High Dividend Growth Stocks In 2015

by Robert Hauver
Looking for the sweet spot between dividend growth and dividend yield? We parsed the data from S&P 500 dividend stocks through April 30, 2015, to find out which dividend stocks have had strong dividend increases in 2015.
Sector-wise, Consumer Discretionary and Tech S&P 500 stocks had the best combination of overall performance and dividend increases. Even though Healthcare has been the leading sector for ages, it’s not known for having a lot of dividend paying stocks. In addition, this sector’s dividend increases haven’t kept pace with its rising share prices, which has also contributed to a lower overall dividend yield.
We found 3 prospects which had a good combination of dividend yield and dividend increases in 2015. Valero, (VLO), is listed as a Basic Materials stock, but, in addition to wholesaling its refined crude oil products, such as gasoline and ethanol, through bulk and rack marketing network, it also markets them through approximately 7,400 outlets under the Valero, Diamond Shamrock, Shamrock, Ultramar, Beacon, Texaco, and other names, so it reaps the benefit of cheaper crude oil feedstock prices, when it sells gasoline to consumers:
Although these aren’t necessarily high dividend stocks, they all have a dividend yield above the current S&P average yield of 2.03%:
Next Quarterly Dividend Dates:

Options: If you’re looking to ramp up your dividend income, all 3 stocks have fairly high option yields, ranging from 6.15% annualized for Ford, up to 12.81% annualized for VLO.
VLO’s September $62.50 call strike pays $2.36, nearly 6 times its $.40 quarterly dividend.
Our Covered Calls Table is now tracking these 3 call selling trades, and over 30 others.
Here are the main 3 scenarios for the Ford covered call trade, which has a $16 strike that’s $.80 above its price/share, and thus offers you price gain potential, as well as call option income:

Put Options: If you’re more conservative, and you want to wait for a lower entry price, selling cash secured puts offers you a way to potentially achieve a lower breakeven, via getting paid a put premium now, when you sell puts below the stock’s price/share.
These put option premiums offer you even higher income than the covered call options- they’re over 3 to 7 times the amount of these stocks’ next quarterly dividends.
You can find more info for these and over 30 other income-producing put-selling trades, in our free Cash Secured Puts Table.
Earnings Estimates: Although Ford has the lowest and most undervalued PEG value, (please see Valuations below), VLO wins the prize for increasing analyst estimates. 2015 average estimates have increased all the way from $5.62 90 days ago, to around $6.92 within the past 7 days. It’s also interesting to note how analysts have steadily underestimated VLO’s earnings over the past 4 quarters, which may imply that their estimates for this and next year may be too low:
Valuations: VLO AND IBM’S P/E’S are closer to the low end of their 5-year ranges, while Ford is at the high end of its 5-year range:
Financials: Other than IBM’s outsized ROE, (thanks to a huge share buyback program), VLO compares a lot more favorably to its industry averages in all of the following categories, including having much less debt.
Performance: VLO has handily outperformed the S&P 500 in all of the following categories, while IBM has outperformed over the past month and year-to-date. Ford has lagged in all these time perods.
Disclosure: Author was short VLO puts at time of publishing this article.
Disclaimer: This article is for informational purposes only, and isn’t intended as investment advice. Author is not responsible for errors or omissions.
Copyright 2015 DeMar Marketing All Rights Reserved

Stock Market Update: 5/23/15

Markets: 3 out of 4 indexes rallied this week, in the lightest volume since New Year Eve week, as the NASDAQ led the way, finishing just 3 points below its record high. The S&P closed within a very tight range of only 5 points this week, the narrowest range since November. Fed chief Yellen’s comments in a speech she made Friday, didn’t seem to impress Wall St. too much – she said that the Fed would most likely raise rates this year. More interesting, though, was her statement that the Fed Funds rate wouldn’t reach its historical average of approx. 3.5%, “for several years to come”. So, it appears that the Fed won’t be making any rapid, big hikes, but slow, gradual hikes, so that it doesn’t shock the economy, or kill the recovery.
Volatility fell to its lowest point since November, ending at 12.13 this week, vs. 12.38 last week.
Market Breadth: 14 DOW stocks rose, vs. 20 last week. 53% of S&P 500 stocks rose, vs. 60% last week.

US Economic News: US Housing Starts and Building Permits surged in April. Housing Starts hit their highest annualized rate since 2007. Unemployment Claims’ 4-week average hit its lowest point since April 2000. Core Consumer Price Index, CPI, barely budged in April, as inflation remains nowhere near the Fed’s 2% target.
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Our latest Seeking Alpha article: “This High Dividend Stock Raised Its Dividend By 21%, Is Selling At A Discount & Goes Ex-Dividend Soon

Our latest Dividend Stocks Blog article: “The 7 Best Dividend Stocks In 2015″ (You can read our latest blog articles by scrolling down this page)

Week Ahead Highlights: US markets will be closed Monday, for Memorial Day. The 2nd estimate for Q1 GDP comes out on Friday, the consensus is for -0.1%, but some forecasters think this figure may drop again. The New Home Sales data will be watched as a potential confirmation of this past week’s strong data for Housing Starts & Permits. With earnings season waning for most large companies, the market will probably be more data driven, in addition to being intent on any rumors of mergers and acquisitions.

Next Week’s US Economic Reports:
Sectors & Commodities:
Healthcare led this week, as Telecoms and Staples lagged:
Lumber Futures led this week, while Coffee lagged:

Stock Market Update: 5/16/15

The indexes eked out a small gain this week, with the S&P hitting a new intraday all-time high, of 2123.89, and an all-time closing high of 2,122.73. Tepid economic data served to dampen investors’ enthusiasm, as US markets continued to stay range-bound, as they have over the past 3 months.
Volatility fell 3.7% this week, ending at 12.38.

The US Dollar again fell vs. most major currencies, except the NZ dollar:
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Stock Market Update Bulletin – 5/9/15

Markets: 3 out of 4 Indexes were up this week, with the DOW leading, as markets bounced back on Friday, after a middle of the road April jobs report eased fears of a June Fed rate hike. Fed chief Yellen spooked markets earlier in the week, with a comment that she thought stocks and bonds were both overvalued.
Earnings beats trended downward over the past days-the peak for Earnings estimates beats came on 4/27, when 66.6% of companies that had reported between 4/8 and 4/27 had beaten EPS estimates. Following a huge batch of misses on 4/28, the beat rate fell to 64.8%, and by the end of this week, the beat rate dropped another 2.3 percentage points down to its current level of 60.3%. (Source: B.I.G.)
Volatility rose as high as 16.86, and fell back down to 12.86 to end the week, up just over 1% again for the week.
The US Dollar fell vs. most major currencies, except the NZ dollar:
Market Breadth: This week, 24 out of 30 DOW stocks rose, vs. 13 last week. 59% of the S&P 500 rose, vs. 40% last week.

US Economic News: Non-Farm Payrolls rose considerably in April, to 223K, but March’s 126K figure was revised downward, to 85K. Job gains occurred in professional and
business services, health care, and construction. Mining employment
continued to decline.
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Stock Market Update Bulletin – 5/2/15

Markets: The markets had a down week, on mixed earnings results, such as a disappointing Q1 GDP growth rate of just .2, vs. the 1% forecasted, but bounced back big on Friday, as bargain hunters bought beaten down Tech and Healthcare stocks.

Volatility had a bouncy ride, rising to 15.29 on Thursday’s down day, before falling to 12.70 to end the week, up just over 1% for the week.
The US Dollar fell vs. most major currencies in April, except for the Yen:
Market Breadth: This week, 13 out of 30 DOW stocks rose, vs. 21 last week. 40% of the S&P 500 rose, vs. 65% last week.
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Stock Market Update Bulletin – 4/25/15

The market gained solidly this week, with the NASDAQ and the S&P hitting all-time highs. The NASDAQ had its biggest weekly gain since October 2014, helped by better than expected earnings reports.

The US Dollar had a mixed week, and fell vs. major currencies, except for the Yen, Swiss Franc, and NZ $:
Better Market Breadth: This week, 21 out of 30 DOW stocks rose, vs. 6 last week. 69% of the S&P 500 rose, vs. 26% last week.

US Economic News:
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Stock Market Update Bulletin – 4/18/15

The market struggled this week, as worries about Greece, mixed earnings reports, and China’s crackdown on over the counter margin trading combined to send all 4 indexes down over -1% on Friday.
China also had weak exports – they fell 15%, vs. forecasts for a 12% gain.
The VIX rose over 10% on Friday, to finish at 13.89, up 10.41% for the week.

The US Dollar had a down week, and fell vs. major currencies:

Weak Market Breadth: This week, 6 out of 30 DOW stocks rose, vs. 27 last week. Only 26% of the S&P 500 rose, vs. 75% last week.

US Economic News:

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The 7 Best Dividend Stocks In 2015

by Robert Hauver
Are you wondering which dividend stocks outperformed in the first quarter of 2015? The past 6 months have been a roller coaster for many dividend stocks – thanks to the Crude Oil Crash, quite a few Energy-related stocks either trimmed or eliminated their dividends altogether.

The 7 top performers for Q1 2015 are a diverse group, ranging from publishing to business services, to apparel, to home furnishings, to Refining and Energy Services.
Interestingly, 2 of the top 3 performers in this group have a modest dividend yield of less than 2%, and a total of 4 out of 7 have low dividends:

PERFORMANCE: Other than Courier Corp., which is being bought out, the main catalyst for the outperformance of these stocks has been good earnings. (More about ALDW’s possible buyout below).

Dividends: We’ve been tracking the 2 highest yielding stocks within this group in the Energy section of our High Dividend Stocks By Sectors Tables- CSI Compressco, (CCLP), and Alon Partners LP, (ALDW).
Click here to read more…

Copyright 2015 DeMar Marketing. All Rights Reserved

2 Undervalued Small Cap High Dividend Stocks With Big Earnings Growth

by Robert Hauver

Looking for undervalued high dividend stocks with dependable dividend payouts? We’ve found 2 very different small cap stocks that fit the bill; one is a conglomerate, and the other is a Tech stock. They both have strong earnings growth, and they look undervalued on a PEG basis.
Small Caps have outperformed other groups so far in 2015:

Our High Dividend Stocks By Sectors Tables track both of these stocks. You can find CODI in the Financials section, and EVOL in the Tech section.
Click here to read more…

Copyright 2015 DeMar Marketing. All Rights Reserved

3 Top Performing High Dividend Stocks In 2015

by Robert Hauver
Looking for high dividend stocks with market support in 2015? As always, we are too, and we were surprised where we found them – in the Energy sector. It was just weeks ago that this sector took a massive beating, with some energy dividend stocks losing up to 50% of their market value, as the price of crude oil collapsed.
However, it’s a new year and a new day for many Energy stocks – the ever-fickle market has decided that oil isn’t going to $10 a barrel, and that, maybe, some of these companies will survive after all, since they have viable business models.
Our High Dividend Stocks By Sector Tables, has been tracking these 3 high yielding stocks since early 2014. All 3 of them are LP’s, which had relatively recent IPO’s:
(You can find brief profiles for all 3 stocks at the bottom of this article.)
Click here to read more…

Copyright 2015 DeMar Marketing All rights reserved.