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: MRO BHI USB ARG GPC

Because Marathon is an E&P firm first and foremost, it's got much less in the way of midstream and downstream assets than most peers -- a fact that gives MRO deeper margins and less in the way of capital costs. Marathon's costs are pretty standard for the industry, but that's looking a whole lot more attractive with oil prices on the high end of their historic range. The firm has the most upside is in its shale portfolio, which still has room for unproven reserves to beat analysts' expectations.

Financially, MRO is in good shape, with a manageable debt load on its balance sheet and access to plenty of liquidity. The firm's cash generation makes a boost to its 17-cent quarterly dividend look likely. Right now, Marathon pays out a 2% yield -- I'd expect that to get boosted in the near-term.

Baker Hughes

Baker Hughes (BHI) is another oil name that's enjoying an energy sector rally in the near-term. Year-to-date, shares of the $20 billion oil servicer have climbed 10%, besting the broad market's climb by a fair margin. Right now, BHI pays out a 15-cent quarterly dividend -- but that 1.34% yield could be due for an upgrade in 2013.

BHI is a major player in the oil field service business, providing drilling and pumping services, oil field chemicals, and specialized tools to production companies looking to get their commodities out of the ground as effectively as possible. The firm's operations are spread across 90 countries, giving it the flexibility to service nascent oil industries in emerging markets. Competition is tough in the oil service business, so BHI's proprietary drilling technology is critical for the firm's success -- the drilling expertise gets BHI's foot in the door to offer less specialized products and services on any given project.

The firm generates considerable free cash flows, a critical factor in its ability to hike its dividend in 2013. As oil prices continue to make a steady ascent, so too should E&Ps' willingness to shell out more cash for BHI's services.

U.S. Bancorp

Banks haven't exactly been known for their dividend potential of late. But U.S. Bancorp (USB) has been the exception rather than the rule lately. The $62-billion banking stock may not get the same status as the big four, but its scale is mammoth nevertheless. And its 19.5-cent dividend payout looks ready for an increase.

2 of 4

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