Dividend.com: Big Quarter for BHP

BHP Billiton Reports Earnings, Posts Big Revenue Gains (BHP)

BHP Billiton (BHP Quote) just delivered a big quarter and the company gave an upbeat outlook on commodity prices, saying China's voracious appetite for raw materials can compensate for a global slowdown.

Management also contended that its $150 billion hostile bid for Rio Tinto (RTP Quote) offers tremendous value, as well as a great way to minimize cost pressures that would decline if the companies merged.

We had removed the company from our "Recommended" list on July 17 at a price of $71.55, based on a drop in commodity prices we felt would begin to accelerate. Our stance there hasn't changed, and despite BHP's positive outlook, we would still remain cautious and avoid the shares at this level. The company has a dividend yield of 1.78%, based on Friday's closing stock price of $65.22.

BHP is not a recommended dividend stock at this time, holding a Dividend.com rating of 3.0 out of 5 stars.

Lowe's Indicates Home Repair is Coming Back Slowly

Home-improvement retailer Lowe's (LOW Quote) is coming back to life, but it will take some time to fully rebound. The company just reported second-quarter sales that were up slightly, with revenue rising 2.4% to $14.5 billion.

The company cited tax rebates used for spring projects, and its sales performance for stores open at least a year was better than some analysts had expected. Next quarter may be a bit soft, as the company forecast a profit of 27 cents to 31 cents a share, below the consensus of 33 cents. For the year, the company sees earning $1.48 to $1.56 a share. The consensus estimate is $1.50.