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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Big Dividend Plays to Make in September

Also see: 5 Ways to Tell a Stock Is Headed Up

My second tobacco dividend pick is Philip Morris International (PM). This company makes seven of the top 15 brands of tobacco products in the world and sells its cigarettes in 160 countries. The company boasts at least 15% of the international cigarette market outside the U.S. Until 2008, Philip Morris actually was a part of my first recommendation, Altria Group.

Since its separation from Altria, Philip Morris has gone on an international shopping spree by acquiring additional cigarette and smokeless tobacco manufacturers. The company also has been aggressively buying back its stock (e.g., $1.36 billion in the first quarter) to boost its underlying earnings per share.

The company also has been aggressively raising new corporate debt at low interest rates to fund its aggressive acquisition campaign and to continue to buy back its outstanding stock. Add in the fact that PM has a 3.7% dividend yield and you have several compelling reasons why this stock is a favorite among investors.

In the second quarter, revenue soared from $7.06 billion to $8.27 billion, a 17% year-over-year increase. Since 2010, earnings jumped from $1.98 billion, or $1.07 per share, to $2.41 billion, or $1.35 per share. This represents a 22% leap in total net income, and a 26% increase in EPS. Earnings per share also trumped analysts' predictions of $1.21, a 12% earnings surprise. The dividend, the earnings and the fact shares are up 34% in the past 12 months are all reasons why investors will flock to the stock.

Also see: Can a GOP President Fix the Economy?

Now, if you just can't bring yourself to buy these two companies on principle, I understand, and I have another great dividend stock that is not in the tobacco industry. Companhia de Bebidas das Americas (ABV) is translated to "the American Beverage Company" and commonly is known simply as AmBev. This company dominates the Brazilian beer market with brands such as Antarctica, Brahma and Skol. Additionally, the company sells Pepsi brands, Lipton iced tea and other beverages that include mineral water and sports drinks. Along with Brazil, AmBev sells its products in 13 other countries, including the South and Central American nations of Argentina, Peru, Ecuador, Uruguay and Venezuela.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,016.37 -23.12 -0.14%
S&P 500 1,989.63 -2.74 -0.14%
NASDAQ 4,539.7010 +7.5970 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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