This Day On The Street
Continue to site
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

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 - Get Report). 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

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
Only $9.95
14-Days Free
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
SYM TRADE IT LAST %CHG
ABV $0.00 0.00%
MO $48.99 -0.22%
PM $81.17 -0.16%
AAPL $126.44 -0.13%
FB $87.28 0.43%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs