This is just one of the questions about dividend investing I��e been hearing lately during my sales conversations. So, as it has been a more than a year since I last debunked misunderstandings about dividends, I��e gathered some of these dividend-related questions, and my answers, below .
Q: Amid the recent rise in bond yields, should investors flee all dividend stocks?
A: My colleague Russ Koesterich has long advocated ��even before rates��recent rise ��that investors should be selective when searching for dividends. While certain dividend-paying sectors (like global utilities) look crowded and expensive, he believes that there are still opportunities to be found in the US equity market such as mega caps and energy companies.
Best Sliver Companies To Watch For 2015: Olin Corp (OLN)
Olin Corporation, incorporated on August 13, 1892, is a manufacturer focused in three business segments: Chlor Alkali Products, Chemical Distribution and Winchester. Chlor Alkali Products manufactures and sells chlorine and caustic soda, hydrochloric acid, hydrogen, bleach products and potassium hydroxide. Chemical Distribution manufactures bleach products and distributes caustic soda, bleach products, potassium hydroxide and hydrochloric acid. Winchester products include sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges. On August 22, 2012, the Company acquired K. A. Steel Chemicals Inc. (KA Steel). KA Steel is a distributor of caustic soda in North America and manufactures and sells bleach in the Midwest.
The Company's subsidiary, Olin Canada ULC, operates one chlor alkali facility in Becancour, Quebec, which sells chlor alkali-related products within Canada and to the United States and also sells and distributes ammunition within Canada. The Company's subsidiary, Winchester Australia Limited, loads and packs sporting and industrial ammunition in Australia.
Chlor Alkali Products
The Company is engaged in the United States chlor alkali industry. Chlorine, caustic soda and hydrogen are co-produced commercially by the electrolysis of salt. These co-products are produced simultaneously, and in a fixed ratio of one ton of chlorine to 1.1 tons of caustic soda and 0.03 tons of hydrogen. The Company also manufactures and sells other chlor alkali-related products. These products include chemically processed salt, hydrochloric acid, sodium hypochlorite (bleach), hydrogen, and potassium hydroxide. The Company refers to these other chlor alkali-related products as co-products. During the year ended December 31, 2012, sales of co-products represented approximately 32% of Chlor Alkali Products' sales.
The Company's chlorine/caustic soda products are used in pulp and paper processing, chemical! manufacturing, water purification, manufacture of vinyl chloride, bleach, swimming pool chemicals and urethane chemicals. Its sodium hypochlorite are used in household cleaners, laundry bleaching, swimming pool sanitizers, semiconductors, water treatment, textiles, pulp and paper, and food processing. Its hydrochloric acid are used in steel, oil and gas, plastics, organic chemical synthesis, water and wastewater treatment, brine treatment, artificial sweeteners, pharmaceuticals, food processing, and ore and mineral processing. Its potassium hydroxide is used in fertilizer manufacturing, soaps, detergents and cleaners, battery manufacturing, food processing chemicals and deicers. Its hydrogen is used in fuel source, hydrogen peroxide and hydrochloric acid.
The Company competes with Dow Chemical Company and the Occidental Chemical Corporation.
Chemical Distribution
The Company's KA Steel comprises the Chemical Distribution segment. KA Steel is a distributor of caustic soda in North America and manufacturers and sells bleach in the Midwest. KA Steel also sells small quantities of potassium hydroxide and maintains infrastructure to be, a distributor of hydrochloric acid.
The Company competes with Univar Inc. and Brenntag AG.
Winchester
Winchester is a developer and manufacturer of small caliber ammunition for sale to domestic and international retailers (commercial customers), law enforcement agencies and domestic and international militaries. The Company's Winchester product line includes gauges and calibers of shotgun shells, rimfire and centerfire ammunition for pistols and rifles, reloading components and industrial cartridges. Its Winchester sporting ammunition, which include shot-shells, small caliber centerfire and rimfire ammunition, are used by hunters and recreational shooters, and law enforcement agencies. Its small caliber military ammunition are used in infantry and mounted weapons. Its industrial products, which i! nclude ei! ght gauge loads & powder-actuated tool loads, are used in maintenance applications in power and concrete industries and powder-actuated tools in construction industry.
The Company competes with Alliant Techsystems Inc. and Remington Arms Company, Inc.
Advisors' Opinion:- [By Dan Dzombak]
Olin (NYSE: OLN ) is a chemical company that also owns Winchester Ammunition. The company distributes its ammunition under the Super X, Supreme, Supreme Elite, AA, and Winlite brand names, among others. While the company trades at a P/E ratio of 13, Winchester only makes up 20% to 25% of the business, so you are mainly investing in a chemical company. If you are looking for a pure play on firearms, you are better off looking elsewhere.
- [By Steve Symington]
Meanwhile, Winchester ammunition manufacturer Olin (NYSE: OLN ) has benefited from a relentless upward trend in ammunition purchases, which it says began the Saturday before Election Day. As of the company's most recent quarterly results, Olin management bluntly stated that the demand has only been "limited by product availability."�
Best Sliver Companies To Watch For 2015: New Concept Energy Inc (GBR)
New Concept Energy, Inc. (New Concept), incorporated on May 30, 1991 in, owns and operates oil and gas wells in Ohio and West Virginia. The Company, through its wholly owned subsidiaries Mountaineer State Energy, Inc. and Mountaineer State Operations, LLC. operates oil and gas wells and mineral leases in Athens and Meigs Counties in Ohio and in Calhoun, Jackson and Roane Counties in West Virginia. As of March 30, 2012, the Company had 159 producing gas wells, 27 non-producing wells and related equipment and mineral leases covering approximately 20,000 acres. The Company operates in two primary business segments: oil and gas operations and retirement facilities.
During the year ended December 31, 2011, the Company had drilled eight wells. New Concept focuses on North American onshore oil and natural gas drilling and exploration. The Company's properties are concentrated in the Appalachian Basin, Fort Worth Basin, and the Arkoma Basin. The Company leases and operates Pacific Pointe Retirement Inn (Pacific Pointe) in King City, Oregon. Pacific Pointe has a capacity of 114 residents and provides community living with basic services, such as meals, housekeeping, laundry, 24/7 staffing, transportation and social and recreational activities.
Top Warren Buffett Companies To Watch In Right Now: Thomas Properties Group Inc.(TPGI)
Thomas Properties Group, Inc. owns, acquires, develops, leases, and manages primarily office, as well as mixed-use and residential properties in the United States. The company focuses on property acquisition and ownership, property development and redevelopment, and property management activities. Its office properties include onsite parking, retail, and storage space, as well as an off-site garage that provides parking services. In addition, the company advises institutional investors on property portfolios. It owns properties in southern California and Sacramento, California; Philadelphia, Pennsylvania; northern Virginia; and Houston and Austin, Texas. As of December 31, 2010, Thomas Properties Group, Inc. owned interests in 27 operating properties with 13.2 million rentable square feet, as well as provided asset and/or property management services on behalf of third parties for an additional 4 operating properties with 2.3 million rentable square feet. It also had a dev elopment pipeline of approximately 7.2 million square feet of primarily office development. The company was founded in 1996 and is headquartered in Los Angeles, California.
Best Sliver Companies To Watch For 2015: Nuveen Insured New York Select Tax-Free Income Portfolio(NXN)
Nuveen New York Select Tax-Free Income Portfolio is a closed-ended fixed income mutual fund launched by Nuveen Investments Inc. It is managed by Nuveen Asset Management. The fund invests in the fixed income markets of United States. It invests in the securities of companies that operate across diversified sectors. The fund primarily invests in municipal bonds with an average credit quality of Baa/BBB or better. It employs fundamental analysis to create its portfolio. The fund benchmarks the performance of its portfolio against Barclays Capital New York Municipal Bond Index and S&P New York Municipal Bond Index. Nuveen New York Select Tax-Free Income Portfolio was formed on June 19, 1992 and is domiciled in the United States.
Best Sliver Companies To Watch For 2015: Pan Global Resources Inc. (PGZ.V)
Pan Global Resources Inc. engages in the acquisition, exploration, and development of mineral properties. It holds an option to acquire 51% interest in 2 lithium/potash/borate mineral prospects, known as Jadar West and Valjevo, in the Republic of Serbia; and an additional 7 licenses in the process of application in the Republic of Serbia and the Republic of Bosnia. The company was formerly known as Mosam Capital Corp. and changed its name to Pan Global Resources Inc. in December 2009. Pan Global Resources Inc. was incorporated in 2006 and is based in Vancouver, Canada.
Best Sliver Companies To Watch For 2015: CTC Media Inc.(CTCM)
CTC Media, Inc., together with its subsidiaries, operates as an independent media company. It operates the CTC, Domashny, and Peretz television networks in Russia. The company also operates Channel 31, a television network in Kazakhstan, as well as a television channel in Moldova offering entertainment programming. In addition, it is involved in in-house production operations that focus on series, sitcoms, and shows. CTC Media, Inc. was founded in 1989 and is headquartered in Moscow, the Russian Federation.
Advisors' Opinion:- [By Halia Pavliva]
The Bloomberg Russia-US gauge slipped 0.4 percent to 104.16, paring its advance this month to 7.7 percent. CTC Media Inc. (CTCM), the Nasdaq-listed Russian television company, rallied 2.6 percent to $12.86, the highest level since April 25. The stock has climbed 22 percent this month, making it the best performer on the Bloomberg-Russia gauge. VimpelCom is the second-biggest gainer on the index this month, followed by OAO Rostelecom (ROSYY), which has increased 17 percent after two months of declines.
- [By Dan Burrows]
This small-cap media company operates three popular television networks in Russia, but that’s not all CTC Media (CTCM) has going for it. Billionaire owner Yury Kovalchuk is a longtime pal of President Vladimir Putin. That’s important in a country as, er, mercurial as Russia.
Best Sliver Companies To Watch For 2015: Cga Mining Limited Npv (CGA.TO)
CGA Mining Limited engages in the exploration, development, and production of mineral properties, primarily gold. Its principal property includes the Masbate gold mine, covering an area of approximately 8,316 hectares and is located near the northern tip of the island of Masbate in the Philippines. The company was formerly known as Central Asia Gold Limited and changed its name to CGA Mining Limited in November 2006. CGA Mining Limited was incorporated in 1985 and is headquartered in Perth, Australia.
Best Sliver Companies To Watch For 2015: Concrete Leveling Systems Inc (CLEV)
Concrete Leveling Systems, Inc. (CLS), incorporated on August 28, 2007, is an operating company that fabricates and markets a concrete leveling
service unit utilized in the concrete leveling industry. This unit secures to the back of a truck and consists of a mixing device to mix lime with water and a pumping device capable of pumping the mixture under pressure into pre-drilled holes in order to raise the level of any flat concrete surface.
As of July 31, 2012, there are other concrete leveling service units of a similar nature, currently being manufactured in the United States.
The Company manufactures for sale specialized equipment for use in the concrete leveling industry. The Company's product is sold primarily to end users. The Company recognizes its revenue when the product is shipped or picked up by the customer.
Best Sliver Companies To Watch For 2015: Systemax Inc.(SYX)
Systemax Inc. operates as a direct marketer of brand name and private label products. The company operates in two segments, Technology Products and Industrial Products. The Technology Products segment sells computers, computer supplies, and consumer electronics in North America and Europe. This segment offers individual technology products in categories, including computers; computer parts; television and video; audio; cameras and surveillance; car and GPS; cell phones; software; video games and toys; home and office; and other products. The Industrial Products segment sells various industrial products and supplies in North America. This segment provides products in categories, such as material handling; storage and shelving; workbench and shop desks; packaging and supplying; furniture and office; foodservice and appliances; janitorial and maintenance; tools and instruments; fasteners and hardware; motors and power transmission; HVAC/R and fans; electrical and bulbs; plumb ing supplies; and safety and medical items. The company offers its products through its relationship marketers, catalog mailings, and Internet Websites. It serves individual consumers; and business customers comprising for-profit businesses, educational organizations, and government entities. Its portfolio of catalogs comprises various brand names, such as TigerDirect.com, Global Computer Supplies, TigerDirect.ca, Misco, Global Industrial, Nexel, and Inmac WStore. As of December 31, 2011, the company operated 42 retail stores in North America; and 7 distribution centers in Europe. Systemax Inc. was founded in 1949 and is headquartered in Port Washington, New York.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Systemax (NYSE: SYX ) , whose recent revenue and earnings are plotted below.
Best Sliver Companies To Watch For 2015: Vantex Resources Ltd (VAX.V)
Vantex Resources Ltd, a junior mining exploration company, engages in the acquisition, exploration, production, and development of gold properties in Canada. It principal project include the Galloway gold project that comprises approximately 2488 hectares, 63 claims, and 3 mining concessions located in the Dasserat Township, Abitibi district of Quebec. The company was formerly known as Vantex Oil, Gas and Minerals Ltd and changed its name to Vantex Resources Ltd in February 2004. Vantex Resources Ltd was founded in 1987 and is based in La Prairie, Canada.
Best Sliver Companies To Watch For 2015: Cannon Point Resources Ltd (CNP.V)
Cannon Point Resources Ltd. does not have significant operations. It intends to acquire new opportunities in the natural resource industry. Prior to July 29, 2009, the company was engaged in the exploration and development of mineral properties in South and Central America. The company was formerly known as Yamiri Gold and Energy Inc. and changed its name to Cannon Point Resources Ltd. in April 2010. Cannon Point Resources Ltd. was incorporated in 1978 and is based in Vancouver, Canada.
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