Top 5 Dividend Companies To Buy For 2014

[ September 16, 2013 | Author: admin | Weather: | Mood: normal]

Many investors rely on dividends for the income they need from their portfolios. But even if you don’t need income right now, dividends represent a key part of your overall investment returns.

Dividends are especially important for the Dow Jones Industrials (DJINDICES: ^DJI  ) , with each of its 30 component companies making dividend payments to their shareholders. By comparing the changes in a stock’s price with the total return that shareholders earn when you reinvest dividends, you can put a figure on just how important those dividends are. Let’s look at the Dow stocks for which dividends made the biggest difference to investors.

Stock

5-Year Price Change Without Dividends

Top 5 Dividend Companies To Buy For 2014: SuperValu Inc.(SVU)

SUPERVALU INC., together with its subsidiaries, operates retail food stores in the United States. Its stores offer grocery, general merchandise, health and beauty care, pharmacy, and fuel products. The company operates stores under the Acme, Albertsons, Cub Foods, Farm Fresh, Hornbacher?s, Jewel-Osco, Lucky, Shaw?s, Shop ?n Save, Shoppers Food & Pharmacy, and Star Market banners, as well as in-store pharmacies under the Osco and Sav-on banners. It operates approximately 2,394 traditional and hard-discount retail food stores, including 899 licensed Save-A-Lot stores. The company also offers supply chain services, which include wholesale distribution of products to independent retailers, including single and multiple grocery store independent operators, regional and national chains, mass merchants, and the military customers, as well as provides logistics support services. SUPERVALU was founded in 1871 and is based in Eden Prairie, Minnesota.

Top 5 Dividend Companies To Buy For 2014: Horizon Lines Inc.(HRZ)

Horizon Lines, Inc., through its subsidiaries, provides container shipping and integrated logistics services. It ships a range of consumer and industrial items, such as refrigerated and non-refrigerated foodstuffs, household goods, auto parts, building materials, and other materials used in manufacturing. The company offers container shipping services to ports within the continental United States, Puerto Rico, Alaska, Hawaii, Guam, the U.S. Virgin Islands, and Micronesia. Its integrated logistics services comprise rail, truck brokerage, warehousing, distribution, expedited logistics, and non-vessel operating common carrier operations. Horizon Lines, Inc. also offers terminal services. The company operates terminals in Alaska, Hawaii, and Puerto Rico; contracts for terminal services in seven ports in the continental United States; and the ports in Guam, Yantian, and Xiamen, China, as well as Kaohsiung, Taiwan. In addition, it offers inland transportation services. As of Dec ember 20, 2009, the company owned or leased approximately 20 vessels and 18,500 cargo containers. Horizon Lines, Inc. serves consumer and industrial products companies, as well as various agencies of the U.S. government, including the Department of Defense and the U.S. Postal Service. The company was founded in 1956 and is based in Charlotte, North Carolina.

Advisors’ Opinion:

  • [By Hutchinson]

    Horizon Lines (NYSE: HRZ) is the largest oceangoing shipping company in the United States with a dominant market position along protected shipping lanes. One look at the steady resurgence in shipping demand, coupled with the company’s improving financials, and it seems the worst is behind them — making now the perfect time to scoop up this stock at a discount.

    HRZ is up almost 30% since September, and I expect it to continue moving higher. Recent data show more goods are being manufactured, and they need to be shipped. Horizon will be one of the biggest beneficiaries.

    Buy HRZ on pullbacks under $5.

Best High Tech Companies To Watch For 2014: Pinnacle West Capital Corporation(PNW)

Pinnacle West Capital Corporation, through its subsidiaries, provides retail and wholesale electric services primarily in the State of Arizona. The company involves in the generation, transmission, and distribution of electricity through coal, nuclear, gas and oil, and solar resources. It also offers energy-related products and services, such as energy master planning, energy use consultation and facility audits, cogeneration analysis and installation, and project management with a focus on energy efficiency and renewable energy to commercial and industrial retail customers in the western United States. In addition, the company owns minority interests in various energy-related investments and Arizona community-based ventures; and develops residential, commercial, and industrial real estate projects in Arizona, Idaho, New Mexico, and Utah. As of December 31, 2010, it owned or leased approximately 6,290 mega watts of regulated generation capacity; and serviced approximately 1.1 million customers. Pinnacle West Capital Corporation was founded in 1920 and is based in Phoenix, Arizona.

Top 5 Dividend Companies To Buy For 2014: Prospect Capital Corporation(PSEC)

Prospect Capital Corporation is a mezzanine finance and private equity firm that specializes in late venture, middle market, mature, mezzanine, buyouts, recapitalizations, growth capital, development, and bridge transactions. It makes secured debt and equity investments. The firm typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. It invests in oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors. The firm prefers to invest in the United States and Canada. It seeks to invest between $5 million to $50 million in companies with EBITDA between $$ million and $75 million, sales value up to $500 million, and enterprise value of up to $250 million. The firm also co- invests for larger deals. It seeks control acquisitions by providing multiple levels of the capital structure. Prospect Capital Corporation was founded in 1988 and is based in New York, New York.

Top 5 Dividend Companies To Buy For 2014: Deswell Industries Inc.(DSWL)

Deswell Industries, Inc. engages in the manufacture and sale of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company produces various plastic parts and components for the manufacture of consumer and industrial products, including plastic component of electronic entertainment products; cases for flashlights, telephones, paging machines, projectors, and alarm clocks; toner cartridges and cases for photocopy and printer machines; parts for electrical products, such as air-conditioning and ventilators; parts for audio equipment; cases and key tops for personal organizers and remote controls; double injection caps and baby products; parts for medical products comprising apparatus for blood tests; laser key caps; and automobile components. Its electronic products include audio equipment, such as digital audio workstation, digital or analogue mixing consoles, instrument amplifiers, signal processors, firewire/USB audio interfaces, keyboard controllers, and speaker enclosures; high end home theatre audio products comprising 7.1-channel audio-visual Hi-Fi stereo receivers-amplifiers; complex printed circuit board assemblies; and telecommunication products consisting of VoIP keysets for business communications. The company?s metal products include metallic molds and accessory parts used in audio equipment, telephones, copying machines, pay telephones, multimedia stations, automatic teller machines, and vending machines. In addition, it distributes audio equipment. The company sells its products in the United States, the People?s Republic of China, Hong Kong, Thailand, the United Kingdom, Holland, Norway, and Germany. Deswell Industries, Inc. was founded in 1987 and is based in Kowloon Bay, Hong Kong.

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