52 Week Range: $30.64 to $41.79
Price To Book: 4.9
Earnings Payout Percentage: 70%
I like Bristol-Myers and the space overall, albeit, I like Bristol-Myers a lot more after a dip in price to give us a buying pullback. A small retracement into the upper $39s makes an ideal entry from my desk. Bristol-Myers earns a spot on the list due to the stable profit generation and stable dividend payments. In 2009 and again in 2011, Bristol-Myers raised its dividend. They followed up last year and the year before, but you want exposure to companies that are able to increase dividends while others are busy cutting or halting dividend payments altogether.
Currently, the short interest based on the float is negligible and not a significant concern. Short interest is 2.4%. A quick glance at a daily or weekly chart demonstrates short sellers are not in a happy place right now, but there isn't enough short interest to create a meaningful squeeze. BMY Payout Ratio TTM data by YCharts
DD Payout Ratio TTM data by YCharts
E. I. du Pont de Nemours (DD - Get Report) Background: DuPont is involved in science and technology in a range of disciplines including high-performance materials, specialty chemicals, pharmaceuticals and biotechnology. The company operates globally through strategic business units. 52 Week Range: $41.67 to $53.98 Price To Book: 4.6 Earnings Payout Percentage: 46% DuPont may not be the perfect stock to own but it gets incredibly close. With a closing price on Wednesday less than $50 a share, it's still cheap. While the market is making new highs, DuPont hasn't kept pace. It's hard to imagine a company that trades about six million shares a day can go unnoticed, but what other explanation is plausible? At first glance, an investor may point to the earnings misses. It's true DuPont missed three out of the last four earnings reports; however, the misses are just a component of the equation. The last time DuPont reported a miss, it was flirting with a single digit earnings multiple. In a nutshell, the last time DuPont missed, it was already priced in. During the most recent earnings report, Dupont gave what Wall Street wanted, a respectable beat, but the French company has yet to fall in favor with investors.