore bodies: A-154 South, A-154 North, and A-418. An additional body of mineralization, A-21, is classified as resource.
The Ekati Diamond Mine consists of the Core Zone, which includes the operating mine and other permitted kimberlite pipes, as well as the Buffer Zone, an adjacent area hosting kimberlite pipes having both development and exploration potential. It encompasses 176 mining leases, totaling 173,024 hectares, and hosts 111 kimberlite occurrences including the Koala, Koala North, Fox, Misery, Pigeon, and Sable kimberlite pipes. The Buffer Zone is held 58.8% by the Company. It contains! 106 mining leases covering 89,151.6 hectares, and hosts 39 known kimberlite occurrences including the Jay and Lynx kimberlite pipes. As of December 31, 2012, production from the Diavik Diamond Mine has totaled 76.6 million carats of diamonds. As of December 31, 2012, production from the Ekati Diamond Mine has totaled approximately 53.54 million carats of diamonds.
Advisors' Opinion:- [By Michael Lewis]
Diamonds may be forever, but that truism doesn't always translate to the income statement. Dominion Diamond (NYSE: DDC ) , the Canadian mine owner that until recently owned and operated the ultra-luxurious Harry Winston brand, released its fourth-quarter and year-end results to an unimpressed Wall Street. The newly reorganized company is the largest Canadian diamond purveyor, and one of the leading precious-stone companies in the world. The question is: Is the company better now as a pure mining play, compared to its time as owner of, arguably, the most illustrious name in diamond retail? Let's take a look at earnings and valuation for more clues.
- [By Rich Smith]
Toronto-based diamond miner Dominion Diamond (NYSE: DDC ) -- the company formerly known as Harry Winston Diamond -- has completed its purchase of BHP Billiton's (NYSE: BHP ) stake in the Ekati Diamond Mine, "as well as the associated diamond sorting and sales facilities in Yellowknife, Canada, and Antwerp, Belgium," Dominion Diamond announced Wednesday.
10 Best US Stocks To Invest In 2014: P & F Industries Inc.(PFIN)
P&F Industries, Inc., through its subsidiaries, manufactures and sells tools and hardware products in the United States. The company operates in two segments, Tools and Other Products (Tools) and Hardware and Accessories (Hardware). The Tools segment manufactures, imports, and sells pneumatic hand tools, primarily for the industrial, retail, and automotive markets. Its product line includes sanders, grinders, drills, saws, impact wrenches, and pavement breakers; compressor air filters; and pipe and bolt dies, pipe taps, wrenches, vises and stands, pipe and tubing cutting equipment, hydrostatic test pumps, and replacement electrical components for pipe cutting and threading machines. This segment sells its products under the Florida Pneumatic, Universal Tool, ATP, Thaxton, THOR, and Eureka brand names to distributors, retailers, and private label customers through in-house sales personnel and manufacturers' representatives. The Hardware segment manufactures and imports door , window, and fencing hardware, including rollers, hinges, window operators, sash locks, custom zinc castings, and door closers. This segment also manufactures and imports interior wood and iron stair components, and related accessories, as well as kitchen and bath hardware; and manufactures stair products and distributes staircase components. Its products are sold through in-house sales personnel and manufacturers? representatives to distributors, retailers, and OEM customers. The company was founded in 1959 and is based in Melville, New York.
Advisors' Opinion:- [By Monica Gerson]
P&F Industries (NASDAQ: PFIN) is expected to report its quarterly results.
INSYS Therapeutics (NASDAQ: INSY) is projected to report its Q1 earnings at $0.28 per share on revenue of $45.63 million.
10 Best US Stocks To Invest In 2014: Komatsu Ltd (KMTUY)
Komatsu Ltd. (Komatsu), incorporated in May 13, 1921, is a global company engaged in the manufacturing, development, marketing and sale of a range of industrial-use products and services. The manufacturing operations of Komatsu are conducted primarily at plants located in Japan, the United States, Brazil, the United Kingdom, Germany, Sweden, Italy, Indonesia, China, Thailand and India. Komatsu�� products are primarily sold under the Komatsu brand name and almost all of its sales and service activities are conducted through its sales subsidiaries and independent distributors who primarily sell products to retail dealers in their respective geographic area. Komatsu operates and competes in the six principal markets, such as Japan, the United States, Europe and Commonwealth of Independent States (CIS), China, Asia (excluding Japan and China) and Oceania and the Middle East and Africa. In May, 2009, Komatsu acquired the additional interest in Komatsu Australia Corporate Finance Pty. Ltd.
Construction, Mining and Utility Equipment
The Company offers various types of construction, mining and utility equipment, ranging from super-large machines capable of mining applications to general construction equipment and mini construction equipment for urban use. Komatsu�� range of products in this operating segment also includes a variety of attachments to be used with its products. Komatsu�� principal products include excavating equipment, loading equipment, grading and roadbed preparation equipment, hauling equipment, forestry equipment, tunneling machines, recycling equipment, industrial vehicles, other equipment, engines and components, casting products and logistics.
Industrial Machinery and Others
The Company�� Industrial Machinery and Others segment products are used by a range of businesses and include industrial machinery, such as forging and sheet metal machinery and other services. Komatsu�� principal products include metal forging and stampi! ng presses, sheet metal machines, machine tools, defense systems, temperature-control equipment and others.
The Company competes with Caterpillar Inc., Hitachi Construction Machinery Co., Ltd., Volvo Construction Equipment NV, CNH Global N.V., Hyundai Heavy Industries Co., Ltd., Doosan Infracore Co., Ltd. and Toyota Motor Corporation.
Advisors' Opinion:- [By Nicole Seghetti]
Dumped
Japanese industrial manufacturer Komatsu (NASDAQOTH: KMTUY ) recently picked up market share in China by outcompeting rival Caterpillar on price. But Fisher probably dumped Komatsu stock based partly on the company's shrinking profits resulting from falling demand in Asian nations such as China and Indonesia�. - [By Dan Carroll]
Chinese manufacturing and materials stocks may not be the only picks in trouble, however. Leading international manufacturers could see demand in the world's second-largest economy, cutting into lofty growth expectations that relied upon China's surge to make up for weakness elsewhere around the globe. Japanese industrial power Komatsu (NASDAQOTH: KMTUY ) , the second-largest industrial machinery manufacturer in the world, is betting on�growing Chinese demand this fiscal year, in combination with the weak yen, to fuel growth.
10 Best US Stocks To Invest In 2014: Student Transportation Inc (STB)
Student Transportation Inc. (STI) is a provider of school bus transportation services in North America, conducting operations through wholly owned operating subsidiaries. The Company operates in two segments: a transportation segment and an oil and gas segment. The transportation segment provides school bus and management services to public and private schools in North America. The oil and gas segment represents its investments as a non-operator in oil and gas interests. During the fiscal year ended June 30, 2012 (fiscal 2012), it acquired certain assets of Schumacher Bus Lines; certain assets and contracts of S&K Transportation Inc.; A&B Bus, Co.; School Transportation Services, LLC.; Dairyland Bus, Inc., Dairyland-Hamilton, Inc., Lakeland Area Bus Service, Inc. and Lakeside Buses of Wisconsin, Inc., and certain assets and contracts of Safe Start Transportation of New Jersey, LLC. On May 24, 2012, the Company acquired certain assets and contracts of National Express Corporation. Advisors' Opinion:- [By Charles Sizemore]
Finally, for an off-the-wall pick, consider picking up shares of Student Transportation (STB), North America�� third-largest operator of school buses.� Student Transportation doesn’t just operate more than 10,000 school buses and transport more than a million students daily across the United States and Canada. It’s a monthly dividend stock with a solid yield.
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