Kinder Morgan Energy Partners (KMP) is the largest midstream company in North America. The company has massive growth potential due to the increasing production of both oil and natural gas in the US and Canada. Kinder Morgan Energy Partners currently offers a $1.30 per unit quarterly distribution and yields about 5.90%.
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Kinder Morgan Energy Partners is part of the Kinder Morgan family of companies with a combined enterprise value of over $115B. Kinder Morgan, Inc (KMI) is Kinder Morgan Energy Partners' general partner and has incentive distribution rights and owns about 10% of the partnership. Another way to own Kinder Morgan Energy Partners is via Kinder Morgan Management (KMR), whose shares are pari passu with Kinder Morgan Energy Partners and has an equal distribution but pays its dividend in additional shares instead of cash. This in effects acts as a dividend reinvest program.
Top 5 Dividend Stocks To Watch Right Now: United Parcel Service Inc.(UPS)
United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment engages in the time-definite delivery of letters, documents, and packages in the United States. The International Package segment offers air and ground delivery of small packages and letters to approximately 220 countries and territories, including shipments outside the United States, as well as shipments with either origin or distribution outside the United States; export services; and domestic services move shipments within a country?s borders. The Supply Chain & Freight segment provides forwarding and logistics services, such as supply chain design and management, freight distribution, customs brokerage, mail, and consulting services in approximately 195 countries and territorie s; and less-than-truckload and truckload services to customers in North America. In addition, the company offers various technology solutions for automated shipping, visibility, and billing; information technology systems and distribution facilities to various industries comprising healthcare, technology, and consumer/retail; and a portfolio of financial services that provides customers with short-term working capital, government guaranteed lending, global trade financing, credit cards, and export financing. It operates a fleet of approximately 99,800 package cars, vans, tractors, and motorcycles; an air fleet of 527 aircraft; and 33,800 containers used to transport cargo in its aircraft. The company was founded in 1907 and is headquartered in Atlanta, Georgia.
Advisors' Opinion:- [By Mark]
UPS is a package delivery company. Cramer holds 600 shares of UPS stocks. UPS has a dividend yield of 3.20% and returned -6.68% since the beginning of this year. It has a market cap of $63.89B and a P/E ratio of 16.08. Jason Capello invested $253 million in UPS.
- [By Buffett]
As the world's largest package delivery company, United Parcel Service (UPS) is the kind of toll-bridge operator that Buffett likes to invest in. When a business ships something, UPS gets a cut. Plus the sheer size of its global shipping network give UPS the kind of economic moat that Buffett likes to see. So do high customer-satisfaction ratings and conscientious drivers -- even if they do have to wear shorts.
"This is not a business that you can re-create overnight," says Lowenstein. In fact, competitors have a tough time because UPS is so strong. DHS left the U.S. shipping market in 2009, and the U.S. Postal Service is struggling financially.
That economic moat and broad reach also give UPS the pricing power, high profit margins and steady earnings growth favored by Buffett, whose Berkshire Hathaway owns 1.4 million shares. Here's another quality the Oracle of Omaha likes: UPS is shareholder friendly, returning excess capital through dividend hikes, share buybacks and debt retirement. "They are good capital allocators. They are not destroying value by doing dumb things," says Lowenstien.
Despite these strengths, UPS looks cheap, because with a price-to-earnings ratio of 14.9, it trades about 30% below its average since 2000. In short, that means today's price is relatively low. "UPS is on sale due to concerns about the economy," says Lowenstein. And like Buffett, Lowenstein is a patient value investor who believes that sooner or later those concerns will blow over. When that happens, UPS stock will deliver for investors who buy now.
Top 5 Dividend Stocks To Watch Right Now: RGC Resources Inc.(RGCO)
RGC Resources, Inc., through its subsidiaries, engages in the distribution of natural gas in Virginia. It is primarily involved in the regulated sale and distribution of natural gas to residential, commercial, and large industrial and transportation customers through underground mains and service lines in Roanoke, Virginia, and the surrounding localities. The company also provides non-regulated services. In addition, it offers information technology consulting services, as well as utility and regulatory consulting services to other utilities. The company operates approximately 1,045 miles of transmission and distribution pipeline; owns and operates eight metering stations; and a liquefied natural gas storage facility located in Botetourt County. RGC Resources, Inc. was founded in 1912 and is based in Roanoke, Virginia.
Advisors' Opinion:- [By Smith]
RGC is a natural-gas utility serving roughly 57,000 customers across Virginia through operating subsidiaries that include Roanoke Gas Co., Diversified Energy Co. and RGC Ventures of Virginia. This steady performer has been paying dividends for more than 60 years.
RGC's earnings rose 3% from one year earlier to $4.65 million, or $1.01 per share in the fiscal year ended Sept.30 . This was mainly the result of increased natural-gas deliveries to industrial customers and a recent service rate increase.
In late November, RGC raised the dividend by 3% to a $0.70 annual rate. The new dividend rate will be paid on Feb.1, 2012, to shareholders of record on Jan.16, 2012.
Top 5 Small Cap Companies To Own For 2014: RPM International Inc.(RPM)
RPM International Inc., together with its subsidiaries, manufactures, markets, and sells various specialty chemical products to industrial and consumer markets worldwide. The company?s Industrial segment offers waterproofing and institutional roofing systems used in building protection, maintenance, and weatherproofing applications; sealants, tapes, and foams; residential basement waterproofing systems; specialized roofing and building maintenance and related services; specialty industrial adhesives and sealants; and concrete and masonry additives, and related construction chemicals. It also offers polymer flooring systems, and offshore and marine structures; industrial and commercial tile systems; fiberglass reinforced plastic gratings and shapes; heavy-duty corrosion-control coatings, fireproofing products, and containment linings; specialty construction products, including bridge expansion joints, bridge deck and parking deck membranes, curb and channel drains, highway markings, protective coatings, and concrete repairs; and fluorescent colorants and pigments, waterproofing and flooring products, exterior insulating finishing systems, and shellac-based-specialty coatings for industrial and pharmaceutical uses, edible glazes, and food coatings. The company?s Consumer segment provides professional use and do-it-yourself products for a range of consumer applications, including home improvement and personal leisure activities. Its products include coating products; specialty products; deck and fence restoration products; metallic and faux finish coatings; hobby paints and cements; and caulks, sealants, adhesives, insulating foam, spackling, glazing, and other general patch and repair products. The company offers its products under the Carboline, DAP, EUCO, Fibergrate, Flecto, Flowcrete, Hummervoll, Universal Sealants, illbruck, Rust-Oleum, Stonhard, Tremco, Watco, and Zinsser brand names. RPM International was founded in 1947 and is headquarte red in Medina, Ohio.
Top 5 Dividend Stocks To Watch Right Now: Himax Technologies Inc.(HIMX)
Himax Technologies, Inc., together with its subsidiaries, designs, develops, and markets semiconductors for flat panel displays. Its products include display drivers and timing controllers for various thin film transistor liquid crystal displays (TFT-LCD) panels, which are used in desktop monitors, notebook computers, televisions, and mobile handsets, as well as consumer electronics products comprising netbook computers, digital cameras, mobile gaming devices, portable DVD players, digital photo frame, and car navigation displays; and TFT-LCD television and monitor semiconductor solutions. The company also provides liquid crystal on silicon (LCOS) products for palm-size mobile projectors; power management integrated circuits, which include drivers, amplifiers, DC to DC converters and other semiconductors; complementary metal oxide semiconductor image sensors for camera-equipped mobile devices, such as mobile phones and notebook computers with a focus on lowlight image and video quality; and wafer level optics products. It serves TFT-LCD panel manufacturers, mobile device module manufacturers, and television makers. Himax Technologies, Inc. was founded in 2001 and is headquartered in Tainan, Taiwan.
Top 5 Dividend Stocks To Watch Right Now: Nucor Corporation(NUE)
Nucor Corporation, together with its subsidiaries, engages in the manufacture and sale of steel and steel products in North America and internationally. It operates through three segments: Steel Mills, Steel Products, and Raw Materials. The Steel Mills segment produces hot and cold-rolled sheet steel; plate steel; structural steel comprising wide-flange beams, beam blanks, and sheet piling; and bar steel, such as blooms, billets, concrete reinforcing bar, merchant bar, and special bar quality products. The Steel Products segment offers steel joists and joist girders, steel deck, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, metal building systems, light gauge steel framing, steel grating and expanded metal, and wire and wire mesh products. The Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, hot briquetted iron, and DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap metal products. The company?s operations also include various international trading companies that buy and sell steel and steel products. It sells its hot-rolled steel and cold-rolled steel to steel service centers, fabricators, and manufacturers; steel joists and joist girders, and steel deck to general contractors and fabricators; and cold finished steel and steel fasteners to distributors and manufacturers. The company?s products are used by contractors in constructing highways, bridges, reservoirs, utilities, hospitals, schools, airports, stadiums, and high-rise buildings. Nucor Corporation was founded in 1940 and is based in Charlotte, North Carolina.
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