This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

5 Buy-Rated Dividend Stocks to Buy Today

Stocks in this article: CB HNZ IRM SUP SRE

NEW YORK, N.Y. ( TheStreet) -- In today's low interest rate environment, long-term investors may wish to consider dividend stocks as an alternative to fixed income investments. The five stocks listed below are going ex-dividend tomorrow (this means that you must purchase the stock today to qualify for the next dividend payment) -- each of these stocks also has a yield higher that the S&P 500 dividend yield and has a "buy rating" from TheStreet Ratings award-winning stock rating model.

TheStreet Ratings stock-rating model favors defensive investments with a bias towards conservatively financed companies that have demonstrated a history of favorable shareholder returns.

Chubb

Chubb (CB - Get Report) is a holding company with subsidiaries mainly engaged in the property and casualty insurance business.

Dividend Yield: 2.5%

5-Year Dividend Compound Annual Growth Rate: 8.16%

Rated "B+ (Buy)" by TheStreet Ratings: Chubb's gross profit margin for the first quarter of its fiscal year 2011 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.02% from the same quarter last year.

Heinz

H. J. Heinz (HNZ) manufactures and markets an extensive line of food products throughout the world. Its main products include ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other food products.

Dividend Yield: 3.55%

5-Year Dividend CAGR: 5.57%

Rated "A (Buy)" by TheStreet Ratings: Heinz's gross profit margin for the fourth quarter of its fiscal year 2010 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. Heinz has very weak liquidity. Currently, the Quick Ratio is 0.48, which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 64.37% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

Iron Mountain

Iron Mountain (IRM - Get Report) is a global provider of information protection and storage services.

Dividend Yield: 3.04%

5-Year Dividend CAGR: Dividend first paid in 2010.

Rated "B- (Buy)" by TheStreet Ratings: Iron Mountain's gross profit margin for the first quarter of its fiscal year 2011 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared with the same quarter a year ago. Iron Mountain has average liquidity. Currently, the Quick Ratio is 1.03, which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 5.97% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

Superior Industries

Superior Industries (SUP - Get Report) is engaged in the design and manufacture of aluminum wheels, for sale to original equipment manufacturers.

Dividend Yield: 3.09%

5-Year Dividend CAGR: Nil

Rated "B (Buy)" by TheStreet Ratings: Superior Industries' gross profit margin for the first quarter of its fiscal year 2011 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. Superior Industries is extremely liquid. Currently, the Quick Ratio is 3.89 which clearly shows the ability to cover any short-term cash needs. SUP managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 10.58% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

Sempra Energy

Sempra Energy (SRE - Get Report) is an energy services holding company, which provides electric, natural gas and other energy products and services to its customers.

Dividend Yield: 3.6%

5-Year Dividend CAGR: 5.39%

Rated "B (Buy)" by TheStreet Ratings: Sempra Energy's gross profit margin for the first quarter of its fiscal year 2011 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. Sempra Energy has weak liquidity. Currently, the Quick Ratio is 0.71 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.36% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

>>To see these stocks in action, visit the 5 Buy-Rated Dividend Stocks to Buy Today portfolio on Stockpickr.

USEFUL TOOLS FOR INCOME INVESTORS:


This article was written by a staff member of TheStreet.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

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