Dividend investors would be wise to focus not just on a stock's current yield, but also on the long-term growth potential of its dividends. That's because strong businesses that consistently raise their dividend payouts reward shareholders with a steadily rising income stream that essentially equates to a raise every year. And well, who doesn't like a raise?
But there are other reasons to value dividend growth so highly, and they're well supported by research. For instance, a study by C. Thomas Howard published in Advisor Perspectives found that for every percentage point a stock's yield rises, its annual return increases by 0.22 percentage points if it's a large cap, 0.25 if it's a mid cap, and 0.46 if it's a small cap. Even better, Howard found that dividend-growing stocks outperformed dividend cutters by 10 percentage points per year from 1973 to 2010 and beat both flat- and no-dividend stocks. And the icing on the cake is that Howard showed that this outperformance came with a third less volatility. Higher returns, less volatility-induced stress, and a steadily growing income stream -- what's not to love?
Best Value Stocks To Own Right Now: Green Automotive Co (GACR)
Green Automotive Company, incorporated on November 15, 1996, is a vehicle design, engineering, manufacturing and distribution company. The Company also provides after sales program. It possesses a portfolio of businesses and is active in three main market segments: Cutting edge technology development, engineering and design with a focus on zero and low emission vehicle solutions; Manufacturing and customization of vehicles for markets with the potential to be converted into low emission or electric vehicles, such as shuttle buses, taxis, commercial vehicles, and After sales services for electric or low emission vehicles, including servicing and repair. On December 14, 2012, the Company closed its merger with Matter of Time I Co. As per the merger agreement, Matter of Time I Co. dissolved into and became a part of Green Automotive Company, with Green Automotive Company being the surviving corporation. In January 2014, Green Automotive Co Inc acquired a 21.63% interest in Viridian Motor Corp Inc.
The Company's two divisions servicing the three segments are Liberty Electric Cars Ltd and Newport Coachworks Inc. Liberty Electric Cars Ltd designs and develops EV technologies for use in its own converted vehicles and for sale to original equipment manufacturers (OEM��) for incorporation into its production. In addition, it provides an aftermarket program for electric vehicle users to ensure the longevity of their vehicles. Newport Coachworks Inc. specializes in building shuttle buses, running on a variety of energy sources from petrol and diesel though to compressed natural gas (CNG).
The Company competes with Zytec, AMPD, Siemens, Tiffany, Krystal, Ford, and General Motors, Cummins and Freightliner.
Advisors' Opinion:- [By James E. Brumley]
Judging from the company it's keeping Green Automotive Co. (OTCMKTS:GACR) may have just made its way into the upper echelon of small cap stock opportunities. The electric car company joins Elite Pharmaceuticals Inc. (OTCBB:ELTP), Amarantus Bioscience Holdings, Inc. (OTCBB:AMBS), and only three other companies as Wall-Street.com's "Best 6 Stocks" for January of 2014. As one of the top information resources for investors - particularly in terms of information regarding small and micro cap stocks - being named among the site's top pick is an accolade for AMBS, ELTP, and GACR. Even more impressive is that Green Automotive Co. was the only consumer-goods name among those six. Amarantus Bioscience Holdings and Elite Pharmaceuticals are biotechnology names... an industry that can and often does attract a lot of attention just by the nature of the business. The other three names making the "Best 6" list were an energy explorer, a power-management technology manufacturer, and prescription/medical food producer. For an electric car manufacturer to make the list speaks quite highly of GACR.
Top 5 Mid Cap Stocks To Watch For 2014: Westinghouse Air Brake Technologies Corp (WAB)
Westinghouse Air Brake Technologies Corporation (Wabtec), doing business as Wabtec Corporation, is a providers of value-added, technology-based equipment and services for the global rail industry. It provides its products and services through two business segments: the Freight Group and the Transit Group, both of which have different market characteristics and business drivers. Effective November 18, 2011, Wabtec acquired Fulmer Company, a manufacturer of motor components for rail, power generation and other industrial markets. Effective November 3, 2011, Wabtec acquired Bearward Engineering, a manufacturer of cooling systems and related equipment for power generation and other industrial markets. On June 29, 2011, the Company acquired an aftermarket transit parts business from GE Transportation, a parts supply business for propulsion and control systems for the passenger transit car aftermarket in North America. On February 25, 2011, the Company acquired Brush Traction Group, a provider of locomotive overhauls, services and aftermarket components. In July 2012, it acquired Tec Tran Corp. and its affiliates. In October 2012, it acquired LH Group. Effective July 30, 2013, Westinghouse Air Brake Technologies Corp acquired Turbonetics Inc, a manufacturer of turbochargers and components. Effective September 24, 2013, Westinghouse Air Brake Technologies Corp acquired Longwood Industries Inc.
The Freight Group manufactures and services components for freight cars and locomotives, builds new switcher locomotives, rebuilds freight locomotives, supplies railway electronics, positive train control equipment, signal design and engineering services, and provides related heat exchange and cooling systems. Its customers include railroads, leasing companies, manufacturers of original equipment, such as locomotives and freight cars, and utilities. During the year ended December 31, 2011, the Freight Group accounted for 61% of its total sales, with about 75% of its sales in North America and the remainder! to international customers.
The Transit Group manufactures and services components for new and existing passenger transit vehicles, which include subway cars and buses, builds new commuter locomotives and refurbishes subway cars. Customers include public transit authorities and municipalities, leasing companies, and manufacturers of subway cars and buses globally. During 2011, the Transit Group accounted for 39% of its total sales, with about half of its sales in North America and the remainder to international customers. During 2011, about 66% of the Transit Group�� sales are in the aftermarket and the remainder in the original equipment market.
The Company�� specialty products and electronics include positive train control equipment and electronically controlled pneumatic braking products; railway electronics, including event recorders, monitoring equipment and end of train devices; signal design and engineering services; freight car truck components; draft gears, couplers and slack adjusters; air compressors and dryers; heat exchangers and cooling products for locomotives and power generation equipment, and track and switch products. Its brake products include railway braking equipment and related components for freight and transit applications, and friction products, including brake shoes and pads. Its remanufacturing, overhaul and build products include new commuter and switcher locomotives, and transit car and locomotive overhaul and refurbishment. Its transit products include rail and bus door and window assemblies; accessibility lifts and ramps for buses and subway cars, and traction motors.
The Company competes with Knorr-Bremse AG, Electro-Motive Diesel, GE Transportation Systems and Faiveley Transport.
Advisors' Opinion:- [By Rich Duprey]
The board of directors of railroad products manufacturer Wabtec (NYSE: WAB ) was busy yesterday, announcing it was increasing its quarterly dividend payment by 60% while simultaneously splitting the company's stock.
- [By Holly LaFon]
Another area that is intriguing to us is the North American energy sector which looks to have a number of interesting catalysts currently. While the energy sector is at present only a modest overweight in the portfolios, we have been encouraged by several trends taking place for a number of years. These positive developments are also having an impact that goes far beyond the energy sector itself. Many believe that the U.S. will become energy independent and possibly a net exporter of natural gas and oil (currently restricted by law) in the next decade. This opinion is based primarily on the development of new drilling techniques (i.e. horizontal drilling, and high pressure fracking) that have enabled companies to access oil and natural gas reserves in shale formations that were previously not economically viable. The ability to tap into this acreage is a game-changer in our view and is already having a tremendous impact on the economy. Employment rates in these mostly rural areas surrounding the shale basins are very high and companies thus find hiring extremely competitive. Strong labor markets tend to create strong local economies. Oil States International (OIS) has been able to capitalize on this trend by providing housing and other services to oil service workers that are in demand in the area. CST Brands (CST) operates gas stations in Texas, but it is increasingly looking to broaden its product offering beyond fuel. Rail companies like Union Pacific (UNP), Canadian Pacific (CP), Kansas City Southern (KSU) and Genesee and Wyoming (GWR) have also benefited substantially. Given that shale areas are rural and often lacking infrastructure, substantial investment must be made to support drilling and production activities. Without pipelines in place, railroads have been the primary takeaway mechanism for moving production to the various clusters of refining capacity around the United States. In order to serve this demand, massive investment in railcars has been nee
Top 5 Mid Cap Stocks To Watch For 2014: Stewart Information Services Corporation(STC)
Stewart Information Services Corporation provides title insurance and related information services required for settlement by the real estate and mortgage industries. It operates in two segments, Title Insurance-Related Services and Real Estate Information. The Title Insurance-Related Services segment offers services that include searching for and examining documents, such as deeds, mortgages, wills, divorce decrees, court judgments, liens, paving assessments, and tax records, as well as provides titles insurance for residential and commercial properties, undeveloped acreage, farms, ranches, and water rights. This segment serves attorneys, builders, developers, home buyers and home sellers, lenders, and real estate brokers. The Real Estate Information segment offers products and services, which primarily include lender services, title technology, foreign and domestic government services, mapping, title information, Internal Revenue Code Section 1031 tax-deferred property e xchanges, pre-employment services, and online filing and transaction management. Its customers include mortgage lenders and servicers, mortgage brokers, mortgage investors, government entities, commercial and residential real estate agents, land developers, builders, title insurance agencies, and others interested in obtaining property information, as well as accountants, attorneys, investors, and employers. The company has operations primarily in the United States, Canada, the United Kingdom, central Europe, Mexico, central America, and Australia. Stewart Information Services Corporation was founded in 1893 and is based in Houston, Texas.
Advisors' Opinion:- [By James Fink]
My housing pick is Houston-based Stewart Information Services (STC), a 120-year-old real estate business founded in 1893, that is still owned and managed by the founding family.
- [By Ben Levisohn]
Tower Group has dropped 40% to $4.43 today, and some other small insurers are also getting dinged this morning. HCI Group (HCI) has fallen 1.8% to $39.36, Stewart Information Services (STC) has declined 0.7% to $31.36 and the Navigators Group (NAVG) has ticked down 0.4% to $56.10.
- [By Ben Levisohn]
Tower Group has dropped 12% to $3.88 today at 11:39 a.m., while Stewart Information Services (STC) has dipped 0.1% to $31.16, the�Navigators Group�(NAVG) has fallen 1.4% to $54.78 and HCI Group�(HCI) has gained 1% to $38.16.
Top 5 Mid Cap Stocks To Watch For 2014: First Financial Bankshares Inc.(FFIN)
First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services primarily in Texas. It offers commercial banking services, which include accepting and holding checking, savings, and time deposits, as well as automated teller machines, drive-in and night deposit services, safe deposit facilities, remote deposit capture services, Internet banking, transmitting funds, and other commercial banking services. The company also provides commercial, financial, agricultural, real estate construction, real estate mortgage, and consumer loans to businesses, professionals, individuals, and farm and ranch operations. In addition, it involves in the administration of various types of retirement and employee benefit accounts, which include 401(k) profit sharing plans and IRAs; and offers personal trust services that comprise the administration of estates, testamentary trusts, revocable and irrevocable trusts, and agency accounts. Further, the company offers securities brokerage services. As of December 31, 2009, it operated 48 financial centers in Texas, including 10 locations in Abilene, 2 locations in Cleburne, 3 locations in Stephenville, 3 locations in Granbury, 2 locations in San Angelo, and 3 locations in Weatherford, as well as 1 location each in Mineral Wells, Hereford, Sweetwater, Eastland, Ranger, Rising Star, Southlake, Aledo, Willow Park, Brock, Alvarado, Burleson, Keller, Trophy Club, Boyd, Bridgeport, Decatur, Roby, Trent, Merkel, Clyde, Moran, Albany, Midlothian, and Glen Rose. The company was founded in 1956 and is based in Abilene, Texas.
Advisors' Opinion:- [By David Hanson and Matt Koppenheffer]
In the following video, Motley Fool financial analysts David Hanson and Matt Koppenheffer discuss two stocks from the financial sector that they're watching today. David tells us why he's got his eye on�JPMorgan� (NYSE: JPM ) and the trials and tribulations of CEO Jamie Dimon and what he'll be looking for at the company's annual meeting in two weeks. Matt Koppenheffer discusses the smaller-cap�First Financial Bankshares (NASDAQ: FFIN ) �and why if Warren Buffett only had $1 million to invest, this might be one of the first places he'd look.
- [By Profit Fan]
After rising 67% in the past 52-weeks, it is understandable that the price targets for First Financial Bankshares (FFIN) are slightly under the bank's current market price of $57.69 per share. But, the premium paid for these shares appear to be warranted.
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