This Day On The Street
Continue to site
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 Upcoming Spinoffs Could Pay Huge Dividends

D.E. Master Blenders will trade on the New York Stock Exchange and be headquartered in Amsterdam. The business generated operating income (before corporate overhead) of $452 million last year, and analysts think the standalone business will easily produce more than $380 million of income this year.

D.E. Master Blenders and Sara Lee will pay dividends and have investment-grade credit ratings. Sara Lee has a 65-year track record of paying dividends, but recent dividend growth has been weak at just 1% a year.

Risks to consider: ConocoPhillips bases its income projections on "flat" gas prices and in the short-term will be partially funding the dividend from cash on hand and asset sales. This limits future flexibility and means a dip in oil prices could hurt the dividend. In addition, while both Sara Lee businesses will pay a dividend, the company hasn't disclosed initial rates, payout targets or dividend growth policy.

Action to take--> My top pick is ConocoPhillips because of the company's excellent dividend track record and transparent plan for future dividend growth. Abbott is also a strong choice for dividend investors who want a safe payout and steady growth. Sara Lee is appealing as a value play with modest income growth.

>>To see these stocks in action, visit the 3 Upcoming Spinoffs Could Pay Huge Dividends portfolio on Stockpickr.

Also see:
  • Insiders Just Spent $67 Million on These 2 Stocks
  • Why I'm Now Bullish on this "Hated" Commodity
  • I'm Adding This Mining Stock to My $100,000 Real-Money Portfolio
  • 3 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
    AAPL $122.77 0.00%
    FB $94.20 0.03%
    GOOG $627.26 0.00%
    TSLA $253.39 0.15%
    YHOO $37.84 0.00%


    Chart of I:DJI
    DOW 17,440.59 -127.94 -0.73%
    S&P 500 2,067.64 -12.01 -0.58%
    NASDAQ 5,039.7760 -48.8540 -0.96%

    Free Reports

    Top Rated Stocks Top Rated Funds Top Rated ETFs