U.S. Dividend Watch List: November 30, 2012

Below are the 56 companies on our U.S. Dividend Watch List that are within 11% of their respective 52-week lows. Stocks that appear on our watch lists are not recommendations to buy. Instead, they are the starting point for doing your research and determining the best company to buy. Ideally, a stock that is purchased from this list is done after a considerable decline in the price and rigorous due diligence.

Symbol Name Price % Yr Low P/E EPS (ttm) Dividend Yield Payout Ratio
OMI Owens & Minor, Inc. 27.38 0.37% 16.01 1.71 0.88 3.21% 51%
INTC Intel Corp.  19.57 1.74% 8.55 2.29 0.90 4.60% 39%
ED Consolidated Edison, Inc.  55.79 4.03% 14.64 3.81 2.42 4.34% 64%
MCD McDonald's Corp.  87.04 4.48% 16.39 5.31 3.08 3.54% 58%
RBCAA Republic BanCorp., Inc.  20.47 4.65% 3.62 5.66 0.66 3.22% 12%
WABC Westamerica BanCorp.  42.56 5.09% 14.19 3.00 1.48 3.48% 49%
BOH Bank of Hawaii Corp. 43.47 5.10% 12.01 3.62 1.80 4.14% 50%
SON Sonoco Products Co. 30.07 5.10% 16.89 1.78 1.20 3.99% 67%
JW-A John Wiley & Sons Inc. 42.70 5.12% 13.14 3.25 0.80 1.87% 25%
NJR New Jersey Resources 40.58 5.38% 17.96 2.26 1.60 3.94% 71%
LKFN Lakeland Financial Corp.  24.74 5.41% 11.56 2.14 0.68 2.75% 32%
ATR AptarGroup Inc. 47.67 5.49% 19.62 2.43 0.88 1.85% 36%
CBU Community Bank System 26.88 5.91% 13.64 1.97 1.08 4.02% 55%
TEG Integrys Energy Group 53.17 6.21% 16.77 3.17 2.72 5.12% 86%
SFNC Simmons First National 23.81 6.48% 15.66 1.52 0.80 3.36% 53%
VVC Vectren Corp. 29.25 6.52% 14.77 1.98 1.42 4.85% 72%
CWT California Water Service 18.00 6.89% 16.51 1.09 0.63 3.50% 58%
ABM ABM Industries, Inc. 19.08 6.89% 19.67 0.97 0.58 3.04% 60%
WEYS Weyco Group, Inc.  23.53 6.91% 15.28 1.54 0.68 2.89% 44%
NWN Northwest Natural Gas Co. 43.86 6.95% 19.41 2.26 1.82 4.15% 81%
TRMK Trustmark Corp.  22.22 7.03% 12.70 1.75 0.92 4.14% 53%
CASY Caseys General Stores 49.40 7.04% 16.36 3.02 0.66 1.34% 22%
IBM IBM 190.07 7.17% 13.66 13.91 3.40 1.79% 24%
PRK Park National Corp. 63.09 7.19% 14.31 4.41 3.76 5.96% 85%
PX Praxair, Inc. 107.21 7.21% 19.11 5.61 2.20 2.05% 39%
SRCE 1st Source Corp.  21.15 7.36% 10.79 1.96 0.68 3.22% 35%
ONB Old National BanCorp. 11.74 8.00% 12.36 0.95 0.36 3.07% 38%
DBD Diebold, Inc. 29.91 8.13% 11.33 2.64 1.14 3.81% 43%
FDS FactSet Research Systems 92.39 8.21% 22.42 4.12 1.24 1.34% 30%
STBA S&T BanCorp., Inc.  16.97 8.23% 14.38 1.18 0.60 3.54% 51%
PNY Piedmont Natural Gas 30.86 8.24% 19.78 1.56 1.20 3.89% 77%
ANAT American Nat'l Insurance 68.99 8.34% 10.12 6.82 3.08 4.46% 45%
SJW SJW Corp. 24.46 8.42% 20.05 1.22 0.71 2.90% 58%
CLC Clarcor Inc. 46.38 8.49% 19.09 2.43 0.54 1.16% 22%
WGL WGL Holdings, Inc. 39.06 8.62% 14.41 2.71 1.60 4.10% 59%
TMP Tompkins Financial Corp. 38.99 8.85% 15.91 2.45 1.52 3.90% 62%
GD General Dynamics Corp. 66.50 8.86% 9.90 6.72 2.04 3.07% 30%
CAT Caterpillar Inc. 85.24 8.93% 8.73 9.76 2.08 2.44% 21%
APD Air Products & Chemicals 82.94 8.97% 15.25 5.44 2.56 3.09% 47%
SJI South Jersey Industries 49.97 9.08% 14.74 3.39 1.77 3.54% 52%
GRC Gorman-Rupp Company 27.83 9.09% 19.74 1.41 0.40 1.44% 28%
CFR Cullen/Frost Bankers 54.61 9.11% 14.45 3.78 1.92 3.52% 51%
FNB F.N.B. Corp. 10.80 9.20% 14.03 0.77 0.48 4.44% 62%
ETP Energy Transfer Partners 43.89 9.21% 10.09 4.35 3.58 8.16% 82%
EXPD Expeditors International 37.42 9.42% 23.39 1.60 0.56 1.50% 35%
BDX Becton, Dickinson 76.67 9.45% 13.72 5.59 1.98 2.58% 35%
ADM Archer Daniels Midland 26.70 9.52% 18.67 1.43 0.70 2.62% 49%
UBSI United Bankshares, Inc.  24.70 9.58% 15.25 1.62 1.24 5.02% 77%
CAH Cardinal Health, Inc.  40.45 9.59% 12.80 3.16 1.10 2.72% 35%
SCG SCANA Corporation 46.34 9.60% 14.90 3.11 1.98 4.27% 64%
TNC Tennant Co. 38.14 9.63% 18.70 2.04 0.72 1.89% 35%
PPL PP&L Corporation 29.35 10.01% 10.56 2.78 1.44 4.91% 52%
DCI Donaldson Co. Inc. 33.58 10.06% 20.48 1.64 0.36 1.07% 22%
IBKC IBERIABANK Corp.  48.75 10.09% 20.31 2.40 1.36 2.79% 57%
MATW Matthews International 30.25 10.32% 15.28 1.98 0.40 1.32% 20%
CVX Chevron Corp. 105.69 10.40% 8.67 12.19 3.60 3.41% 30%
56 Companies

Watch List Review

Medical equipment company, Owens & Minor (OMI) topped our list this week after shares fell -7% when the company issued 2013 guidance that was below the street's expectations.   The comment below comes from Associated Press.

The company said it expects to earn $1.90 to $2 per share for 2013, not counting some expenses from its $158 million purchase of Movianto Group, which allowed it to enter the European health care market.   Analysts surveyed by FactSet, on average, were expecting profit of $2.07 per share.

Owens & Minor also said it expects revenue growth of 2 percent to 4 percent. Wall Street is expecting sales of $9.2 billion.

The low growth of revenue is concerning but that is somewhat expected given the industry the company competes in.  The dividend of 3.2% and 51% payout ratio coupled with strong history of dividend increases (13% annual growth rate for 23 years) makes this company a top prospect for research.

The next company, Intel (INTC), has appeared on our list for many weeks.  The stock continues to be under pressure by the macro view of PC growth.  Goldman Sachs and Citigroup issued a ‘sell’ rating on the stock.  The thesis of ‘the death of PC’ is one that investors are basing their selling of this stock on, but this isn’t the first time analysts cut ratings based on PC weakness.  They did that in October 2008 (read here).  Since that article was published, shares dropped as low as $12.40 (-28%) from $17.30 but had risen to $29.27 (+69%).  Intel earnings per share (EPS) for 2013 is now expected to be $1.96 versus $2.11 in 2012, a 7% decline.

Something worth noting this week is that 5 out of 56 companies are Dow Jones Industrial components.  Those companies are Caterpillar (CAT), Chevron (CVX), IBM (IBM), Intel (INTC), and McDonald’s (MCD).  That’s 16% of the Dow!  Any conservative investors may look deeper into each one of these companies as a starting point for a constructing a well diversified portfolio with blue-chip stocks.

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