Dividend.com - 2016 Stock Guide - Amazon S3 - 2016 Stock Guide 6 Even More Dividends And Buybacks We...

Dividend.com - 2016 Stock Guide

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Table of Contents

Introduction 3-4

2015 Review 5-7

2016 Preview 8 -12

Stock-by-Stock Previews 13-226


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INTRODUCTION

This eBook serves as an investing guide and economic forecast for dividend-minded

investors. In the following pages, we’ll examine the important issues facing both investors

and specific dividend-paying stocks in the coming year.

Despite a dramatic and frightening 11% drop in August, the stock market (as measured

by the S&P 500 Index) ended 2015 just about where it was when the year began.

After a choppy start in January—and a shift to a slightly higher trading plateau in the

spring and early summer—the markets plunged in response to sharp stock declines in

China, and then recovered in the year’s final quarter. Following an 11.4% gain in 2014

and an almost 30% gain in 2013, the market’s go-nowhere 2015 performance was

disappointing. Treasuries as measured by 10-year bonds also were essentially flat. But

considering mounting fears of a global recession and worries over the effects of higher

interest rates, many investors were thankful for a year in which financial markets had no

particular color rather than one that left their portfolios bright red.

Driving markets during the year were two key issues: the health of China (the world’s

second largest economy) and the future of interest rates.

Few Western analysts trust the accuracy of China’s official economic statistics—so what

they see with their own eyes has them concerned. Having built a huge manufacturing

engine largely on credit, which also fueled massive investments in real estate, China now

is burdened by debt. To service the debt, the country must keep up its furious export

pace, even if that means cutting prices—and that pricing pressure, in a world glutted with

goods, keeps driving commodity prices lower.

The price of Dr. Copper (so named because price movements of the widely used metal

have reliably forecast global economic shifts) were off almost 30% in 2015, after a fifth

year of declines in 2014. Other commodities came down too.

Oil prices were the biggest movers, down 40% to the delight of drivers and to the dismay

of energy producers, especially the highly leveraged ones. The broad Bloomberg

Commodity Index was off more than 20% for the year. While the pace of decline

probably won’t continue in 2016, there are few signs of an imminent turnaround.

On the interest-rate front, repeated signals throughout the year from the Federal Reserve

that a modest hike was likely as long as employment and other signs of economic health

continued to improve seemed to serve as a kind of inoculation against shock—there was

little immediate reaction once the Fed eventually pulled the trigger in mid-December. By

that time, analysts had already moved on to concerns about the timing and size of

subsequent rate hikes.

As the year drew to a close, uncertainty abounded on many fronts: Will the European

Central Bank’s increased monetary easing—a move at odds with Fed tightening—spur

Eurozone growth, attract more investment to the U.S. and drive the dollar even higher, or


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both? Will the U.S. economy continue to recover or slump in the face of worldwide

deflationary trends? How will the 2016 elections shape markets and the economy?

As we have done in the past, we will look into the economic crystal ball for 2016 from

the perspective of what may go right and what may go wrong. We will then provide our

own view of these potential factors, aware that a multitude of factors could influence

outcomes. We hope this analysis—followed by similar upside and downside previews for

several dozen of the biggest-name dividend stocks in the world—helps you invest

successfully in 2016.

And please keep in mind that the scenarios that follow are possibilities, not predictions.


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A Look Back At 2015

Before looking ahead, let’s review some of the scenarios laid out in last year’s dividend

guide—a process that will add perspective to our 2016 outlook. First, a retrospective on some

of our optimistic scenarios, then we’ll look at some of the things we thought might go wrong.

Things We Hoped Would Go Right

Continued Unwinding Of Commodities Even after more than three years of declining commodity prices, our year-end 2014 outlook

for the coming year said that commodities would like fall further (possibly much further) as a

great unwinding continued into 2015—the call was right on target.

At the top of the commodity pyramid stands gold, which peaked at $1,921.50 an ounce in

September 2011 and has been riding a downward roller coaster since. It ended 2014 at

$1,188.20 an ounce and was trading at about $1,080 by the time 2015 came to close, a

decline of almost 9%. The drop in the price of oil, which hit $147.27 per barrel in July 2008,

has been even steeper as a result of the astonishing success of new U.S. production. From

roughly $75 per barrel at the end of 2014, the next 12 months saw oil prices fall to $40.

Rounding out the most prominent commodities, copper also continued to sink, down to a few

pennies above $2 a pound, down from its peak near $4.70 in February 2011, and its year-end

2014 price of near $3.

Since commodities traditionally have moved inversely to equities, we were expecting that

lower commodity prices would have a tonic effect on stocks. On that score, we were half

right.

A Booming M&A Market Just as 2014 saw considerable merger and acquisition activity in tobacco, energy,

broadcasting, telecom, tech, biotech, spirits and more, we anticipated that 2015 would be

another big year for M&A—especially in technology and energy, as interest rates remained

low and activist investors demanded greater returns. We were more than right; the year

turned out to be a record for mergers and acquisitions, with deal volume approaching $1.7

trillion. Some of the largest and most notable deals included the merger of Charter

Communications Inc. (CHTR) and Time Warner Cable Inc. (TWC); The Kraft Heinz Co.

(KHC), which combined two giant food companies; the merger of insurance goliaths ACE

Limited (ACE) and The Chubb Corp. (CB); and Dell’s offer for EMC Corp. (EMC).

More IPOs

After a very strong market for initial public offerings in 2014, we felt that market conditions

in 2015 would be ripe for many more companies to make the move. Conditions were good,

and about 230 companies went public during the year—but that was below the blizzard of

364 IPOs in 2014, a recent record, and lower than the 256 of 2013. The less-than-exciting

trajectory of the stock market in 2015, and the sharp correction in August, probably

contributed to the subdued number of newcomers.


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Even More Dividends And Buybacks We risk self-injury in patting ourselves on the back for this call—U.S. corporations spent a

record $1 trillion on dividends and buybacks in 2015. Prodded into returning more to

shareholders by activist investors such as Carl Icahn, Bill Ackman and Nelson Peltz,

corporate managers are also serving their own ends by buying back company shares to push

up the price of remaining shares and their own share-price dependent compensation—this is

where ordinary shareholders benefit along with the top guys.

Global QE Hits A Crescendo Last year, we said that quantitative easing by the world’s central banks would continue

because: a) central bankers believe more liquidity is the miracle pill for every sick economy;

b) they’re so committed to QE that they have no choice but to convince themselves that the

process works and that it is good for everyone; and c) to believe otherwise, or to question the

long-term ramifications of their practices, is all but forbidden at this point. While the Fed

took its foot off the gas in 2015, their European counterparts stomped down even harder,

driving interest rates further into negative territory. The big money wheels kept on rolling.

Things We Thought Could Go Wrong

The Housing Market Plunges We thought that stagnant household income and weak wage growth would keep the housing

market cool in 2015. In fact, the housing market slogged along in the same way that the

economy slowly and modestly improved. Sales of existing homes continued to improve each

month, while new home sales were up very modestly for the year. The outlook, however, is

optimistic rather than gloomy: In October, a builder sentiment index from the National

Association of Home Builders rose to a 10-year high.

Valuations Finally Come Under Scrutiny Is the market overvalued? We worried about that all through 2013 and 2014, when the price-

to-revenue ratio of the S&P 500 climbed to a record 1.81 toward the end of the year.

Guess what? As 2015 drew to a close, the ratio was still in the 1.8 area, so market

participants clearly were not especially concerned. Since valuations are based on emotions,

which can turn on a dime, what investors are willing to pay for stock may change in 2016—

and then again, it may not.

A New Cold War Freezes The Markets Looking ahead to 2015 last year, the belligerency and aggressiveness of Russian president

Vladimir Putin seemed like a wildcard. Anything from war to energy disruptions to organized

computer hacking seemed possible with the Russian strong man at the helm. There was no

discernable market fallout from the Russian sabre rattling last year, not that conditions have

devolved into a 21st century cold war, but the West is still keeping a wary eye on the Eastern

front.

Another Recession Rocks The Markets


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Whew! Our lumbering recovery may not be the economic revival of our dreams, but it sure

beats the Almost Depression of 2008-2009, or even a garden variety recession. Thank

goodness that 2015 was a year of slow growth, not negative growth, and that our economic

nightmares remained a dream. But one additional year without a recession only means that

the next inevitable downturn is one year closer. Caution and preparation are warranted more

than ever.


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Looking Ahead To 2016

Things We Hope Will Go Right

The Economy Continues On Its Low-Growth Path

There’s no law that says recessions are inevitable—but history has shown that they recur

periodically for a variety of reasons, typically every several years. The last one, of course,

was the December 2007 to June 2009 doozy that has come to be known as the Great

Recession when the economy shrank by 4.3%. The National Bureau of Economic Research

(the official record keeper and identifier of recessions) says the two previous recessions

occurred between March and November 2001, when GDP declined by 0.3%, and from July

1990 to March 1991, when it declined by 1.4%. So as we proceed into the seventh year of

recovery, the likelihood of a recession increases.

In the past, inventory accumulation and tighter monetary policy were often seen as the major

causes of slowdowns. Today, information technology has radically reduced the potential for

inventory problems. Concerns over the recessionary consequences of tighter money was the

chief reason the Federal Reserve deliberated for so long in its decision to raise interest rates.

Those concerns remain, but there are several factors suggesting that our current economic

expansion will continue.

First, the absolute level of interest rates, even if the Fed acts a few times, is still

extraordinarily low by historical standards. While it’s true that the size of marginal increases

is significant, the absolute rate of interest is hugely important too, as in a case where the Fed

would raise rates 25% to 1.25% from 1%—a huge percentage hike, but one that kept rates at

a very low level. Even if rates move somewhat higher, our current low-interest rate

environment is likely to continue due to international economic forces, and low rates are a

traditional driver of economic expansion.

Second, consumers appear to be on a better footing. Employment figures continue to

improve, and while much of the gains from the current recovery have gone to the wealthy,

people across the income spectrum seem more disposed to spend.

While countervailing economic forces—including a slowdown in China and weakened global

demand—could tip the scales toward recession, we believe there is a good chance the

domestic economy will continue to lumber along.

The Stock Market Muddles Along If the economy continues to expand slowly, we believe the stock market could follow the

same route. To be sure, as we saw in 2015, volatility can be part of an essentially flat

performance picture; therefore, even if stock prices aren’t much higher a year from now,

there could well be times we reach for the Dramamine.

Those who say the market has little room to rise point to its overvaluation. According to one

important measure—the Cyclically Adjusted Price Earnings Ratio, or P/E10, which measures

current prices against the 10-year average of inflation-adjusted earnings—the market is

priced above its historic average at roughly 26 times adjusted earnings versus the long-term


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P/E10 average of 16.6. But, current levels are far below the P/E10 peaks of 44.2 before the

dotcom crash in 2000 and the 32.6 level before the 1929 debacle. If corporate earnings

continue to rise the ratio would decline at current price levels, which would continue to make

the market a bit more expensive than average—but not excessively so, supporting the case

for okay, if not spectacular, market performance.

Bi-Partisan Agreement On Lowering Corporate Tax Rates Just as the Citigroup-Travelers merger in 1998 forced Congress into repealing the Glass-

Steagall Act, the 2015 Pfizer-Allergan merger cum tax inversion may be the trigger that sets

off a change in the corporate tax rate. Outrage over the $160 billion merger (in which

Allergan technically takes over Pfizer so that the surviving entity—which presto, change-o

becomes Pfizer again—is domiciled in Ireland) could well prompt an adjustment in the U.S.

corporate income tax rate, which can be as high as 39%. That’s the highest level in the

developed world and a reason that many U.S. companies are looking to leave the U.S.

Avoiding such high taxation is the reason that American companies have parked more than

$2 trillion overseas, which could be used for domestic investment if the tax climate changed.

If a lower corporate tax rate can be spun as a jobs creation measure—rather than as a

giveaway to large corporations (which merely pass along the tax to customers in the form of

higher prices anyway)—it’s possible that sufficient bipartisan support could exist for a

change in the tax law that would address an issue that troubles both sides of the aisle.

Small M&A Deals Continue While huge mergers and acquisitions dominate the headlines, lots of small- and medium-size

deals are going on under the media radar. These acquisitions are quietly transforming the

large American corporations that constitute the dividend-paying universe for a reason cynical

yet simple: Big companies are great at many things these days (including paying dividends),

but aside from the pharmaceutical and software/internet giants, they aren’t especially

innovative. Largely because of their bureaucracy, politics, short-term outlook and avoidance

of risk, big companies aren’t likely to come up with disruptive new products that will

dramatically increase revenue or create processes that encourage revenue growth.

Fortunately, they have the money to buy what they know they can’t create. And buying

smaller companies that have developed new products and processes is a lot easier than

creating those innovations from scratch.

While the record $3.7 trillion value of global M&A in 2015 was due largely to the size of the

year’s several mammoth transactions, it also included numerous smaller deals. These are

likely to continue in 2016 if the economy continues to grow modestly and interest rates stay

low, even if rising a bit. The acquisitions can continue to fuel the growth that large

companies require to continue paying dividends.

Dividends Continue Even if dividends and buybacks in 2016 do not reach the record $1 trillion spent in 2015, the

corporate community’s strong emphasis on rewarding shareholders is unlikely to abate as

activist investors continue to prod management to share some of the estimated $1.8 trillion in

cash on corporate balance sheets. Corporate management’s use of buybacks to put a glow on


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modest or non-existent earnings-per-share growth—and boost their own compensation—isn’t

likely to stop either.

The big question mark will be earnings. In 2015, earnings and sales growth were essentially

flat. If the economy continues to expand, stock prices, and dividends, should rise modestly as

well. Barring a recession, all signs point to a continuation of the strong dividend-paying

trend.

Slightly Higher Rates Actually Help Economy While the Fed moves to raise interest rates traditionally seen as an economic depressant—

“removing the punch bowl just as the party gets going,” in the words of the late Federal

Reserve Chairman William McChesney Martin—this time around higher rates actually may

have a salutary effect on the economy and the stock market.

For one, after carefully taking the temperature of the economy for so long before raising

rates, the Fed’s move is a very strong vote of confidence in the underlying strength of the

recovery. That alone should add to optimism.

Second, greater economic confidence and concerns that rates are going up would prompt

many would-be home buyers to act rather than wait. Greater real estate activity would serve

as another economic driver.

Third, and equally important, higher rates would reward savers and take pressure off retirees

living off their savings. Confident of higher income (even if modest), savers would likely

increase their spending, which would add another economic spur.

Things We Worry May Go Wrong

Housing Markets Stumble If rates rise even slightly, the level of income needed to support mortgage payments will rise,

which could make a home purchase impossible for those with stagnant incomes. Higher rates

could also make mortgage lenders even more skittish and demanding than they are now,

which would add to the inability of many would-be buyers to purchase a home.

Another factor that could shift the demand-supply balance for housing includes the

possibility that institutional owners of single-family homes—including the hedge funds and

others that bought hundreds of thousands of homes at depressed prices over the last five

years—could decide to cash out and take their profits.

Finally, since the greatest housing demand generally arises from young couples seeking their

own space to raise a family, the $1 trillion level of student debt—largely among Millennials

in their prime home-buying years—could act as an overwhelming retardant to home

purchases.

Aside from demand in certain red-hot markets such as San Francisco and New York City,

these factors could cause a lull or a slowdown in housing.


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The High-Yield Market Tanks

The long-term low interest rate environment has driven many investors to the high-yield

bond market. Corporations and securities firms responded to demand by issuing more high-

yield debt—now totaling $2.2 trillion, up by almost $1 trillion over the last five years.

Energy and metals and mining companies account for more than a quarter of that debt, and

those companies are in trouble due to the falling price of oil and other commodities. As the

decline continues, it’s possible that the high-yield default rate (now about 3% and low by

historic standards) may rise. Should that happen, confidence in the market could decline and

sell-off pressures could increase.

According to analysis by UBS, more than a third of the outstanding U.S. high-yield and

leveraged loan universe is “at risk” because issuers may not be able to refinance when the

debt matures because of higher rates and poor cash flow generation. A downturn in the high-

yield market could ricochet through the economy, frightening investors and spreading doubt

about the strength of the recovery.

Terrorism Strikes At Economic Nerve Centers By its very nature, terrorism of the kind that struck Paris and San Bernardino, California at

the end of 2015 is irrational and almost impossible to predict. While the loss of life in these

horrible attacks has been tragic, the direct economic impact of terrorism has been slim aside

from its chilling effect on tourism. That may change.

While we are taking security steps to protect our national economic resources, we remain

vulnerable to terror attacks on vital points of our financial, energy and communications

infrastructure. In his recent book, “Lights Out,” former ABC News anchor Ted Koppel says

that a major cyberattack on the nation’s power grid is not only possible but likely, and that

such an attack would be devastating. He also believes that the evidence points to our

unpreparedness for such an attack.

Should terrorists strike a strategically important nerve center in 2016, the effect on the

national economy and our economic confidence could be enormous.

Global Trade Slumps In the wake of China’s economic problems, world trade tumbled in 2015. Conditions are

right for the slump to continue and possibly worsen in 2016.

Demand for dry bulk shipping (which shrunk 2% to 3% in 2015) is likely to shrink by the

same amount in 2016, say maritime experts, and losses and bankruptcies are already hitting

the global shipping industry. On the higher end of the value chain, air cargo shipments

declined by about 2% in 2015 as well, and the 2016 outlook among specialists in that area

indicate that it too is likely to suffer from a decline in global trade.

If the current declines and persistent weakness in China reinforce the trend, the global trading

decline could become a prominent issue in 2016 and lead to a variety of negative

consequences.

Major Infrastructure Failure


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The deterioration of the nation’s roads, rails, airports, dams and energy distribution systems

is not news. It’s been discussed ad nauseam; yet, little has been done to address the issue,

which costs the nation untold billions in lost productivity and wasted fuel.

Roadway collapses—such as the I-35 disaster in Minneapolis and rail failures such as the

Amtrak derailment in Philadelphia—have resulted in deaths and short-term dislocations. But

the visible economic impact of these disasters has been negligible. A major infrastructure

failure at a key hub in our national transportation or electrical system, however, could have a

devastating impact. Damage to the Amtrak tunnel between New York and New Jersey, for

example, could cripple the economy of the Northeast corridor. On-going system failures at

airports in Chicago, Atlanta or Dallas could paralyze national air transport.

Luckily, the nation has been spared the worst consequences of its infrastructure neglect. It

may not be so lucky in 2016.


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AbbVie, Inc. (ABBV)

2015 Range: 45.45 - 71.60

Avg. Volume: 10,252,700

Market Cap: 91.69B

P/E Ratio (2016): 11.22

2015 EPS Est: 4.28

2016 EPS Est: 5.00

Annualized Div: 2.28

Div. Yield: 4.11%

Payout Ratio (2015): 0.53

Payout Ratio (2016): 0.46

ABBV Five-Year Stock Chart

Company Profile

Abbvie, Inc. (ABBV) is a maker of pharmaceutical products. Its product line includes treatments

for health conditions such as rheumatoid arthritis, psoriasis, Crohn's disease, HIV, low

testosterone, thyroid disease, Parkinson's disease, and many others. The company is

headquartered in North Chicago, Illinois and was spun off from Abbott Laboratories (ABT) in

January 2013.

Twenty-year dividend payout history (annualized)


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Year Annualized Payout Change

2014 1.66 +3.75%

2013 1.60 --

Dividend.com DARS™ Ratings for ABBV

Below are Dividend.com's proprietary DARS™ Ratings for ABBV as of Dec. 2, 2015. Each

value is based on a scale of 1 to 5.

Relative Strength

3.0

ABBV is performing in-line with the market or better.

Overall Yield Attractiveness

3.5

ABBV's dividend yield is above the industry average.

Dividend Reliability

4.5

ABBV has been paying dividends for 2011 years, and we feel its dividend yield is extremely

safe.

Dividend Uptrend

3.5

ABBV has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

ABBV's earnings estimates are flat.

Read more about the DARS™ Rating System here.

http://www.dividend.com/dividend-stocks/best-dividend-stocks/#dars


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Dividend.com 2016 Forecast for ABBV

Potential Catalysts

● As a major healthcare company, Abbvie is poised to benefit from the aging population.

The “baby boomer” generation is the largest in the United States. An aging population

will increase demand for health care products and services.

● Abbvie is growing revenue and earnings at a high rate. Through the first nine months of

the year, revenue and adjusted earnings grew 13% and 38%, respectively.

● Abbvie is a rare stock that offers both a high current dividend yield,(of 3.4%) and a high

dividend growth. Abbvie has increased its dividend by 27% since its first payout in

January 2013.

Potential Concerns

● The main concern for Abbvie is that it generates a majority of total revenue from one

drug, Humira, which constituted 61% of the company’s overall sales in 2015 thus far.

● Another concern is the increased regulatory scrutiny of biotechnology companies. In

October, Abbvie stock fell 14% in a single day after the FDA warned the company that

its hepatitis C treatments – Viekira Pak and Technivie – can cause serious liver injury in

patients with underlying advanced liver disease.

● Abbvie stock is aggressively valued based on its reported earnings. The stock trades for

18 times 2015 GAAP earnings per share, which is a premium valuation.

Bottom Line

Abbvie’s portfolio is highly focused on Humira, but it is aggressively expanding its future drug

pipeline. Last quarter, Abbvie generated $773 million in sales from two of its new drugs:

Imbruvica and Viekira. Abbvie’s future pipeline depends on the success of its new drugs and

continued strong sales of Humira.

Additional Resources for ABBV

● Dividend.com Profile Page for ABBV

● Full Dividend Payout History for ABBV

http://www.dividend.com/dividend-stocks/healthcare/drug-manufacturers-major/abbv-abbvie-inc/

http://www.dividend.com/dividend-stocks/healthcare/drug-manufacturers-major/abbv-abbvie-inc/#payout-history-table


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Alliance Resource Partners L.P. (ARLP)

2015 Range: 12.87 - 43.65 Avg. Volume: 304,534

Market Cap: 982.25M P/E Ratio (2016): 5.02

2015 EPS Est: 3.07 2016 EPS Est: 2.64

Annualized Div: 3.30 Div. Yield: 20.49%

Payout Ratio (2015): 1.07 Payout Ratio (2016): 1.25

ARLP Five-Year Stock Chart

Company Profile

Alliance Resource Partners LP (ARLP) engages in the production and marketing of coal

primarily to utilities and industrial users in the United States. As of December 31, 2007, the

company had approximately 712.8 million tons of coal reserves in Illinois, Indiana, Kentucky,

Maryland, Pennsylvania, and West Virginia. Alliance Resource Management GP, LLC is the

general partner of Alliance Resource Partners, L.P. The company was founded in 1971 and is

headquartered in Tulsa, Oklahoma. As a limited partnership, capital gains are accounted for

differently, so please consult with a tax advisor.



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2014 3.68 -19.33%

2013 4.57 +9.67%

2012 4.16 +14.73%

2011 3.63 +13.20%

2010 3.21 -27.08%

2009 4.40 +73.72%

2008 2.53 +15.00%

2007 2.20 +14.58%

2006 1.92 +21.87%

2005 1.58 +26.65%

2004 1.24 +18.48%

2003 1.05 +5.00%

2002 1.00 --

2001 1.00 --

2000 1.00 +769.57%

1999 0.12 -93.07%

Dividend.com DARS™ Ratings for ARLP

Below are Dividend.com's proprietary DARS™ Ratings for ARLP as of Dec. 2, 2015. Each value

is based on a scale of 1 to 5.

Relative Strength

3.5

ARLP is outperforming much of the market.


4.0

ARLP's dividend yield is above the industry average.


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4.0

ARLP has been paying dividends for 2011 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

ARLP has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

2.5

ARLP's earnings estimates are flat.


Dividend.com 2016 Forecast for ARLP

Potential Catalysts

● Alliance Resource has a unique operational advantage—its mines are situated close to its

end users, which reduces transportation costs.

● The company has priced and committed more than 90% of its 2015 deliveries.

● Strong balance sheet with a manageable 1.27 times total debt to trailing 12 months

EBITDA ratio. This provides Alliance Resource with ample flexibility to sustain its

distribution.

Potential Concerns

● Increased regulatory scrutiny of using coal as an energy source presents significant

regulatory risk.

● Low natural gas prices have incentivized utilities to switch from coal to natural gas for

electricity generation.

Bottom Line

Alliance Resource is a coal company, which is facing significant structural risk from increased

regulatory risk as well as low natural gas prices. However, Alliance Resource generates more

than enough distributable cash flow to sustain its dividend payout. The stock currently yields

14%, which makes this a very attractive income opportunity for investors who are willing to

accept the risk of investing in coal.

Additional Resources for ARLP

● Dividend.com Profile Page for ARLP

● Full Dividend Payout History for ARLP


http://www.dividend.com/dividend-stocks/basic-materials/industrial-metals-and-minerals/arlp-alliance-resource-partners-lp/

http://www.dividend.com/dividend-stocks/basic-materials/industrial-metals-and-minerals/arlp-alliance-resource-partners-lp/#payout-history-table


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AvalonBay Communities Inc. (AVB)

2015 Range: 158.72 - 186.89 Avg. Volume: 774,577

Market Cap: 24.05B P/E Ratio (2016): 21.35

2015 EPS Est: 8.00 2016 EPS Est: 8.23



AVB Five-Year Stock Chart

Company Profile

AvalonBay Communities (AVB) is an apartment-based real estate investment trust (REIT). AVB

owns or holds an ownership interest in multifamily communities in 10 states and the District of

Columbia. The company, formerly known as Bay Apartment Communities, Inc., was founded in

1978 and is headquartered in Arlington, Virginia. AVB is largely affected by general economic

conditions and the housing market in the U.S. As a REIT, it is mandated to pay out the majority

of its earnings, and as a result has a high dividend yield and payout ratio. AVB has been paying

dividends since 1998, and has increased them consecutively annually since 2013. AVB pays

dividends quarterly.


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2014 4.64 +8.41%

2013 4.28 +10.31%

2012 3.88 +8.62%

2011 3.57 --

2010 3.57 -20.00%

2009 4.47 -16.99%

2008 5.38 +58.21%

2007 3.40 +8.97%

2006 3.12 +9.86%

2005 2.84 +1.43%

2004 2.80 --

2003 2.80 --

2002 2.80 +9.38%

2001 2.56 +14.29%

2000 2.24 +8.74%

1999 2.06 +34.64%

1998 1.53 -58.45%


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Dividend.com DARS™ Ratings for AVB

Below are Dividend.com's proprietary DARS™ Ratings for AVB as of Dec. 2, 2015. Each value


Relative Strength

3.5

AVB is outperforming much of the market.


2.5

AVB's dividend yield is just average.


4.5

AVB has been paying dividends for 13 years, and we feel its dividend yield is extremely

safe.

Dividend Uptrend

3.5

AVB has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

AVB's earnings estimates are flat.


Dividend.com 2016 Forecast for AVB

Potential Catalysts

● Avalon Bay operates residential apartments, which are seeing increased demand—

particularly among younger generations, who are reluctant or otherwise unable to buy

homes. High demand for apartments results in favorable pricing power.

● Strong tenant profile. Avalon Bay operates a diversified portfolio of 282 apartment

communities across 11 states and the District of Columbia. These apartment buildings are

in high barrier to entry communities characterized by a low supply of zoned land.

● Compelling dividend growth. As its funds from operation grow, Avalon Bay has

increased its dividend by 7% per year over the past five years.



22

Potential Concerns

● As a REIT, Avalon Bay is sensitive to changes in interest rates. The U.S. Federal Reserve

may increase interest rates as soon as December. This would put pressure on REITs,

which utilize debt heavily within their capital structures, and would suffer higher interest

costs if rates rise.

● Avalon Bay carries a significantly leveraged balance sheet. Debt-to-EBITDA is 4.9 times

higher than many other stocks in its peer group.

● Low dividend yield. Avalon Bay’s share price is close to its 52-week high. This has

caused its dividend yield to fall to 2.8% currently. That is a fairly low dividend yield—

especially for a REIT, which commonly yield 4%-5%, or higher.

Bottom Line

As the company does not want to issue debt to further stress its balance sheet, Avalon Bay is

issuing equity, which is dilutive to existing shareholders. FFO per share fell 5% last quarter

largely because of more shares outstanding.

Additional Resources for AVB

● Dividend.com Profile Page for AVB

● Full Dividend Payout History for AVB

American Express Company (AXP)

2015 Range: 67.80 - 94.89 Avg. Volume: 5,533,700


2015 EPS Est: 5.28 2016 EPS Est: 5.44



http://www.dividend.com/dividend-stocks/financial/reit-residential/avb-avalonbay-communities/

http://www.dividend.com/dividend-stocks/financial/reit-residential/avb-avalonbay-communities/#payout-history-table


23

AXP Five-Year Stock Chart

Company Profile

American Express (AXP)--or AmEx for short--is a multinational financial services company that

is primarily known for its payment services. The company operates in four segments: U.S. Card

Services, International Card Services, Global Commercial Services (GCS) and Global Network &

Merchant Services. The company employs over 62,500 people worldwide. AmEx is largely

affected by financial and credit markets, and well as general macroeconomic conditions. As well,

AmEx is affected by regulations about lending and interest rates. AmEx was founded in 1950,

and is headquartered in New York, NY. AmEx has been paying dividends since 1993, and has

increased them consecutively annually since 2012. AmEx pays its dividends quarterly.



2014 0.98 +13.95%

2013 0.86 +10.26%

2012 0.78 +8.33%

2011 0.72 --


24

2010 0.72 -20.00%

2009 0.90 +25.00%

2008 0.72 +20.00%

2007 0.60 +11.11%

2006 0.54 +12.50%

2005 0.48 +50.00%

2004 0.32 -15.79%

2003 0.38 -5.00%

2002 0.40 +25.00%

2001 0.32 +1.59%

2000 0.32 +4.88%

1999 0.30 +33.48%

1998 0.23 -25.00%

1997 0.30 -20.00%

1996 0.38 +66.67%

1995 0.23 -85.94%

1994 1.60 -65.52%

Dividend.com DARS™ Ratings for AXP

Below are Dividend.com's proprietary DARS™ Ratings for AXP as of Dec. 2, 2015. Each value


Relative Strength

3.5

AXP is outperforming much of the market.


2.5

AXP's dividend yield is just average.


25


4.5

AXP has been paying dividends for 2011 years, and we feel its dividend yield is extremely

safe.

Dividend Uptrend

3.5

AXP has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

AXP's earnings estimates are flat.


Dividend.com 2016 Forecast for AXP

Potential Catalysts

● American Express will benefit from continued recovery in the global economy.

Consumer spending remains resilient, which is a long-term positive catalyst for the

company. Long-term growth initiatives are expected to materialize as early as 2016,

when earnings per share are projected to return to growth then increase 12%-15% in

2017.

● Attractive valuation. American Express stock trades for 12 times earnings per share,

which is close to a five-year low valuation.

Potential Concerns

● American Express’ earnings per share declined 11% last quarter as its return on equity

contracted by two percentage points. The company is spending aggressively on growth

initiatives including renewals and changes made earlier this year to certain co-brand

relationships.

● Low dividend yield. American Express yields just 1.5%, which is significantly below the

market average yield. This does not provide much of a margin of safety.

Bottom Line

American Express stock is cheap and the company recently formed a partnership with Sam’s

Club, the eighth largest retailer in the United States. It is also expanding its customer rewards

program to drive further increases in membership, which will be positive for earnings growth as

well.



26

Additional Resources for AXP

● Dividend.com Profile Page for AXP

● Full Dividend Payout History for AXP

Boeing Company (BA)

2015 Range: 115.14 - 158.83 Avg. Volume: 3,604,130


2015 EPS Est: 8.25 2016 EPS Est: 9.44



BA Five-Year Stock Chart

Company Profile

Boeing (BA) is the world's leading aerospace company and the largest manufacturer of

commercial jetliners and military aircraft combined. The company is located in over 90 countries,

and is the largest exporter in the U.S. It has three divisions: commercial airplanes, Integrated

Defense Systems (IDS), and Boeing Capital Corporation. BA was founded in 1916, and is based

in Chicago, IL. Boeing is affected by increasing costs of developing aircraft, as well as increasing

litigation costs. Boeing faced a probe in January 2013 over its new 787 dreamliner as batteries in

two aircraft overheated. Boeing has been paying dividends since 1937, and has been increasing it

steadily since 1970. Boeing is a dividend aristocrat and pays its dividend quarterly.

http://www.dividend.com/dividend-stocks/financial/credit-services/axp-american-express/

http://www.dividend.com/dividend-stocks/financial/credit-services/axp-american-express/#payout-history-table


27



2014 2.92 +50.52%

2013 1.94 +10.23%

2012 1.76 +4.76%

2011 1.68 --

2010 1.68 -33.33%

2009 2.52 +57.50%

2008 1.60 +14.29%

2007 1.40 +16.67%

2006 1.20 +20.00%

2005 1.00 +29.87%

2004 0.77 +13.24%

2003 0.68 --

2002 0.68 --

2001 0.68 +21.43%

2000 0.56 --

1999 0.56 --

1998 0.56 --


28

1997 0.56 +2.75%

1996 0.55 +9.00%

1995 0.50 --

1994 0.50 -48.98%

Dividend.com DARS™ Ratings for BA

Below are Dividend.com's proprietary DARS™ Ratings for BA as of Dec. 2, 2015. Each value is

based on a scale of 1 to 5.

Relative Strength

3.5

BA is outperforming much of the market.


3.0

BA's dividend yield is just average.


4.0

BA has been paying dividends for 74 years, and we its dividend yield is safe.

Dividend Uptrend

4.0

BA has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

2.5

BA's earnings estimates are flat.




29

Dividend.com 2016 Forecast for BA

Potential Catalysts

● Refocused business strategy. Boeing is scaling back on exposure to global defense

budgets—a wise strategy in an environment of declining national defense spending.

● Boeing generates two-thirds of its revenue from the commercial markets. This is a strong

tailwind, as the commercial airline order backlog for planes is at a record high. Deliveries

of commercial aircraft rose 3% last year, representing the fourth consecutive record year.

● Huge backlog of growth opportunities. Boeing ended last quarter with a $485 billion

backlog for nearly 5,700 commercial airplane orders.

Potential Concerns

● Boeing currently has more than $24 billion in long-term liabilities on its balance sheet as

a result of accrued retiree health care and accrued pension plan liabilities.

● Geopolitical concerns. Boeing caters heavily to the commercial markets. Growth in

commercial aircraft is reliant on higher demand in the emerging markets, particularly in

Asia and the Middle East. Increased geopolitical risk could curtail Boeing’s growth.

Bottom Line

Boeing is a high-quality dividend stock with a 3% yield and a track record of high dividend

growth. Over the past five years, Boeing has increased its dividend by 16% compounded annually

– thanks to its strong earnings growth and large backlog – which will help fuel future earnings

and dividend growth.

Additional Resources for BA

● Dividend.com Profile Page for BA

● Full Dividend Payout History for BA

BlackRock Inc. (BLK)

2015 Range: 275.00 - 382.84 Avg. Volume: 771,494


2015 EPS Est: 19.70 2016 EPS Est: 21.00



http://www.dividend.com/dividend-stocks/industrial-goods/aerospace-defense-major-diversified/ba-boeing-co/

http://www.dividend.com/dividend-stocks/industrial-goods/aerospace-defense-major-diversified/ba-boeing-co/#payout-history-table


30

BLK Five-Year Stock Chart

Company Profile

BlackRock, Inc. (BLK) is an independent investment management firm. The company provides

risk management, investment management, and advisory services to corporate, public, and Taft-

Hartley pension plans, insurance companies, mutual funds, endowments, foundations, nuclear

decommissioning trusts, banks, charities, corporations, official institutions, and individuals

worldwide. BlackRock was founded in 1988 and is based in New York, New York.



2014 7.72 +14.88%

2013 6.72 +12.00%

2012 6.00 +9.09%

2011 5.50 +10.00%

2010 5.00 +60.26%

2009 3.12 --


31

2008 3.12 +16.42%

2007 2.68 +59.52%

2006 1.68 +40.00%

2005 1.20 +20.00%

2004 1.00 +149.98%

2003 0.40 -86.30%

Dividend.com DARS™ Ratings for BLK

Below are Dividend.com's proprietary DARS™ Ratings for BLK as of Dec. 2, 2015. Each value


Relative Strength

3.0

BLK is performing in-line with the market or better.


3.0

BLK's dividend yield is just average.


4.5

BLK has been paying dividends for 8 years, and we feel its dividend yield is extremely safe.

Dividend Uptrend

3.5

BLK has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

BLK's earnings estimates are flat.




32

Dividend.com 2016 Forecast for BLK

Potential Catalysts

● The rally in equity markets since the financial crisis has been a big positive for

BlackRock. This has fueled strong stock price gains and earnings growth. BlackRock

grew operating profit by 4% over the first three quarters of the year, thanks largely to $50

billion of net inflows in the third quarter.

● BlackRock is valued modestly given its earnings growth. The stock trades for 17 times

trailing earnings, a discount to the S&P 500 Index, which trades for 19 times EPS.

● Strong dividend yield and dividend growth. BlackRock yields 3% and has raised its

dividend by 16% compounded annually in the past five years.

Potential Concerns

● Equity markets have declined this year. Going forward, continued concerns regarding

global equity markets could deter investors from adding funds to ETF holdings, which

would lower BlackRock’s assets under management and earnings.

● Price deflation. Sponsors of ETFs are engaging in a price war, as each sponsor wants to

be the lowest-fee provider. Further compression of ETF expenses and fees would

negatively impact earnings growth.

Bottom Line

The financial industry is seeing a structural shift. Exchange-traded funds are becoming

increasingly popular with investors, due to their all-day tradability and lower fees than traditional

mutual funds. BlackRock has a leadership position in this growth category with its iShares lineup

of ETFs. This is what has fueled BlackRock’s compelling earnings and dividend growth, which

makes it a very good dividend pick.

Additional Resources for BLK

● Dividend.com Profile Page for BLK

● Full Dividend Payout History for BLK

http://www.dividend.com/dividend-stocks/financial/investment-brokerage-regional/blk-blackrock-inc/

http://www.dividend.com/dividend-stocks/financial/investment-brokerage-regional/blk-blackrock-inc/#payout-history-table


33

Bristol-Myers Squibb Company (BMY)

2015 Range: 51.820 - 70.540 Avg. Volume: 6,730,380


2015 EPS Est: 1.900 2016 EPS Est: 2.290



BMY Five-Year Stock Chart

Company Profile

Bristol Myers Squibb Co. (BMY) is a global biopharmaceutical company. The company partakes

in the discovery, development, licensing, manufacturing, marketing, distribution and sale of

biopharmaceutical products. Its products are sold globally to wholesalers, retail pharmacies,

hospitals, government entities and to the medical profession. BMY was founded in 1933, and is

based in New York. BMY relies heavily on patents to maintain market exclusivity, as well as

research and development, and the continued development and commercialization of new

products. BMY started paying a dividend in 1970, and has been consecutively raising its dividend

since 2010, when it last made a cut to the dividend. BMY pays its dividend quarterly.



34


2014 1.45 -17.61%

2013 1.76 +29.41%

2012 1.36 +3.03%

2011 1.32 +37.50%

2010 0.96 -23.20%

2009 1.25 -19.35%

2008 1.55 +38.39%

2007 1.12 --

2006 1.12 --

2005 1.12 +33.33%

2004 0.84 -25.00%

2003 1.12 -20.00%

2002 1.40 -63.92%

2001 3.88 +295.92%

2000 0.98 +13.82%

1999 0.86 +47.18%

1998 0.59 -23.53%

1997 0.77 -18.62%

1996 0.94 +69.37%

1995 0.56 -39.34%

1994 0.92 -88.15%


35

Dividend.com DARS™ Ratings for BMY

Below are Dividend.com's proprietary DARS™ Ratings for BMY as of Dec. 2, 2015. Each value


Relative Strength

3.0

BMY is performing in-line with the market or better.


3.0

BMY's dividend yield is just average.


4.5

BMY has been paying dividends for 111 years, and we feel its dividend yield is extremely

safe.

Dividend Uptrend

3.5

BMY has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

BMY's earnings estimates are flat.


Dividend.com 2016 Forecast for BMY

Potential Catalysts

● Bristol-Myers Squibb is a premier growth stock. Shares are up more than 150% in the

past five years, which is a much stronger performance than the S&P 500 in the same

period.

● There is high optimism over Bristol-Myers Squibb’s drug pipeline, including recently

launched Opdivo and continuing positive trends for Eliquis.

Potential Concerns

● Extremely high valuation. Bristol-Myers Squibb stock trades for 60 times earnings. This

is a massive premium to the broader market.

● Risk of Bristol-Myers Squibb’s drug pipeline under-performing expectations. This carries

significant risk if new drugs do not deliver growth as expected. Revenue was up just 4%

last quarter, which may not deserve such a high P/E.

● The stock has rallied in the past few years, which has significantly lowered its dividend

yield to 2.5% and is below many other stocks in the pharmaceutical peer group.



36

Bottom Line

Bristol-Myers Squibb stock has rewarded investors with huge stock price appreciation in the past

several years. But the stock is not attractive to dividend investors going forward. The stock trades

for a rich valuation and a low dividend yield, and thus does not offer a margin of safety.

Additional Resources for BMY

● Dividend.com Profile Page for BMY

● Full Dividend Payout History for BMY

Bank of Nova Scotia (BNS)

2015 Range: 39.55 - 57.83 Avg. Volume: 797,802


2015 EPS Est: 5.95 2016 EPS Est: 6.32



BNS Five-Year Stock Chart

Company Profile

Bank of Nova Scotia (BNS) (commonly known as Scotiabank) is a financial services company

that focuses on retail, commercial, corporate and investment banking. The bank has three

business lines, Canadian Banking, International Banking, and Scotia Capital and Global Wealth

Management. The company was founded in 1832, and is based in Toronto, Canada. Bank of

Nova Scotia is largely affected by the general Canadian economy. As well, Bank of Nova Scotia

is affected by capital markets in Canada. Bank of Nova Scotia has been paying dividends since

1833, and has increased dividends in 42 of the last 45 years. The most recent cut to its dividend

was in 2013. Bank of Nova Scotia pays its dividends quarterly.

http://www.dividend.com/dividend-stocks/healthcare/drug-manufacturers-major/bmy-bristol-myers-squibb/

http://www.dividend.com/dividend-stocks/healthcare/drug-manufacturers-major/bmy-bristol-myers-squibb/#payout-history-table


37



2014 2.56 +40.66%

2013 1.82 -18.75%

2012 2.24 +7.33%

2011 2.09 -13.19%

2010 2.40 +12.76%

2009 2.13 +50.04%

2008 1.42 -16.71%

2007 1.71 +24.98%

2006 1.37 +8.42%

2005 1.26 -7.43%

2004 1.36 +61.90%

2003 0.84 +127.03%

2002 0.37 -74.48%


38

Dividend.com DARS™ Ratings for BNS

Below are Dividend.com's proprietary DARS™ Ratings for BNS as of Dec. 2, 2015. Each value


Relative Strength

3.5

BNS is outperforming much of the market.


3.5

BNS's dividend yield is above the industry average.


4.0

BNS has been paying dividends for 2011 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

BNS has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

BNS's earnings estimates are flat.


Dividend.com 2016 Forecast for BNS

Potential Catalysts

● Banks are some of the biggest beneficiaries of rising interest rates, because higher rates

cause net interest margin to expand. This will be a meaningful driver of growth once rates

rise.

● Bank of Nova Scotia is a very cheap stock with a high yield. The stock trades for 11

times earnings and yields 4.7%.

● A very well-run business. The company generated 14% return on equity last quarter

along with 5% revenue growth.

Potential Concerns

● Increasing expenses. Bank of Nova Scotia is making several smaller acquisitions to drive

revenue growth, but this comes at a cost. Expenses rose 6% last quarter and outpaced

revenue growth.

● Core banking margin fell slightly last quarter. Until interest rates rise, it will be difficult

for a regional bank like Nova Scotia to grow margins.



39

Bottom Line

Bank of Nova Scotia stock screens very well for value and income investors. The stock offers

significant income potential, as well as the potential for future dividend growth. When interest

rates rise, this will boost the company’s profits. Income investors should view this stock

favorably within the financial sector.

Additional Resources for BNS

● Dividend.com Profile Page for BNS

● Full Dividend Payout History for BNS

http://www.dividend.com/dividend-stocks/financial/foreign-money-center-banks/bns-bank-of-nova-scotia/

http://www.dividend.com/dividend-stocks/financial/foreign-money-center-banks/bns-bank-of-nova-scotia/#payout-history-table


40

ConAgra Foods Inc. (CAG)

2015 Range: 33.45 - 45.49 Avg. Volume: 3,427,370


2015 EPS Est: 2.23 2016 EPS Est: 2.39



CAG Five-Year Stock Chart

Company Profile

ConAgra Foods, Inc. (CAG) is a packaged foods company. CAG offers several products

including consumer foods, including meals, entrees, condiments, sides, snacks, and desserts

across frozen, refrigerated, and shelf-stable temperature classes to customers through grocery

retailers, restaurants, and foodservice establishments. Its primary brands include Chef Boyardee,

Healthy Choice, Marie Callender's, Orville Redenbacher's, Slim Jim, Hebrew National, Kid

Cuisine, Reddi-Wip, VanCamp, Libby's, LaChoy, The Max, Manwich, Egg Beaters, Blue

Bonnet, Parkay, and many more. ConAgra Foods was founded in 1919 and is headquartered in

Omaha, Nebraska.



41


2014 1.00 --

2013 1.00 +3.09%

2012 0.97 +4.30%

2011 0.93 +12.05%

2010 0.83 +7.79%

2009 0.77 +1.32%

2008 0.76 +4.11%

2007 0.73 -10.21%

2006 0.81 -25.55%

2005 1.09 +3.70%

2004 1.05 +4.88%

2003 1.00 +5.35%

2002 0.95 +7.32%

2001 0.89 +6.09%

2000 0.84 +13.41%

1999 0.74 +13.19%

1998 0.65 +15.19%

1997 0.57 -7.52%

1996 0.61 +42.00%

1995 0.43 +15.24%

1994 0.37 -85.39%


42

Dividend.com DARS™ Ratings for CAG

Below are Dividend.com's proprietary DARS™ Ratings for CAG as of Dec. 2, 2015. Each value


Relative Strength

3.0

CAG is performing in-line with the market or better.


3.5

CAG's dividend yield is above the industry average.


4.0

CAG has been paying dividends for 35 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

CAG has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

2.5

CAG's earnings estimates are flat.


Dividend.com 2016 Forecast for CAG

Potential Catalysts

● Debt reduction. ConAgra has eliminated $2.1 billion of debt since its acquisition of

Ralcorp Holdings. This has strengthened the company’s balance sheet.

● Sale of private brands business. ConAgra will sell Ralcorp for $2.7 billion. This cash can

be allocated toward improving ConAgra’s existing brands to restore future earnings

growth.

Potential Concerns

● Shifting consumer preferences. Health-conscious consumers are buying less pre-

packaged, shelf-stable and frozen foods, which make up a large component of ConAgra’s

product portfolio.

● Weak earnings performance. ConAgra reported a $252 million net loss in fiscal 2015,

due to poor sales of its flagship Healthy Choice, Orville Redenbacher’s and Chef

Boyardee brands.

● Over-valuation. ConAgra stock trades for 17 times forward earnings estimates, which is

an above-market multiple. The company lost money last fiscal year, meaning its earnings

growth expectations may be too aggressive.



43

Bottom Line

ConAgra is in the middle of a lengthy turnaround. The company will sell its private label business

for nearly half the purchase price. This was a very poor decision that cost the company billions of

dollars in losses. Because of this, ConAgra has not raised its dividend since 2012. As a result,

ConAgra cannot be recommended as a dividend growth stock.

Additional Resources for CAG

● Dividend.com Profile Page for CAG

● Full Dividend Payout History for CAG

Caterpillar Inc. (CAT)

2015 Range: 62.99 - 94.66 Avg. Volume: 6,838,460


2015 EPS Est: 4.60 2016 EPS Est: 3.65



CAT Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/consumer-goods/processed-and-packaged-goods/cag-conagra-foods/

http://www.dividend.com/dividend-stocks/consumer-goods/processed-and-packaged-goods/cag-conagra-foods/#payout-history-table


44

Company Profile

Caterpillar Inc. (CAT) is a manufacturer of construction and mining equipment, diesel and natural

gas engines, industrial gas turbines and diesel-electric locomotives. CAT is the largest

manufacturer of construction and mining equipment in the world. It has over $70 billion in assets,

which has made it the number one company in its industry. Caterpillar was founded in 1925, and

is based in Peoria, IL. Volatility in global financial markets has a large impact on the markets in

which Caterpillar operates. As well, many of Caterpillar’s global operations are exposed to

political and economic risks. Caterpillar has been paying a dividend since 1996. Most years,

Caterpillar increases its dividend, but there have been years where the company has cut its

dividend. Caterpillar pays its dividend quarterly. Caterpillar is the world's largest manufacturer of

construction and mining equipment, diesel and natural gas engines and industrial gas turbines.

With more than US$70 billion in assets, Caterpillar was ranked number one in its industry and

number 44 overall in the 2009 Fortune 500.



2014 2.60 +51.16%

2013 1.72 -30.65%

2012 2.48 +37.78%

2011 1.80 +4.65%

2010 1.72 +2.38%

2009 1.68 +7.69%

2008 1.56 +18.18%

2007 1.32 +20.00%

2006 1.10 +20.88%

2005 0.91 +16.67%


45

2004 0.78 +9.86%

2003 0.71 +1.43%

2002 0.70 +1.45%

2001 0.69 +3.76%

2000 0.67 +6.40%

1999 0.63 +13.64%

1998 0.55 +22.22%

1997 0.45 +20.00%

1996 0.38 +25.00%

1995 0.30 +166.67%

1994 0.11 -88.75%

Dividend.com DARS™ Ratings for CAT Below are Dividend.com's proprietary DARS™ Ratings for CAT as of Dec. 2, 2015. Each value


Relative Strength

2.0

CAT is slightly underperforming relative to its peers.


4.0

CAT's dividend yield is above the industry average.


4.0

CAT has been paying dividends for 15 years, and we its dividend yield is safe.

Dividend Uptrend

4.0

CAT has shown steady and generous dividends, and has increased its payouts each year.


46

Earnings Growth

2.0

CAT has seen its earnings estimates slightly lowered.


Dividend.com 2016 Forecast for CAT

Potential Catalysts

● Attractive valuation. Caterpillar stock trades for 14 times earnings, a significant discount

to the broader market multiple.

● Compelling 4.3% dividend yield and dividend growth. The company generates enough

cash flow to continue paying its high dividend, and increased its dividend by 10%.

● Continued recoveries in the U.S. housing and construction markets are a positive for

Caterpillar.

Potential Concerns

● The slowdown in precious metals prices like gold and copper over the past year has

caused significant damage to the mining industry, which Caterpillar’s machinery caters

to.

● 2016 earnings estimated to be down 31% from peak 2012 levels. Most of this,

approximately 2/3, is due to declines in natural resource industry.

● Caterpillar is also heavily exposed to the strong U.S. dollar. Of the 31% decline in 2016

earnings versus 2012 levels, 10% of the decline is due to negative foreign exchange

effects.

Bottom Line

As the precious metals and natural resources industries contract, Caterpillar is experiencing

falling sales and earnings. Revenue fell 18% last quarter. In response, the company is

aggressively cutting costs, which is keeping profitability intact. This at least supports current

dividend, which is very high.

Additional Resources for CAT

● Dividend.com Profile Page for CAT

● Full Dividend Payout History for CAT


http://www.dividend.com/dividend-stocks/industrial-goods/farm-and-construction-machinery/cat-caterpillar-inc/

http://www.dividend.com/dividend-stocks/industrial-goods/farm-and-construction-machinery/cat-caterpillar-inc/#payout-history-table


47

Colgate-Palmolive Company (CL)

2015 Range: 50.84 - 71.56 Avg. Volume: 3,573,440


2015 EPS Est: 2.79 2016 EPS Est: 2.97



CL Five-Year Stock Chart

Company Profile

Colgate Palmolive (CL) is a consumer products company that specializes in household,

healthcare, and personal products. The company operates in two segments: Oral, Personal and

Home Care and Pet Nutrition. CL offers hundreds of products, and operates in over 200 countries

throughout the world. The company was founded in 1806, and is based in New York, NY.

Colgate is affected by its ability to research and develop new products, as well as raw material

costs. Colgate has been increasing dividends since 1964. The company is known as a dividend

aristocrat, as it has been increasing its dividend consecutively annually for more than 25 years.

Colgate pays its dividend quarterly.



48


2014 1.42 -28.28%

2013 1.98 -18.85%

2012 2.44 +7.49%

2011 2.27 +11.82%

2010 2.03 +18.02%

2009 1.72 +10.26%

2008 1.56 +11.43%

2007 1.40 +12.00%

2006 1.25 +12.61%

2005 1.11 +15.63%

2004 0.96 +6.67%

2003 0.90 +25.00%

2002 0.72 +6.51%

2001 0.68 +6.96%

2000 0.63 +6.94%

1999 0.59 +7.45%

1998 0.55 +3.77%

1997 0.53 +12.77%

1996 0.47 +6.82%

1995 0.44 +14.29%

1994

0.39 -85.19%


49

Dividend.com DARS™ Ratings for CL

Below are Dividend.com's proprietary DARS™ Ratings for CL as of Dec. 2, 2015. Each value is


Relative Strength

3.0

CL is performing in-line with the market or better.


3.0

CL's dividend yield is just average.


4.5

CL has been paying dividends for 25 years, and we feel its dividend yield is extremely safe.

Dividend Uptrend

3.5

CL has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

CL's earnings estimates are flat.


Dividend.com 2016 Forecast for CL

Potential Catalysts

● Excellent brand strength. Colgate-Palmolive has a number of successful brands, including

its Colgate toothpaste, Palmolive soap and its pet care business.

● Colgate is a top dividend growth stock. It is a Dividend Aristocrat, having paid

uninterrupted dividends each year since 1895.

● Colgate-Palmolive generates significant free cash flow, which is returned to shareholders

through both dividends and buybacks. The dividend yields 2.4% and the company

recently announced a new $5 billion share buyback program.

Potential Concerns

● Slowing economic growth in the emerging markets. Colgate-Palmolive generates 80% of

its total revenue from outside North America; weak economic growth in the

underdeveloped nations could be a significant future headwind.

● The rising U.S. dollar. Colgate-Palmolive is heavily exposed to foreign exchange

fluctuations. Revenue growth was negatively impacted by 13 percentage points last

quarter just because of currency.



50

● Over-valuation. Colgate-Palmolive stock trades for 25 times earnings, approximately

31% above the S&P 500 Index valuation. Slowing growth could result in compression of

Colgate-Palmolive’s valuation multiple.

Bottom Line

Colgate-Palmolive is experiencing near-term challenges from currency impacts, but it remains a

strong business with top brands. According to the company, Colgate-Palmolive stock delivered a

1,137% total return in the 20-year period from Dec. 31, 1994 through June 30, 2015. This handily

beat the 563% total return for the S&P 500 index in the same period.

Additional Resources for CL

● Dividend.com Profile Page for CL

● Full Dividend Payout History for CL

ConocoPhillips (COP)

2015 Range: 41.10 - 71.37 Avg. Volume: 8,561,520


2015 EPS Est: -0.80 2016 EPS Est: 0.37


Payout Ratio (2015): -3.7 Payout Ratio (2016): 8

COP Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/consumer-goods/personal-products/cl-colgate-palmolive/

http://www.dividend.com/dividend-stocks/consumer-goods/personal-products/cl-colgate-palmolive/#payout-history-table


51

Company Profile

ConocoPhillips (COP) is an international integrated energy company. COP focuses on crude oil,

natural gas, natural gas liquids, liquefied natural gas and bitumen. The company's segments

include exploration and production (E&P), midstream, refining and marketing (R&M), and

emerging businesses. The company was founded in 2002 as a result of a merger between Conoco

Inc. and Phillips Petroleum Co., and is based in Houston, Texas. ConocoPhillips is affected by

two major risks, commodity price risk and interest rate risk. ConocoPhillips’s net income is

generally highly correlated with the price of crude oil. ConocoPhillips has been paying dividends

since its inception in 2002, and has consistently increased them annually since then.

ConocoPhillips pays its dividend quarterly.



2014 2.84 +5.19%

2013 2.70 +2.27%

2012 2.64 --

2011 2.64 +22.79%

2010 2.15 +12.57%

2009 1.91 +1.60%

2008 1.88 +14.63%

2007 1.64 +13.89%

2006 1.44 +22.03%

2005 1.18 +31.84%

2004 0.90 +9.82%


52

2003 0.82 +10.14%

2002 0.74 +5.71%

2001 0.70 +2.94%

2000 0.68 --

1999 0.68 --

1998 0.68 +1.49%

1997 0.67 +7.20%

1996 0.63 +4.60%

1995 0.60 +6.70%

1994 0.56 -60.56%

Dividend.com DARS™ Ratings for COP

Below are Dividend.com's proprietary DARS™ Ratings for COP as of Dec. 2, 2015. Each value


Relative Strength

2.0

COP is slightly underperforming relative to its peers.


4.0

COP's dividend yield is above the industry average.


4.5

COP has been paying dividends for 77 years, and we feel its dividend yield is extremely safe.

Dividend Uptrend

3.5

COP has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

COP's earnings estimates are flat.


53


Dividend.com 2016 Forecast for COP

Potential Catalysts

● Potential for a recovery in oil prices. ConocoPhillips’ stock would likely outperform if

commodity prices increase in 2016.

● High dividend yield. The stock yields 5.5%, and the company increased its dividend by

1% this year.

● Strong free cash flow generation. Thanks to asset sales and significant cost cuts,

ConocoPhillips expects to cover its dividend with free cash flow by 2017.

Potential Concerns

● Falling oil prices. ConocoPhillips’ revenue is down 56% through the first three quarters

of 2015, year-over-year.

● Inconsistent profitability. ConocoPhillips lost $978 million in the first three quarters of

the year, reversing a $6.8 billion profit in the comparable 2014 period.

● Lack of integrated structure. ConocoPhillips spun off its downstream refining unit, which

gave valuable support when oil prices decline. As an independent exploration and

production company, ConocoPhillips is entirely reliant on commodity prices.

Bottom Line

ConocoPhillips showed its resilient business model by increasing its dividend in 2015, while

many of its peers had to cut dividends to stay afloat. ConocoPhillips received $600 million in

disposition proceeds year-to-date. These actions collectively allowed the company to raise its

dividend; however, if oil prices continue to decline, the dividend may be in jeopardy.

Additional Resources for COP

● Dividend.com Profile Page for COP

● Full Dividend Payout History for COP

Cisco Systems Inc. (CSCO)

2015 Range: 23.030 - 30.310 Avg. Volume: 27,077,800


2015 EPS Est: 2.270 2016 EPS Est: 2.400




http://www.dividend.com/dividend-stocks/basic-materials/major-integrated-oil-and-gas/cop-conocophillips/

http://www.dividend.com/dividend-stocks/basic-materials/major-integrated-oil-and-gas/cop-conocophillips/#payout-history-table


54

CSCO Five-Year Stock Chart

Company Profile

Cisco Systems (CSCO) is a technology company that designs, manufactures, and sells networking

equipment. The company focuses on three main segments which include Enterprise and Service

Provider, Small Business and the Home. The stock was added to the Dow Jones in 2009, and is

also included in the S&P 500 Index, the Russell 1000 Index, NASDAQ 100 Index and the Russell

1000 Growth Stock Index. CSCO was founded in 1984, and is based in San Jose, CA.



2014 0.74 +45.10%

2013 0.51 +2.00%

2012 0.50 +177.78%

2011 0.18 -93.66%


55

Dividend.com DARS™ Ratings for CSCO

Below are Dividend.com's proprietary DARS™ Ratings for CSCO as of Dec. 2, 2015. Each value


Relative Strength

3.5

CSCO is outperforming much of the market.


3.5

CSCO's dividend yield is above the industry average.


3.5

CSCO has been paying dividends for 2011 years, and we its dividend yield is safe.

Dividend Uptrend

3.0

CSCO has shown consistency in its payouts, but any increases have been small.

Earnings Growth

3.5

CSCO's earnings estimates have been raised nicely.


Dividend.com 2016 Forecast for CSCO

Potential Catalysts

● Excellent balance sheet. Cisco holds $59 billion in cash and short-term investments, and

$21 billion in long-term debt.

● Attractive valuation. Cisco stock trades for 14 times earnings, a significant discount from

the market multiple.

● High dividend yield and dividend growth. Cisco stock yields 3.2% and raised its dividend

by 10% earlier this year.

Potential Concerns

● Exposure to emerging markets like China, where economic growth is slowing, could

weigh on Cisco’s growth.

● The strengthening U.S. dollar is a headwind for large multi-national companies such as

Cisco.



56

Bottom Line

Cisco is a quality company. Revenue grew 3% last quarter. It is highly profitable – with a great

deal of cash on the balance sheet – and an excellent dividend. The company has seen growth

slow-down in the near term due to the rising U.S. dollar and economic challenges in the emerging

markets, but these are likely to be short-term challenges. The long-term investment case remains

positive.

Additional Resources for CSCO

● Dividend.com Profile Page for CSCO

● Full Dividend Payout History for CSCO

Chevron Corporation (CVX)

2015 Range: 69.580 - 114.450 Avg. Volume: 10,389,400


2015 EPS Est: 3.320 2016 EPS Est: 4.000



CVX Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/technology/networking-and-communication-devices/csco-cisco-systems/

http://www.dividend.com/dividend-stocks/technology/networking-and-communication-devices/csco-cisco-systems/#payout-history-table


57

Company Profile

Chevron Corporation (CVX) is a Fortune 500 multinational energy corporation based out of San

Ramon, California. Founded in 1984, it is involved in every aspect of energy production and

services, including petroleum operations, chemicals operations, mining operations, power

generation and energy services. The company has a focus in developing and producing crude oil

and natural gas. CVX is constantly named among the largest corporations in the world in terms of

revenue. Chevron is one of the world's six supermajor oil companies. Chevron's profitability is

mainly affected by the price of crude oil. The company's operations, especially upstream, can also

be affected by changing economic, regulatory, and political environments around the world.

Chevron has been increasing its dividend consistently since 1993, when the company first started

paying dividends.



2014 4.21 +7.95%

2013 3.90 +11.11%

2012 3.51 +13.59%

2011 3.09 +8.80%

2010 2.84 +6.77%

2009 2.66 +5.14%

2008 2.53 +11.95%

2007 2.26 +12.44%

2006 2.01 +14.86%

2005 1.75 +14.38%

2004 1.53 +6.99%


58

2003 1.43 +2.14%

2002 1.40 +5.66%

2001 1.33 +1.92%

2000 1.30 +4.84%

1999 1.24 +1.64%

1998 1.22 +7.02%

1997 1.14 +9.62%

1996 1.04 +8.11%

1995 0.96 +4.06%

1994 0.92 +24.93%

Dividend.com DARS™ Ratings for CVX

Below are Dividend.com's proprietary DARS™ Ratings for CVX as of Dec. 2, 2015. Each value


Relative Strength

3.0

CVX is performing in-line with the market or better.


3.5

CVX's dividend yield is above the industry average.


4.5

CVX has been paying dividends for 99 years, and we feel its dividend yield is extremely

safe.

Dividend Uptrend

3.5

CVX has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

CVX's earnings estimates are flat.


59


Dividend.com 2016 Forecast for CVX

Potential Catalysts

● Any recovery in oil and gas prices would be a huge catalyst for Chevron, one of the

world’s biggest energy companies.

● Cost cuts and asset sales support earnings. Chevron has realized $5.4 billion of asset sales

year-to-date, and cut capital expenditures by 14% year-to-date.

● Chevron’s integrated structure provides valuable protection. Chevron’s large refining

business grew profits by 59% last quarter. Refining earnings tend to grow when oil prices

decline, as that causes feedstock costs to fall, which boosts refining margins.

Potential Concerns

● A continued deterioration in commodity prices could threaten Chevron’s dividend. Many

energy stocks have had to cut dividends this year due to falling oil and gas prices.

Chevron’s earnings are down 67% through the first three quarters of 2015.

● Chevron continues to increase production. Over the first nine months, net oil-equivalent

production is up 1.4%, year-over-year. This is problematic as higher production is

uneconomical at such low energy prices.

Bottom Line

Chevron is one of the highest dividend yields in the Dow Jones Industrial Average. This is due to

its collapsing stock price, as earnings are significantly lower this year than in previous years.

Chevron’s earnings, and its dividend, are highly dependent on a recovery in energy prices. As a

result, while Chevron’s 4.6% dividend is attractive, it is a risky dividend stock.

Additional Resources for CVX

● Dividend.com Profile Page for CVX

● Full Dividend Payout History for CVX

Dominion Resources Inc. (D)

2015 Range: 64.54 - 80.89 Avg. Volume: 2,339,960


2015 EPS Est: 3.65 2016 EPS Est: 3.85




http://www.dividend.com/dividend-stocks/basic-materials/major-integrated-oil-and-gas/cvx-chevron-corp/

http://www.dividend.com/dividend-stocks/basic-materials/major-integrated-oil-and-gas/cvx-chevron-corp/#payout-history-table


60

D Five-Year Stock Chart

Company Profile

Dominion Resources, Inc. (D) is an energy producer and transporter. The company's business

consists of electric power generation and transmission and natural gas storage and transmission,

serving customers in 14 states. Dominion was founded in 1983 and is headquartered in

Richmond, Virginia.



2014 2.40 +6.67%

2013 2.25 +6.64%

2012 2.11 +7.00%

2011 1.97 +43.52%

2010 1.37 -21.58%

2009 1.75 +10.89%


61

2008 1.58 +25.10%

2007 1.26 -8.48%

2006 1.38 +2.99%

2005 1.34 +3.08%

2004 1.30 +0.78%

2003 1.29 --

2002 1.29 --

2001 1.29 --

2000 1.29 --

1999 1.29 --

1998 1.29 --

1997 1.29 --

1996 1.29 --

1995 1.29 +1.18%

1994 1.28 -69.71%

Dividend.com DARS™ Ratings for D

Below are Dividend.com's proprietary DARS™ Ratings for D as of Dec. 2, 2015. Each value is


Relative Strength

3.5

D is outperforming much of the market.


3.5

D's dividend yield is above the industry average.


4.0

D has been paying dividends for 86 years, and we its dividend yield is safe.


62

Dividend Uptrend

3.5

D has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

D's earnings estimates are flat.


Dividend.com 2016 Forecast for D

Potential Catalysts

● High dividend yield. The stock yields 3.8%, which is a 90% greater yield than the

average S&P 500 stock.

● Highly recession-resistant business model. Consumers always need to keep the lights on,

even if the economy goes into recession.

● Modest gains in customers and average bills resulted in 10% earnings growth last quarter.

Continued gains in these areas should fuel future earnings growth.

Potential Concerns

● Exposure to rising interest rates is a headwind on future earnings growth.

● Low earnings growth will result in low dividend growth as well.

Bottom Line

Dominion Resources, as a utility, generates steady profitability from year to year. Its product,

electricity, is virtually a matter of national security. That places a great margin of safety

underneath the stock. For risk-averse income investors, Dominion can be a valuable addition to a

dividend portfolio.

Additional Resources for D

● Dividend.com Profile Page for D

● Full Dividend Payout History for D


http://www.dividend.com/dividend-stocks/utilities/electric-utilities/d-dominion-resources/

http://www.dividend.com/dividend-stocks/utilities/electric-utilities/d-dominion-resources/#payout-history-table


63

DuPont & Company (DD)

2015 Range: 47.11 - 76.59 Avg. Volume: 7,015,560


2015 EPS Est: 2.78 2016 EPS Est: 3.26



DD Five-Year Stock Chart

Company Profile

E. I. du Pont de Nemours and Company (DD), commonly known as DuPont, is a diversified

chemicals company. The company operates in six segments: Agriculture & Nutrition, Coatings &

Color Technologies, Electronic & Communication Technologies, Performance Materials, Safety

& Protection, and Pharmaceuticals. DuPont, which has operations in 75 countries, was founded in

1802 and is headquartered in Wilmington, Delaware. DuPont operates in many industries and

sectors in which there is a high level of regulation, particularly for the environment. DuPont has

paid dividends since 1904, and has been increasing them annually since 2012. While the

dividends have not been raised some years, DuPont has never cut a dividend in the last 20 years.

DuPont pays its dividends quarterly.


64



2014 1.84 +3.37%

2013 1.78 +4.71%

2012 1.70 +3.66%

2011 1.64 --

2010 1.64 --

2009 1.64 --

2008 1.64 +7.89%

2007 1.52 +2.70%

2006 1.48 +1.37%

2005 1.46 +4.29%

2004 1.40 --

2003 1.40 --

2002 1.40 --

2001 1.40 --

2000 1.40 --

1999 1.40 +2.56%

1998 1.37 +10.98%


65

1997 1.23 +10.31%

1996 1.12 +9.85%

1995 1.02 +11.54%

1994 0.91 -62.08%

Dividend.com DARS™ Ratings for DD

Below are Dividend.com's proprietary DARS™ Ratings for DD as of Dec. 2, 2015. Each value is


Relative Strength

3.0

DD is performing in-line with the market or better.


3.5

DD's dividend yield is above the industry average.


4.0

DD has been paying dividends for 107 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

DD has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

2.5

DD's earnings estimates are flat.


Dividend.com 2016 Forecast for DD

Potential Catalysts

● New management team may take the company in a better direction—CEO Edward D.

Breen replaces outgoing CEO Ellen Kullman.

● Strategic imperative to focus on agriculture positions the company well to benefit from

increased global demand for food.

● Activist investor Nelson Peltz urged DuPont to pursue a break-up. Further investor

activism could persuade management to pursue a spin-off, or a different value-creating

initiative.



66

Potential Concerns

● DuPont stock trades for 21 times earnings, a 10% premium to the market valuation.

Valuation does not provide a compelling margin of safety.

● Operating earnings declined 66% last quarter. The company’s turnaround is taking longer

than anticipated.

Bottom Line

DuPont is a company in transition. It is aggressively selling assets that it does not deem necessary

to the future, in order to reinvest in its agriculture and science divisions. Earnings are falling, but

the company generates enough cash flow to sustain its 2.5% dividend. Future dividend growth

will necessitate recovery in earnings. The company does expect full-year operating earnings to

increase 3%, which will help fuel dividend growth going forward.

Additional Resources for DD

● Dividend.com Profile Page for DD

● Full Dividend Payout History for DD

Diageo plc (DEO)

2015 Range: 100.59 - 122.51 Avg. Volume: 441,203


2015 EPS Est: 4.42 2016 EPS Est: 4.86



DEO Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/basic-materials/agricultural-chemicals/dd-dupont/

http://www.dividend.com/dividend-stocks/basic-materials/agricultural-chemicals/dd-dupont/#payout-history-table


67

Company Profile

Diageo PLC (DEO) is the world's largest producer of spirits and a major producer of beer and

wine. The company engages in the production, distillation, brewing, bottling, packaging,

distribution, development, and marketing of beer, wine, and other alcoholic beverages worldwide.

Some of its key brands include Smirnoff vodka, Johnnie Walker Scotch whiskey, Captain

Morgan rum, Baileys Original Irish Cream liqueur, Tanqueray gin, and Guinness stout beer.

Diageo was founded in 1886 and is based in London, England. Diageo is largely affected by

changing consumer tastes, as well as global regulation on alcohol use. Diageo has been paying

dividends since 1998, and has increased them annually since 2010. Diageo pays dividends semi-

annually.



2014 3.46 +18.39%

2013 2.92 +5.83%

2012 2.76 +5.02%

2011 2.63 +10.38%

2010 2.38 +6.39%

2009 2.24 -13.56%

2008 2.59 -0.65%

2007 2.61 +13.81%

2006 2.29 +3.90%

2005 2.20 +9.06%

2004 2.02 +19.24%


68

2003 1.69 +5.88%

2002 1.60 +10.73%

2001 1.45 +3.21%

2000 1.40 +0.36%

1999 1.40 -11.09%

1998 1.57 -14.73%

Dividend.com DARS™ Ratings for DEO

Below are Dividend.com's proprietary DARS™ Ratings for DEO as of Dec. 2, 2015. Each value


Relative Strength

2.0

DEO is slightly underperforming relative to its peers.


3.5

DEO's dividend yield is above the industry average.


4.5

DEO has been paying dividends for 13 years, and we feel its dividend yield is extremely safe.

Dividend Uptrend

3.5

DEO has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

DEO's earnings estimates are flat.




69

Dividend.com 2016 Forecast for DEO

Potential Catalysts

● A huge portfolio of strong brands. Diageo's portfolio includes Johnnie Walker, Crown

Royal, Guinness, Smirnoff, Captain Morgan and Ketel One.

● Strong dividend stock. Diageo yields 3.7%—significantly higher than the overall market

as well as its consumer staples peer group. And, management recently raised the dividend

9%.

● The strengthening U.S. dollar is a tailwind for international companies that conduct

significant revenue from North America. Diageo generated 45% of fiscal 2015 revenue

from North America.

Potential Concerns

● Exposure to the Euro zone. Europe represented 25% of Diageo’s revenue in 2015;

slowing economic growth in the Euro zone is a challenge.

● Low penetration in the emerging markets. Management should make emerging market

growth a bigger priority. Asia-Pacific represented just 11% of total revenue in 2015.

Bottom Line

Diageo is a conglomerate in the industry, with a large portfolio of successful brands. This

generates significant cash flow to the company, which is then returned to shareholders through

regular dividend increases. Near-term headwinds present a challenge but the future is bright

thanks to growth potential in new markets.

Additional Resources for DEO

● Dividend.com Profile Page for DEO

● Full Dividend Payout History for DEO

Walt Disney Company (DIS)

2015 Range: 90.00 - 122.08 Avg. Volume: 8,516,190


2015 EPS Est: 5.67 2016 EPS Est: 6.22



http://www.dividend.com/dividend-stocks/consumer-goods/beverages-wineries-and-distillers/deo-diageo-plc/

http://www.dividend.com/dividend-stocks/consumer-goods/beverages-wineries-and-distillers/deo-diageo-plc/#payout-history-table


70

DIS Five-Year Stock Chart

Company Profile

Walt Disney- (DIS)-operates as a diversified entertainment company worldwide. Its Media

Networks segment comprises a domestic broadcast television network, television production and

distribution operations, domestic television stations, cable/satellite networks, domestic broadcast

radio networks and stations, and the Internet and mobile operations. The company's Parks and

Resorts segment owns and operates the Walt Disney World Resort in Florida that includes theme

parks; hotels; vacation ownership units; a retail, dining, and entertainment complex; a sports

complex; conference centers; campgrounds; golf courses; and water parks. This segment also

owns and operates Disneyland Resort in California, Disney Vacation Club, Disney Cruise Line,

and ESPN Zone facilities; manages Disneyland Resort Paris and Hong Kong Disneyland Resort;

licenses the operations of the Tokyo Disney Resort in Japan; and designs and develops new

theme park concepts, attractions, and resort properties. The company was founded in 1923 and is

based in Burbank, California.



71


2014 1.15 +33.72%

2013 0.86 +14.67%

2012 0.75 +25.00%

2011 0.60 +50.00%

2010 0.40 +14.29%

2009 0.35 --

2008 0.35 --

2007 0.35 +12.90%

2006 0.31 +14.81%

2005 0.27 +12.50%

2004 0.24 +14.29%

2003 0.21 --

2002 0.21 --

2001 0.21 --

2000 0.21 -20.15%

1999 0.26 +31.06%

1998 0.20 +18.97%

1997 0.17 +53.32%

1996 0.11 -24.13%

1995 0.15 +51.56%

1994 0.10 -97.23%


72

Dividend.com DARS™ Ratings for DIS

Below are Dividend.com's proprietary DARS™ Ratings for DIS as of Dec. 2, 2015. Each value is


Relative Strength

4.0

DIS is outperforming much of the market.


2.5

DIS's dividend yield is just average.


4.0

DIS has been paying dividends for 49 years, and we its dividend yield is safe.

Dividend Uptrend

3.0

DIS has shown consistency in its payouts, but any increases have been small.

Earnings Growth

3.5

DIS's earnings estimates have been raised nicely.


Dividend.com 2016 Forecast for DIS

Potential Catalysts

● Excellent brand recognition. Disney is one of the world’s most valuable brands and

operates highly profitable businesses including media networks, parks and resorts, a

movie studio, and consumer merchandise.

● High growth, particularly from the emerging markets. This helped fuel 7% revenue

growth and 15% earnings growth in fiscal 2015.

● The upcoming release of Star Wars: Episode VII – The Force Awakens has the potential

to make Disney billions of dollars—not just in ticket sales, but also through the immense

merchandising opportunity.

Potential Concerns

● Subscribers of Disney’s flagship media property ESPN are declining. This could be due

to the rising consumer trend known as cord-cutting.

● Low dividend yield. Thanks to Disney’s rising share price, its dividend yield is barely

1%, which does not provide a sufficient level of income for dividend investors.



73

Bottom Line

Disney stock is up 67% over the past two years as the company enjoys rapid revenue and

earnings growth. Disney stock should be viewed as an excellent dividend growth stock, as the

dividend was raised 15% in 2015. But because of its very low current yield, it is not an ideal

stock pick for investors such as retirees who desire current income.

Additional Resources for DIS

● Dividend.com Profile Page for DIS

● Full Dividend Payout History for DIS

Digital Realty Trust Inc. (DLR)

2015 Range: 60.66 - 75.39 Avg. Volume: 1,100,320


2015 EPS Est: 5.16 2016 EPS Est: 5.53



DLR Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/services/entertainment-diversified/dis-the-walt-disney-company/

http://www.dividend.com/dividend-stocks/services/entertainment-diversified/dis-the-walt-disney-company/#payout-history-table


74

Company Profile

Digital Realty Trust (DLR) owns, acquires, develops, redevelops and manages technology-related

real estate. The company is focused on providing Turn-Key Datacenter (TM) and Powered Base

Building (TM) datacenter solutions for domestic and international tenants across a variety of

industry verticals ranging from information technology and internet enterprises to manufacturing

and financial services. Comprising approximately 24.5 million net rentable square feet, including

approximately 1.8 million square feet under active development as of December 31, 2013, Digital

Realty Trust's portfolio is comprised of 131 separate properties. As a REIT, Digital Realty Trust

is mandated to pay out the large majority of its earnings as dividends, and thus has a high

dividend yield and payout ratio. Digital Realty Trust has been paying dividends since 2004, and

has increased them every year consecutively since then. Digital Realty Trust pays its dividends

quarterly.



2014 3.32 +6.41%

2013 3.12 +6.85%

2012 2.92 +7.35%

2011 2.72 +34.65%

2010 2.02 +37.41%

2009 1.47 +16.67%

2008 1.26 +7.88%

2007 1.17 +8.05%

2006 1.08 +8.43%

2005 1.00 +539.10%

2004 0.16 -86.43%


75

Dividend.com DARS™ Ratings for DLR

Below are Dividend.com's proprietary DARS™ Ratings for DLR as of Dec. 2, 2015. Each value


Relative Strength

3.5

DLR is outperforming much of the market.


4.0

DLR's dividend yield is above the industry average.


4.0

DLR has been paying dividends for 2011 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

DLR has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

DLR's earnings estimates are flat.


Dividend.com 2016 Forecast for DLR

Potential Catalysts

● Digital Realty yields 4.7%, which is well above the market average. This is an attractive

yield for income investors.

● The company generates steady growth in funds from operation, which provides for

reliable dividend growth. Digital Realty has increased its dividend for 10 years in a row.

● A diversified, high quality tenant portfolio. Digital Realty enjoys 93% portfolio

occupancy and 80% average tenant retention. The company achieves 2%-3% annual rent

bumps and has a 6.2 year average remaining lease term.

Potential Concerns

● As a REIT, Digital Realty depends on debt to finance its capital structure. When interest

rates rise, this will be a headwind on earnings growth.

● Digital Realty is facing increasing competition from technology companies building their

own data storage centers.



76

Bottom Line

Digital Realty is in a particular niche (data center storage), which is in high demand right now. As

technology moves toward the cloud, demand for data centers is growing rapidly. This will

provide a fundamental tailwind for FFO growth, which will allow for regular dividend increases

as well. Digital Realty is a very good pick for a combination of high yield and dividend growth.

Additional Resources for DLR

● Dividend.com Profile Page for DLR

● Full Dividend Payout History for DLR

Dow Chemical (DOW)

2015 Range: 35.11 - 57.10 Avg. Volume: 15,068,800


2015 EPS Est: 3.27 2016 EPS Est: 3.55



DOW Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/financial/real-estate-development/dlr-digital-realty-trust/

http://www.dividend.com/dividend-stocks/financial/real-estate-development/dlr-digital-realty-trust/#payout-history-table


77

Company Profile

The Dow Chemical Company (DOW) is an American multinational chemical corporation, and it

is the second-largest chemical manufacturer in the world by revenue. The company provides

several products including plastics, chemicals, and agricultural products, and is located in about

160 countries. DOW was founded in 1897, and is based in Midland, MI. DOW’s business is

affected by environmental regulation, as it must comply with differing levels of regulation in

differing nations. As well, the variability of commodity prices for raw materials can impact

DOW’s operating costs. DOW has been paying a dividend since 1900, and has increased it

consecutively since 2011, after a cut. DOW pays its dividends quarterly.



2014 1.53 +19.53%

2013 1.28 +5.79%

2012 1.21 +34.44%

2011 0.90 +50.00%

2010 0.60 --

2009 0.60 -64.29%

2008 1.68 +2.75%

2007 1.64 +9.00%

2006 1.50 +11.94%

2005 1.34 --

2004 1.34 --

2003 1.34 --


78

2002 1.34 +14.14%

2001 1.17 +1.21%

2000 1.16 --

1999 1.16 --

1998 1.16 +3.57%

1997 1.12 +12.00%

1996 1.00 +3.45%

1995 0.97 +11.54%

1994 0.87 -73.90%

Dividend.com DARS™ Ratings for DOW

Below are Dividend.com's proprietary DARS™ Ratings for DOW as of Dec. 2, 2015. Each value


Relative Strength

3.0

DOW is performing in-line with the market or better.


3.5

DOW's dividend yield is above the industry average.


4.0

DOW has been paying dividends for 100 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

DOW has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

DOW's earnings estimates are flat.




79

Dividend.com 2016 Forecast for DOW

Potential Catalysts

● Strong underlying growth, particularly in the emerging markets. Last quarter, volumes

grew 7% in Asia-Pacific and 3% in Europe, the Middle East and Africa.

● Dow Chemical stock is cheap on a valuation basis. At 13 times earnings, the stock trades

for a 31% discount to the broader market valuation.

● Dow Chemical is a dividend stock with a 3.7% yield. This is higher than the market

average, and significantly above its closest competitor DuPont, which yields just 2.5%

Potential Concerns

● The rising U.S. dollar, which is weighing on revenue growth. Unfavorable currency

translations and divestments caused revenue to fall 16% last quarter.

● Exposure to weak agricultural conditions in Latin America. This caused revenue in Dow

Chemical’s agricultural sciences division to decline 14% last quarter.

Bottom Line

Dow Chemical is trying to refocus its business by divesting units deemed non-critical to the

future. This includes the sale of its AgroFresh specialty chemicals business. However, the stock

remains a compelling value and income opportunity with a cheap valuation and high dividend

yield.

Additional Resources for DOW

● Dividend.com Profile Page for DOW

● Full Dividend Payout History for DOW

Duke Energy Corporation (DUK)

2015 Range: 65.50 - 89.97 Avg. Volume: 3,324,930


2015 EPS Est: 4.58 2016 EPS Est: 4.71



http://www.dividend.com/dividend-stocks/basic-materials/chemicals-major-diversified/dow-dow-chemical/

http://www.dividend.com/dividend-stocks/basic-materials/chemicals-major-diversified/dow-dow-chemical/#payout-history-table


80

DUK Five-Year Stock Chart

Company Profile

Duke Energy Corp (DUK) is an energy company in the United States. The company was founded

in 1904 and is based out of Charlotte, North Carolina. Duke Energy business segments include

U.S. Franchised Electric and Gas (USFE&G), Commercial Power and International Energy. Its

utility operations serve four million customers located in Ohio, Kentucky, Florida, Indiana, South

Carolina, and North Carolina. It also operates international power generation assets in Canada

and Latin America. Duke Energy is extensively affected by state and federal regulations. Duke

Energy also relies on short-term and long-term money markets to finance capital requirements

and liquidity needs. Duke Energy has been paying dividends since 2000, and has consistently

increased them annually since 2007. Duke Energy pays its dividends quarterly.



2014 3.15 +1.94%

2013 3.09 +52.22%

2012 2.03 +105.05%

2011 0.99 +2.06%


81

2010 0.97 +3.19%

2009 0.94 +4.44%

2008 0.90 +4.65%

2007 0.86 -31.75%

2006 1.26 +46.51%

2005 0.86 -21.82%

2004 1.10 --

2003 1.10 --

2002 1.10 --

2001 1.10 --

2000 1.10 --

1999 1.10 --

1998 1.10 +1.85%

1997 1.08 +3.85%

1996 1.04 +4.00%

1995 1.00 +4.17%

1994 0.96 -37.25%

Dividend.com DARS™ Ratings for DUK

Below are Dividend.com's proprietary DARS™ Ratings for DUK as of Dec. 2, 2015. Each value


Relative Strength

3.5

DUK is outperforming much of the market.


4.0

DUK's dividend yield is above the industry average.


82


3.5

DUK has been paying dividends for 85 years, and we its dividend yield is safe.

Dividend Uptrend

3.0

DUK has shown consistency in its payouts, but any increases have been small.

Earnings Growth

3.0

DUK's earnings estimates are flat.


Dividend.com 2016 Forecast for DUK

Potential Catalysts

● High dividend yield and dividend growth. The stock yields 5% – more than double the

overall market average yield. Duke Energy has paid dividends for 88 years.

● As an electric utility, Duke Energy generates consistent cash flow each year, since

consumers cannot do without electricity. Adjusted earnings grew 5% last quarter.

Potential Concerns

● Exposure to rising interest rates, which will raise the cost of debt for utility companies.

● Above-average valuation is a cause for concern. Duke Energy trades for 19 times

earnings, which matches the market multiple. Typically, utilities do not carry market

multiples, because earnings growth is lower than the overall market.

Bottom Line

Duke Energy, like other well-run utilities, generates steady earnings growth each year. This

helped the company pay its dividend each quarter for many decades without interruption. The

only challenge going forward is rising interest rates, but Duke Energy has a strong balance sheet

with a manageable debt load. Therefore, it remains a good dividend stock.

Additional Resources for DUK

● Dividend.com Profile Page for DUK

● Full Dividend Payout History for DUK


http://www.dividend.com/dividend-stocks/utilities/electric-utilities/duk-duke-energy/

http://www.dividend.com/dividend-stocks/utilities/electric-utilities/duk-duke-energy/#payout-history-table


83

Consolidated Edison Inc. (ED)

2015 Range: 56.86 - 72.25 Avg. Volume: 2,056,720


2015 EPS Est: 4.01 2016 EPS Est: 4.06



ED Five-Year Stock Chart

Company Profile

Consolidated Edison, Inc. (ED) is one of the largest investor-owned energy companies in the

United States. The company delivers electricity, natural gas, and steam to customers in New York

City and Westchester County. ED was founded in 1823, and is based in New York, New York.

As a utility company, ED is extensively regulated by municipal, state, and federal governments.

ED is largely affected by the price of its utilities rate plans, which are limited and regulated by

state authorities. ED is a dividend aristocrat that has increased dividends for 40 consecutive years.

ED pays its dividends quarterly.


84



2014 2.52 +2.44%

2013 2.46 +1.65%

2012 2.42 +0.83%

2011 2.40 +0.84%

2010 2.38 +0.85%

2009 2.36 +0.85%

2008 2.34 +0.86%

2007 2.32 +0.87%

2006 2.30 +0.88%

2005 2.28 +0.88%

2004 2.26 +0.89%

2003 2.24 +0.90%

2002 2.22 +0.91%

2001 2.20 +0.92%

2000 2.18 +1.87%

1999 2.14 +0.94%

1998 2.12 +0.95%


85

1997 2.10 +0.96%

1996 2.08 +1.96%

1995 2.04 +2.00%

1994 2.00 -36.51%

Dividend.com DARS™ Ratings for ED

Below are Dividend.com's proprietary DARS™ Ratings for ED as of Dec. 2, 2015. Each value is


Relative Strength

2.5

ED is performing in-line with the market or better.


3.5

ED's dividend yield is above the industry average.


4.5

ED has been paying dividends for 126 years, and we feel its dividend yield is

extremely safe.

Dividend Uptrend

3.5

ED has shown steady and generous dividends, and has increased its payouts each

year.

Earnings Growth

3.0

ED's earnings estimates are flat.


Dividend.com 2016 Forecast for ED

Potential Catalysts

● High dividend yield and dividend growth. ConEd stock yields 4.2% and it has increased

its dividend 41 years in a row.

● As an electric utility, ConEd enjoys a highly recession-resistant business model—

households need electricity even when the economy enters recession.



86

Potential Concerns

● Higher interest rates will raise the cost of capital for utilities, which utilize debt heavily in

their capital structures.

● Low dividend growth may not match inflation. ConEd has grown its dividend by just 1%

per year over the past decade.

● Weaker than expected earnings growth this year could be a negative headwind into 2016.

ConEd’s third quarter earnings badly missed analyst expectations.

Bottom Line

ConEd is a steady utility stock that investors can count on for reliable growth and dividends.

ConEd is a member of the Dividend Aristocrat list. Core earnings per share rose 11% through the

first half of the year. The one concern investors should have is that higher interest rates may lead

to multiple contraction, but for income, ConEd is a good pick.

Additional Resources for ED

● Dividend.com Profile Page for ED

● Full Dividend Payout History for ED

Enbridge Energy Partnership (EEP)

2015 Range: 19.31 - 41.39 Avg. Volume: 1,209,440


2015 EPS Est: 1.00 2016 EPS Est: 1.19



EEP Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/utilities/diversified-utilities/ed-consolidated-edison/

http://www.dividend.com/dividend-stocks/utilities/diversified-utilities/ed-consolidated-edison/#payout-history-table


87

Company Profile

Enbridge Energy Partners LP (EEP) is a energy company which is focused on three core

businesses, crude oil and liquids pipelines, natural gas transportation and distribution, and green

energy. The company was founded 1949, and is headquartered in Alberta, Canada.



2014 2.20 +1.06%

2013 2.17 +1.02%

2012 2.15 +2.77%

2011 2.09 -48.28%

2010 4.05 +2.25%

2009 3.96 +2.06%

2008 3.88 +4.16%

2007 3.73 +0.68%

2006 3.70 --

2005 3.70 --

2004 3.70 --

2003 3.70 +2.78%

2002 3.60 +37.14%


88

2001 2.63 -25.00%

2000 3.50 +0.43%

1999 3.49 +3.72%

1998 3.36 +15.07%

1997 2.92 +12.31%

1996 2.60 +1.56%

1995 2.56 +1.99%

1994 2.51 -0.40%

Dividend.com DARS™ Ratings for EEP

Below are Dividend.com's proprietary DARS™ Ratings for EEP as of Dec. 2, 2015. Each value


Relative Strength

3.5

EEP is outperforming much of the market.


4.0

EEP's dividend yield is above the industry average.


4.0

EEP has been paying dividends for 2011 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

EEP has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

2.5

EEP's earnings estimates are flat.




89

Dividend.com 2016 Forecast for EEP

Potential Catalysts

● A very high dividend yield. Enbridge currently yields 9%, which is well above the 2%

yield for the S&P 500 Index.

● Growing distributions. Enbridge’s most recent distribution was 5% higher than the same

quarterly payout last year.

● Some protection from commodity prices. As a midstream company, Enbridge operates

pipelines and storage terminals. This provides some measure of insulation against

commodity prices, as midstream operates more like a toll road, collecting fees based on

volumes transported and stored.

Potential Concerns

● Exposure to a continued slide in commodity prices could mean further downside for the

stock. Revenue fell 34% last quarter, year over year.

● A high level of debt could threaten Enbridge’s distribution. The company currently has

$7.1 billion of long-term debt, and just $110 million of cash and cash equivalents.

● Rising interest rates can be very dangerous. With so much long-term debt, Enbridge

could see significantly higher financing costs if and when interest rates rise.

Bottom Line

Enbridge has navigated the commodity downturn well. It has not cut its distribution yet.

However, the company has a great deal of debt on the balance sheet. A prolonged downturn in

commodity prices may jeopardize Enbridge’s ability to maintain its 9% distribution. If

commodity prices recover, the 9% yield will serve as an excellent yield for income investors.

Additional Resources for EEP

● Dividend.com Profile Page for EEP

● Full Dividend Payout History for EEP

Enterprise Products Partners L.P. (EPD)

2015 Range: 20.7600 - 37.1900 Avg. Volume: 5,930,550


2015 EPS Est: 1.2800 2016 EPS Est: 1.4700



http://www.dividend.com/dividend-stocks/basic-materials/oil-and-gas-pipelines/eep-enbridge-energy-partners-lp/

http://www.dividend.com/dividend-stocks/basic-materials/oil-and-gas-pipelines/eep-enbridge-energy-partners-lp/#payout-history-table

http://www.dividend.com/dividend-stocks/basic-materials/oil-and-gas-pipelines/eep-enbridge-energy-partners-lp/#payout-history-table


90

EPD Five-Year Stock Chart

Company Profile

Enterprise Products Partners LP (EPD) is a holding company that owns Enterprise Products

Operating LLC, a provider of midstream energy services to producers and consumers of natural

gas, NGLs, crude oil, and refined products. The company is based in Houston, TX. EPD relies

solely on dividend pays from Enterprise Products Operating LLC. EPD’s profitability is largely

affected by the price of commodities such as crude oil and natural gas. As well, EPD is reliant on

liquid capital markets and access to investment opportunities. EPD has been paying dividends

since 1998, and has increased them consecutively annually since 1999. EPD pays its dividends

quarterly.



2014 2.50 -25.74%

2013 3.36 +32.68%

2012 2.53 +5.26%

2011 2.41 +5.25%

2010 2.29 +5.54%


91

2009 2.17 +5.87%

2008 2.05 +6.78%

2007 1.92 +6.68%

2006 1.80 +8.19%

2005 1.66 +9.64%

2004 1.51 +4.85%

2003 1.44 +8.78%

2002 1.33 +14.79%

2001 1.16 +12.83%

2000 1.03 +13.89%

1999 0.90 +300.00%

1998 0.23 -89.76%

Dividend.com DARS™ Ratings for EPD

Below are Dividend.com's proprietary DARS™ Ratings for EPD as of Dec. 2, 2015. Each value


Relative Strength

3.0

EPD is performing in-line with the market or better.



4.0

EPD has been paying dividends for 13 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

EPD has shown steady and generous dividends, and has increased its payouts each year.


92

Earnings Growth

3.0

EPD's earnings estimates are flat.


Dividend.com 2016 Forecast for EPD

Potential Catalysts

● Very high distribution yield and growth. Enterprise Products yields 5.8%, and has

increased its distribution for 45 consecutive quarters.

● Pipelines operate like toll roads. The company collects fees based on volumes, and is less

reliant on commodity prices than upstream firms. Distributable cash flow grew 49% over

the first nine months of the year.

● Demand for oil and gas infrastructure improvements in the United States, as well as the

potential for exporting oil and gas to underdeveloped nations.

Potential Concerns

● Rising interest rates raise the cost of debt for highly leveraged companies like Enterprise

Products. The company holds $22.5 billion in debt.

● Rising capital expenditures. Due to increased demand for oil and gas infrastructure,

Enterprise Products Partners’ capital expenditures rose 40% over the first nine months.

Bottom Line

Sentiment is broadly negative across the entire energy sector. Even high-quality companies that

are not highly exposed to commodity prices, such as Enterprise Products, are being sold in this

market. However, this sets up an excellent buying opportunity for new investors. Enterprise

Products’ excellent cash flow generation and distribution growth make it a very strong stock for

income investors.

Additional Resources for EPD

● Dividend.com Profile Page for EPD

● Full Dividend Payout History for EPD


http://www.dividend.com/dividend-stocks/basic-materials/independent-oil-and-gas/epd-enterprise-products-partners-lp/

http://www.dividend.com/dividend-stocks/basic-materials/independent-oil-and-gas/epd-enterprise-products-partners-lp/#payout-history-table


93

General Electric Company (GE)

2015 Range: 19.37 - 30.99 Avg. Volume: 92,163,296


2015 EPS Est: 1.30 2016 EPS Est: 1.51



GE Five-Year Stock Chart

Company Profile

General Electric Company (GE) is a diversified technology and financial services company. The

company offers many products and services including aircraft engines, power generation, water

processing, household appliances, medical imaging, business and consumer financing, and

industrial products. GE has a presence in over 100 countries. Segments of the company include

Energy Infrastructure, Aviation, Healthcare, Transportation, Home & Business Solutions and GE

Capital. The company was founded in 1892 and is based in Fairfield, CT. Since 2008, GE has had

increasing pension costs from the vast number of Americans it had employed a few decades

previously. GE is also largely affected by global economic conditions globally, as many of its

products are sold to more volatile industries. GE has paid a dividend for over 100 years, and has

increased its dividend annually since 2011. GE has historically had a volatile dividend. GE pays

its dividends quarterly.


94



2014 0.89 +12.66%

2013 0.79 +12.86%

2012 0.70 +14.75%

2011 0.61 +1.67%

2010 0.60 -1.64%

2009 0.61 -50.81%

2008 1.24 +7.83%

2007 1.15 +11.65%

2006 1.03 +13.19%

2005 0.91 +10.98%

2004 0.82 +6.49%

2003 0.77 +5.48%

2002 0.73 +10.61%

2001 0.66 +15.65%

2000 0.57 +17.26%

1999 0.49 +16.80%

1998 0.42 +15.74%


95

1997 0.36 +13.68%

1996 0.32 +12.43%

1995 0.28 +13.42%

1994 0.25 -90.05%

Dividend.com DARS™ Ratings for GE

Below are Dividend.com's proprietary DARS™ Ratings for GE as of Dec. 2, 2015. Each value is


Relative Strength

2.0

GE is slightly underperforming relative to its peers.


4.0

GE's dividend yield is above the industry average.


4.0

GE has been paying dividends for 112 years, and we its dividend yield is safe.

Dividend Uptrend

4.0

GE has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

GE's earnings estimates are flat.


Dividend.com 2016 Forecast for GE

Potential Catalysts

● Divestiture of General Electric’s financing business. GE will sell most of its GE Capital

assets over the next two years, as well as its real estate assets. All told, the transactions

are expected to bring in $26 billion.

● This cash will be used for major share repurchases. GE plans to buy back as much as $50

billion of its own stock with the divestiture proceeds. This will be a very meaningful

catalyst for earnings growth going forward.

● Above-average dividend yield and dividend growth. General Electric yields 3% and

raised its dividend by 4.5% last year.



96

Potential Concerns

● Exposure to the oil and gas industries is a future concern. General Electric’s oil and gas

business makes up approximately 15% of its industrial revenue. Sales in that business fell

16% last quarter, due to continued contraction in commodity prices.

● Slowing economic growth in the emerging markets negatively affects GE because it is a

global company.

● Over-valuation is a concern, given weakness in certain business segments. General

Electric stock trades for 20 times forward earnings estimates, an above-average P/E

multiple.

Bottom Line

General Electric is undergoing a major restructuring and selling its massive financing arm. This

complicates the short-term picture but, long-term, it is a good strategy. Focusing on industrial

businesses should allow for smoother earnings growth and, as a result, stronger dividend growth.

Additional Resources for GE

● Dividend.com Profile Page for GE

● Full Dividend Payout History for GE

Gilead Sciences Inc. (GILD)

2015 Range: 85.95 - 123.37 Avg. Volume: 10,607,400


2015 EPS Est: 12.20 2016 EPS Est: 11.95



GILD Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/conglomerates/conglomerates-general/ge-general-electric/

http://www.dividend.com/dividend-stocks/conglomerates/conglomerates-general/ge-general-electric/#payout-history-table


97



Dividend.com DARS™ Ratings for GILD

Below are Dividend.com's proprietary DARS™ Ratings for GILD as of Dec. 2, 2014. Each value


Relative Strength

4.5

GILD is breaking to the upside and outperforming most of the market.


3.0

GILD's dividend yield is just average.


3.0

GILD has been paying dividends for 2011 years, and we feel its dividend yield is

relatively safe.

Dividend Uptrend

3.0

GILD has shown consistency in its payouts, but any increases have been small.

Earnings Growth

4.0

GILD's earnings estimates have been raised nicely.




98

Dividend.com 2016 Forecast for GILD

Potential Catalysts

● A large pipeline of new drugs is a catalyst for future earnings growth. Earnings are up

63% through the first three quarters of the year.

● Excellent balance sheet. Gilead holds $25 billion in cash on the balance sheet.

● An attractive valuation. Gilead stock trades for just 9 times earnings, which is less than

half the S&P 500 average valuation.

Potential Concerns

● Increased risk of regulatory intervention of biotechnology companies could limit future

growth.

● A low dividend yield. Gilead stock yields 1.5%, which is significantly below both the

market average and its pharmaceutical peer group.

Bottom Line

Gilead is a highly profitable company with an excellent balance sheet. Its current dividend yield

is low and the company has only paid dividends since this year. But over time, its strong financial

condition and earnings growth should fuel double-digit dividend growth per year. Gilead is a

stock that should appeal highly to dividend growth investors, but not as much to investors like

retirees who desire current income.

Additional Resources for GILD

● Dividend.com Profile Page for GILD

● Full Dividend Payout History for GILD

General Mills Inc. (GIS)

2015 Range: 47.500 - 59.870 Avg. Volume: 3,322,970


2015 EPS Est: 2.940 2016 EPS Est: 3.140



http://www.dividend.com/dividend-stocks/healthcare/biotechnology/gild-gilead-sciences/

http://www.dividend.com/dividend-stocks/healthcare/biotechnology/gild-gilead-sciences/#payout-history-table


99

GIS Five-Year Stock Chart

Company Profile

General Mills, Inc. (GIS) is a leading global manufacturer and marketer of consumer food

products. Its business operates in three segments: U.S. Retail, International, and Bakeries and

Foodservice. Its products are manufactured in 15 countries and sold in over 100 countries

worldwide. The company owns several brands,including Cheerios, Progresso Soup, Hamburger

Helper, and Fruit Roll-Ups.General Mills was established in 1866 and is headquartered

Minneapolis, Minnesota.



2014 1.61 +13.38%

2013 1.42 +11.81%

2012 1.27 +8.55%

2011 1.17 -24.03%

2010 1.54 -14.44%

2009 1.80 +9.09%


100

2008 1.65 +8.55%

2007 1.52 +10.14%

2006 1.38 +115.63%

2005 0.64 -45.30%

2004 1.17 +6.36%

2003 1.10 --

2002 1.10 --

2001 1.10 --

2000 1.10 --

1999 1.10 +3.77%

1998 1.06 +1.44%

1997 1.05 +6.09%

1996 0.99 +4.79%

1995 0.94 --

1994 0.94 +5.62%

Dividend.com DARS™ Ratings for GIS

Below are Dividend.com's proprietary DARS™ Ratings for GIS as of Dec. 2, 2015. Each value is


Relative Strength

2.0

GIS is slightly underperforming relative to its peers.


4.5

GIS's dividend yield extremely attractive for dividend investors.


4.0

GIS has been paying dividends for 113 years, and we its dividend yield is safe.


101

Dividend Uptrend

4.0

GIS has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

2.5

GIS's earnings estimates are flat.


Dividend.com 2016 Forecast for GIS

Potential Catalysts

● General Mills operates in a very stable industry. Food and beverage is a reliable source of

profits and cash flow, and is a recession-resistant business model.

● An above-average 3.2% dividend yield and a long history of paying dividends. It has

made quarterly dividend payments without interruption for 116 years.

● Dividend growth. Over the most recent five fiscal years, General Mills’ quarterly

dividend rate has been increased six times and its annual dividend per share has grown at

a 12% compound rate.

Potential Concerns

● General Mills has displayed a lack of progress in new growth areas like organic food. The

acquisition of specialty organic food company Annie’s last year, for $820 million, was a

relatively small acquisition.

● The company has failed to meet earnings forecasts recently. Last quarter, General Mills’

revenue declined 1%. Sales of $4.3 billion came in short of expectations; analysts had

projected $4.52 billion in sales.

● Aggressive valuation is a final concern. General Mills stock trades for 26 times earnings,

which is 36% above the S&P 500 Index valuation.

Bottom Line

General Mills has one of the longest track records of paying dividends. This is a testament to its

reliable business model and strong brand. However, the company has seen growth slow down due

to shifting consumer preferences, away from pre-packaged goods like cereal, and toward fresher

alternatives. General Mills is a satisfactory dividend stock with a 3.2% yield, but dividend growth

may slow in the years ahead.

Additional Resources for GIS

● Dividend.com Profile Page for GIS

● Full Dividend Payout History for GIS


http://www.dividend.com/dividend-stocks/consumer-goods/processed-and-packaged-goods/gis-general-mills/

http://www.dividend.com/dividend-stocks/consumer-goods/processed-and-packaged-goods/gis-general-mills/#payout-history-table


102

Goldman Sachs (GS)

2015 Range: 167.4900 - 218.7700 Avg. Volume: 3,086,080


2015 EPS Est: 15.4700 2016 EPS Est: 18.9300



GS Five-Year Stock Chart

Company Profile

Goldman Sachs (GS) is a global investment bank which focuses on investment banking,

securities, investment management, and other financial services. GS operates in four segments:

Investment Banking, Institutional Client Services, Investing & Lending and Investment

Management. As of 2009, the company employed more than 31,000 people worldwide. GS was

founded in 1869, and is based in New York, NY.



103


2014 2.25 +9.76%

2013 2.05 +15.82%

2012 1.77 +26.43%

2011 1.40 --

2010 1.40 -7.71%

2009 1.52 +8.36%

2008 1.40 --

2007 1.40 +7.69%

2006 1.30 +30.00%

2005 1.00 --

2004 1.00 +35.14%

2003 0.74 +23.33%

2002 0.60 +25.00%

2001 0.48 --

2000 0.48 +100.00%

1999 0.24 -85.09%

Dividend.com DARS™ Ratings for GS

Below are Dividend.com's proprietary DARS™ Ratings for GS as of Dec. 2, 2015. Each value is


Relative Strength

3.5

GS is outperforming much of the market.


2.5

GS's dividend yield is just average.


104


4.0

GS has been paying dividends for 2011 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

GS has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.5

GS's earnings estimates have been raised nicely.


Dividend.com 2016 Forecast for GS

Potential Catalysts

● Goldman Sachs holds a top position as a global asset management and investment

banking firm. Its sterling reputation allows the company to recruit top talent.

● Improving global corporate finance activity is a growth catalyst for next year. Goldman

Sachs’ tangible book value is up 5% since the beginning of the year.

Potential Concerns

● Warren Buffett, Chairman of Berkshire Hathaway, recently sold shares of Goldman

Sachs. As of September 30, Berkshire owned just under 11 million shares of Goldman,

down from around 12.6 million on June 30. This could cause negative sentiment to

spread.

● Poor performance of the global equity and fixed income markets is a concern for asset

management firms. Last quarter, these headwinds caused Goldman Sachs’ earnings per

share to decline 36% year over year.

● Concerns over the health of CEO Lloyd Blankfein could linger into 2016.

Bottom Line

Goldman Sachs is one of the premier brand names in professional money management. The

company will benefit from a strong mergers and acquisitions environment. On the other hand,

equity markets have not performed well, which could hang over the stock next year. Goldman

Sachs is not a strong pick for dividends; the stock yields just 1.3%, which is significantly below

the market average.

Additional Resources for GS

● Dividend.com Profile Page for GS

● Full Dividend Payout History for GS


http://www.dividend.com/dividend-stocks/financial/investment-brokerage-national/gs-goldman-sachs/

http://www.dividend.com/dividend-stocks/financial/investment-brokerage-national/gs-goldman-sachs/#payout-history-table


105

Home Depot Inc. (HD)

2015 Range: 92.1700 - 135.4700 Avg. Volume: 5,214,000


2015 EPS Est: 5.3800 2016 EPS Est: 6.2100



HD Five-Year Stock Chart

Company Profile

The Home Depot, Inc. (HD) is a home improvement retailer that operates more than 2,200 home

improvement warehouses. The company offers products including building materials, hand and

power tools, and lawn and garden equipment. The company was established in 1978 and is

headquartered just outside of Atlanta, GA. The Home Depot faces risks from intense competition

and new competitors in the home improvement industry. The Home Depot has been paying

dividends since 1993, and has been increasing them annually since then, except for 2008 and

2009, when the dividend remained stable. The Home Depot pays its dividends quarterly.



106


2014 1.88 +20.51%

2013 1.56 +34.48%

2012 1.16 +11.54%

2011 1.04 +10.17%

2010 0.94 +4.89%

2009 0.90 --

2008 0.90 --

2007 0.90 +33.33%

2006 0.68 +68.75%

2005 0.40 +23.08%

2004 0.33 +25.00%

2003 0.26 +23.81%

2002 0.21 +23.53%

2001 0.17 +6.25%

2000 0.16 +41.17%

1999 0.11 +47.83%

1998 0.08 +21.05%

1997 0.06 +23.95%

1996 0.05 +21.03%

1995 0.04 +26.63%

1994 0.03 -98.52%


107

Dividend.com DARS™ Ratings for HD

Below are Dividend.com's proprietary DARS™ Ratings for HD as of Dec. 2, 2015. Each value is


Relative Strength

4.0

HD is outperforming much of the market.


2.5

HD's dividend yield is just average.


4.0

HD has been paying dividends for 24 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

HD has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

HD's earnings estimates are flat.


Dividend.com 2016 Forecast for HD

Potential Catalysts

● Recovery in the U.S. housing market provides higher demand for housing renovations.

● High growth. Over the first three quarters of 2015, Home Depot’s revenue and earnings

grew 5% and 17%, respectively.

● High dividend growth, directly the result of Home Depot’s strong revenue and earnings

growth. Over the past five years, Home Depot increased its dividend by 20%

compounded annually.

Potential Concerns

● Rising interest rates could threaten the housing market in the United States. Lower

housing formation could result in decreased demand for Home Depot’s products and

services.

● Lack of a margin of safety. Home Depot stock trades for 25 times earnings and the stock

yields 1.9%, below the average S&P 500 dividend yield.



108

Bottom Line

The Home Depot is the world's largest home improvement specialty retailer. The company has

benefited hugely from the recovery in the housing and labor markets in North America. Home

Depot is an excellent stock for dividend growth, but is not such an ideal stock for current yield, as

its dividend yield is below the market average.

Additional Resources for HD

● Dividend.com Profile Page for HD

● Full Dividend Payout History for HD

Honeywell International Inc. (HON)

2015 Range: 87.00 - 107.41 Avg. Volume: 3,498,520


2015 EPS Est: 6.10 2016 EPS Est: 6.51



HON Five-Year Stock Chart

Company Profile

Honeywell International Inc. (HON) is a technology and manufacturing company. The company

offers many products and services including aerospace products and services, control, sensing and

security technologies for buildings, homes and industry, turbochargers, automotive products,

specialty chemicals, and electronic and advanced materials. The company was founded in 1906

and is headquartered in Morristown, NJ.

http://www.dividend.com/dividend-stocks/services/home-improvement-stores/hd-home-depot/

http://www.dividend.com/dividend-stocks/services/home-improvement-stores/hd-home-depot/#payout-history-table


109



2014 1.87 +11.16%

2013 1.68 +9.98%

2012 1.53 +11.33%

2011 1.37 +13.20%

2010 1.21 --

2009 1.21 +10.18%

2008 1.10 +10.00%

2007 1.00 +10.13%

2006 0.91 +10.19%

2005 0.82 +9.57%

2004 0.75 --

2003 0.75 --

2002 0.75 --

2001 0.75 --

2000 0.75 +10.59%

1999 0.68 +13.33%

1998 0.60 +15.38%


110

1997 0.52 +15.56%

1996 0.45 +15.38%

1995 0.39 +20.18%

1994 0.32 -82.74%

Dividend.com DARS™ Ratings for HON

Below are Dividend.com's proprietary DARS™ Ratings for HON as of Dec. 2, 2015. Each value


Relative Strength

3.0

HON is performing in-line with the market or better.


3.5

HON's dividend yield is above the industry average.


4.0

HON has been paying dividends for 41 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

HON has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

HON's earnings estimates are flat.


Dividend.com 2016 Forecast for HON

Potential Catalysts

● As a major industrial company, Honeywell is a beneficiary of the global economic

recovery since the financial crisis.

● Huge growth potential in the emerging markets. Honeywell’s emerging markets business

grew at a 15% compound annual rate from 2003-2013.

● Continued free cash flow generation allows for the company to raise dividends at a high

rate. Honeywell recently increased its dividend by 15%.



111

Potential Concerns

● The rising U.S. dollar cut Honeywell’s revenue growth by six percentage points last

quarter.

● For the full year, Honeywell expects total sales to decline 4% from 2014 levels. This

could put pressure on future dividend growth.

Bottom Line

Honeywell’s growth is suppressed due to the strengthening U.S. dollar, but the company still

expects 10% earnings growth this year. This is because Honeywell, unlike many of its peers in

the industrial industry, does not cater to the oil and gas industry. Instead, Honeywell focuses on

aerospace and automation solutions. Honeywell stock yields 2.4%, which is above the S&P 500

Index average yield, and Honeywell is a strong dividend growth stock as well. Near-term

currency headwinds may be transitory.

Additional Resources for HON

● Dividend.com Profile Page for HON

● Full Dividend Payout History for HON

International Business Machines Corporation

(IBM)

2015 Range: 131.65 - 176.30 Avg. Volume: 4,657,570


2015 EPS Est: 14.93 2016 EPS Est: 15.11



IBM Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/industrial-goods/aerospace-defense-products-and-services/hon-honeywell/

http://www.dividend.com/dividend-stocks/industrial-goods/aerospace-defense-products-and-services/hon-honeywell/#payout-history-table


112

Company Profile

International Business Machines Corp.(IBM) provides information technology products and

services worldwide. IBM operates in five segments that address a variety of different IT products

and services. These are: Global Technology Services, Global Business Services, Software,

Systems and Technology and Global Financing. The company was founded in 1910 as

Computing-Tabulating-Recording Company and changed its name to International Business

Machines Corporation in 1924. IBM is based in Armonk, New York. IBM's stock price is driven

by global business demand for IT services, particularly Software and Global Technology

Services. IBM has been paying dividends since 1913, and has consistently increased its dividend

since 1999.



2014 4.25 +14.86%

2013 3.70 +12.12%

2012 3.30 +13.79%

2011 2.90 +16.00%

2010 2.50 +16.28%

2009 2.15 +13.16%

2008 1.90 +26.67%

2007 1.50 +36.36%

2006 1.10 +41.03%

2005 0.78 +11.43%

2004 0.70 +11.11%


113

2003 0.63 +6.78%

2002 0.59 +7.27%

2001 0.55 +7.84%

2000 0.51 +8.51%

1999 0.47 +9.30%

1998 0.43 +49.57%

1997 0.29 -11.54%

1996 0.33 +30.00%

1995 0.25 --

1994 0.25 -86.61%

Dividend.com DARS™ Ratings for IBM

Below are Dividend.com's proprietary DARS™ Ratings for IBM as of Dec. 2, 2015. Each value


Relative Strength

2.0

IBM is slightly underperforming relative to its peers.


3.5

IBM's dividend yield is above the industry average.


4.0

IBM has been paying dividends for 98 years, and we its dividend yield is safe.

Dividend Uptrend

4.0

IBM has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

IBM's earnings estimates are flat.




114

Dividend.com 2016 Forecast for IBM

Potential Catalysts

● Above-average dividend growth. IBM has increased its quarterly dividend by 14%

compounded annually over the past five years. This is because the company continues to

generate strong free cash flow.

● High free cash flow generation. IBM's trailing 12-month dividend payments represent

just 34% of its free cash flow, which is a very modest level that leaves the door open for

another double-digit dividend raise next year.

● High dividend yield. IBM stock yields 3.7%, which represents a 10-year high for the

stock.

Potential Concerns

● Eroding hardware business. IBM’s total revenue has decreased for 14 consecutive

quarters, largely because of the divestitures of several hardware businesses, including

semiconductor manufacturing.

● The rising U.S. dollar is eroding revenue growth. Revenue fell 13% last quarter, and

negative foreign exchange translations caused 12% revenue decline.

Bottom Line

IBM is in the middle of a huge transformation. The company is getting out of technology

hardware, and instead is reinvesting in newer growth areas like the cloud, security and big data.

This is starting to bear fruit—as the high-growth businesses collectively grew revenue by 27%

year over year. Cloud revenue has now reached $9.4 billion in the trailing 12 months, but IBM is

a very large company, so this turnaround will take time. However, IBM has a high dividend yield

and strong dividend growth, and remains a good stock for dividend investors.

Additional Resources for IBM

● Dividend.com Profile Page for IBM

● Full Dividend Payout History for IBM

Intel Corporation (INTC)

2015 Range: 24.870 - 37.740 Avg. Volume: 27,761,700


2015 EPS Est: 2.230 2016 EPS Est: 2.370



http://www.dividend.com/dividend-stocks/technology/diversified-computer-systems/ibm-ibm-corp/

http://www.dividend.com/dividend-stocks/technology/diversified-computer-systems/ibm-ibm-corp/#payout-history-table


115

INTC Five-Year Stock Chart

Company Profile

Intel Corporation (INTC) designs and manufactures integrated digital technology platforms. The

company offers microprocessors that process system data and controls other devices in the

system. Intel's products are used in personal computers, data centers, tablets, smartphones,

automobiles, automated factory systems and medical devices. The company was founded in 1968,

and is based in Santa Carla, CA.



2014 0.90 --

2013 0.90 +3.45%

2012 0.87 +11.25%

2011 0.78 +23.73%

2010 0.63 +12.86%

2009 0.56 +2.19%


116

2008 0.55 +21.24%

2007 0.45 +13.00%

2006 0.40 +25.00%

2005 0.32 +100.00%

2004 0.16 +100.00%

2003 0.08 --

2002 0.08 --

2001 0.08 +14.29%

2000 0.07 +16.67%

1999 0.06 +84.62%

1998 0.03 +18.18%

1997 0.03 +22.22%

1996 0.02 +28.57%

1995 0.02 +27.18%

1994 0.01 -99.68%

Dividend.com DARS™ Ratings for INTC

Below are Dividend.com's proprietary DARS™ Ratings for INTC as of Dec. 2, 2015. Each value


Relative Strength

4.0

INTC is outperforming much of the market.


3.0

INTC's dividend yield is just average.


3.0

INTC has been paying dividends for 19 years, and we feel its dividend yield is relatively

safe.


117

Dividend Uptrend

3.0

INTC has shown consistency in its payouts, but any increases have been small.

Earnings Growth

4.0

INTC's earnings estimates have been raised nicely.


Dividend.com 2016 Forecast for INTC

Potential Catalysts

● High growth in data centers and the Internet of Things should boost earnings growth next

year.

● Intel is a cheap stock. Trading for 14 times earnings, Intel trades for a 26% discount to

the S&P 500 valuation.

● Intel stock yields 3.7%, which is significantly above both the market and the technology

sector.

Potential Concerns

● As consumers and businesses perform more computing functions on smartphones and

tablets, sales of PCs are falling. Global PC shipments fell 10% last quarter.

● An inability to meaningfully penetrate mobile. Intel’s mobile devices business lost $4

billion last year.

Bottom Line

Intel is investing aggressively in high-growth areas like mobile, but the results have not been seen

yet. Thankfully, Intel grew revenue in data centers by 12% last quarter. Revenue in data centers

hit a record $4.1 billion last quarter. And, the Internet of Things grew by 10%, year-over-year.

Intel’s dividend growth has slowed in recent years, but the stock offers a high yield and is a

worthwhile stock for income investors.

Additional Resources for INTC

● Dividend.com Profile Page for INTC

● Full Dividend Payout History for INTC


http://www.dividend.com/dividend-stocks/technology/semiconductor-broad-line/intc-intel-corp/

http://www.dividend.com/dividend-stocks/technology/semiconductor-broad-line/intc-intel-corp/#payout-history-table


118

Johnson & Johnson (JNJ)

2015 Range: 81.7900 - 107.3900 Avg. Volume: 8,015,500


2015 EPS Est: 6.1800 2016 EPS Est: 6.4200



JNJ Five-Year Stock Chart

Company Profile

Johnson & Johnson (JNJ) is a holding company that researches, develops, and manufactures a

diversified range of products in the healthcare field. The company has three segments: Consumer,

Pharmaceutical, and Medical Devices and Diagnostics. JNJ was founded in 1887, and is based in

New Brunswick, NJ. As a consumer-facing company, JNJ is widely affected by the general

economic environment. Other factors include government policy regarding regulation, challenges

inherent in new product development, such as patents and regulatory approval, and trends

towards health care cost containment. Johnson & Johnson has been paying dividends since 1963,

and has consistently increased them every year. Johnson & Johnson is a dividend aristocrat, and

pays its dividend every quarter.


119



2014 2.76 +43.01%

2013 1.93 -19.58%

2012 2.40 +6.67%

2011 2.25 +6.64%

2010 2.11 +9.33%

2009 1.93 +7.52%

2008 1.80 +10.80%

2007 1.62 +11.34%

2006 1.46 +14.12%

2005 1.28 +16.44%

2004 1.10 +18.38%

2003 0.93 +16.35%

2002 0.80 +13.57%

2001 0.70 +12.90%

2000 0.62 +13.76%

1999 0.55 +12.37%

1998 0.49 +14.12%


120

1997 0.43 +15.65%

1996 0.37 +14.84%

1995 0.32 +13.27%

1994 0.28 -68.61%

Dividend.com DARS™ Ratings for JNJ

Below are Dividend.com's proprietary DARS™ Ratings for JNJ as of Dec. 2, 2015. Each value is


Relative Strength

3.0

JNJ is performing in-line with the market or better.


3.0

JNJ's dividend yield is just average.


4.5

JNJ has been paying dividends for 67 years, and we feel its dividend yield is extremely safe.

Dividend Uptrend

4.5

JNJ has been increasing its dividends at a superb pace, and is well-positioned to continue to

do so.

Earnings Growth

2.0

JNJ has seen its earnings estimates slightly lowered.


Dividend.com 2016 Forecast for JNJ

Potential Catalysts

● A diversified and high-quality business model. Approximately 70% of revenue comes

from No. 1 or No. 2 global leadership positions in its respective markets.

● An excellent balance sheet. Johnson & Johnson is one of only three U.S. companies to

hold a triple-A credit rating from Standard & Poor’s.

● Strong dividend growth. Johnson & Johnson has increased its dividend for 53 years in a

row, which places it on the Dividend Aristocrat list.



121

Potential Concerns

● The strong U.S. dollar. As a major multinational, Johnson & Johnson’s revenue growth

was cut by eight full percentage points last quarter, due to unfavorable currency

translations.

● Generic competition. Sales of Olysio fell 96% in the United States last quarter, due to

intensifying competition from generic drugs.

Bottom Line

Johnson & Johnson is seeing near-term pressure on earnings from the rising U.S. dollar and

generic competition. But the company remains highly profitable, and generates a lot of cash flow.

This is used to regularly increase dividends each year. The stock yields 3% and can be the

foundation of a dividend portfolio.

Additional Resources for JNJ

● Dividend.com Profile Page for JNJ

● Full Dividend Payout History for JNJ

J.P. Morgan Chase & Co. (JPM)

2015 Range: 50.07 - 70.61 Avg. Volume: 14,657,000


2015 EPS Est: 5.95 2016 EPS Est: 6.21



JPM Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/healthcare/drug-manufacturers-major/jnj-johnson-and-johnson/

http://www.dividend.com/dividend-stocks/healthcare/drug-manufacturers-major/jnj-johnson-and-johnson/#payout-history-table


122

Company Profile

JPMorgan Chase & Co. (JPM) is a multinational banking and financial services company. The

company provides investment banking, financial services for consumers and small businesses,

commercial banking, financial transaction processing, asset management and private equity

management. Based out of New York, New York, it is the largest bank in the United States in

term of assets. It was formed in 2000 when JP Morgan & Co. merged with Chase Manhattan

Corporation. The JP Morgan brand is used for investment and private banking while the Chase

brand is used for credit card services, retail, and commercial banking. Following the financial

crisis, JPMorgan Chase & Co. is subject to substantial regulation from the Securities and

Exchange Commission (SEC). JPM settled a case with the Justice Department over the value of

mortgage backed securities it sold prior to the financial crisis and paid a fine of $13B. JPM has

been paying dividends since 1993, and while the dividends were cut following the financial crisis,

they have been steadily increased since 2011. JPM pays its dividend quarterly.



2014 1.56 +14.71%

2013 1.36 +18.26%

2012 1.15 +43.75%

2011 0.80 +300.00%

2010 0.20 -62.26%

2009 0.53 -65.13%

2008 1.52 +5.56%

2007 1.44 +5.88%

2006 1.36 --


123

2005 1.36 --

2004 1.36 --

2003 1.36 --

2002 1.36 +1.49%

2001 1.34 +8.65%

2000 1.23 +16.35%

1999 1.06 +14.39%

1998 0.93 +14.87%

1997 0.81 +49.38%

1996 0.54 +12.50%

1995 0.48 -12.20%

1994 0.55 -80.19%

Dividend.com DARS™ Ratings for JPM

Below are Dividend.com's proprietary DARS™ Ratings for JPM as of Dec. 2, 2015. Each value


Relative Strength

3.0

JPM is performing in-line with the market or better.


3.5

JPM's dividend yield is above the industry average.


3.5

JPM has been paying dividends for 2011 years, and we its dividend yield is safe.

Dividend Uptrend

3.0

JPM has shown consistency in its payouts, but any increases have been small.


124

Earnings Growth

3.0

JPM's earnings estimates are flat.


Dividend.com 2016 Forecast for JPM

Potential Catalysts

● Rising investment banking activity across the world – driven by increased mergers and

acquisitions activity – is a promising catalyst heading into 2016.

● Improving Tier ratios will allow the company greater access to liquidity and higher

earnings growth. JP Morgan achieved a strong 11.4% common equity Tier 1 ratio last

quarter.

● The stock yields 2.6% and trades for an attractive valuation of 11 times earnings and 1.1

times book value.

Potential Concerns

● The company continues to suffer high legal costs. JP Morgan set aside $1 billion last

quarter for legal expenses. This is negative for earnings growth.

● Revenue fell 6% last quarter, due to poor performance in the company’s mortgage

business.

Bottom Line

As the financial sector recovers from the financial crisis and Great Recession, JP Morgan is

growing its dividend at high rates. The company increased its dividend by 10% this year. Future

dividend growth is likely, as corporate finance activity continues to be robust. With an above-

average dividend yield plus dividend growth, JP Morgan is an attractive dividend stock in the

financial sector.

Additional Resources for JPM

● Dividend.com Profile Page for JPM

● Full Dividend Payout History for JPM


http://www.dividend.com/dividend-stocks/financial/money-center-banks/jpm-jp-morgan-chase/

http://www.dividend.com/dividend-stocks/financial/money-center-banks/jpm-jp-morgan-chase/#payout-history-table


125

Kellogg Company (K)

2015 Range: 61.13 - 72.34 Avg. Volume: 1,997,160


2015 EPS Est: 3.49 2016 EPS Est: 3.69



K Five-Year Stock Chart

Company Profile

Kellogg Company (K) is a food manufacturer that focuses on cereals and snack foods. It makes

its various cereals, cookies, crackers, and snacks under the brands Kellogg's, Keebler, Cheez-It,

Murray, Austin, and Famous Amos brands. These products are manufactured by the company in

17 countries and marketed in more than 180 countries. Kellogg was founded in 1906 and is

headquartered in Battle Creek, Michigan. Kellogg is affected by price increases in agricultural

commodities, fuel, and labor. As well, Kellogg is regulated for food quality and safety, which can

largely affect Kellogg’s brand and results. Kellogg has been paying dividends since 1925, and has

increased them annually since 2005. Kellogg pays its dividends quarterly.



126


2014 1.90 +5.56%

2013 1.80 +3.45%

2012 1.74 +4.19%

2011 1.67 +7.05%

2010 1.56 +9.09%

2009 1.43 +10.00%

2008 1.30 +8.15%

2007 1.20 +5.62%

2006 1.14 +7.16%

2005 1.06 +4.94%

2004 1.01 --

2003 1.01 --

2002 1.01 --

2001 1.01 +1.61%

2000 1.00 +3.75%

1999 0.96 +4.35%

1998 0.92 +5.75%

1997 0.87 +7.41%

1996 0.81 +8.00%

1995 0.75 +7.14%

1994 0.70 -55.13%

Dividend.com DARS™ Ratings for K

Below are Dividend.com's proprietary DARS™ Ratings for K as of Dec. 2, 2015. Each value is



127

Relative Strength

3.0

K is performing in-line with the market or better.


3.5

K's dividend yield is above the industry average.


4.5

K has been paying dividends for 88 years, and we feel its dividend yield is extremely safe.

Dividend Uptrend

3.0

K has shown consistency in its payouts, but any increases have been small.

Earnings Growth

3.0

K's earnings estimates are flat.


Dividend.com 2016 Forecast for K

Potential Catalysts

● Stable core business model. As a major food company, Kellogg enjoys a recession-

resistant business. Consumers will always need to eat, even when the economy enters

recession. This provides a great deal of stability to the company.

● Reliable dividends. Kellogg has paid dividends to shareholders since 1925.

● Strong brand name. Along with General Mills, Kellogg forms a virtual duopoly in the

cereal industry.

Potential Concerns

● Cereal is not a growth industry. Health-conscious consumers are taking a more negative

view of cereal for its lack of nutritional benefits and high sugar content.

● Low dividend growth. As the company invests in higher-growth businesses, dividend

growth is slowing. Kellogg only increased its dividend by 2% this year, which barely

meets inflation.

● The strengthening U.S. dollar caused total sales to decline by 6% through the first three

quarters of the fiscal year.



128

Bottom Line

Kellogg is a stable dividend stock with a long history of reliable payouts, but it is a company

struggling to keep up with changing consumer preferences. Kellogg has not made a meaningful

entry into organics, arguably the best growth area in the food business. Along with the rising U.S.

dollar, investors should not expect much growth. With that said, the stock offers a secure 3%

yield.

Additional Resources for K

● Dividend.com Profile Page for K

● Full Dividend Payout History for K

(KHC)

2015 Range: 61.42 - 81.20 Avg. Volume: 3,263,200


2015 EPS Est: 3.24 2016 EPS Est: 2.98



KHC Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/consumer-goods/processed-and-packaged-goods/k-kellogg-co/

http://www.dividend.com/dividend-stocks/consumer-goods/processed-and-packaged-goods/k-kellogg-co/#payout-history-table


129



Dividend.com DARS™ Ratings for KHC

Below are Dividend.com's proprietary DARS™ Ratings for KHC as of Dec. 2, 2015. Each value


Relative Strength

3.0

KHC is performing in-line with the market or better.


3.5

KHC's dividend yield is above the industry average.


4.5

KHC has been paying dividends for 2011 years, and we feel its dividend yield is extremely

safe.

Dividend Uptrend

3.5

KHC has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

KHC's earnings estimates are flat.




130

Dividend.com 2016 Forecast for KHC

Potential Catalysts

● A global powerhouse in the food and beverage industry. With the merger complete, the

combined company has a huge portfolio of more than 200 brands, eight of which each

generate at least $1 billion in annual sales.

● A high dividend yield and dividend growth. The stock yields 3.1% and recently raised its

dividend by 4%, which is solidly above inflation.

● Significant potential for cost synergies related to the merger. Management believes it can

eliminate $1.5 billion in annual expenses by the end of 2017. This would be a catalyst for

future earnings growth.

Potential Concerns

● The merger between Kraft and Heinz has been very costly. Kraft-Heinz lost $303 million

last quarter. This was far worse than the $8 million loss reported in the same quarter last

year.

● Falling organic sales are a concern. Even when excluding foreign exchange effects,

Kraft-Heinz reported a 2% decline in currency-neutral sales, an indication of lower

demand for its products.

Bottom Line

Kraft-Heinz is in the middle of a long process to combine two of the world’s biggest food

companies. This is weighing on its results, but the company will likely return to growth

next year. In the meantime, Kraft-Heinz is a strong dividend stock with dividend growth

likely to reach the mid-single digits over the next several years.

Additional Resources for KHC

● Dividend.com Profile Page for KHC

● Full Dividend Payout History for KHC

Kimberly-Clark Corporation (KMB)

2015 Range: 103.04 - 124.81 Avg. Volume: 1,595,950


2015 EPS Est: 5.76 2016 EPS Est: 6.18



http://www.dividend.com/dividend-stocks/consumer-goods/food-major-diversified/khc-the-kraft-heinz-company/

http://www.dividend.com/dividend-stocks/consumer-goods/food-major-diversified/khc-the-kraft-heinz-company/#payout-history-table


131

KMB Five-Year Stock Chart

Company Profile

Kimberly-Clark Corp (KMB) is a personal care product manufacturer. The company is known for

its various products, including Kleenex, Huggies, Kotex, Depend, and Scott. Kimberly-Clark

operates in four segments: Personal Care, Consumer Tissue, K-C Professional, and Other and

Healthcare. The company was founded in 1872, and is based in Dallas, TX. Kimberly-Clark has

been paying dividends since 1972. Kimberly-Clark is a dividend aristocrat that has been

increasing dividends consistently annually since 1973. Kimberly-Clark pays its dividends

quarterly.



2014 3.36 +3.70%

2013 3.24 +9.46%

2012 2.96 +5.71%

2011 2.80 +6.06%

2010 2.64 +10.00%


132

2009 2.40 +3.45%

2008 2.32 +9.43%

2007 2.12 +8.16%

2006 1.96 +8.89%

2005 1.80 -32.58%

2004 2.67 +96.32%

2003 1.36 +13.33%

2002 1.20 +7.14%

2001 1.12 +3.70%

2000 1.08 +3.85%

1999 1.04 +4.00%

1998 1.00 +4.17%

1997 0.96 +4.35%

1996 0.92 +2.22%

1995 0.90 +2.27%

1994 0.88 -53.68%

Dividend.com DARS™ Ratings for KMB

Below are Dividend.com's proprietary DARS™ Ratings for KMB as of Dec. 2, 2015. Each value


Relative Strength

3.0

KMB is performing in-line with the market or better.


3.0

KMB's dividend yield is just average.


133


4.5

KMB has been paying dividends for 76 years, and we feel its dividend yield is extremely

safe.

Dividend Uptrend

3.5

KMB has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

KMB's earnings estimates are flat.


Dividend.com 2016 Forecast for KMB

Potential Catalysts

● Product innovations in new categories should drive future earnings growth. Organic sales

of diapers rose double-digits in the emerging markets last quarter.

● The spin-off of Kimberly-Clark’s Halyard Health business created value for shareholders.

● Long-term dividend growth. Kimberly-Clark is a Dividend Aristocrat and has raised its

dividend for 43 years in a row.

Potential Concerns

● The strong U.S. dollar eroded Kimberly-Clark’s revenue by 12 percentage points last

quarter.

● Over-valuation. The stock trades for 20 times forward earnings estimates, a significant

premium to the market multiple.

Bottom Line

Kimberly-Clark is suffering a slowdown in growth due to the rising U.S. dollar, but

fundamentally the business remains sound. The company has a portfolio of strong brands,

including Kleenex and Huggies, and generates high free cash flow which fuels its dividend

growth. The stock yields 3% and can be a valuable addition to an income-oriented portfolio.

Additional Resources for KMB

● Dividend.com Profile Page for KMB

● Full Dividend Payout History for KMB


http://www.dividend.com/dividend-stocks/consumer-goods/personal-products/kmb-kimberly-clark/

http://www.dividend.com/dividend-stocks/consumer-goods/personal-products/kmb-kimberly-clark/#payout-history-table


134

Kinder Morgan Inc (KMI)

2015 Range: 15.06 - 44.71 Avg. Volume: 32,441,400


2015 EPS Est: 0.70 2016 EPS Est: 0.76



KMI Five-Year Stock Chart

Company Profile

Kinder Morgan, Inc. (KMI) is a transportation and energy storage company in North America.

The company operates in five segments: Products Pipelines-KMP, Natural Gas Pipelines-KMP,

CO2-KMP, Terminals-KMP and Kinder Morgan Canada-KMP. KMI was founded 1997, and is

based in Houston, TX. It operates largely through its subsidiary, Kinder Morgan Energy Partners,

L.P. (KMP), as well as El Paso Pipeline Partners, L.P. (EPB), and KMI relies greatly on the

performance of these two limited partnerships. KMI is affected by pipeline tariff rates and other

regulatory requirements. KMI has been paying a dividend since 1993, and has been increasing it

steadily since 2011. KMI pays its dividend quarterly.



135


2014 1.70 +44.07%

2013 1.18 -11.94%

2012 1.34 +123.33%

2011 0.60 -82.14%

Dividend.com DARS™ Ratings for KMI

Below are Dividend.com's proprietary DARS™ Ratings for KMI as of Dec. 2, 2015. Each value


Relative Strength

2.0

KMI is slightly underperforming relative to its peers.


3.5

KMI's dividend yield is above the industry average.


4.0

KMI has been paying dividends for 2011 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

KMI has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

2.5

KMI's earnings estimates are flat.




136

Dividend.com 2016 Forecast for KMI

Potential Catalysts

● A fee-based business that operates similarly to a toll road. Kinder Morgan collects fees

based on volumes, not on the price of the underlying commodity.

● Only Kinder Morgan’s carbon dioxide business relies heavily on a supportive commodity

price. This allows Kinder Morgan to continue generating high amounts of cash flow,

even when oil prices decline.

● A very high yield of 8.5%, which is significantly higher than the S&P 500 Index average

of just 2%.

Potential Concerns

● Lower demand for oil in the United States will slow demand for new energy

infrastructure projects.

● Kinder Morgan is exposed to higher interest rates, which will increase its cost of capital.

Midstream companies have high financing requirements to build and maintain their asset

base.

Bottom Line

Kinder Morgan has continued to increase its dividend this year, even though commodity prices

are falling. That speaks to the reliability of its fee-based business model. Kinder Morgan expects

to grow its dividend by 6%-10% next year. Its current 8.5% yield should be very attractive for

dividend investors.

Additional Resources for KMI

● Dividend.com Profile Page for KMI

● Full Dividend Payout History for KMI

The Coca-Cola Company (KO)

2015 Range: 36.56 - 43.85 Avg. Volume: 15,282,600


2015 EPS Est: 1.99 2016 EPS Est: 2.07



http://www.dividend.com/dividend-stocks/basic-materials/oil-and-gas-pipelines/kmi-kinder-morgan-inc/

http://www.dividend.com/dividend-stocks/basic-materials/oil-and-gas-pipelines/kmi-kinder-morgan-inc/#payout-history-table


137

KO Five-Year Stock Chart

Company Profile

The Coca-Cola Company (KO) is the world’s largest beverage company. The company has more

than 500 beverage products on the market including softdrinks, waters, enhanced waters, juices

and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. The company was

founded in 1919 and is based in Atlanta, GA. Coca-Cola is largely affected by health trends, as

obesity and other health concerns reduce demand for some of Coca-Cola’s products. Coca-Cola is

also affected by increasing competition and changing consumer tastes in the nonalcoholic

beverage market. Coca-Cola has been paying dividends since 1920, and has increased dividends

annually since 1963. It is known as a dividend aristocrat, which means it has been increasing

dividends for more than 25 years consecutively. Coca-Cola pays its dividends quarterly.



2014 1.22 +8.93%

2013 1.12 -26.80%

2012 1.53 -18.62%

2011 1.88 +6.82%

2010 1.76 +7.32%


138

2009 1.64 +7.89%

2008 1.52 +11.76%

2007 1.36 +9.68%

2006 1.24 +10.71%

2005 1.12 +12.00%

2004 1.00 +13.64%

2003 0.88 +10.00%

2002 0.80 +11.11%

2001 0.72 +5.88%

2000 0.68 +6.25%

1999 0.64 +6.67%

1998 0.60 +7.14%

1997 0.56 +12.00%

1996 0.50 +13.64%

1995 0.44 +12.82%

1994 0.39 -77.06%

Dividend.com DARS™ Ratings for KO

Below are Dividend.com's proprietary DARS™ Ratings for KO as of Dec. 2, 2015. Each value is


Relative Strength

2.5

KO is performing in-line with the market or better.


3.5

KO's dividend yield is above the industry average.


139


4.5

KO has been paying dividends for 91 years, and we feel its dividend yield is extremely safe.

Dividend Uptrend

4.5

KO has been increasing its dividends at a superb pace, and is well-positioned to continue to

do so.

Earnings Growth

2.0

KO has seen its earnings estimates slightly lowered.


Dividend.com 2016 Forecast for KO

Potential Catalysts

● Coca-Cola is one of the most valuable and easily recognized brands in the world. The

company enjoys pricing power and vast economies of scale thanks to its superb

distribution.

● High leverage over retailers creates a sizable economic moat and high barriers to entry in

its industry.

● A long history of dividend growth. The stock yields 3% and Coca-Cola has increased its

dividend for more than 50 years in a row.

Potential Concerns

● Slowing sales of soft drinks in developed nations could be a significant structural

headwind going forward.

● The rising U.S. dollar is eroding sales growth, and that will likely continue into next year.

● Overly reliant on soft drinks like soda, which constitute the majority of Coca-Cola’s

revenue.

Bottom Line

Coca-Cola needs to more effectively respond to changing consumer tastes. Consumers,

particularly in developed markets like the United States, are taking a harsher view of soda for its

calorie and sugar content. Coca-Cola has a presence in teas and juices, but will need to invest

more in these higher-growth businesses in order to continue growing its dividend at high rates.

Additional Resources for KO

● Dividend.com Profile Page for KO

● Full Dividend Payout History for KO


http://www.dividend.com/dividend-stocks/consumer-goods/beverages-soft-drinks/ko-coca-cola-co/

http://www.dividend.com/dividend-stocks/consumer-goods/beverages-soft-drinks/ko-coca-cola-co/#payout-history-table


140

Lockheed Martin Corporation (LMT)

2015 Range: 181.91 - 227.91 Avg. Volume: 1,390,730


2015 EPS Est: 11.35 2016 EPS Est: 12.21



LMT Five-Year Stock Chart

Company Profile

Lockheed Martin Corporation (LMT) is a global aerospace, defense, security, and technology

company engaged in the research, design, development, manufacture, integration and sustainment

of advanced technology systems, products and services. The company operates in four business

segments: Aeronautics, Electronic Systems, Information Systems & Global Solutions, and Space

Systems. The firm is one of the largest defense contractors with much of its revenue coming from

military sales. Lockheed was established in 1995 with the merger of Lockheed Corporation and

Martin Marietta, and is headquartered in Bethesda, Maryland. Government policy on military

spending can greatly affect Lockheed’s business. Lockheed has been paying dividends since

1995, and has increased them consistently annually since 2003. Lockheed pays its dividends

quarterly.


141



2014 5.49 +14.85%

2013 4.78 +15.18%

2012 4.15 +27.69%

2011 3.25 +23.11%

2010 2.64 +12.82%

2009 2.34 +27.87%

2008 1.83 +24.49%

2007 1.47 +17.60%

2006 1.25 +19.05%

2005 1.05 +15.38%

2004 0.91 +59.65%

2003 0.57 +29.55%

2002 0.44 --

2001 0.44 --

2000 0.44 -50.00%

1999 0.88 +7.32%

1998 0.82 +2.50%


142

1997 0.80 --

1996 0.80 +14.31%

1995 0.70 +1.85%

1994 0.69 -43.68%

Dividend.com DARS™ Ratings for LMT

Below are Dividend.com's proprietary DARS™ Ratings for LMT as of Dec. 2, 2015. Each value


Relative Strength

3.0

LMT is performing in-line with the market or better.


3.5

LMT's dividend yield is above the industry average.


4.5

LMT has been paying dividends for 16 years, and we feel its dividend yield is extremely

safe.

Dividend Uptrend

3.5

LMT has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

LMT's earnings estimates are flat.




143

Dividend.com 2016 Forecast for LMT

Potential Catalysts

● Increased geopolitical concerns are generally positive for large defense contractors.

● High free cash flow. Lockheed Martin generated $3.2 billion of free cash flow over the

first three quarters of the year, which allows the company to increase dividends at high

rates.

● High dividend yield along with very strong dividend growth. The stock yields 3% and

Lockheed Martin has increased its dividend by 17% compounded annually over the past

five years.

Potential Concerns

● Lockheed Martin relies heavily on government defense contracts for its revenue and

earnings. This could be a headwind next year as global defense budgets are expected to

contract.

● Significant pension liabilities. Lockheed Martin carries more than $11 billion in accrued

pension liabilities, which erodes its balance sheet strength.

Bottom Line

Lockheed Martin may have trouble growing earnings next year in an environment of falling

global defense budgets. This is a concern, as the company generates more than 75% of its revenue

from governments. Fortunately the company generates enough cash flow to sustain its dividend,

even if revenue and earnings decline slightly next year. As a result, income investors should

continue to view Lockheed Martin favorably.

Additional Resources for LMT

● Dividend.com Profile Page for LMT

● Full Dividend Payout History for LMT

Mattel, Inc. (MAT)

2015 Range: 19.4500 - 31.2500 Avg. Volume: 5,923,560


2015 EPS Est: 1.2300 2016 EPS Est: 1.3900



http://www.dividend.com/dividend-stocks/industrial-goods/aerospace-defense-products-and-services/lmt-lockheed-martin/

http://www.dividend.com/dividend-stocks/industrial-goods/aerospace-defense-products-and-services/lmt-lockheed-martin/#payout-history-table


144

MAT Five-Year Stock Chart

Company Profile

Mattel, Inc. (MAT) is the largest toy and game manufacturer in the United States. The company

makes toys under the brands Mattel, Barbie, Hot Wheels, Matchbox, Yu-Gi-Oh, Batman, Justice

League, Megaman, Fisher-Price, View-Master, Sesame Street, Barney, Dora the Explorer,

Winnie the Pooh, Power Wheels, American Girl, and many more. Mattel was founded in 1945

and is headquartered in El Segundo, California. Mattel is largely affected by the increasing

preference of children for video games, particularly in the mobile space. Mattel has been paying

dividends since 1991, and has increased them consecutively annually since 2010. Mattel pays its

dividends quarterly.



2014 1.52 +5.56%

2013 1.44 +16.13%

2012 1.24 +34.78%

2011 0.92 +10.84%

2010 0.83 +10.67%

2009 0.75 --


145

2008 0.75 --

2007 0.75 +15.38%

2006 0.65 +30.00%

2005 0.50 +11.11%

2004 0.45 +12.50%

2003 0.40 +700.00%

2002 0.05 -64.29%

2001 0.14 -48.15%

2000 0.27 -22.86%

1999 0.35 +2.04%

1998 0.34 +27.04%

1997 0.27 +12.50%

1996 0.24 +25.00%

1995 0.19 +25.00%

1994 0.15 -97.20%

Dividend.com DARS™ Ratings for MAT

Below are Dividend.com's proprietary DARS™ Ratings for MAT as of Dec. 2, 2015. Each value


Relative Strength

2.5

MAT is performing in-line with the market or better.


3.5

MAT's dividend yield is above the industry average.


3.5

MAT has been paying dividends for 21 years, and we its dividend yield is safe.


146

Dividend Uptrend

3.5

MAT has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

MAT's earnings estimates are flat.


Dividend.com 2016 Forecast for MAT

Potential Catalysts

● Mattel is trying to turn its business around. Its acquisition of MEGA Brands allows the

company entry to a growth segment in the toy industry: construction toys.

● The stock yields 6.2%, which is more than three times the average dividend yield in the

S&P 500 Index.

Potential Concerns

● A structural shift threatens Mattel’s core business. Consumers are not buying dolls nearly

to the same extent as previous generation, as demand has declined.

● Mattel is burning through cash. Over the first six months of 2015, Mattel generated

negative free cash flow of $354 million.

● Without supporting free cash flow, Mattel is at risk of a dividend cut.

Bottom Line

Mattel stock carries a very high dividend yield, but this could prove to be a warning signal of a

future dividend cut.

Additional Resources for MAT

● Dividend.com Profile Page for MAT

● Full Dividend Payout History for MAT


http://www.dividend.com/dividend-stocks/consumer-goods/toys-and-games/mat-mattel/

http://www.dividend.com/dividend-stocks/consumer-goods/toys-and-games/mat-mattel/#payout-history-table


147

McDonald's Corporation (MCD)

2015 Range: 87.50 - 118.24 Avg. Volume: 6,747,670


2015 EPS Est: 4.88 2016 EPS Est: 5.34



MCD Five-Year Stock Chart

Company Profile

McDonald's Corporation (MCD) is a global fast food restaurant chain. The company offers

several items on their menu including hamburgers, chicken sandwich, Chicken McNuggets,

Snack Wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones,

pies, soft drinks, and coffee. The company was founded in 1940, and is based in Oak Brook, IL.



148


2014 3.28 +5.13%

2013 3.12 +8.71%

2012 2.87 +13.44%

2011 2.53 +11.95%

2010 2.26 +10.24%

2009 2.05 +26.15%

2008 1.63 +8.33%

2007 1.50 +50.00%

2006 1.00 +49.25%

2005 0.67 +21.82%

2004 0.55 +37.50%

2003 0.40 +70.21%

2002 0.24 -7.84%

2001 0.26 +18.60%

2000 0.22 +8.59%

1999 0.20 +12.50%

1998 0.18 +9.66%

1997 0.16 +9.56%

1996 0.15 +10.98%

1995 0.13 +13.06%

1994 0.12 -92.32%


149

Dividend.com DARS™ Ratings for MCD

Below are Dividend.com's proprietary DARS™ Ratings for MCD as of Dec. 2, 2015. Each value


Relative Strength

2.5

MCD is performing in-line with the market or better.


4.0

MCD's dividend yield is above the industry average.


3.5

MCD has been paying dividends for 35 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

MCD has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

2.0

MCD has seen its earnings estimates slightly lowered.


Dividend.com 2016 Forecast for MCD

Potential Catalysts

● The move to all-day breakfast could be a growth catalyst into 2016 and beyond. This was

a major catalyst for McDonald’s 4% growth in comparable restaurant sales last quarter.

● McDonald’s is accelerating franchising activity going forward. The company recently

raised its global franchise target to 4,000 restaurants by 2018, with a long-term goal to be

95% franchised.

● The new value menu could generate higher traffic, which would be a tailwind for sales

growth next year.

Potential Concerns

● Consumers are taking a harsher view of fast food, particularly in the United States. Fast-

casual competitors with healthier menu options are taking market share.

● McDonald’s suffered significant damage to its brand in China after a series of food

quality issues there. This caused emerging market sales to decline throughout 2015.



150

Bottom Line

McDonald’s sales and earnings are declining, but the company continues to generate enough free

cash flow to raise its dividend. McDonald’s has increased its dividend each year since paying its

first dividend in 1976. The stock yields 3.2% and provides regular dividend growth. For those

reasons, McDonald’s is a good stock pick for dividend investors.

Additional Resources for MCD

● Dividend.com Profile Page for MCD

● Full Dividend Payout History for MCD

3M Company (MMM)

2015 Range: 134.00 - 170.50 Avg. Volume: 2,532,780


2015 EPS Est: 7.63 2016 EPS Est: 8.40



MMM Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/services/restaurants/mcd-mcdonalds/

http://www.dividend.com/dividend-stocks/services/restaurants/mcd-mcdonalds/#payout-history-table


151

Company Profile

3M Company (MMM) is a diversified technology company. The company operates in six

business segments: Industrial and Transportation, Health Care, Consumer and Office,Safety,

Security and Protection Services, Display and Graphics, and Electro and Communications. 3M

was founded in 1929, and is based in St. Paul, MN. In February 2014, 3M acquired Treo

Solutions, a healthcare data intelligence and analytics company. 3M is largely affected by prices

for raw materials and purchased components, as well as improving operational efficiency and

productivity. 3M is a dividend aristocrat and has been consecutively increasing its dividend

annually since 1959. 3M pays its dividend quarterly.



2014 3.42 +7.72%

2013 3.18 +34.53%

2012 2.36 +7.27%

2011 2.20 +4.76%

2010 2.10 +2.94%

2009 2.04 +2.00%

2008 2.00 +4.17%

2007 1.92 +4.35%

2006 1.84 +9.52%

2005 1.68 +16.67%

2004 1.44 +9.09%


152

2003 1.32 +6.45%

2002 1.24 +3.33%

2001 1.20 +3.45%

2000 1.16 +3.57%

1999 1.12 +1.82%

1998 1.10 +3.77%

1997 1.06 -50.93%

1996 2.16 +129.79%

1995 0.94 +6.82%

1994 0.88 -73.17%

Dividend.com DARS™ Ratings for MMM

Below are Dividend.com's proprietary DARS™ Ratings for MMM as of Dec. 2, 2015. Each value


Relative Strength

3.0

MMM is performing in-line with the market or better.


3.5

MMM's dividend yield is above the industry average.


4.0

MMM has been paying dividends for 94 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

MMM has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

MMM's earnings estimates are flat.




153

Dividend.com 2016 Forecast for MMM

Potential Catalysts

● 3M has built a large health care business which is providing the company with high

growth.

● 3M has paid a dividend for 99 years. The stock is generally considered one of the safest

dividend stocks.

● Free cash flow generation leads to excellent dividend growth over time. Over the last five

years, 3M has increased its dividend by 14% per year.

Potential Concerns

● As a global industrial company, 3M is highly exposed to the strengthening U.S. dollar.

This caused sales to decline 5% last quarter.

● 3M is somewhat exposed to the energy industry. Collapsing commodity prices are

rippling through to industrial companies that service energy firms. Sales in 3M’s

electronics and energy division declined 2% last quarter.

Bottom Line

3M is a high-quality dividend stock with a solid 2.6% yield. Investors are all but assured to

receive modest dividend growth each year, thanks to the company’s economic moat and global

brand leadership. These qualities make 3M a worthwhile position within a dividend portfolio.

Additional Resources for MMM

● Dividend.com Profile Page for MMM

● Full Dividend Payout History for MMM

Altria Group (MO)

2015 Range: 47.310 - 61.740 Avg. Volume: 6,280,500


2015 EPS Est: 2.810 2016 EPS Est: 3.060



http://www.dividend.com/dividend-stocks/conglomerates/conglomerates-general/mmm-3m/

http://www.dividend.com/dividend-stocks/conglomerates/conglomerates-general/mmm-3m/#payout-history-table


154

MO Five-Year Stock Chart

Company Profile

Altria Group, Inc. (MO) is a holding company that owns cigarette maker Philip Morris USA. The

company also offers cigars through its John Middleton subsidiary and holds a portfolio of

leveraged and direct finance lease investments through its Philip Morris Capital Corporation. In

addition, MO owns an approximate 27% interest in beer brewer SABMiller plc. Altria was

founded in 1919 and is based in Richmond, Virginia.



2014 2.00 +8.70%

2013 1.84 +8.24%

2012 1.70 +7.59%

2011 1.58 +8.22%

2010 1.46 +10.61%

2009 1.32 -21.43%


155

2008 1.68 -44.92%

2007 3.05 -8.13%

2006 3.32 +8.50%

2005 3.06 +8.51%

2004 2.82 +6.82%

2003 2.64 +8.20%

2002 2.44 +48.78%

2001 1.64 -18.81%

2000 2.02 +9.78%

1999 1.84 +9.52%

1998 1.68 +5.00%

1997 1.60 +9.09%

1996 1.47 +20.55%

1995 1.22 +20.46%

1994 1.01 -70.47%

Dividend.com DARS™ Ratings for MO

Below are Dividend.com's proprietary DARS™ Ratings for MO as of Dec. 2, 2015. Each value is


Relative Strength

3.5

MO is outperforming much of the market.


3.5

MO's dividend yield is above the industry average.


5.0

MO has been paying dividends for 83 years, and we feel its dividend yield is extremely safe.


156

Dividend Uptrend

3.0

MO has shown consistency in its payouts, but any increases have been small.

Earnings Growth

3.0

MO's earnings estimates are flat.


Dividend.com 2016 Forecast for MO

Potential Catalysts

● As a tobacco company, Altria enjoys a highly profitable business model that generates

tremendous free cash flow. Over the first nine months of 2015, Altria generated $4 billion

in operating cash flow and spent just $162 million on capital expenditures.

● High amounts of annual free cash flow led to a long track record of raising dividends.

Altria has increased its dividend 49 times in 46 years.

● Going forward, e-cigarettes are a growth catalyst for the industry.

Potential Concerns

● Many investors choose not to invest in tobacco companies for moral reasons, which has

kept Altria’s valuation suppressed for many years.

● The threat of litigation serves as a constant overhang for the tobacco industry.

● Excise taxes on tobacco and alcohol products detracts from Altria’s earnings growth.

Bottom Line

Altria is one of the most legendary dividend stocks of all time. The company enjoys high barriers

to entry and owns Marlboro, one of the most valuable brands in the world. The stock yields 4%,

which is nearly double the market average yield. That makes Altria a foundational holding for

dividend focused portfolios.

Additional Resources for MO

● Dividend.com Profile Page for MO

● Full Dividend Payout History for MO


http://www.dividend.com/dividend-stocks/consumer-goods/cigarettes/mo-altria-group/

http://www.dividend.com/dividend-stocks/consumer-goods/cigarettes/mo-altria-group/#payout-history-table


157

Merck & Company Inc. (MRK)

2015 Range: 45.690 - 63.620 Avg. Volume: 11,984,500


2015 EPS Est: 3.570 2016 EPS Est: 3.730



MRK Five-Year Stock Chart

Company Profile

Merck & Co., Inc (MRK) is a Whitehouse Station, NJ based pharmaceutical company founded in

1891. The company is a global health care company that delivers health solutions through its

prescription medicines, vaccines, biologic therapies, animal health, and consumer care products,

which it markets directly and through its joint ventures. It is one of the seven largest

pharmaceutical companies in the world measured by market capitalization. Merck relies heavily

on patent protection, and when market exclusivity on their products expire the company generally

sees heavy losses in sales. As well, Merck relies on R&D to produce commercially successful

products. Merck is largely affected by regulations on its products. Merck has been paying a

dividend since 1970, and has increased its dividends annually since then, except for when

dividends remained stable from 2007 through 2009. Merck pays its dividends quarterly.


158



2014 1.77 +2.31%

2013 1.73 +2.37%

2012 1.69 +8.33%

2011 1.56 +2.63%

2010 1.52 --

2009 1.52 --

2008 1.52 --

2007 1.52 --

2006 1.52 --

2005 1.52 +1.33%

2004 1.50 -65.41%

2003 4.34 +205.35%

2002 1.42 +2.90%

2001 1.38 +9.52%

2000 1.26 +12.50%

1999 1.12 +13.13%

1998 0.99 +13.79%


159

1997 0.87 +17.57%

1996 0.74 +15.63%

1995 0.64 +10.34%

1994 0.58 -71.00%

Dividend.com DARS™ Ratings for MRK

Below are Dividend.com's proprietary DARS™ Ratings for MRK as of Dec. 2, 2015. Each value


Relative Strength

3.0

MRK is performing in-line with the market or better.


4.0

MRK's dividend yield is above the industry average.


4.0

MRK has been paying dividends for 76 years, and we its dividend yield is safe.

Dividend Uptrend

2.5

MRK has shown consistency in its payouts, but any increases have been small.

Earnings Growth

3.5

MRK's earnings estimates have been raised nicely.


Dividend.com 2016 Forecast for MRK

Potential Catalysts

● The aging population in the United States resulting in increased demand for health care

and higher health care spending.

● A robust portfolio and a diverse pipeline of new drugs could result in strong earnings

growth.



160

Potential Concerns

● Generic competition is a constant challenge for Big Pharma stocks such as Merck.

● Global exposure is a headwind because of the U.S. dollar. Last quarter, Merck’s sales

were reduced by 9 percentage points because of foreign exchange.

Bottom Line

Merck has a fundamental advantage because of its late-stage drug pipeline in critical growth areas

such as cancer, antibiotic resistance, hepatitis C and Alzheimer’s disease. Progress in any of these

areas should provide for significant revenue growth. Merck stock yields 3.4%, which is a

satisfactory yield and qualifies it as a good dividend stock.

Additional Resources for MRK

● Dividend.com Profile Page for MRK

● Full Dividend Payout History for MRK

Microsoft Corporation (MSFT)

2015 Range: 39.7200 - 56.2300 Avg. Volume: 35,613,100


2015 EPS Est: 2.7600 2016 EPS Est: 3.1200



MSFT Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/healthcare/drug-manufacturers-major/mrk-merck/

http://www.dividend.com/dividend-stocks/healthcare/drug-manufacturers-major/mrk-merck/#payout-history-table


161

Company Profile

Microsoft (MSFT) is a software company that focuses on developing and licensing products. The

company also designs and sells hardware, and delivers online advertisements to customers. MSFT

has five segments: Windows & Windows Live Division (Windows Division), Server and Tools,

Online Services Division (OSD), Microsoft Business Division (MBD), and Entertainment and

Devices Division (EDD). The company was founded in 1981, and is based in Redmond, WA.



2014 1.15 +18.56%

2013 0.97 +16.87%

2012 0.83 +22.06%

2011 0.68 +23.64%

2010 0.55 +5.77%

2009 0.52 +13.04%

2008 0.46 +12.20%

2007 0.41 +10.81%

2006 0.37 +15.63%

2005 0.32 +300.00%

2004 0.08 -66.67%

2003 0.24 -86.44%


162

Dividend.com DARS™ Ratings for MSFT

Below are Dividend.com's proprietary DARS™ Ratings for MSFT as of Dec. 2, 2015. Each value


Relative Strength

3.5

MSFT is outperforming much of the market.


3.5

MSFT's dividend yield is above the industry average.


3.5

MSFT has been paying dividends for 8 years, and we its dividend yield is safe.

Dividend Uptrend

4.0

MSFT has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

2.5

MSFT's earnings estimates are flat.


Dividend.com 2016 Forecast for MSFT

Potential Catalysts

● Microsoft is one of the most valuable brands in the world, with software including

Microsoft Office and the Windows operating system, used everyday by millions of

people.

● The company is enjoying high growth from new areas such as the cloud. Office 365

revenue grew 70% last quarter, year-over-year.

● An excellent balance sheet. Microsoft is one of three U.S. companies to hold the triple-A

credit rating from Standard & Poor’s. The company holds $99 billion in cash and short-

term investments with just $27 billion of long-term debt.

Potential Concerns

● Slowing economic growth in the emerging markets such as Asia will threaten Microsoft’s

future growth potential.

● The Lumia phone business continues to perform poorly. Microsoft made a mistake

acquiring the Nokia handset division, which has cost the company billions of dollars in

write-downs.



163

Bottom Line

Microsoft has increased its dividend by 17% compounded annually over the past five years. And,

the stock yields 2.6%, which is above the S&P 500 average yield. The company generates

significant free cash flow and that should continue to fuel high dividend increases each year

going forward. That makes Microsoft an ideal holding for dividend investors.

Additional Resources for MSFT

● Dividend.com Profile Page for MSFT

● Full Dividend Payout History for MSFT

Nike Inc. (NKE)

2015 Range: 90.69 - 135.30 Avg. Volume: 4,488,790


2015 EPS Est: 4.31 2016 EPS Est: 4.92



Company Profile

Nike Inc (NKE) is a multinational manufacturer and retailer of footwear, apparel, equipment, and

accessories. The company markets its products in seven categories including Running,

Basketball, Soccer, Men's Training, Women's Training, NIKE Sportswear, and Action Sports.

The company sells its products in 190 countries, and employs 44,000 people worldwide. Nike

was established in 1964, and is headquartered in Washington County, Oregon. Nike operates in a

very competitive industry and greatly relies on its reputation and brand image. As well, demand

for Nike’s products is largely seasonal. Nike has been paying a dividend since 1984, and has

consecutively increased its dividend since 2002. Nike pays its dividend quarterly.


http://www.dividend.com/dividend-stocks/technology/application-software/msft-microsoft/

http://www.dividend.com/dividend-stocks/technology/application-software/msft-microsoft/#payout-history-table


164


2014 1.00 +14.94%

2013 0.87 -32.56%

2012 1.29 --

2011 1.29 +15.18%

2010 1.12 +9.80%

2009 1.02 +8.51%

2008 0.94 +19.75%

2007 0.79 +20.77%

2006 0.65 +22.64%

2005 0.53 +24.71%

2004 0.43 +37.10%

2003 0.31 +24.00%

2002 0.25 +38.89%

2001 0.18 -25.00%

2000 0.24 --

1999 0.24 --

1998 0.24 +14.29%

1997 0.21 +29.23%

1996 0.16 +23.81%

1995 0.13 +23.53%

1994 0.11 -90.76%


165

Dividend.com DARS™ Ratings for NKE

Below are Dividend.com's proprietary DARS™ Ratings for NKE as of Dec. 2, 2015. Each value


Relative Strength

4.0

NKE is outperforming much of the market.


2.5

NKE's dividend yield is just average.


4.0

NKE has been paying dividends for 27 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

NKE has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

NKE's earnings estimates are flat.


Dividend.com 2016 Forecast for NKE

Potential Catalysts

● High growth. Nike grew earnings by 23% last quarter, even with the strong U.S. dollar as

a headwind.

● Nike is building a massive women’s apparel business. Its women’s line is now a $5

billion business by annual revenue, and is growing faster than the men’s business.

Potential Concerns

● The strong U.S. dollar has significantly impacted Nike’s growth, as Nike generates a

significant amount of revenue from the emerging markets.

● Over-valuation is a concern. Nike stock trades for 32 times earnings, which is a 68%

premium valuation to the S&P 500 average.

● Low dividend yield of less than 1% is not suitable for investors looking to generate

income.



166

Bottom Line

Nike is a high-quality company with a very strong brand. The company is growing, but the stock

offers investors little margin of safety. With over-valuation and a low dividend yield, income

investors would be better off picking a different dividend stock with a higher yield.

Additional Resources for NKE

● Dividend.com Profile Page for NKE

● Full Dividend Payout History for NKE

Pepsico Inc. (PEP)

2015 Range: 76.48 - 103.44 Avg. Volume: 4,603,280


2015 EPS Est: 4.56 2016 EPS Est: 4.85



PEP Five-Year Stock Chart

Company Profile

PepsiCo, Inc. (PEP) is a beverage maker and bottler, and a producer of snack foods. Its famous

beverage brands include its namesake Pepsi-Cola, Mountain Dew, Tropicana, Gatorade and Diet

Pepsi. Its snack foods units makes products under the Doritos, Ruffles, Lays, and Fritos brands.

PepsiCo was founded in 1898 and is headquartered in Purchase, New York. PepsiCo is largely

affected by tough competition, economic conditions, and the ability to source raw materials. As

well, PepsiCo relies heavily on promoting a positive brand image, and any damage to that brand

image could have large negative consequences on PepsiCo’s stock. PepsiCo is a dividend

aristocrat, and has been increasing its dividends since 1973. PepsiCo pays its dividend quarterly.

http://www.dividend.com/dividend-stocks/consumer-goods/textile-apparel-footwear-and-accessories/nke-nike-inc/

http://www.dividend.com/dividend-stocks/consumer-goods/textile-apparel-footwear-and-accessories/nke-nike-inc/#payout-history-table


167



2014 2.53 +13.06%

2013 2.24 +5.29%

2012 2.13 +5.06%

2011 2.03 +7.14%

2010 1.89 +6.48%

2009 1.78 -43.65%

2008 3.15 +121.05%

2007 1.43 +22.84%

2006 1.16 +14.85%

2005 1.01 +18.82%

2004 0.85 +34.92%

2003 0.63 +5.88%

2002 0.60 +3.48%

2001 0.58 +3.60%

2000 0.56 +3.74%

1999 0.54 +3.88%

1998 0.52 +5.10%


168

1997 0.49 +10.11%

1996 0.45 +14.10%

1995 0.39 +11.43%

1994 0.35 -65.00%

Dividend.com DARS™ Ratings for PEP

Below are Dividend.com's proprietary DARS™ Ratings for PEP as of Dec. 2, 2015. Each value is


Relative Strength

3.0

PEP is performing in-line with the market or better.


3.0

PEP's dividend yield is just average.


5.0

PEP has been paying dividends for 59 years, and we feel its dividend yield is extremely safe.

Dividend Uptrend

3.5

PEP has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

2.5

PEP's earnings estimates are flat.


Dividend.com 2016 Forecast for PEP

Potential Catalysts

● PepsiCo’s food and snacks business is experiencing rapid growth. PepsiCo generated

23% organic revenue growth last quarter in its Latin America Foods division. And,

operating profit in the Frito-Lay segment grew 7% in North America last quarter.

● Operating both food and beverage gives PepsiCo a great deal of leverage over retailers

for optimal shelf space.

● PepsiCo has increased its dividend for 43 consecutive years, and the stock yields 3%.



169

Potential Concerns

● Consumers in the United States are taking a harsher view of soda for its high calorie and

sugar. As a result, soda sales have been in a decade-long decline.

● The rising U.S. dollar is a big challenge for PepsiCo. Unfavorable currency fluctuations

cut PepsiCo’s revenue growth by 10 percentage points last quarter.

Bottom Line

PepsiCo is not as vulnerable as Coca-Cola to declining demand for soda, since its revenue is

evenly split between food and beverages. This is helping PepsiCo continue to grow earnings and

its dividend. The company raised its dividend by 7% this year. PepsiCo stock is a high quality

holding for income investors.

Additional Resources for PEP

● Dividend.com Profile Page for PEP

● Full Dividend Payout History for PEP

Pfizer Inc. (PFE)

2015 Range: 28.47 - 36.46 Avg. Volume: 35,223,500


2015 EPS Est: 2.18 2016 EPS Est: 2.36



PFE Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/consumer-goods/processed-and-packaged-goods/pep-pepsico/

http://www.dividend.com/dividend-stocks/consumer-goods/processed-and-packaged-goods/pep-pepsico/#payout-history-table


170

Company Profile

Pfizer Inc. (PFE) is a research-based, global biopharmaceutical company. The company operates

in five segments: Primary Care; Specialty Care and Oncology; Established Products and

Emerging Markets; Animal Health and Consumer Healthcare, and Nutrition. The company offers

several types of products, including human and animal biologic and small molecule medicines

and vaccines, as well as nutritional products and consumer healthcare products. PFE was founded

in 1942, and is based in New York. In May 2014, Pfizer put in a bid of $117 billion for

AstraZeneca, its competitor, that was rejected. Pfizer's sales and stock price are affected by

industry-specific factors such as generic drugs, intellectual property rights, and regulatory

pressures. As well, as Pfizer has multiple international operations, significant portions of Pfizer's

revenues are affected by foreign exchange rates. Pfizer's dividend was cut in 2009, but has

increased annually since then. Pfizer has been paying dividends since 1980 and has not missed

one since then.



2014 1.04 +8.33%

2013 0.96 +9.09%

2012 0.88 +10.00%

2011 0.80 +11.11%

2010 0.72 -10.00%

2009 0.80 -37.50%

2008 1.28 +10.34%

2007 1.16 +20.83%

2006 0.96 +26.32%

2005 0.76 +11.76%


171

2004 0.68 +13.33%

2003 0.60 +15.38%

2002 0.52 +18.18%

2001 0.44 +22.22%

2000 0.36 +17.39%

1999 0.31 +21.06%

1998 0.25 +11.75%

1997 0.23 +13.34%

1996 0.20 +15.39%

1995 0.17 +10.62%

1994 0.16 -93.81%

Dividend.com DARS™ Ratings for PFE

Below are Dividend.com's proprietary DARS™ Ratings for PFE as of Dec. 2, 2015. Each value is


Relative Strength

3.0

PFE is performing in-line with the market or better.


3.5

PFE's dividend yield is above the industry average.


4.5

PFE has been paying dividends for 110 years, and we feel its dividend yield is extremely

safe.

Dividend Uptrend

3.5

PFE has shown steady and generous dividends, and has increased its payouts each year.


172

Earnings Growth

3.0

PFE's earnings estimates are flat.


Dividend.com 2016 Forecast for PFE

Potential Catalysts

● Pfizer made a large acquisition of Hospira, which gives the company entry into new

markets and should result in significant cost savings each year.

● Pfizer generates significant cash flow that it uses to pay dividends. The stock yields

3.5%, which is significantly above the market average.

● A successful merger with Allergan will provide even more margin expansion

opportunity.

Potential Concerns

● Pfizer continues to suffer from the loss of Lipitor to generic competition. Lipitor was

formerly Pfizer’s best-selling drug.

● Pfizer does not have a diversified business model. The company is nearly entirely reliant

on pharmaceuticals. Unlike many of its competitors, Pfizer does not have a significant

consumer business.

Bottom Line

Pfizer is still trying to build its pipeline in the aftermath of losing Lipitor to generic competition.

This is working, as Pfizer has 10 assets in immuno-oncology, an emerging growth area. For

dividend investors, Pfizer offers a strong yield backed by cash flow and dividend growth.

Additional Resources for PFE

● Dividend.com Profile Page for PFE

● Full Dividend Payout History for PFE

The Procter & Gamble Company (PG)

2015 Range: 65.020 - 93.890 Avg. Volume: 9,064,530


2015 EPS Est: 3.760 2016 EPS Est: 4.230




http://www.dividend.com/dividend-stocks/healthcare/drug-manufacturers-major/pfe-pfizer/

http://www.dividend.com/dividend-stocks/healthcare/drug-manufacturers-major/pfe-pfizer/#payout-history-table


173

PG Five-Year Stock Chart

Company Profile

The Procter & Gamble Company (PG) is a consumer goods provider. The company sells its

products in more than 180 countries, and sells various items including beauty and grooming

products and home-good products. Currently, the company has two main segments: Global

Business Units and Beauty and Grooming and Household Care. P&G was founded in 1837 and

incorporated in 1905, and is based in Cincinnati, OH. P&G has 22 brands that have more than a

billion dollars in net annual sales. In April 2014, P&G sold its Pet Food brands Iams, Eukanuba

and Natura to the confectionery company Mars. As a consumer based company, P&G's stock

price generally moves in line with the economy as a whole. P&G has raised its dividends for 58

consecutive years, and has paid dividends for 124 consecutive years. The dividend has grown at

an annualized rate of 8.5% for the last five years.



2014 2.53 +7.01%

2013 2.37 +7.03%

2012 2.21 +7.49%

2011 2.06 +9.07%


174

2010 1.89 +9.65%

2009 1.72 +10.97%

2008 1.55 +13.97%

2007 1.36 +12.40%

2006 1.21 +11.01%

2005 1.09 +11.51%

2004 0.98 +13.01%

2003 0.87 -23.79%

2002 1.14 +55.48%

2001 0.73 +8.96%

2000 0.67 +10.74%

1999 0.61 +12.66%

1998 0.54 +12.52%

1997 0.48 +12.29%

1996 0.43 +13.33%

1995 0.38 +13.64%

1994 0.33 -68.27%

Dividend.com DARS™ Ratings for PG

Below are Dividend.com's proprietary DARS™ Ratings for PG as of Dec. 2, 2015. Each value is


Relative Strength

3.0

PG is performing in-line with the market or better.


3.0

PG's dividend yield is just average.


175


5.0

PG has been paying dividends for 120 years, and we feel its dividend yield is extremely safe.

Dividend Uptrend

4.0

PG has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

2.5

PG's earnings estimates are flat.


Dividend.com 2016 Forecast for PG

Potential Catalysts

● P&G holds a huge portfolio of top brands including Crest, Tide, Charmin and Pampers.

● A long history of raising dividends. The company has increased dividends for more than

50 years.

● P&G is aggressively selling off low-growth brands. It can reinvest the proceeds in buying

back stock, which will be a catalyst for earnings growth next year.

Potential Concerns

● The strong U.S. dollar has severely impacted growth. Foreign exchange fluctuations cut

P&G’s revenue growth by 11 percentage points last quarter.

● P&G may still be too big to grow. The company may need another year of further

divestments to effectively streamline its portfolio.

Bottom Line

P&G stock yields 3.5%, which is close to a ten-year high for the stock. Dividend growth has

slowed down in recent years as the company focuses on its huge restructuring—but its dividend

increases still beat inflation. As a result, risk-averse investors should view P&G stock favorably

for its reliable dividend.

Additional Resources for PG

● Dividend.com Profile Page for PG

● Full Dividend Payout History for PG


http://www.dividend.com/dividend-stocks/consumer-goods/personal-products/pg-procter-and-gamble/

http://www.dividend.com/dividend-stocks/consumer-goods/personal-products/pg-procter-and-gamble/#payout-history-table


176

Philip Morris International (PM)

2015 Range: 75.27 - 90.08 Avg. Volume: 4,090,030


2015 EPS Est: 4.43 2016 EPS Est: 4.66



PM Five-Year Stock Chart

Company Profile

Philip Morris International Inc. (PM) is a global cigarette and tobacco company. The company,

which sells its products in over 200 countries, offers several products including cigarettes, cigars,

fine-cut rolling tobacco, snuff, rolling papers and tubes. PM was found in 1900, and is based in

New York, New York. PM faces quite a bit of regulatory pressure with regard to the sale and

advertising of its products. Global trends away from cigarette usage have also placed pressure on

PM. PM has been paying a dividend since 2008, and has consistently raised its dividend annually

since then.



177


2014 3.88 +8.38%

2013 3.58 +10.49%

2012 3.24 +14.89%

2011 2.82 +15.57%

2010 2.44 +8.93%

2009 2.24 +45.45%

2008 1.54 -39.19%

Dividend.com DARS™ Ratings for PM

Below are Dividend.com's proprietary DARS™ Ratings for PM as of Dec. 2, 2015. Each value is


Relative Strength

2.5

PM is performing in-line with the market or better.


4.0

PM's dividend yield is above the industry average.


3.5

PM has been paying dividends for 3 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

PM has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.5

PM's earnings estimates have been raised nicely.




178

Dividend.com 2016 Forecast for PM

Potential Catalysts

● Exposure to emerging markets, where strong economic growth and high smoking rates

are positive forward catalysts.

● High free cash flow generation. Tobacco is a low capital intensive business, which

provides for minimal capital expenditures.

● High dividend yield of 4.8% is near the top of the consumer staples sector.

Potential Concerns

● The strong U.S. dollar cut Philip Morris International’s revenue by 16 percentage points

last quarter.

● High risk of increased political and regulatory scrutiny of cigarettes in underdeveloped

nations.

Bottom Line

Tobacco companies face high regulatory risk and constant threat of litigation. But, they have still

been able to pass along regular dividend increases each year. Philip Morris offers a very high

yield which should be viewed positively by investors interested in income generation.

Additional Resources for PM

● Dividend.com Profile Page for PM

● Full Dividend Payout History for PM

Public Storage Inc. (PSA)

2015 Range: 178.4200 - 251.7400 Avg. Volume: 685,858


2015 EPS Est: 8.7700 2016 EPS Est: 9.6600



http://www.dividend.com/dividend-stocks/consumer-goods/tobacco-products-other/pm-philip-morris-international/

http://www.dividend.com/dividend-stocks/consumer-goods/tobacco-products-other/pm-philip-morris-international/#payout-history-table


179

PSA Five-Year Stock Chart

Company Profile

Public Storage (PSA) is a real estate investment trust (REIT) that owns and operates self-storage

facilities in the United States and Europe. The company operates in three segments: Domestic

Self-Storage segment, Europe Self-Storage segment, and Commercial. Public Storage was

founded in 1972 and is based in Glendale, California.



2014 5.60 +8.74%

2013 5.15 +17.05%

2012 4.40 +20.55%

2011 3.65 +35.04%

2010 2.70 +22.86%

2009 2.20 -21.43%


180

2008 2.80 +40.00%

2007 2.00 --

2006 2.00 +5.26%

2005 1.90 +5.56%

2004 1.80 --

2003 1.80 --

2002 1.80 +102.25%

2001 0.89 -39.86%

2000 1.48 -1.33%

1999 1.50 +70.45%

1998 0.88 --

1997 0.88 --

1996 0.88 -20.72%

1995 1.11 +30.59%

1994 0.85 -78.09%

Dividend.com DARS™ Ratings for PSA

Below are Dividend.com's proprietary DARS™ Ratings for PSA as of Dec. 2, 2015.

Each value is based on a scale of 1 to 5.

Relative Strength

3.0

PSA is performing in-line with the market or better.


3.0

PSA's dividend yield is just average.


4.5

PSA has been paying dividends for 30 years, and we feel its dividend yield is extremely safe.


181

Dividend Uptrend

3.5

PSA has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

PSA's earnings estimates are flat.


Dividend.com 2016 Forecast for PSA

Potential Catalysts

● High growth in funds from operation – a crucial metric for REITs. Over the first nine

months of the fiscal year, FFO grew 9%, year-over-year.

● Unique niche. Public Storage operates in self-storage units, a relatively thin business in

terms of competition. This provides a wide economic moat and high barrier to entry.

● Rapid earnings growth leads to rapid dividend growth. Public Storage increased its

dividend by 21% in 2015.

Potential Concerns

● REITs are exposed to higher interest rate that raise costs of debt capital financing.

● Relatively low yield of 2.9%, which is well below the REIT average.

Bottom Line

Public Storage does not offer a high yield for a REIT, but it makes up for this with very high

dividend growth that is unusual for REITs. This is because it grows funds from operation at high

rates. As a result, investors should view Public Storage as a great option for dividend growth, but

not such a good option for those investors who need income now.

Additional Resources for PSA

● Dividend.com Profile Page for PSA

● Full Dividend Payout History for PSA


http://www.dividend.com/dividend-stocks/financial/reit-industrial/psa-public-storage/

http://www.dividend.com/dividend-stocks/financial/reit-industrial/psa-public-storage/#payout-history-table


182

Reynolds American Inc (RAI)

2015 Range: 31.350 - 49.560 Avg. Volume: 6,311,990


2015 EPS Est: 1.990 2016 EPS Est: 2.330



RAI Five-Year Stock Chart

Company Profile

Reynolds American, Inc. (RAI) is a tobacco holding company in the U.S. Its holdings include R.

J. Reynolds Tobacco Company, American Snuff Company, Santa Fe Natural Tobacco Company

and Niconovum. RAI is 42% owned by the U.K.'s British American Tobacco. In 2013, Reynolds

American's operating companies sold about 26% of all cigarettes sold in the US. The company

was founded in 2004, and is based in Winston-Salem, NC. Reynolds American is largely affected

by a global consumer preference shift away from cigarette usage. As well, Reynolds American is

also affected by the deterioration of its brands, as it continues to lose market share in the U.S.

cigarette retail market. Reynolds American has been paying dividends since 2004, and has been

increasing them consecutively annually since then. Reynolds American pays its dividends

quarterly.



183


2014 2.68 +8.06%

2013 2.48 +6.44%

2012 2.33 +8.37%

2011 2.15 +16.85%

2010 1.84 +6.67%

2009 1.73 +1.47%

2008 1.70 +6.25%

2007 1.60 +16.36%

2006 1.38 +0.92%

2005 1.36 +29.76%

2004 1.05 --

2003 1.05 +4.35%

2002 1.01 +15.00%

2001 0.88 +12.90%

2000 0.78 +100.00%

1999 0.39 -93.08%

Dividend.com DARS™ Ratings for RAI

Below are Dividend.com's proprietary DARS™ Ratings for RAI as of Dec. 2, 2015. Each value is


Relative Strength

3.0

RAI is performing in-line with the market or better.


3.5

RAI's dividend yield is above the industry average.


184


4.5

RAI has been paying dividends for 7 years, and we feel its dividend yield is extremely safe.

Dividend Uptrend

3.5

RAI has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

2.5

RAI's earnings estimates are flat.


Dividend.com 2016 Forecast for RAI

Potential Catalysts

● The $25 billion takeover of Lorillard presents significant growth and synergy

opportunities.

● E-cigarettes are a growth catalyst for the industry.

● The divestment of Natural American Spirits for $5 billion can be utilized to buy back

stock, which would be a significant tailwind for earnings growth next year.

Potential Concerns

● Smoking rates are falling in the U.S., which means fewer customers going forward.

● A lack of product diversity. Competitor Altria owns a wine business and a large stake in

beer giant SABMiller. Reynolds American is almost entirely reliant on cigarettes for

revenue.

Bottom Line

Reynolds American generates significant free cash flow, like other tobacco companies, and it

passes this cash flow along to shareholders primarily through dividends. The stock yields 3.2%,

and raised its dividend 7.5% in 2015. This makes Reynolds American a strong holding for

income investors.

Additional Resources for RAI

● Dividend.com Profile Page for RAI

● Full Dividend Payout History for RAI


http://www.dividend.com/dividend-stocks/consumer-goods/cigarettes/rai-reynolds-american/

http://www.dividend.com/dividend-stocks/consumer-goods/cigarettes/rai-reynolds-american/#payout-history-table


185

Starbucks Corporation (SBUX)

2015 Range: 39.22 - 64.00 Avg. Volume: 8,416,960


2015 EPS Est: 1.89 2016 EPS Est: 2.18



SBUX Five-Year Stock Chart

Company Profile

Starbucks Corporation (SBUX) is an American global coffee company, and the largest in the

world. SBUX, which is located in over 60 countries, sells various products including coffee

drinks, coffee beans, salads, hot and cold sandwiches, sweet pastries, snacks, and items such as

mugs and tumblers. Starbucks was founded in 1971 and is based in Seattle, WA. Starbucks is

largely affected by commodity prices, particularly coffee beans. Starbucks also faces a risk of

market saturation, particularly in the United States. Starbucks operates internationally and

constantly seeks new markets for growth. Starbucks established its dividend in 2010 and has been

increasing it consistently annually since then.



186


2014 1.10 +23.60%

2013 0.89 +23.61%

2012 0.72 +28.57%

2011 0.56 +55.56%

2010 0.36 -86.57%

Dividend.com DARS™ Ratings for SBUX

Below are Dividend.com's proprietary DARS™ Ratings for SBUX as of Dec. 2, 2014. Each value


Relative Strength

3.5

SBUX is outperforming much of the market.


2.5

SBUX's dividend yield is just average.


4.0

SBUX has been paying dividends for 1 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

SBUX has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.5

SBUX's earnings estimates have been raised nicely.




187

Dividend.com 2016 Forecast for SBUX

Potential Catalysts

● Starbucks enjoys one of the world’s most valuable and recognizable brands. This drives

tremendous pricing power and revenue growth. Comparable sales, a measure of sales at

store locations open at least one year, rose 7% in fiscal 2015.

● Starbucks is aggressively opening new restaurants around the world, which will drive

high top-line growth.

● Rapid sales growth and margin expansion leads to outsized earnings growth. Starbucks

grew earnings per share by 35% in fiscal 2015.

Potential Concerns

● Expectations are very high for Starbucks. The stock trades for 34 times earnings, a five-

year high.

● Due to its aggressive valuation, the dividend yield is very low, at 1.2%. This fails to meet

the S&P 500 average yield of 2%.

● As a luxury item in its industry, Starbucks’ growth is highly correlated to global

economic conditions. In a recession, revenue declines sharply.

Bottom Line

Starbucks is a high-growth stock. It increased its dividend by 25% in fiscal 2015. This should

appeal to dividend growth investors. On the other hand, its current dividend yield is still very low.

Investors who desire current income, such as retirees, should look elsewhere for higher-yielding

opportunities.

Additional Resources for SBUX

● Dividend.com Profile Page for SBUX

● Full Dividend Payout History for SBUX

AT&T Inc. (T)

2015 Range: 30.97 - 36.45 Avg. Volume: 24,376,700


2015 EPS Est: 2.70 2016 EPS Est: 2.82



http://www.dividend.com/dividend-stocks/services/specialty-eateries/sbux-starbucks/

http://www.dividend.com/dividend-stocks/services/specialty-eateries/sbux-starbucks/#payout-history-table


188

T Five-Year Stock Chart

Company Profile

AT&T (T) is a holding company that providers telecommunication services worldwide. The

company offers several services including wireless communications, local exchange services and

long-distance services. AT&T sells both services and physical products which they have made

available at their own stores, as well as third party distributors. The company was founded in

1983 with its former name of SBC Communications, and then changed the company name to

AT&T in 2005. The company is based out of Dallas Texas.



2014 1.84 +2.22%

2013 1.80 +2.27%

2012 1.76 +2.33%

2011 1.72 +2.38%

2010 1.68 +2.44%

2009 1.64 +2.50%


189

2008 1.60 +12.68%

2007 1.42 +6.61%

2006 1.33 +3.10%

2005 1.29 +3.19%

2004 1.25 -8.55%

2003 1.37 +28.42%

2002 1.07 +4.41%

2001 1.02 +1.49%

2000 1.01 +4.68%

1999 0.96 +4.46%

1998 0.92 +3.72%

1997 0.89 +4.23%

1996 0.85 +4.35%

1995 0.82 +4.42%

1994 0.78 -29.00%

Dividend.com DARS™ Ratings for T

Below are Dividend.com's proprietary DARS™ Ratings for T as of Dec. 2, 2015. Each value is


Relative Strength

3.0

T is performing in-line with the market or better.


4.0

T's dividend yield is above the industry average.


4.5

T has been paying dividends for 130 years, and we feel its dividend yield is extremely safe.


190

Dividend Uptrend

3.5

T has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

2.5

T's earnings estimates are flat.


Dividend.com 2016 Forecast for T

Potential Catalysts

● A very high dividend yield. AT&T stock yields 5.6%, which is among the highest yields

in the S&P 500.

● The major acquisition of DirecTV brings in millions of new customers to AT&T.

● Due to synergies related to the DirecTV merger, AT&T expects 30% free cash flow

growth in 2016.

Potential Concerns

● Low dividend growth. AT&T increased its quarterly dividend by just one penny per share

in each of the last seven years.

● High debt. AT&T has more than $100 billion in long-term debt, including $36 billion in

post employment benefits.

● With an over-leveraged balance sheet, rising interest rates will raise interest expense and

lower AT&T’s earnings growth going forward.

Bottom Line

AT&T is the typical high-yield, low-growth dividend stock. AT&T yields nearly 6%, but in 2014,

AT&T distributed 94% of its free cash flow as dividends, leaving very little room for high

dividend growth. The DirecTV may change that—the company expects significant free cash flow

increases. That may allow for stronger dividend growth in 2016.

Additional Resources for T

● Dividend.com Profile Page for T

● Full Dividend Payout History for T


http://www.dividend.com/dividend-stocks/technology/telecom-services-domestic/t-atandt/

http://www.dividend.com/dividend-stocks/technology/telecom-services-domestic/t-atandt/#payout-history-table


191

Toronto-Dominion Bank (TD)

2015 Range: 35.930 - 48.110 Avg. Volume: 1,435,250


2015 EPS Est: 4.840 2016 EPS Est: 5.150



TD Five-Year Stock Chart

Company Profile

Toronto-Dominion Bank (TD) is a Canadian banking company, and is the second largest bank in

Canada. The company's subsidiaries include,TD Ameritrade, TD Asset Management, TD Bank,

N.A., TD Canada Trust, TD Commercial Banking, and TD Insurance. TD was founded in 1955

and is based in Toronto, ON. TD is largely affected by the general economic environment, as well

as risks such as information security and increasing fraud. TD has been expanding its footprint

largely in the United States in the last few years and has increased its growth prospects. TD has

been paying a dividend since 1998 and has increased it since 2011. TD pays its dividend every

quarter.



192


2014 2.27 -29.94%

2013 3.24 +12.66%

2012 2.88 +9.40%

2011 2.63 +11.68%

2010 2.35 -10.39%

2009 2.63 +11.93%

2008 2.35 +21.17%

2007 1.94 +60.75%

2006 1.21 -19.83%

2005 1.50 +7.36%

2004 1.40 +16.67%

2003 1.20 +7.14%

2002 1.12 --

2001 1.12 +16.67%

2000 0.96 +26.32%

1999 0.76 +13.43%

1998 0.67 +15.52%

1997 0.58 +118.87%

1996 0.27 -85.60%


193

Dividend.com DARS™ Ratings for TD

Below are Dividend.com's proprietary DARS™ Ratings for TD as of Dec. 2, 2015. Each value is


Relative Strength

3.0

TD is performing in-line with the market or better.


3.5

TD's dividend yield is above the industry average.


4.5

TD has been paying dividends for 154 years, and we feel its dividend yield is extremely safe.

Dividend Uptrend

3.5

TD has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

TD's earnings estimates are flat.


Dividend.com 2016 Forecast for TD

Potential Catalysts

● If interest rates rise, it will help increase TD Bank’s net interest margins, and be a catalyst

for higher earnings growth.

● Attractive valuation and dividend yield. The stock trades for 13 times earnings and yields

3.8%. TD Bank is much cheaper than the market average and offers a higher dividend

yield than the S&P 500 average.

● Diversified business and good financial position drives a strong 10% Tier 1 Capital Ratio.

Potential Concerns

● Margins have leveled off in TD Bank’s U.S. operations. As a financial institution, TD

Bank is suffering from the delay in raising interest rates in the United States. This could

weigh on future dividend growth.

● Increasing credit losses. TD Bank’s provision for credit losses rose 29% last quarter,

year-over-year.



194

Bottom Line

TD Bank stock yields 3.8%, which makes it an attractive stock for income investors. Future

dividend growth may disappoint, however, if rates remain low. TD Bank’s growth has slowed

this year. The company needs higher rates to increase its profit margins. If rates rise, investors

should expect a dividend increase next year.

Additional Resources for TD

● Dividend.com Profile Page for TD

● Full Dividend Payout History for TD

Target Corporation (TGT)

2015 Range: 68.15 - 85.81 Avg. Volume: 5,568,360


2015 EPS Est: 4.74 2016 EPS Est: 5.18



TGT Five-Year Stock Chart

Target (TGT) is a discount retailer in North America. Target operates in three segments, U.S.

Retail, U.S. Credit Card and Canadian. It offers products to customers through store locations as

well as online. As of January 2012, the company operated 1763 stores, and employed 365,000

people. The company was founded in 1902 as Dayton Dry Goods Company, and is based in

Minneapolis, Minnesota.

http://www.dividend.com/dividend-stocks/financial/foreign-money-center-banks/td-toronto-dominion-bank/

http://www.dividend.com/dividend-stocks/financial/foreign-money-center-banks/td-toronto-dominion-bank/#payout-history-table


195



2014 1.90 +20.25%

2013 1.58 +19.70%

2012 1.32 +20.00%

2011 1.10 +30.95%

2010 0.84 +27.27%

2009 0.66 +10.00%

2008 0.60 +15.38%

2007 0.52 +18.18%

2006 0.44 +22.22%

2005 0.36 +20.00%

2004 0.30 +15.38%

2003 0.26 +8.33%

2002 0.24 +9.09%

2001 0.22 +4.76%

2000 0.21 +5.00%

1999 0.20 +11.11%

1998 0.18 +9.09%


196

1997 0.17 +7.60%

1996 0.15 +5.74%

1995 0.15 +3.58%

1994 0.14 -93.83%

Dividend.com DARS™ Ratings for TGT

Below are Dividend.com's proprietary DARS™ Ratings for TGT as of Dec. 2, 2015. Each value


Relative Strength

3.0

TGT is performing in-line with the market or better.


3.5

TGT's dividend yield is above the industry average.


4.5

TGT has been paying dividends for 2011 years, and we feel its dividend yield is extremely

safe.

Dividend Uptrend

3.5

TGT has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

TGT's earnings estimates are flat.


Dividend.com 2016 Forecast for TGT

Potential Catalysts

● Target has invested heavily in its e-commerce business, which is vital for retailers.

Digital channel sales increased 20% last quarter.

● Target restructured its business by closing all of its stores in Canada. Those stores lost

$627 million before interest and taxes in its last three full quarters of operation. This

should significantly improve profitability next year.

● Target stock yields 3.2%, and the company has raised its dividend for 41 years in a row.



197

Potential Concerns

● Retail sales in the U.S. are weak. A poor fourth-quarter holiday shopping season would

severely impact Target.

● Increasing competition from Internet retailers like Amazon is a significant headwind

Bottom Line

Target offers a high dividend yield, and has a proven track record of dividend growth. The

company is a Dividend Aristocrat and, over the past five years, has lifted its payout by 17% per

year. This makes Target stock an ideal candidate for both dividend growth and high yield

investors.

Additional Resources for TGT

● Dividend.com Profile Page for TGT

● Full Dividend Payout History for TGT

Travelers (TRV)

2015 Range: 95.21 - 116.48 Avg. Volume: 1,961,040


2015 EPS Est: 10.59 2016 EPS Est: 9.80



TRV Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/services/discount-variety-stores/tgt-target/

http://www.dividend.com/dividend-stocks/services/discount-variety-stores/tgt-target/#payout-history-table


198

Company Profile

This company provides various commercial and personal property and casualty insurance

products and services to businesses, government units, associations, and individuals primarily in

the United States. The company operates in three segments: Business Insurance; Financial,

Professional, and International Insurance; and Personal Insurance. The Business Insurance

segment offers property and casualty products and services, such as commercial multi-peril,

property, general liability, commercial auto, and workers’ compensation insurance. This segment

operates in six groups: Select Accounts, which serves small businesses; Commercial Accounts

that serves mid-sized businesses; National Accounts, which serves large companies; Industry-

Focused Underwriting that serves targeted industries; Target Risk Underwriting, which serves

commercial businesses requiring specialized product underwriting, claims handling, and risk

management services; and Specialized Distribution that offers products to customers through

licensed wholesale, general, and program agents. The Financial, Professional, and International

Insurance segment provides surety and financial liability coverage, which uses a credit-based

underwriting process; and property and casualty products primarily in the United Kingdom,

Canada, and the Republic of Ireland. The Personal Insurance segment offers property and

casualty insurance covering personal risks, primarily automobile and homeowners insurance to

individuals. It distributes its products through independent agents, wholesale agents, brokers,

sponsoring organizations, and direct marketing. The company was founded in 1853 and is based

in New York, New York.



2014 2.15 +9.69%

2013 1.96 +9.50%

2012 1.79 +12.58%

2011 1.59 +12.77%

2010 1.41 +14.63%

2009 1.23 +3.36%


199

2008 1.19 +5.31%

2007 1.13 +11.88%

2006 1.01 +46.38%

2005 0.69 -40.52%

2004 1.16 --

2003 1.16 --

2002 1.16 +3.57%

2001 1.12 +3.70%

2000 1.08 +3.85%

1999 1.04 +4.00%

1998 1.00 +6.38%

1997 0.94 +6.82%

1996 0.88 +10.00%

1995 0.80 +6.67%

1994 0.75 -60.53%

Travelers (TRV)

Dividend.com DARS™ Ratings for TRV

Below are Dividend.com's proprietary DARS™ Ratings for TRV as of Dec. 2, 2015. Each value


Relative Strength

3.5

TRV is outperforming much of the market.


3.0

TRV's dividend yield is just average.


200


4.0

TRV has been paying dividends for 21 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

TRV has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

TRV's earnings estimates are flat.


Dividend.com 2016 Forecast for TRV

Potential Catalysts

● Higher interest rates are a tailwind for insurance companies, which will earn higher net

interest margins if rates begin to rise.

● Insurance companies enjoy a lucrative business model. They earn cash flow two ways: by

collecting premiums and by investing capital to earn returns.

● High growth. This year, Travelers raised its dividend by 11%, and added $5 billion to its

share repurchase program.

Potential Concerns

● If interest rates remain low, it will suppress investment income. Travelers’ total revenue

declined 1% through the first nine months of 2015 because of lower investment income.

● Foreign currency risk. Travelers’ shareholder equity declined 3% since the beginning of

the year because of unfavorable foreign exchange fluctuations.

Bottom Line

Travelers is a good stock pick for value and income investors. The stock trades for 10 times

earnings and yields 2.1%. The company has grown dividends at a high rate, but future dividend

growth may disappoint if interest rates remain unchanged heading into 2016.

Additional Resources for TRV

● Dividend.com Profile Page for TRV

● Full Dividend Payout History for TRV


http://www.dividend.com/dividend-stocks/financial/property-and-casualty-insurance/trv-travelers-co/

http://www.dividend.com/dividend-stocks/financial/property-and-casualty-insurance/trv-travelers-co/#payout-history-table


201

United Parcel Service Inc. (UPS)

2015 Range: 93.64 - 114.40 Avg. Volume: 3,037,030


2015 EPS Est: 5.29 2016 EPS Est: 5.77



UPS Five-Year Stock Chart

Company Profile

United Parcel Service, Inc. (UPS) is an international shipping service company, and is the largest

package delivery company in the world. UPS operates in three business segments: U.S. Domestic

Package operations, International Package operations, and Supply Chain & Freight operations. Its

services are offered to consumers and businesses in nearly 220 countries worldwide. The

company was founded in 1907 and is headquartered in Atlanta, Georgia. UPS faces significant

competition worldwide, and changes in the competitive landscape can greatly affect UPS’s

results. As well, UPS faces large amounts of regulation, on local, state, federal, and international

levels, particularly tariffs, trade policies, and export requirements. UPS has been paying

dividends since 1999 and has increased them consistently since 2009. UPS has never cut their

dividend. UPS pays its dividend quarterly.


202



2014 2.68 +8.06%

2013 2.48 +8.77%

2012 2.28 +9.62%

2011 2.08 +10.64%

2010 1.88 +4.44%

2009 1.80 --

2008 1.80 +7.14%

2007 1.68 +10.53%

2006 1.52 +15.15%

2005 1.32 +17.86%

2004 1.12 +21.74%

2003 0.92 +21.05%

2002 0.76 --

2001 0.76 +11.76%

2000 0.68 +126.67%

1999 0.30 -86.05%


203

Dividend.com DARS™ Ratings for UPS

Below are Dividend.com's proprietary DARS™ Ratings for UPS as of Dec. 2, 2015. Each value


Relative Strength

3.0

UPS is performing in-line with the market or better.


3.5

UPS's dividend yield is above the industry average.


4.0

UPS has been paying dividends for 12 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

UPS has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

UPS's earnings estimates are flat.


Dividend.com 2016 Forecast for UPS

Potential Catalysts

● UPS operates in an essential duopoly industry, with extremely high barriers to entry. This

protects its earnings power. Earnings per share grew 39% over the first nine months of

2015.

● As a major transport, UPS will benefit from the continued recovery in the global

economy.

● UPS is also a major beneficiary of low oil prices, which are one of its biggest costs each

year.

Potential Concerns

● The rising U.S. dollar reduced UPS’ revenue growth by 2% last quarter, and will remain

a headwind in 2016.

● Slowing economic growth in the emerging markets is a significant concern going

forward.



204

Bottom Line

UPS has an excellent brand and operates in an industry with only one major competitor. The

company generates strong cash flow, which results in above-average dividend growth. The stock

currently yields 2.8%, making it an appropriate pick for a dividend focused portfolio.

Additional Resources for UPS

● Dividend.com Profile Page for UPS

● Full Dividend Payout History for UPS

United Technologies Corporation (UTX)

2015 Range: 85.500 - 124.450 Avg. Volume: 4,982,860


2015 EPS Est: 6.270 2016 EPS Est: 6.580



UTX Five-Year Stock Chart

Company Profile

United Technologies Corporation (UTX) is a multinational corporation that provides high

technology products and services to building systems and aerospace industries. It researches,

develops, and manufactures products such as aircraft engines, helicopters, elevators, and security

systems. It is also a large military contractor providing missile systems and aircrafts. The

company was founded in 1975 and is based in Hartford, Connecticut. UTX relies greatly on

government contracts, and a change in United States government policy can largely affect UTX’s

profits. UTX is also reliant on its suppliers, as it uses many specialized parts and raw materials,

and the ability to source these parts affects UTX’s operating costs. UTX has been paying

dividends since 1980, and has increased them annually since 1998. UTX pays its dividends

quarterly.

http://www.dividend.com/dividend-stocks/services/air-delivery-and-freight-services/ups-united-parcel-service/

http://www.dividend.com/dividend-stocks/services/air-delivery-and-freight-services/ups-united-parcel-service/#payout-history-table


205



2014 2.36 +7.52%

2013 2.20 +8.13%

2012 2.03 +8.85%

2011 1.87 +9.71%

2010 1.70 +10.39%

2009 1.54 +14.50%

2008 1.35 +14.96%

2007 1.17 +15.27%

2006 1.02 +15.34%

2005 0.88 +25.71%

2004 0.70 +23.35%

2003 0.57 +15.82%

2002 0.49 +8.89%

2001 0.45 +9.09%

2000 0.41 +11.49%

1999 0.37 +6.47%


206

1998 0.35 +12.10%

1997 0.31 +12.73%

1996 0.28 +7.32%

1995 0.26 +7.89%

1994 0.24 -91.14%

Dividend.com DARS™ Ratings for UTX

Below are Dividend.com's proprietary DARS™ Ratings for UTX as of Dec. 2, 2015. Each value


Relative Strength

3.5

UTX is outperforming much of the market.


3.0

UTX's dividend yield is just average.


4.0

UTX has been paying dividends for 41 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

UTX has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

UTX's earnings estimates are flat.




207

Dividend.com 2016 Forecast for UTX

Potential Catalysts

● The steady recovery in the global economy and the divestiture of the Sikorsky aircraft

business are positive for United Technologies’ dividend, which yields 2.6%.

● Focus on commercial markets versus government defense contracts provides valuable

protection from cuts in global defense budgets.

● Strong dividend growth—over the past five years, the stock has raised its dividend by 8%

compounded annually.

Potential Concerns

● As a global industrial, United Technologies is vulnerable to the economic slowdown in

the emerging markets such as China.

● United Technologies’ industrial products and services cater to some degree to the energy

market, which is a concern given the steep declines in commodity prices this year.

Bottom Line

United Technologies is a diversified business. It generates approximately 45% of its revenue from

the commercial markets, which is a structural tailwind heading into 2016. The company generates

high free cash flow which powers its dividend growth. As a result, United Technologies stock is

attractive for both current dividend income and future dividend growth potential.

Additional Resources for UTX

● Dividend.com Profile Page for UTX

● Full Dividend Payout History for UTX

Visa Inc (V)

2015 Range: 60.000 - 81.010 Avg. Volume: 9,286,440


2015 EPS Est: 2.880 2016 EPS Est: 3.360



http://www.dividend.com/dividend-stocks/conglomerates/conglomerates-general/utx-united-technologies/

http://www.dividend.com/dividend-stocks/conglomerates/conglomerates-general/utx-united-technologies/#payout-history-table


208

V Five-Year Stock Chart

Company Profile

Visa (V) is a multinational financial services company, which is best known for its payment

services, including credit cards and debit cards. The company serves consumers, businesses,

banks and governments in more than 200 countries. The Company owns, manages and promotes

several products including, Visa, Visa Electron, PLUS and Interlink. Visa was established in

1970, and is headquartered in San Francisco, CA.



2014 1.68 +20.86%

2013 1.39 +40.40%

2012 0.99 +120.00%

2011 0.45 -14.29%

2010 0.53 +19.32%

2009 0.44 +109.52%

2008 0.21 -91.10%


209

Dividend.com DARS™ Ratings for V

Below are Dividend.com's proprietary DARS™ Ratings for V as of Dec. 2, 2015. Each value is


Relative Strength

4.0

V is outperforming much of the market.


2.0

V's dividend yield is below average and thus unattractive.


4.0

V has been paying dividends for 2011 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

V has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.5

V's earnings estimates have been raised nicely.


Dividend.com 2016 Forecast for V

Potential Catalysts

● An excellent brand name that separates it from the competition.

● Global payments is a high-growth industry. Visa’s earnings rose 16% in fiscal 2015.

● The acquisition of Visa Europe should present significant cost synergies and will likely

be accretive to earnings next year and beyond.

Potential Concerns

● Low current dividend yield that is well below the market average.

● Increasing competition from companies like Apple could threaten Visa’s position in

global financial transfers.

Bottom Line

Visa is an excellent dividend growth stock. The company raised its dividend by 16% this year.

However, Visa stock only yields 0.7%. Visa is a phenomenal growth stock, but it is not an

attractive option for investors looking for dividend income.



210

Additional Resources for V

● Dividend.com Profile Page for V

● Full Dividend Payout History for V

Verizon Communications Inc. (VZ)

2015 Range: 38.060 - 50.860 Avg. Volume: 13,615,500


2015 EPS Est: 3.970 2016 EPS Est: 3.990



VZ Five-Year Stock Chart

Company Profile

Verizon Communications LLC. (VZ) is a holding company that provides communication,

information and entertainment products and services to consumers, businesses and governmental

agencies. The has two segments: Verizon Wireless and Wireline. Several products and services

are offered from Verizon such as television services, telephone services, and internet providing.

The company has also made several acquisitions including CloudSwitch and Terremark

Worldwide. Founded in 1983, VZ is based in New York City.

http://www.dividend.com/dividend-stocks/services/business-services/v-visa/

http://www.dividend.com/dividend-stocks/services/business-services/v-visa/#payout-history-table


211



2014 2.14 +3.13%

2013 2.08 +2.98%

2012 2.02 +2.60%

2011 1.96 +2.67%

2010 1.91 +3.13%

2009 1.86 -3.39%

2008 1.92 +16.72%

2007 1.65 -43.91%

2006 2.93 +83.31%

2005 1.60 +3.90%

2004 1.54 --

2003 1.54 --

2002 1.54 --

2001 1.54 -2.96%

2000 1.59 +2.99%

1999 1.54 +0.06%

1998 1.54 +38.12%


212

1997 1.12 -22.03%

1996 1.43 +2.51%

1995 1.40 +1.82%

1994 1.37 -18.45%

Dividend.com DARS™ Ratings for VZ

Below are Dividend.com's proprietary DARS™ Ratings for VZ as of Dec. 2, 2015. Each value is


Relative Strength

3.0

VZ is performing in-line with the market or better.


3.5

VZ's dividend yield is above the industry average.


4.5

VZ has been paying dividends for 27 years, and we feel its dividend yield is extremely safe.

Dividend Uptrend

3.5

VZ has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

VZ's earnings estimates are flat.


Dividend.com 2016 Forecast for VZ

Potential Catalysts

● The acquisition of AOL is a major catalyst that can meaningfully extend Verizon’s

revenue from advertising and mobile entertainment.

● Verizon now owns 100% of Verizon Wireless, which is the most profitable wireless

carrier in the United States. Verizon’s wireless business grew revenue by 5% last quarter.

● High dividend yield. Verizon yields 5%, more than double the average yield of the S&P

500 Index.



213

Potential Concerns

● An over-leveraged balance sheet. Largely because of the Verizon Wireless takeover,

Verizon has $105 billion in long-term debt.

● Rising interest rates will likely result in significantly higher interest expense given

Verizon’s high debt load.

Bottom Line

Verizon has focused its business on wireless, which is the right course because that is where the

future growth will be. Verizon is also divesting its wireline assets, proceeds of which can be used

to pay down debt. Verizon is not a high dividend growth stock, but because of its very high yield,

it is suitable for income investors.

Additional Resources for VZ

● Dividend.com Profile Page for VZ

● Full Dividend Payout History for VZ

Waste Management, Inc. (WM)

2015 Range: 45.86 - 55.93 Avg. Volume: 2,201,080


2015 EPS Est: 2.57 2016 EPS Est: 2.77



WM Five-Year Stock Chart

http://www.dividend.com/dividend-stocks/technology/telecom-services-domestic/vz-verizon/

http://www.dividend.com/dividend-stocks/technology/telecom-services-domestic/vz-verizon/#payout-history-table


214

Company Profile

Waste Management, Inc. (WM) is a North American waste management, comprehensive waste

and environmental services company founded in 1894 and based out of Houston, Texas. The

company provides collection, transfer, recycling, and disposal of waste services. The company is

also a developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in

the United States. Waste Management is largely affected by certain commodity prices, such as

fibers, aluminum, and glass - all of which are volatile. As well, Waste Management is largely

regulated on municipal, state, and federal levels, particularly for environmental concerns. Waste

Management has been paying dividends since 1998, and has increased them annually since 2004.

Waste Management pays its dividends quarterly.



2014 1.50 +2.74%

2013 1.46 +2.82%

2012 1.42 +39.22%

2011 1.02 -19.05%

2010 1.26 +8.62%

2009 1.16 +7.41%

2008 1.08 +12.50%

2007 0.96 +9.09%

2006 0.88 +10.00%

2005 0.80 +6.38%

2004 0.75 +7,420.00%

2003 0.01 --


215

2002 0.01 --

2001 0.01 --

2000 0.01 --

1999 0.01 -97.62%

1998 0.42 -9.81%

1997 0.47 +16.67%

1996 0.40 +16.88%

1995 0.34 -11.49%

1994 0.39 -81.93%

Dividend.com DARS™ Ratings for WM

Below are Dividend.com's proprietary DARS™ Ratings for WM as of Dec. 2, 2015. Each value


Relative Strength

3.0

WM is performing in-line with the market or better.


3.5

WM's dividend yield is above the industry average.


4.0

WM has been paying dividends for 25 years, and we its dividend yield is safe.

Dividend Uptrend

3.5

WM has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

WM's earnings estimates are flat.




216

Dividend.com 2016 Forecast for WM

Potential Catalysts

● As the nation’s biggest recycler, Waste Management benefits from the move to clean

power and renewable energy.

● Very wide economic moat. There are only a few smaller competitors, and extremely high

barrier to entry in the trash removal business.

Potential Concerns

● Waste disposal and management is a low-growth industry. Waste Management’s earnings

will likely only grow slightly higher than inflation.

● A high debt load. Waste Management carries $8.8 billion in long-term debt, compared to

just $5 billion in shareholder’s equity. Rising interest rates will make this debt more

expensive, which will reduce earnings growth.

Bottom Line

Waste Management is a strong dividend stock with a 2.8% yield, which is above the S&P 500

average. However, due to its slowing earnings growth and high debt, Waste Management’s

dividend growth is low. The company has increased its dividend by just 4% per year over the past

five years. As a result, the stock will generate suitable current income, but Waste Management is

not an ideal dividend growth stock.

Additional Resources for WM

● Dividend.com Profile Page for WM

● Full Dividend Payout History for WM

Wal-Mart Stores Inc. (WMT)

2015 Range: 56.30 - 90.97 Avg. Volume: 12,242,100


2015 EPS Est: 4.57 2016 EPS Est: 4.17



http://www.dividend.com/dividend-stocks/industrial-goods/waste-management/wm-waste-management/

http://www.dividend.com/dividend-stocks/industrial-goods/waste-management/wm-waste-management/#payout-history-table


217

WMT Five-Year Stock Chart

Company Profile

Wal-Mart Stores, Inc. (WMT) is an American multinational retailer corporation that owns and

operates discount department and wholesale stores worldwide. Everyday low prices is the

company’s pricing philosophy. Wal-Mart was founded in 1962 and is headquartered in

Bentonville, Arkansas. It owns more than 10,800 stores in 27 countries and is the largest private

employer in the world. General economic conditions, such as higher interest rates, higher fuel or

other costs, weakness in the housing market or higher unemployment may adversely affect Wal-

Mart. Wal-Mart has a strong history of investor friendly dividend policy. Not only is the company

a consistent dividend payer, but it has also shown a propensity to increase the dividend payout on

an annual basis. Over time, investors have seen Wal-Mart achieve a steadily increasing dividend

yield and have received good advanced notice of upcoming dividend dates. Wal-Mart is a

dividend aristocrat that has increased its annual cash dividend every year since it established a

$0.05 dividend in 1974.



2014 1.92 +2.13%

2013 1.88 +18.24%

2012 1.59 +45.21%


218

2011 1.10 -9.65%

2010 1.21 +10.99%

2009 1.09 +14.71%

2008 0.95 +8.18%

2007 0.88 +30.95%

2006 0.67 +12.00%

2005 0.60 +15.38%

2004 0.52 +44.44%

2003 0.36 +20.00%

2002 0.30 +7.14%

2001 0.28 +16.67%

2000 0.24 +20.00%

1999 0.20 +28.21%

1998 0.16 +14.71%

1997 0.14 +30.77%

1996 0.10 +4.00%

1995 0.10 +19.05%

1994 0.08 -94.40%

Dividend.com DARS™ Ratings for WMT

Below are Dividend.com's proprietary DARS™ Ratings for WMT as of Dec. 2, 2015. Each value


Relative Strength

3.5

WMT is outperforming much of the market.


3.5

WMT's dividend yield is above the industry average.


219


4.0

WMT has been paying dividends for 37 years, and we its dividend yield is safe.

Dividend Uptrend

4.0

WMT has shown steady and generous dividends, and has increased its payouts each

year.

Earnings Growth

2.0

WMT has seen its earnings estimates slightly lowered.


Dividend.com 2016 Forecast for WMT

Potential Catalysts

● E-commerce sales are growing at a very high rate, as consumers are performing more

shopping online. WalMart’s global e-commerce sales grew 10% last quarter.

● Comparable sales are growing led by WalMart’s small store format, the Neighborhood

Markets banner, which grew comparable sales by 8% last quarter.

● WalMart has a strong balance sheet and generates high returns on capital. This bodes

well for continued dividend growth.

Potential Concerns

● Investments in its employee wages and training will impact earnings growth. The

company expects to spend $1.2 billion on raising employee wages, and another $1.1

billion in costs related to building its e-commerce and mobile businesses.

● WalMart’s brand image has suffered in recent years, as consumers flock to competitors

who are taking share.

Bottom Line

WalMart has experienced a rapid slowdown in growth. However, the stock is cheap, at just 13

times earnings. And, WalMart’s 3.2% dividend yield is near a five-year high. WalMart does not

expect earnings to grow until fiscal 2019. But the company generates enough cash flow to keep

raising its dividend through its turnaround.

Additional Resources for WMT

● Dividend.com Profile Page for WMT

● Full Dividend Payout History for WMT


http://www.dividend.com/dividend-stocks/services/discount-variety-stores/wmt-wal-mart-stores/

http://www.dividend.com/dividend-stocks/services/discount-variety-stores/wmt-wal-mart-stores/#payout-history-table


220

W.P. Carey & Co. (WPC)

2015 Range: 56.01 - 73.88 Avg. Volume: 335,016


2015 EPS Est: 1.57 2016 EPS Est: 1.76



WPC Five-Year Stock Chart

Company Profile

W. P. Carey Inc. (WPC) is an independent equity real estate investment trust. The firm also

provides long-term sale-leaseback and build-to-suit financing for companies. It invests in the real

estate markets across the globe. The firm primarily invests in commercial properties that are

generally triple-net leased to single corporate tenants including office, warehouse, industrial,

logistics, retail, hotel, R&D, and self-storage properties. W. P. Carey Inc. was founded in 1973

and is based in New York, New York.



221


2014 3.69 +8.70%

2013 3.39 +38.82%

2012 2.44 +50.55%

2011 1.62 -20.02%

2010 2.03 -11.67%

2009 2.30 +17.44%

2008 1.96 -8.99%

2007 2.15 +18.02%

2006 1.82 +1.79%

2005 1.79 +1.88%

2004 1.76 +1.27%

2003 1.73 +0.99%

2002 1.72 +0.88%

2001 1.70 +0.53%

2000 1.69 +1.20%

1999 1.67 +1.46%

1998 1.65 -14.17%

Dividend.com DARS™ Ratings for WPC

Below are Dividend.com's proprietary DARS™ Ratings for WPC as of Dec. 2, 2015. Each value


Relative Strength

3.0

WPC is performing in-line with the market or better.


4.5

WPC's dividend yield extremely attractive for dividend investors.


222


4.0

WPC has been paying dividends for 2011 years, and we its dividend yield is safe.

Dividend Uptrend

4.0

WPC has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

2.0

WPC has seen its earnings estimates slightly lowered.

● Read more about the DARS™ Rating System here.

Dividend.com 2016 Forecast for WPC

Potential Catalysts

● Extremely high dividend yield. W.P. Carey currently yields 6.3% which is triple the yield

of the S&P 500 Index.

● High quality tenant portfolio, which provides steady growth. Adjusted funds from

operation grew 5% last quarter, year-over-year.

● Diversified portfolio provides long-term stability. The company holds long-term leases

which will lock in steady revenue growth for many years.

Potential Concerns

● Rising interest rates are a headwind for companies like REITs that heavily utilize debt in

their capital structures.

● Clouded operating structure. The company operates in business development companies,

which are outside its core competency.

Bottom Line

W.P. Carey is a high-quality REIT with a strong portfolio. Rising interest rates are a concern, as

the company has $264 million in variable rate debt due next year, and $954 million due in 2018.

But the company should generate enough cash flow to maintain a strong balance sheet, and grow

the dividend. The 6.3% yield should be very attractive to income investors.

Additional Resources for WPC

● Dividend.com Profile Page for WPC

● Full Dividend Payout History for WPC


http://www.dividend.com/dividend-stocks/financial/property-management/wpc-wp-carey-inc/

http://www.dividend.com/dividend-stocks/financial/property-management/wpc-wp-carey-inc/#payout-history-table


223

Exxon Mobil Corporation (XOM)

2015 Range: 66.55 - 95.18 Avg. Volume: 14,905,200


2015 EPS Est: 3.94 2016 EPS Est: 3.95



XOM Five-Year Stock Chart

Company Profile

Exxon Mobil Corporation (XOM) is a manufacturer and marketer of commodity petrochemicals.

The company offers several specialty products including olefins, aromatics, polyethylene and

polypropylene plastics. XOM includes a few divisions which include ExxonMobil, Exxon, Esso

and Mobil. XOM was founded in 1882, and is based in Irving, TX.




224

2014 2.70 +9.76%

2013 2.46 +12.84%

2012 2.18 +17.84%

2011 1.85 +6.32%

2010 1.74 +4.82%

2009 1.66 +7.10%

2008 1.55 +13.14%

2007 1.37 +7.03%

2006 1.28 +12.28%

2005 1.14 +7.55%

2004 1.06 +8.16%

2003 0.98 +6.52%

2002 0.92 +1.10%

2001 0.91 +3.41%

2000 0.88 +5.39%

1999 0.84 +1.83%

1998 0.82 +0.92%

1997 0.81 +4.17%

1996 0.78 +4.00%

1995 0.75 +3.09%

1994 0.73 -80.26%


225

Dividend.com DARS™ Ratings for XOM

Below are Dividend.com's proprietary DARS™ Ratings for XOM as of Dec. 2, 2015. Each value


Relative Strength

2.5

XOM is performing in-line with the market or better.


3.0

XOM's dividend yield is just average.


4.0

XOM has been paying dividends for 41 years, and we its dividend yield is safe.

Dividend Uptrend

4.0

XOM has shown steady and generous dividends, and has increased its payouts each year.

Earnings Growth

3.0

XOM's earnings estimates are flat.

● Read more about the DARS™ Rating System here.

Dividend.com 2016 Forecast for XOM

Potential Catalysts

● Exxon Mobil has very large upstream projects set to begin production next year,

including the Kearl oil sands project. This will help boost revenue and earnings.

● Excellent balance sheet. Exxon Mobil is one of only three U.S. companies to hold a

triple-A credit rating from Standard & Poor’s. This keeps its cost of capital very low.

● Exxon Mobil is one of the only integrated majors to raise its dividend this year.

Potential Concerns

● Extremely low oil prices will weigh on Exxon Mobil’s earnings.

● The rising U.S. dollar is significant impacting Exxon Mobil, a company with a global

reach.



226

Bottom Line

Exxon Mobil yields more than 3% and raised its dividend by 6% this year, even in an

environment of very low commodity prices. This speaks to the strength of Exxon Mobil’s

business. Its refining segment is providing a valuable offset against lower oil and gas prices.

Exxon Mobil can be a core holding in a dividend portfolio.

Additional Resources for XOM

● Dividend.com Profile Page for XOM

● Full Dividend Payout History for XOM

http://www.dividend.com/dividend-stocks/basic-materials/major-integrated-oil-and-gas/xom-exxon-mobil/

http://www.dividend.com/dividend-stocks/basic-materials/major-integrated-oil-and-gas/xom-exxon-mobil/#payout-history-table

http://www.dividend.com/dividend-stocks/basic-materials/major-integrated-oil-and-gas/xom-exxon-mobil/#payout-history-table


227

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