FOX Translator
No data currently available.
No data currently available.
You know that buying a stock makes you part owner of a company, theoretically with millions of other people. But, while ownership has its privileges (at minimum you get a neat stock certificate and an invitation to the annual meeting), being an owner doesn't necessarily pay. Sure, you make money if the stock goes up, but only if you sell, and you can, in theory, lose all the value of your investment if the stock tanks.
Enter the dividend. Here, you get money simply from holding the stock. Companies pay a yield, which is expressed in a percentage based on the stock's price. For example, if a stock trades at $10, and pays a 10% annual yield, your dividend payment would be a $1. (Usually, companies break out the payments quarterly, so, using our example, you¿d get, well, a quarter each quarter.)
Companies that pay dividends fall into a few categories. First, you've got your big, stable companies that generate enough cash that it makes sense to throw some back to shareholders. Next, there are businesses, like real estate investment trusts, that are in the business of sitting back and receiving cash, then distributing it to holders. And, then there are companies that need to dangle a high dividend yield like a carrot to ease investor fears. Cigarette-maker Altria has been doing this for years.
Simply because a company pays a dividend doesn't make it a good investment. After all, you may want to take a chance on a growth stock that can move higher in price than dividend payers are known to do. But, you can¿t beat the safety of knowing that, even if a stock doesn't move in a year, you¿re at least making something off your investment.
Home / Markets / Industries / Energy
Thursday, July 17, 2008
Zacks Analyst Blog Highlights: Diamond Offshore, Transocean, National Oilwell Varco, Baker Hughes and AGCO
Comtex
CHICAGO, Jul 17, 2008 (BUSINESS WIRE) ----Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Diamond Offshore (NYSE: DO), Transocean (NYSE: RIG), National Oilwell Varco (NYSE: NOV), Baker Hughes (NYSE: BHI) and AGCO Corp. (NYSE: AG).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Wednesday's Analyst Blog:
Inflation: That 70's Show
While the sharp drop in Energy prices over the last two days might provide some hope of inflation leveling off in the future, it smells to me to be just another short-term correction in the price of oil, not the start of a sustained downtrend. For the most part, the world economy has held up pretty well so far, and with it demand for oil.
The supply response to higher oil prices has been so slow that it is clear that there are major long-term problems in raising supply to meet growing demand, and the only way to get the market to clear is for the price of oil to rise far enough to choke demand down. The oil we do find is harder to drill, which requires more oil service intensity and more expensive rigs to drill.
The price of oil has risen relative to just about everything else. While the Energy stocks have far out-performed the market, they are not up anywhere near as much as the price of oil or as much as their earnings have risen.
We have seen a bit of a pull-back in the names with this dip in oil prices. I would take advantage of it. My favorite way to play the rising cost of energy is through the offshore drillers and some of the oil service names. These would include Diamond Offshore (NYSE: DO), Transocean (NYSE: RIG), National Oilwell Varco (NYSE: NOV) and Baker Hughes (NYSE: BHI).
AGCO Trading at Rich Valuation
We expect AGCO Corp. (NYSE: AG) to report second quarter EPS of $0.90, up 34.3% y-o-y, amid continued strong profit growth in the South America and EAME regions. We expect North American operations to report a profit rebound in the second half of FY08 on the back of favorable currency translation and double-digit sales growth.
The global demand for biofuels and animal protein should result in record corn plantings and increased farm equipment purchases. We reiterate our Hold recommendation on shares of AG. Our target price is $51.00, which is about 14.9x our 2008 estimate of $3.42.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=2649.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE: Zacks.com
Zacks.com Mark Vickery Web Content Editor 312-265-9380 Visit: www.zacks.com
Copyright Business Wire 2008 ********************************************************************** As of Sunday, 07-13-2008 23:59, the latest Comtex SmarTrend� Alert, an automated pattern recognition system, indicated a DOWNTREND on 06-25-2008 for AG @ $51.31. As of Sunday, 07-13-2008 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition system, indicated a DOWNTREND on 07-07-2008 for BHI @ $83.89. As of Sunday, 07-13-2008 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition system, indicated a DOWNTREND on 07-07-2008 for DO @ $130.70. For more information on SmarTrend, contact your market data provider or go to www.mysmartrend.com SmarTrend is a registered trademark of Comtex News Network, Inc. Copyright � 2004-2008 Comtex News Network, Inc. All rights reserved.
Market Snapshot
| Symbol | Last Price | Netchange | Volume |
|---|---|---|---|
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
