This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

10 Stocks With Special Dividend Potential

5. Patterson Companies (PDCO - Get Report) of St. Paul, Minn. distributes supplies to dental, veterinary services and rehabilitation providers in the U.S. and Canada. The stock is rated a B (Good) by TheStreet Ratings.

Patterson reported $61.8 million in net income, or 52 cents a share, for its fiscal fourth quarter ended on April 24. Earnings rose 15% from a year earlier, as the company saw revenue improvement in its technical services business, including parts and labor, software support and improved demand for artificial teeth.

The company initiated a 10-cent quarterly dividend on March 16, which would be a yield of 1.37% based on Friday's closing price of $29.12. Before initiating the dividend, Patterson was actively repurchasing shares, spending $636 million to buy back 18 million shares during fiscal 2008.

In a report describing the results as "Fang-tastic!," Bank of America Merrill Lynch analyst Robert Willoughby said his firm expects Patterson "to generate $1.1 billion in free cash flow over the next five years, net of only $125 million in capital expenditures." While the company's recent history of share buybacks and the new quarterly payout make it appear unlikely that a special dividend will be paid, stranger things have happened.

Willoughby has a "Buy" rating on the shares with a $37 twelve-month price target, which would be a 27% return from Friday's close.

7 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AVX $14.38 0.07%
BKE $48.73 -5.00%
DO $30.73 0.99%
HTLD $24.32 -0.69%
MCRL $15.26 2.70%


DOW 18,116.68 +19.78 0.11%
S&P 500 2,098.69 +0.16 0.01%
NASDAQ 4,973.4310 +6.29 0.13%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs