Welcome to the ninth issue of The Big Dividend Report!
For new readers, in this series my aim is to check under the hood of the biggest dividends in the market and to keep you updated on the latest and greatest. We will limit ourselves to the biggest 20 dividend yields coming from companies with at least $2 billion in market cap.
In our first go-round, we looked at the payout ratio, the most fundamental metric to check for dividend health. In our second report, we looked at recent price movements in this volatile market. In our third report, we looked at recent news for the mortgage REIT industry. Our fourth report highlighted possible opportunities in foreign telecom. The fifth report focused on master limited partnerships and Nokia news. For the sixth report, we had some telecom and mREIT updates. For the seventh report, we previewed earnings season. And for the eighth report, we covered Nokia's earnings.
In today's report, we dive further into earnings season. But first, let's take a look at where our cohort of 20 companies stands today. Usually I rank the group in order of highest yield (after all, that's what this report is all about), but for earnings season we're looking at the list chronologically based on estimated earnings release date.
Earnings Date (Est.)
|Nokia||Information Technology||7.4%||Reported 10/20|
American Capital Agency
||Real Estate||20.3%||Reported 10/25|
||Real Estate||15.4%||Reported 10/25|
||Real Estate||14.7%||Reported 11/1|
|CenturyLink||Telecommunication Services||7.9%||Reported 11/2|
|Portugal Telecom||Telecommunication Services||13.1%||Reported 11/3|
|Frontier Communications||Telecommunication Services||13.1%||Reported 11/3|
|Pengrowth Energy||Energy||8.1%||Reported 11/4|
|Windstream||Telecommunication Services||8.2%||Reported 11/4|
||Real Estate||17.1%||Next few days.|
|Hospitality Properties Trust||Real Estate||7.5%||11/7|
|Cheniere Energy Partners||Energy||9.6%||11/7-11/12|
|Cellcom Israel||Telecommunication Services||9.9%||11/15|
|BP Prudhoe Bay Royalty Trust||Energy||7.3%||11/8-11/26|
|YPF||Energy||10.7%||No good estimate*|
Sources: Yahoo! Finance, S&P Capital IQ, and Earnings.com.
*YPF's last earnings data was given via a Form 6-K in August.
Looking at the three mortgage REITs on our list that have reported (Annaly, American Capital Agency, and Hatteras), we see lower interest rate spreads versus last year. We'll get to see how Chimera and MFA Financial did soon.
The question is how they'll head in the future as the Federal Reserve promises low Fed funds rates till mid-2013 on one hand and engages in Operation Twist, which seeks to tighten spreads, on the other. Throw in regulatory pitfalls and the unknowable-ness of the macro environment to boot, and it's a tough space to predict.
Although shares fell about 5% after it reported, Southern Copper's reported earnings of $0.79 a share was an 83% increase from the same period last year. Read its press release. And some news broke after earnings were announced. Per Bloomberg: "Grupo Mexico SAB, [Mexico's] largest mining company, dropped plans to merge its Asarco LLC and Southern Copper Corp. (SCCO) businesses into a single unit within its mining business after some shareholders challenged the plan."
Shares of Terra Nitrogen are up around 8% since reporting earnings of $3.91 per common unit for its third quarter, up from $1.40 per common unit for 2010's third quarter. In addition, it declared a dividend of $3.96 that goes ex-dividend on Nov. 9 and pays out on Nov. 29. Read Terra Nitrogen's earnings release.
That catches us up to Nov. 1, and we'll continue on in our next report coming up within the next week.
If you can't wait, get a head start by checking out the earnings releases we haven't covered:
For some in-depth dividend stock analysis right now, check out our free report "Secure Your Future With 11 Rock-Solid Dividend Stocks." Although no investment is surefire, the stocks in this report were picked to require a lot less guessing about future prospects. Get your copy today -- it's free!
Anand Chokkavelu owns shares of Frontier Communications. The Motley Fool owns shares of Chimera Investment and Annaly Capital Management. Motley Fool newsletter services have recommended buying shares of Cellcom Israel and Veolia Environnement. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.