Dividend Stock Investing

[The Virginian]

Gotta love those Dividends! - I am now finding more and more stocks that pay dividends - Some are foreign stocks like Toyota and Honda.

[texasredneck]

This message has been deleted.

[The Virginian]

Virginian you found one winner this week. Do it again!

It was just dumb luck!

[texasredneck]

This message has been deleted.

[tyfighter3]

Frankq means CHKM.

[bimetalaupt]

Texas,
Yes.. Used to own LLY and MRK.. Both has been great stocks ..sold and cashed out in 2000... problem is the Obama system.. Not sure about the return to PE of 35.. Could be a winner if the R&D produces a major new product..

Both stocks are high risk but could.. It is a thing must investors can not control.. Small % of a high Return event/ Real bad problem that will destroy 75% of the future value... Revalue LLY at PE of 35 to see what I am talking about..

It is high risk at the R&D Table..

Just a thought,
Bruce

[The Virginian]

From Seeking Alpha:

Chesapeake Midstream Partners (CHKM) is a midstream MLP company formed last year by Chesapeake Energy (CHK) and Global infrastructure Partners. CHKM owns and operates 2,800 miles of pipelines and moving 1.5 bcf/d, gathering natural gas from producing wells so it can be taken out of the field and towards processing facilities and consumers. CHKM's growth prospects are tied to the growth of CHK's assets, as well as CHK's attempts to unlock shareholder value, which I have previously discussed here. However, CHK's sale of its Fayetteville assets brings up concerns for CHKM's longer term strategy, making the units' valuation worth a second look.

MLPs are formed as tax shelters for assets that produce strong, steady returns. Companies like CHK place the assets into a subsidiary company, then spin off a minority stake in the company in the form of an IPO. In this case CHK and Global Infrastructure Partners both own 42% of CHKM, with the rest open to the public. CHK is the manager of CHKM, and should be looking to "drop-down" assets to CHKM, increasing the midstream company's size and distribution.

CHK wins by receiving cash for the assets, and still being able to benefit from the asset's cash flow by distributions paid to CHKM unit holders. CHKM wins by getting great assets at good prices, and public unit holders benefit from a larger distribution. In a February analyst presentation, CHKM cites Chesapeake's assets in the Haynesville Shale (460 mmcf/d), Fayetteville Shale (350), Marcellus Shale (220), Eagle Ford Shale (5), as well as other compression systems as potential drop-downs. Assets are listed in descending order of their throughput measured by mmcf/d, which is the number after each asset. A drop-down of all these assets, over time of course, would increase CHKM's daily volumes by two-thirds, providing for the prospects of significant distribution increases and unit appreciation.

Unfortunately, CHKM's management's ability to predict the future was dealt a blow yesterday, when CHK agreed to sell its assets in the Fayetteville Shale, including its midstream assets, to BHP Billiton (BHP). While great for CHK shareholders, this loss of a potential drop-down is a setback for CHKM. The Fayetteville assets were the second-largest potential drop-down in terms of volume, and represented about one-third of all potential dropdown volume cited by management.

That isn't to say BHP won't put the assets up for sale and CHKM will not own them, but the odds of CHKM getting the assets are now much lower. The timing of both the presentation to analysts by CHKM, and the sale of the assets to BHP, is also a cause for concern, seeing as barely three weeks passed between CHKM management citing Fayetteville as a potential drop-down, and CHK selling the assets to BHP. If CHKM does not have as strong of a sponsor in CHK as investors once thought, that is a large negative for CHKM's model as well as valuation.

Speaking of valuation, CHKM's recent dividend of $0.3375 represents a $1.35 dividend on an annualized basis, and with shares falling through $27 today, that amounts to about a 5% yield. Now compare that to more established players like Enterprise Products (EPD) at 5.4%, Energy Transfer Partners (ETP) at 6.6%, Williams Partners (WPZ) at 5.6%, TC Pipelines (TCLP) at 5.7%, Market West (MWE) at 5.9%, and Oneok (OKS) at 5.5%. All these companies have longer operating histories and more experienced management teams, yet investors are affording CHKM a higher price per unit, resulting in a lower yield. While that may have made sense when it seemed as if CHK would be dropping-down assets on a regular basis, investors should be re-evaluating that premium in light of yesterday's events.

Given the uncertainty over how many of CHK's assets will pass down to CHKM, the units should not command a premium to other established MLPs. Enterprise, which I discuss here, is the best in class in the MLP space, so riskier partnerships should have a higher yield than EPD, not a lower one. Assuming CHKM's $1.35 distribution stays flat, the units would need to fall $22.50 for a 6% yield. That equates to a fall of $4.30, or 16% from here. At that level the risk/reward will be more aligned in unit holders' favor, in my opinion. CHKM has strong potential to benefit from CHK's continued drilling program and drop-down acquisitions, but as the company has shown us this month, potential doesn't always come through.

Disclosure: I am long EPD

Seems like their parent company (CHK) might be a better play.

[The Virginian]

Eli Lilly & Co. - Again from seeking Alpha:

Eli Lilly & Co (LLY) : Eli Lilly's global headquarters is located in Indianapolis, Indiana. Eli Lilly is the 10th largest pharmaceutical company in the world. Eli Lilly is among the leaders of innovation: The company was the first to mass-produce penicillin. The market cap is $39.78 billion, and P/E ratio is 7.49. With a dividend yield of 5.68%, Eli Lilly is one of the top stocks for the ultimate retirement portfolio.

I own Bristol-Myers and Pfizer - It looks solid to me and I just might consider adding it myself. I like the pharmaceuticals in general because of our aging population and the fact that they are now "making up medical problems" to sell their designer drugs! People seem to love it.

With a Dividend yield of 5.68% it fits right with my portfolio.

[The Virginian]

Just found this:

CORRECTED-(OFFICIAL)-Eli Lilly "very much opposed" to merger -CEO
4:02 am ET 03/23/2011- Reuters
(Corrects spelling of CEO's name throughout to Lechleiter, from Lechleitr)

March 19 (Reuters) - Drugmaker Eli Lilly , which faces plunging sales due to competition and lapsing patents, will not merge with another peer to ride out any rough times ahead, chief executive John Lechleiter said on Saturday.

Speaking on the sidelines of a conference in Beijing, Lechleiter said he was confident the Indianapolis-based company can go it alone and invent sufficient new drugs to see it through.

Eli Lilly's resistance to any form of merger comes despite the fact that a series of patent lapses, stiff competition from generic drugmakers and regulatory setbacks are all set to hit its sales in coming months and years.

"We are still very much opposed to a large-scale combination," Lechleiter told Reuters. "We don't think size is necessarily supportive of innovation."

"We feel that (with) our current size, with the sizeable investment in research and development, we have the way to generate new medicines we need to replace the medicines that we are losing, that are coming off patent in the next several years."

Many analysts expect Eli Lilly's earnings to fall steadily from this year through to 2014 as it loses patent protection on many of its best-selling drugs.

For instance, the U.S. patent on its biggest product, the $5 billion-a-year Zyprexa schizophrenia treatment, lapses in October.

Eli Lilly is among a handful of big drugmakers bent on staying independent in the wake of mega-mergers in the pharmaceutical industry from 2009, that saw Pfizer Inc gobbling up Wyeth, and Merck & Co buying Schering-Plough.

A dearth in new drug development and looming patent expirations had forced the drugmakers to band together.

To bolster its earnings prospects, Lechleiter said Eli Lilly would increasingly focus on its animal health unit, one of the bright spots in the firm and where growth has far outpaced that in the core drug business.

Just this month, Eli Lilly said it will buy Johnson & Johnson's animal health unit for an undisclosed sum to augment its presence in Europe.

Lechleiter said Eli Lilly was open to buying other animal health businesses if the price is right.

"We are going to be on the lookout for acquisitions if they fit with the needs that we have, and if they are available at the right price." (Reporting by Koh Gui Qing)

One note: what many companies do is just slightly alter the chemical makeup of drugs so they can get a new patent and keep selling as a premium drug under a patent. I'm still putting this stock on my buy list.

[Driftr]

I'm not messing with Chesapeake. Seems every other day I hear about some township or another over in Ft Worth up in arms about how close this gas well is to that school, or what chamicals are being used where.

[bimetalaupt]

Pharmaceutical Stocks are judged on future earnings from new drugs... IE Budget for R&D is an expense.. Lilly used to spend about 20% as did MSD... PFE bought most of their major Products.. BMY used to have an AAA credit rating!!!!

IF you are going to play try three .. it is the play out after Obama plays out....

I have looked again at the Big Three R&D firms JNJ...MRK ... and LLY...Roche bought the rest of DNA could be #4...as before.. This is a high risk group.. Remember SKF.. Never recovered from loss of Tagamet .

Just a thought,
Bruce

[texasredneck]

This message has been deleted.

[frankq]

Here you go boys, Schwab doesn't "follow" the stock so it's unrated.

CHKM28.96+0.18+0.63%

Chesapeake Midstream Partners LP(NYSE)

[frankq]

Mar 27, 2011 22:15:18 GMT -5 tyfighter3 said:

Frankq means CHKM.

What did I do, go dyslexic with the K&H? LOL! Sorry! I fixed it.

[frankq]

Mar 28, 2011 12:12:21 GMT -5 Driftr said:

I'm not messing with Chesapeake. Seems every other day I hear about some township or another over in Ft Worth up in arms about how close this gas well is to that school, or what chamicals are being used where.

Chesapeake Midstream Partners L.P. is focused on natural gas gathering, the first segment of midstream energy infrastructure that connects natural gas produced at the wellhead to third-party takeaway pipelines. The Company provides gathering, treating and compression services to Chesapeake and Total, its primary customers, and other third-party producers under long-term, fixed-fee contracts. The Company’s gathering systems operate in its Barnett Shale region in north-central Texas and its Mid-Continent region, which includes the Anadarko, Arkoma, Delaware and Permian Basins. It generates the majority of its operating income in its Barnett Shale region, where it services approximately 1,700 wells in the core of the Barnett Shale. Its systems consist of approximately 2,900 miles of gathering pipelines, servicing approximately 4,000 natural gas wells.

[bimetalaupt]

Mar 28, 2011 12:56:00 GMT -5 texasredneck said:

Bruce Seems everything is high risk. The only ones with 5% yields big pharmaceutical or nuclear energy. The tech stocks only offer 2.5 to 3% and their prices are back to Oct. 2010 levels. LLY is buying up animal drug companies that should be good future earnings,

Texas,
No.. It was the R&D fence I was talking about... The next generation $10 Billion drug..

LLY is going low risk buying low risk animal products like what AHP had for years with Fort Dodge. I also used to play some of the small firms alike Alcon in Fort Worth. That is where the money is at but If you get into the right one for the dividends you could have a huge winner in the R&D game... LLY could be a good bet like MRK. JNJ bought a huge OTC line from PFE.

Well I used to always try to hit it out of the park with large discounted stocks to future value.. All three fit the bill.. Your call... ( per Value-pro) Now if LLY could produce a vaccine for Salmonella for Chickens we could have ham and eggs from breakfast with our insulin.

Just a thought,
Bruce

Mutually Exclusive.. why ??

Attachments:

[domeasingold]

HLX

[The Virginian]

Helix Energy Solutions ?

Doesn't pay a dividend

[frankq]

Virginian,

Thanks for the update. Traded flat today at 28.81. I'll have to keep an eye on it.

[The Virginian]

MCP - - Molycorp Inc - $ 61.16 - But again no Dividend

Molycorp and DOE's Ames Laboratory Sign Cooperative Research and Development Agreement on Rare Earth Magnets
March 30, 2011 8:00 AM ET
Molycorp, Inc. MCP, the Western hemisphere’s only producer of rare earth oxides, today announced that it has entered into a cooperative research and development agreement with the U.S. Department of Energy’s Ames Laboratory. The Molycorp-Ames effort will focus on developing new methods to create commercial-grade rare earth permanent magnets.

The collaboration combines Ames Laboratory’s 60+ years of experience in the critical materials science field with Molycorp’s 58+ years of experience in developing and commercializing innovative rare earth processing technologies.

"We are looking forward to a highly successful partnership between Molycorp and the Ames Laboratory that will incorporate new techniques, processes, and materials into U.S. supply chains," said Debra Covey, Ames Laboratory associate laboratory director for Sponsored Research Administration.

“This is a significant first step toward a long and mutually beneficial relationship between these two committed entities," said Karl Gschneidner Jr., who will lead the research efforts at Ames Laboratory. "The Ames-Molycorp partnership will serve to re-energize applied rare earth research in the U.S., and will begin to ameliorate the current void in intellectual infrastructure in rare earths by training undergraduates, graduate, and post-doctoral students and providing them with research opportunities.”

Ames Laboratory scientists will investigate several compositions of rare earth materials and processing techniques with the goal of making permanent rare earth magnets with properties comparable to currently available neodymium-iron-boron magnets. The material combinations studied will correspond with the relative concentrations of rare earth elements in Molycorp’s Mountain Pass mine, using techniques that are more cost effective and leave a smaller environmental footprint than current methods.

“For more than 60 years, the Ames Laboratory has sought out solutions to energy-related questions through groundbreaking research and development,” said Dr. John L. Burba, Executive Vice President and Chief Technology Officer of Molycorp, Inc. “It is my hope that this cooperative agreement will lead to breakthroughs in rare earth material manufacture that can advance the state of the art in rare earth magnet design and manufacture as well as strengthen our nation’s productive capacity of these and other critical rare earth materials.”

Gschneidner, Vitalij Pecharsky, Ames Laboratory Senior Scientist, and Dr. Burba will serve as principle investigators on the project.

About Ames Laboratory

The Ames Laboratory is a U.S. Department of Energy Office of Science national laboratory operated by Iowa State University. The Ames Laboratory creates innovative materials, technologies and energy solutions. We use our expertise, unique capabilities and interdisciplinary collaborations to solve global problems.

About Molycorp

Colorado-based Molycorp, Inc. is the only REO producer in the Western Hemisphere and currently produces approximately 3,000 metric tons of commercial rare earth materials per year. Following the execution of Molycorp's "mine-to-magnets" strategy and the expected 2012 completion of Phase 1 of its modernization and expansion efforts at its Mountain Pass, California processing facility, Molycorp expects to produce at a rate of approximately 19,050 metric tons of REO equivalent per year. The Company expects to achieve an annual production capacity by the end of 2013 of approximately 40,000 metric tons of REO equivalent per year after the completion of Phase 2. Molycorp intends to provide to the market a range of rare earth products, including high-purity oxides, metals, alloys, and permanent magnets.

This press release contains forward-looking statements that represent the Company’s beliefs, projections and predictions about future events or its future performance. You can identify forward-looking statements by terminology such as "may," "will," "would," "could," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" or the negative of these terms or other similar expressions or phrases. These forward-looking statements are necessarily subjective and involve known and unknown risks, uncertainties and other important factors that could cause the Company’s actual results, performance or achievements or industry results to differ materially from any future results, performance or achievement described in or implied by such statements. Factors that may cause actual results to differ materially from expected results described in forward-looking statements include, but are not limited to: the Company’s ability to secure sufficient capital to implement its business plans; the Company’s ability to complete its Phase 1 modernization and expansion efforts and Phase 2 expansion efforts and reach planned production rates for REOs and other planned downstream products; uncertainties associated with the Company’s reserve estimates and non-reserve deposit information; uncertainties regarding global supply and demand for rare earth materials; the Company’s ability to maintain appropriate relations with unions and employees; the Company’s ability to successfully implement its "mine-to-magnets" strategy; environmental laws, regulations and permits affecting the Company’s business, directly and indirectly, including, among others, those relating to mine reclamation and restoration, climate change, emissions to the air and water and human exposure to hazardous substances used, released or disposed of by the Company; uncertainties associated with unanticipated geological conditions related to mining; the success of the Ames-Molycorp partnership, and other risks discussed in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s Quarterly Report on Form 10-Q for the period ended December 31, 2010, which filings are available from the SEC.

Any forward-looking statement you read in this press release reflects the Company’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to the Company’s operations, operating results, growth strategy and liquidity. You should not place undue reliance on these forward-looking statements because such statements speak only as to the date when made. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future, except as otherwise required by applicable law.

Looks good otherwise though - P/E = -75.51

52 week Low = 12.10 - High = 62.80 ??

I can't buy something I don't understand.
But thanks Batman!

[Driftr]

So FTI, is MCP looking to you like they're going to start paying a dividend?

[Deleted]

I added 2 new to portfolio in last 60 days

AGD current yield 9.55%
WHX current yield 16.03%

Small positions...as they are much riskier propositions

I still rely on tried and true for 95% of portfolio

[The Virginian]

The renegades are back so it's hard to have a thread going again!

[verrip1]

Most US REITs suck the big one on current payouts. There really is no reason to own things like Simon, Vornado, Federal Realty, etc. for now. The subprime mortgage REITs are giving big payouts (CIM and ANGC). My Canadian Apt REIT has gone down to less than 5% yield after withholding, so I'm dumping it and going with the Canadian Yellow Pages to boost the yield. Seadrill and Teekay shares are on the watchlist, but there's nothing for them to take the place of in my current holdings. My income account has some bonds as well, but the durations are short, so my bigger payouts right now come from the dividend side. There's no way that I'll shift my asset allocations more to stocks, esp. US stocks, and away from bonds just to get some current yield. Nor will I go longer on duration to get more current yield. I figure I'm just at the bond sweet spot, overall.

[The Virginian]

I like Teekay Tankers - I own it. I think they will be well positioned to take advantage of the recovery ( whenever it comes) and they pay a great dividend.

[Driftr]

Are they in shipping? INHouston had NMM on a list a while back and I've been quite happy with their performance. They're up about 15% since I bought in about 11 months ago and the yield on their dividend is still around 8.5%.

[The Virginian]

.Teekay Tankers Ltd. is engaged in the international marine transportation of crude oil through the operation of its oil tankers. As of March 1, 2010, its fleet consisted of nine Aframax-class oil tankers and three Suezmax-class oil tankers. As of March 1, 2010, five of these vessels were operating in the spot market through participation in pooling arrangements managed by subsidiaries of Teekay Corporation. As of March 1, 2010, Teekay Corporation, through its 100%-owned subsidiary Teekay Holdings Ltd., had a 42% interest in the Company. On June 24, 2009, it acquired from Teekay Corporation its subsidiary Ashkini Spirit L.L.C, which owns a Suezmax tanker, the Ashkini Spirit.

Investor Contact Office Phone Fax
Kent Alekson 4th Floor,Belvedere Building
Hamilton, HM 08 604-683-3529

It's a little risky but is currently paying 11.85% in Dividends.
I got this one from InHouston also.

[Driftr]

Navios Maritime Partners L.P. ("Navios Partners") (NYSE: NMM), an owner and operator of dry cargo vessels, announced today that it has priced its follow-on public offering of 4,000,000 common units, which represent limited partnership interests, at $19.68 per unit. Navios Partners has granted the underwriters a 30-day option to purchase an additional 600,000 common units to cover over-allotments, if any. Navios Partners expects to use the net proceeds from the public offering to fund its fleet expansion and/or for general partnership purposes. The offering is expected to close on April 13, 2011.

This announcement was good for a nice 5% pop (DOWN) in NMM. Well, at least the yield is better now...

[Deleted]

Drftr

I owned NMM a few years back

I remember they issued more shares then also...for purchase of 2 more ships (and to payoff debt)

Shipping rates are so fickle though....and cause the share prices to fluctuate a lot....which i dont like

[Driftr]

Yeah. They are nothing if not unpredictable. I'm not complaining though. The dividend is nice each quarter (even if it comes in a couple days later than it 'should') and the price is also up about 14% since I bought it last year even after this mornings (which seems to be 'correcting' already). They're also a pretty small part of my pie at 2% of the stuff I have directly invested in companies.