Ex-Dividend Stocks: Chevron, Honeywell

NEW YORK ( TheStreet) -- The following stocks go ex-dividend Wednesday, meaning an investor must purchase the shares Tuesday to qualify for the next dividend payment: Chevron ( CVX), Duke Energy ( DUK), Honeywell ( HON), Sherwin-Williams ( SHW), United Technologies ( UTX), Visa ( V) and Whirlpool ( WHR).

Chevron

The energy company reported first-quarter earnings on April 27 of $6.5 billion, or $3.27 a share, up from year-earlier earnings of $6.2 billion, or $3.09.

"Our $120 target price represents an 8.9x multiple to our 2012 EPS estimate, near the lower end of its historical 8-14x range," Societe Generale analysts wrote in a May 7 report. "We expect CVX's high oil exposure, diverse business model, strong balance sheet, and dividend yield to be sought as a safe haven amid the market volatility we anticipate in 2012. That said, the heavy investment phase for its large LNG projects puts it in deficit spending territory for 2012-13 and poses the risk of cost overruns. We respect management's conservative approach, but it will limit potential for positive surprises from dividends or buybacks. Risks to our TP: Volatile wellhead, crack spreads, and product pricing can materially affect profitability. With 73% non-US exposure, geopolitics can affect bottom line results, as can proposed domestic tax changes. CVX also has several chunky deep H2O projects, which pose cost overrun risks. About half of operations are PSC exposed."

Forward Annual Dividend Yield: 3.5%

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Duke Energy

The energy company reported on May 4 first-quarter earnings of $295 million, or 22 cents a share, down from year-earlier earnings of $511 million, or 38 cents.

"We are maintaining our 2012-2014E EPS of $1.42/$1.43/$1.55 and initiating a2015E of $1.64," Bank of America Merrill Lynch analysts wrote in a May 7 report. "Our revenue estimates are down somewhat based on our updated commodity assumptions that have a weaker outlook on power prices. However, margins are not as impacted as our underlying fuel price assumptions also fell. The step-up in growth in 2014 and 2015 is largely due to upside from capacity and energy pricing for the Midwest coal and natural gas generation portfolio. We expect somewhat more moderate utility growth as Duke's major generation projects are completed this year and next. While the merger should provide long-term strategic value, catalysts in the near term are relatively few. We reiterate our Neutral rating and $22 price objective."

Forward Annual Dividend Yield: 4.6%


Honeywell

The diversified technology and manufacturing company reported first-quarter earnings on April 20 of $823 million, or $1.04 a share, up from year-earlier earnings of $705 million, or 88 cents.

"HON's 1Q was an across the board, 'no questions asked' beat and raise, increasingly differentiated in a slowing macro landscape," JPMorgan analysts wrote in an April 23 report. "The better-than-expected 2Q range continues to 'front end load' the deliverables here, with a full year range that sets the company up for further beats in a benign macro environment. When the numbers are this good, 'over-owned' is a weak Bear case (as it has been on DHR for years), and with a few more quarters like this and HON will have to be considered as the 'must own' premium diversified industrial. In short, after of decade of restructuring/heavy lifting, it increasingly looks like this is Honeywell's cycle."

Forward Annual Dividend Yield: 2.6%

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Sherwin-Williams

The paint retailer reported first-quarter earnings of $100.2 million, or 95 cents a share, up from year-earlier earnings of $68.3 million, or 63 cents.

"All of SHW's paint and coatings divisions reported positive volumes and higher prices in the first quarter of 2012," JPMorgan analysts wrote in an April 23 report. "Unseasonably warm weather, market share gains, and a pick up in repaint and maintenance demand assisted these results. The Paint Stores group reported about 20% comparable store growth with volumes accounting for a little more than half of this growth. Similarly, PPG reported 20% growth in its US architectural paint business. Raw material cost dipped in 4Q:11 and are now rising gradually. Contract propylene prices are likely to rebound from 67 cents/lb in 1Q:12 and to 84 cents/lb by the summer but the raw material storm has passed. Titanium ore price increases and a tight chloride market should keep TiO2 pigment prices at elevated levels. We lift our 2012 EPS forecast from $6.00 to $6.15 reflecting a higher level of price gains and better volumes, and we raise our 2013 EPS forecast from $6.60 to $6.75. Our 2014 EPS projection is $7.50. We rate SHW Neutral."

Forward Annual Dividend Yield: 1.3%


United Technologies

The aerospace and industrial company reported on April 24 first-quarter earnings of $819 million, or $1.31 a share, down from year-earlier earnings of $1.7 billion, or $1.06.

"We believe investors remain concerned about H2 growth at Otis, as the pickup in high-end residential construction has not begun and competitors had taken some share following the unsuccessful pricing actions in 2011," Wells Fargo analysts wrote in a report Friday. "In addition, we believe that Otis business in Spain could be an area to watch given the weaker environment in EuropeSpain is the company's fourth largest market in Europe. If both of these areas are weak through the end of 2012, we believe it could absorb much of the $50$75MM of yr/yr segment profit growth included in the guidance."

Forward Annual Dividend Yield: 2.5%

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Visa

The credit card company reported second-quarter net income on May 2 of $1.29 billion, or $1.91 a share, up from year-earlier earnings of $881 million, or $1.23.

"We believe V's very high incremental margins will enable the company to continue funding growth/innovation-related investments, primarily in mobile (ie, V.me), e-commerce, emerging geographies, and prepaid," Jefferies analysts wrote in an April 29 report. "We continue to believe the bulk of margin expansion is over, but still expectEPS growth to exceed revenue growth for the foreseeable future due to incremental margin upside from current levels, possible tax rate opportunities, and share buybacks."

Forward Annual Dividend Yield: 0.7%


Whirlpool

The home appliances company reported first-quarter earnings on April 26 of $92 million, or $1.17 a share, down from year-earlier earnings of $169 million, or $2.17.

"We rate WHR HOLD due to the removal of preliminary tariffs on refrigerators and the likely negative read-through to washers, despite clear dumping behavior by foreigncompetitors," KeyBanc Capital Markets wrote in a May 1 report. "WHR is trading at 9.6x current year estimates, in line with its historical 10-11x range. At 4.0x 2013 EV/Forward EBITDA, WHR is trading below its 5.0x average since 1999 and within an EV/EBITDA range of 3.3-6.7x over the same period. WHR is currently priced at 0.39x EV-to-forward sales, above its 12-month average of 0.35x and below its three-year average of 0.41x."

Forward Annual Dividend Yield: 3.3%

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-- Written by Alexandra Zendrian

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