Mitsubishi UFJ Financial ( MTU) trades an average of 3.1 million shares per day with a market cap of $97 billion. 52-Week High: $6.88 Beta: 0.79 Price-to-Book Ratio: 0.72 The Mitsubishi Group is well known for its cars and TVs, but did you know that one of the group's companies, Mitsubishi UFJ Financial, is one of the world's largest bank holding companies? The current price action demonstrates the increasing desire to own a piece of the company too. Mitsubishi is up more than 40% from a year ago, and the daily and weekly charts are solidly bullish. The company pays a dividend yield of 2.2%, which is like a double-stuffed cookie for long-term investors. What may initially scare some investors is the high trailing price-to-earnings ratio. The trailing P/E is a nosebleed 66, but fortunately the forward P/E is more suitable. In this case, the forward P/E is only 15, well within my premium tolerance of 20. The average estimate for next year's earnings per share is 45 cents, down from an estimated 51 cents for the current year. Japan has been in the news a lot lately, especially the yen.
Because of the high volatility lately in the yen, I'm not surprised Japanese stocks are experiencing a lot of turbulence too. Buy on dips, but also expect Mitsubishi to test $7 soon. If the stock doesn't get higher than that in the near term, at least the dividend will buy a lot of time to wait for such a move.
DDR ( DDR) DDR operates as a real estate investment trust (REIT) in the U.S. The company engages in acquiring, developing, redeveloping, owning, leasing and managing shopping centers, mini-malls and lifestyle centers. DDR trades an average of 2.6 million shares per day with a market cap of $5.7 billion. 52-Week High: $18.16 Beta: 1.51 Price-to-Book Ratio: 1.92 The main attraction for most investors buying a REIT is the dividend. DDR doesn't disappoint investors looking for yield. DDR currently pays about 3%, but you need more than 3% to make this one worthwhile. The reason why that 3% isn't as favorable as it appears at first glance is the way in which the shares have risen. On the daily chart, they increased to the point of being overbought from a technical analysis point of view. I fear we will see these shares make a retracement before they continue higher.
Waiting for retracements also means accepting the risk of missing out on the next leg higher. Don't forget that favorable stock buys are like New York City taxis. If you miss one, another will be around soon. If you want exposure to DDR, keep the powder dry until you get a chance to pick up shares for about $17.50. In doing so, you will reduce your risk and increase your dividend yield. If DDR continues moving higher without looking back, you can find comfort knowing that you weren't willing to take on more risk than it was worth. Besides, by the time DDR plays out, one way or another, a different opportunity will present itself.
CSX ( CSX) CSX, together with its subsidiaries, provides rail-based transportation services. It offers traditional rail service and the transport of intermodal containers and trailers. CSX trades an average of 7.8 million shares per day with a market cap of $25 billion.