"Raytheon raised its quarterly dividend on common stock 16.3% to 50¢ from 43¢ last night," Bank of America Merrill Lynch analysts wrote in a March 22 report. "The dividend is payable on 3 May 2012 to shareholders of record as of 4 April 2012. The dividend increase was above BofAMLe forecast of 45¢. We are increasing our 2012 dividend forecast to $2.00 from $1.78 and raising outyear dividend estimates. On balance, we were not surprised by the company's dividend increase as the company has plentiful cash. We note that RTN ended 4Q11 with $4bn of cash on the balance sheet. This represents ~23% of the company's market cap of $17.595bn as of 21 March 2012. We would not be surprised to see more aggressive share buybacks through the year or other means of cash deployment."Forward Annual Dividend Yield: 3.8% Rated "A- (Buy)" by TheStreet Ratings: The company's fourth-quarter gross profit margin increased from the previous year. Raytheon has weak liquidity. Its Quick Ratio is 0.87, which demonstrates a lack of ability to meet its short-term cash needs. In the fourth quarter, stockholders' net worth decreased 16.12% from the prior year. TheStreet Ratings' price target is $60.01. The stock closed Thursday at $52.86 and has risen 9.26% year to date.
Rent-A-Center "We believe there are additional signs suggesting the ongoing RAC Acceptance test with Best Buy (BBY- $25.08 - Not Rated) may expand meaningfully in the near term," Sterne Agee analysts wrote in a Feb. 23 report. "Our checks show the possibility of 190 RAC Acceptance locations within Best Buy stores in the states of California and Florida. If such a transaction were to occur, we see incremental revenue/EPS potential of $115M and $0.25 for RCII once these stores mature (~4 years). In addition, if the agreement between RCII and BBY expands to more states, the revenue/EPS potential could be higher." Forward Annual Dividend Yield: 1.7% Rated "A- (Buy)" by TheStreet Ratings: The company's fourth-quarter gross profit margin was about the same as it was a year ago. In the fourth quarter, stockholders' net worth remained about the same as last year. TheStreet Ratings' price target is $44.13. The stock closed Thursday at $38.14 and has risen 3.08% year to date.
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