Trading volume has dried up in the final days of summer, but
U.S. stocks remain strong heading into the Labor Day
holiday. Dividend-paying names continue to lead the way, and
below we highlight several model portfolio names that made
sizable gains over the past two weeks.
Campbell Soup (CPB:NYSE) is set to announce quarterly
results on the morning of Sept. 8. The company is expected
to earn $0.49 a share in the fiscal fourth quarter (ended
July), up from $0.45 a year ago, on $1.87 billion of
revenue. Management has exceeded the consensus analyst
profit estimate for seven of the past eight quarters.
Campbell will host a conference call at 8:30 a.m. EDT that
investors can access at 703-639-1316, using the passcode
1642451. A replay will also be available for two weeks at
703-925-2533, using the same passcode. The live call, a
replay and presentation slides can be accessed at the
company’s website: www.investor.campbellsoupcompany.com. On
the call, we’ll be listening for any fiscal 2015 (ending
Ahead of the numbers, we continue to believe the stock is
attractively valued at its recent price of $44.68 for the
2.8% dividend yield.
General Dynamics (GD:NYSE) shares added more than 3%
to recent gains over the past two weeks and were recently
changing hands around $123.47. The company announced that it
had won two relatively small contracts in the period.
The stock set an all-time high and Aug. 26 and is now
yielding just 2%. We would consider booking our profits in
General Dynamics into the next market rally, as the shares
are currently trading 75% above our purchase price.
KLA-Tencor (KLAC:NYSE) moved more that 4% higher over
the past two weeks with the shares recently changing hands
around $76.37. Recent consolidation in the chip sector has
led traders to speculate on the next potential takeover.
We never buy a stock solely on takeover speculation, but we
believe that the company is attractively valued at current
levels for the 2.6% dividend yield.
Pfizer (PFE:NYSE) gained nearly 3% over the past two
weeks and recently changed hands around $29.47. The company
achieved multiple positive milestone in its clinical
pipeline during the period. First, the company received
approval from the Food and Drug Administration (FDA) for
treatments of deep vein thrombosis and HIV-1, which was
developed in partnership with other firms. Second, Pfizer
has received fast-track status from the FDA for a vaccine
for C. difficile-associated disease.
Elsewhere, Deutsche Bank initiated coverage of the company
with a Buy rating on Aug. 27. We agree that the shares
remain attractive to purchase at their current levels for
the 3.5% dividend yield.
Sonoco Products (SON:NYSE) bought Germany-based
Weidenhammer Packaging on Aug. 25 for $383 million of cash.
The deal is expected add $0.09 to $0.15 a share to 2015
earnings and boost the company’s European exposure to more
than 20% of total sales.
The stock recently changed hands around $40.91 and we remain
convinced that the stock is attractive to purchase for its
3.1% dividend yield.
Altria (MO:NYSE) investors at the close of trading on
Sept. 10 will qualify for the new quarterly dividend of
$0.52 a share (4.9% yield), which is payable of Oct. 10. The
shares were recently trading at $42.97.
David S. Peltier
The company has increased its payout 48 times in the past 45 years.
As we use this low-volume period to conduct research, this issue includes four updates on model portfolio names and two dividend reminders.
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