Tag Archives: Vector Group

What Happened to the First 12 Stocks on the Dow?

By Alex Planes, The Motley Fool

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The Dow Jones Industrial Average has been around since 1896, and its antecedents date to 1884. This venerable index has refused to stand still ever since Charles Dow first sought to represent the American economy in a handful of companies. To date, the Dow has changed 49 times, with many moves occurring in clusters early in its history. What has become of the original Dow Dozen? Does any trace remain of the most notable industrial stocks of mid-1896?

Let’s take a look to see just how important the Dow’s original components actually were to the American economy and what eventually happened to them once they fell out of favor.

American Cotton Oil
This company was originally formed as a cotton oil trust in the 1880s, and it quickly dominated its niche. However, the American Cotton Oil Trust was dissolved in 1889 following a Louisiana antitrust lawsuit and reconstituted as a corporation. This company’s stay on the Dow was brief, and it was gone in 1901. Following removal, the company was absorbed by a former subsidiary in 1929, changed its name to Best Foods in 1931, and merged with Corn Products Company — now Ingredion — in 1958. Corn Products, which had changed its name to CPI, split into Bestfoods and Ingredion in 1997, and Bestfoods was acquired by consumer products giant Unilever three years later.

American Sugar
Formed in 1891, American Sugar quickly became the dominant sugar-refining trust, and at one point it controlled virtually all processing capacity in the United States. The company remained a Dow component until 1930, by which point its power had waned. After first changing its name to Amstar in 1970, the company still exists today as Domino Foods.

American Tobacco
Added in 1896, removed in 1899, added again in 1924, and removed again in 1930 before grabbing a spot in 1932 that it would retain until 1985, American Tobacco has a history almost as convoluted as its Dow membership. It was the original Tobacco Trust, but it was broken up in 1911 on the same day the Standard Oil Trust lost its antitrust suit. The Tobacco Trust became American Tobacco, R.J. Reynolds, Liggett and Myers (now a subsidiary of Vector Group), and Lorillard.

American Tobacco became a subsidiary of holding company American Brands in 1985, as the latter had been buying up various businesses since 1969. At one point, American Brands produced office supplies, golf products, home improvement products, and spirits. The company sold its tobacco business in 1994 and renamed itself Fortune Brands in 1997 to focus on its spirits and hardware segments. These business units split in 2011 to become Fortune Brands Home & Security and Beam , one of the most diverse liquor companies in the world.

Chicago Gas
A component for only two years, Chicago Gas was bought (and replaced on the Dow) by regional competitor Peoples Gas in 1898. Peoples remained a component until 1915, shortly …read more

Source: FULL ARTICLE at DailyFinance

The 25 Highest Dividend-Paying Stocks in April

By Dan Dzombak, The Motley Fool

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Dividend investing is popular again. Investors have taken to heart Jeremy Siegel‘s studies, which show that higher-paying stocks tend to offer greater returns over time than low- or no-yield stocks.

The highest-paying dividend stocks can be very tantalizing. As long as a stock yielding 15% doesn’t lose value, you’ll make 15% in one year! In more cases than not, however, an astronomical yield is a bad sign for a stock. Since dividend yields and stock prices move in opposite directions, a high yield usually means investors have begun to worry about the business and driven down its stock price.

However, certain types of companies, such as REITs have to pay out most of their income as dividends, so their yields will be higher than “normal.” But dividends aren’t guaranteed; you need to make sure a business is generating enough cash to pay its dividend, or your investment could be disastrous.

I ran a screen for the highest-paying dividend stocks. The only limitation I’ve set this time is that the stocks must have a market cap greater than $400 million and must be a corporation, so no REITs or MLPs. I’ve also excluded stocks for which a special dividend heavily influenced the yield.

Here are the top 25 highest-yielding stocks the screen produced:

 Rank

Company Name

Market Cap (Millions)

Dividend Yield (%)

1

Arlington Asset Investment

$408 

13.70%

2

Windstream

$4,872

12.20%

3

Pitney Bowes

$2,917

10.40%

4

Vector Group

$1,443

10.00%

5

Frontier Communications

$4,103

10.00%

6

SeaDrill

$16,715

9.85%

7

Compass Diversified

$778

9.16%

8

Ship Finance International

$1,455

9.00%

9

Consolidated Communications

$701

8.91%

10

R.R. Donnelley & Sons

$2,112

8.85%

11

National Presto Industries

$539

8.32%

12

PDL BioPharma

$1,025

8.24%

13

First Financial Bancorp

$903

7.85%

14

Werner Enterprises

$1,701

7.39%

15

New York Community Bancorp

$5,993

7.33%

16

Costamare

$1,164

6.95%

17

Capitol Federal Financial

$1,815

6.89%

18

VimpelCom

$18,702

6.73%

19

Valley National Bancorp

$1,929

6.70%

20

Nordic American Tankers Limited

$531

6.63%

21

United Online

$561

6.59%

22

Mercury General

$2,095

6.48%

23

Giant Interactive Group

$1,617

6.31%

24

CenturyLink

$22,542

6.16%

25

Exelon

$29,705

6.09%

Source: S&P CapitalIQ.

These stocks are a good place to start your …read more

Source: FULL ARTICLE at DailyFinance

Why Star Scientific Is Poised to Keep Plunging

By Brian Pacampara, Pacampara, The Motley Fool

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool’s free investing community, smokeless tobacco products specialist Star Scientific has received the dreaded one-star ranking.

With that in mind, let’s take a closer look at Star Scientific and see what CAPS investors are saying about the stock right now.

Star Scientific facts

Headquarters (founded)

Glen Allen, Va. (2000)

Market Cap

$300.0 million

Industry

Personal products

Trailing-12-Month Revenue

$5.4 million

Management

Chairman/President/COO Paul Perito
CEO Jonnie Williams

Trailing-12-Month Return on Equity

(136.3%)

Cash/Debt

$9.5 million / $12.0 thousand

Competitors

GlaxoSmithKline
Pfizer
Vector Group

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 45% of the 322 members who have rated Star Scientific believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star zzlangerhans, kindly updated our community on the opportunity:

So where does Star stand now? The patent infringement suit against big tobacco is gone for a paltry [$5M] settlement. I have to admit that one scared me a little. These are companies that have tens of billions in discretionary funds at their disposal to make irritants like Star go away forever. [$500M]? Chicken feed. So the fact that Star was only able to chisel out [$5M] is flat out pathetic.

The low-nitrosamine tobacco products are gone as well. So now Star only has unregulated cosmetics and nutraceuticals featuring snake oil anti-inflammatory compound anatabine. … Star can’t make anywhere near enough money off anatabine as a nutraceutical to justify its valuation, and the trials they are running to supposedly garner FDA approval as a drug are fraught with misrepresentation and will likewise fail.

Just a note: Virtually every one of my Star [underperform calls] has been followed shortly afterwards by a startling gap up in share price. Of course, I closed all those red thumbs for a solid positive score. So you might want to buy up some Star shares now but keep your finger on the trigger to sell on the spike.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Star Scientific Is Poised to Keep Plunging originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks …read more
Source: FULL ARTICLE at DailyFinance

The 25 Highest-Yielding Dividend Stocks in March

By Dan Dzombak, The Motley Fool

Filed under:

Dividend investing is popular again. Investors have taken to heart Jeremy Siegel’s studies, which show that higher-yielding stocks tend to offer greater returns over time than low- or no-yield stocks.

The highest dividend yields can be very tantalizing. As long as a stock yielding 15% doesn’t lose value, you’ll make 15% in one year! In more cases than not, however, an astronomical yield is a bad sign for a stock. Since dividend yields and stock prices move in opposite directions, a high yield usually means that investors have begun to worry about the business and driven down its stock price.

However, certain types of companies such as REITs have to pay out most of their income as dividends, so their yields will be higher than “normal.” Dividends are not guaranteed; you need to make sure that a business is generating enough cash to pay its dividend, or your investment could be disastrous.

I ran a screen for the highest-yielding stocks, the only limitation I’ve set this time is that the dividend stocks must have a market cap greater than $500 million and must be a corporation, so no REITs or MLPs.

Here are the top 25 highest-yielding stocks the screen produced:

 

Company Name

Market Cap (millions)

Dividend Yield

1

Boise

$860.3

13.80%

2

SeaDrill

$17,629.6

12.00%

3

Windstream

$5,125.4

11.50%

4

Pitney Bowes

$2,750.4

11.10%

5

Great Lakes Dredge & Dock

$580.3

10.40%

6

R.R. Donnelley & Sons

$1,900.8

10.10%

7

Vector Group

$1,442.9

10.10%

8

Wynn Resorts

$11,700.5

9.87%

9

Ship Finance International

$1,410.9

9.53%

10

Frontier Communications

$4,092.9

9.52%

11

Consolidated Communications

$664.2

9.39%

12

National Presto Industries

$521.8

8.65%

13

PDL BioPharma

$977.1

8.60%

14

SouFun Holdings

$1,992.7

8.51%

15

First Financial Bancorp

$896.4

7.90%

16

New York Community Bancorp

$5,909.6

7.41%

17

Werner Enterprises

$1,704.1

7.40%

18

Linn

$1,349.4

7.37%

19

Costamare

$1,214.0

7.05%

20

Capitol Federal Financial

$1,813.3

6.89%

21

HCA

$16,386.9

6.82%

22

VimpelCom

$19,611.6

6.77%

23

United Online

$549.6

6.77%

24

Exelon

$26,881.8

6.70%

25

Giant Interactive

$1,550.4

6.69%

Source: S&P Capital IQ.

These stocks are a good place to start your research, but they’re not formal recommendations.

Let’s take a look at the top 3:

Boise is first with a trailing yield of 13.8%. Boise does not pay a regular dividend; 2012 was the third year in a …read more
Source: FULL ARTICLE at DailyFinance