Nordstrom Joins UBS List Of Top Dividend Payers
The analysts at UBS have added Nordstrom (NYSE: JWN) and Stanley Black & Decker (NYSE: SWK) to their Dividend Rulers list. Two consumer goods companies already on the UBS list are Clorox (NYSE: CLX) and Johnson & Johnson (NYSE: JNJ).
UBS selects stocks for its Dividend Ruler list based on their long-term track record of consistently raising dividends. The top dividend-paying stocks are also well-positioned to keep growing their payouts at an attractive rate for the next few years.
See also: ETFs For Dividend Consistency
This company's many products include Burt's Bees lip balms, Brita filters, Kingsford charcoal and Liquid-Plumr. It sports a market capitalization of about $11 billion and has dividend yield near 3.3 percent. The long-term earnings per share (EPS) growth forecast is more than seven percent, and the return on equity is very high.
However, the most recent consensus recommendation of the analysts surveyed by Thomson/First Call who follow this stock was to hold shares. Their mean price target, or where the analysts expect the share price to go, is only marginally higher than the current share price. The UBS price target signals more than six percent upside potential.
Shares of Clorox have traded mostly between $82 and $87 since April, but the share price currently is up more than 13 percent year-to-date. Over the past six months, the stock has underperformed the broader markets, as well and peers Johnson & Johnson and Procter & Gamble (NYSE: PG).
Johnson & Johnson
This New Jersey-based health care products company offers such products as Band-Aid, Listerine and Tylenol. It has a dividend yield of about 2.9 percent and a market cap of more than $250 billion. Its return on equity is more than 19 percent, and the operating margin is healthy.
Of the 23 analysts polled, seven rate the stock at Strong Buy and another six also recommend buying shares. The analysts see some headroom for shares, as their mean price target is about eight percent higher than the current share price. The UBS price target suggests almost 16 percent potential upside.
The share price has pulled back more than five percent from a recent multiyear high. It is still more than 26 percent higher year-to-date. Over the past six months, this stock has outperformed the broader markets, as well as Procter & Gamble and Unilever (NYSE: UL).
This Seattle-based upscale fashion retailer posted better-than-expected earnings last week, along with a weak outlook. Its market cap is about $11 billion, and its dividend yield is near 2.0 percent. The long-term EPS growth forecast is more than 11 percent. The return on equity is almost 39 percent.
Half of the 26 surveyed analysts recommend buying shares, while 11 rate the stock at Hold. The consensus price target indicates more than eight percent potential upside. However, the UBS price target is about 13 percent higher than the current share price.
Shares retreated more than four percent last week due to that weak outlook for the rest of the year. The share price is now up only about five percent year-to-date. The stock has underperformed competitors Macy's (NYSE: M) and Saks (NYSE: SKS), as well as the broader markets, over the past six months.
Stanley Black & Decker
This tool maker reported better-than-expected quarterly results last week and also hiked its dividend by two percent. The company now has a dividend yield near 2.3 percent and a nearly $14 billion market cap. The price-to-earnings (P/E) ratio is less than those of Danaher (NYSE: DHR) and Makita.
Half of the 16 surveyed analysts recommend buying shares, but none recommend selling. However, their mean price target is only marginally higher than the current share price. The UBS price target suggests there is about six percent upside potential.
Shares reached a new multiyear high last week, and the share price now is about 15 percent higher than at the beginning of the year. Stanley Black & Decker has outperformed Danaher, as well as the S&P 500, over the past six months.
At the time of this writing, the author had no position in the mentioned equities.
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