, the second-largest nuclear generator in the United States, just delivered revenue gains of nearly 19% for the most recent quarter. The company also got approvals on Monday for the spin-off of its nuclear power plant unit, Enexus Energy.
Looking ahead, the company sees 2008 earnings of between $6.50 and $6.90 a share, compared with consensus estimates of $6.77 a share. Recent record-high energy prices have changed some of the past negative sentiment about nuclear power. Stocks of utilities with nuclear power interests have seen this recent trend help lead their share prices higher. Entergy's stock has risen more than 50% in the last two years.
For investors, we see this nuclear trend continuing, and the shares of Entergy are a good way to play it. The company has a 2.81% dividend yield, based on last night's closing stock price of $106.57.
Entergy is a "Recommended" dividend stock, holding a Dividend.com Rating of 3.7 out of 5 stars.
McGraw-Hill Stock Bounces, but Guidance is Down
( MHP) is not forecasting any substantial near-term growth in its various businesses. The publisher of text books and the owner of credit ratings agency Standard & Poor's is feeling the effects of a tough economic climate.
Management is projecting a revenue decline for its financial services segment for the rest of the year. With the mortgage-backed securities and collateralized debt obligation market evaporating, the financial services unit will need to find other areas to make up for the lost revenue. The rating of corporate bonds and structured finance deals is the bread and butter for Standard & Poor's, making up nearly 45% of the company's revenue. The education segment itself may see growth of 4% to 6% for the year.
For investors, we think the shares may still underperform for a while longer. The company has a 2.36% dividend yield, based on last night's closing stock price of $37.22. We will monitor the company's stock and news flow to see if a turn comes sooner than we expect.
McGraw-Hill is not recommended at this time, holding a Dividend.com Rating of 3.3 out of 5 stars.
Sony Movie and Mobile Mess
may want to reconsider its mobile plans after seeing its second-quarter earnings. Price competition and sluggish product sales were the cause of poor results at Sony Ericsson, Sony's joint mobile venture with
The company's movie division also performed poorly, posting a sizable 8.3 billion yen ($74 million) loss. Sony had expected a profit for the division.Overall, the strength of the yen has left revenue essentially unchanged from last year's same quarter, coming in at $18.5 billion. The highlight of the quarter for Sony was strong sales of the popular PlayStation 3 video game system. The company sold 1.56 million consoles, more than twice as many as they sold the same period a year ago. Management is optimistic the yen may weaken a bit, which could help the company beat its outlook for 2009.For investors, we can't find a single reason to own Sony here. The company is not too expensive at 15 times 2009 estimates, but the dividend yield of 0.50% (based on last night's closing price of $39.93), does not thrill us. Sony shares are also down over 20% in the last year. We'll have to monitor the currency effect on this stock just as much as the company's products. For now, both seem to be unfavorable in the near-term.
Sony is not recommended at this time, holding a Dividend.com Rating of 3.0 out of 5 stars.
Masco: Is This the Bounce to Buy?
gave investors some bleak numbers in its latest earnings report. The maker of home-improvement and building-supply products reported a revenue decline of 15% to $2.64 billion in its latest quarter.
Management cited a poor new home-construction market and a continued decline in consumer demand for home-improvement goods. To reign in costs, the company has been implementing plant closings and job cuts in the last two years. As for the rest of 2008, management expects earnings to come in between 50 cents and 65 cents a share. The consensus forecast is for earnings of 60 cents.
For dividend investors, we are looking at a stock that has most of the bad news already priced in. Masco's dividend yield is rapidly becoming very attractive (6.02%, based on last night's closing stock price of $15.29). We'd like to see the stock sustain above recent lows before we consider upgrading the stock to our "Recommended" list. Let's hope Masco can "fix" its own house. We'll keep you posted.
Masco is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.
Colgate-Pamolive Earnings Sparkle
just reported that second-quarter sales rose 16% to $3.96 billion. The company also beat the Street on earnings estimates, coming in 4 cents ahead of what analysts were expecting.
Management has increased prices on several products in order to offset higher costs for commodities. Outside of the U.S, the company is seeing tremendous growth. Latin America grew 23%. Europe and the South Pacific were up 14%, while Asia and Africa were up 17%. As for the outlook, management is confident the company will see double-digit earnings-per-share growth and higher gross profit margins.
We believe Colgate-Palmolive is a core holding and should be bought on pullbacks especially. The company has a 2.33% dividend yield, based on Friday's closing stock price of $68.56. Shares of this steady dividend payer are up more than 50% since October 2004. Investors should continue to anticipate consistent growth and returns from this blue-chip dividend stock.
Colgate-Palmolive is a "Recommended" dividend stock, holding a Dividend.com Rating of 3.6 out of 5 stars.
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At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.
Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.