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

5 Dividends That Are About to Get Bigger

Stocks in this article: CMCSA KO PX OXY ED

Praxair

I'll admit that the industrial gas supply business is boring. But more often than not, boring businesses generate exciting income growth for investors. That's why we're looking to Praxair (PX), the world's biggest industrial gas supplier. Praxair's customer list ranges from hospitals to restaurants to welding shops, diversification that spares the firm from the cyclical headwinds that normally entangle industrials.

While it's true that industrial gasses tend to be relatively low-cost, the capital needed to bottle and transport them isn't -- a factor that enables Praxair to collect double-digit net margins for their trouble. Extremely low customer turnover helps too. Generally, packaged gas isn't a material cost for Praxair's customers, so the company pushes hard to get very long-term contracts that typically renew at very high rates. The contracts keep commodity risks off of Praxair's plate, but they mean that the firm is hugely entrenched against competition.

Financially, Praxair is in solid shape, with adequate liquidity on its balance sheet and hefty cash generation abilities. The firm generates enough cash to cover its debt obligations and leave enough left over to pay out its 55-cent dividend and then some. That's why this stock looks likely to boost its payout in the next quarter. Currently, that 55-cent dividend translates into a 2% yield for shareholders.

Occidental Petroleum

Oil and gas exploration and production firm Occidental Petroleum (OXY) may seem like a strange addition to the list today -- after all, energy companies have been hit hard by slipping commodity prices in 2012. But share prices have gotten punished more severely than the fundamentals have warranted for many energy stocks, and OXY still looks primed for a boost to its quarterly 54-cent dividend payout as a result.

Occidental Petroleum is a pure play on oil and gas production. The firm doesn't own refinery assets, and it doesn't own gas stations. Lately, though, that proven to be a very good thing as downstream assets struggled to earn their keep on integrated firms' balance sheets. As a result, Occidental enjoys much deeper net margins than its integrated supermajor peers, and it's able to pay more cash to its owners.

3 of 5

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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