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Posts Tagged ‘Calumet Specialty Products Partners’

This High Yield Stock Just Increased Distributions by 5%

Calumet Specialty Products Partners, L.P. (CLMT) announced an increase in its quarterly cash distribution to $0.62 per unit ($2.48 per unit on an annualized basis) for the quarter ended September 30, 2012 on all of its outstanding limited partner units.  The distribution will be paid on November 14, 2012 to holders of record of such units at the close of business on November 2, 2012.

This distribution represents an increase of 5.1% over the quarterly distribution of $0.59 per unit ($2.36 per unit on an annualized basis) paid in August 2012 for the second quarter of 2012 and a 24.0% increase over the third quarter of 2011.

Calumet has a current dividend yield of 7.88% based on today’s stock price.  Calumet has an equity summary score of 8.8 out of 10 for a BULLISH outlook.

Calumet Specialty Products Partners, L.P. produces and sells specialty hydrocarbon products in North America. It operates in two segments, Specialty Products and Fuel Products.

2 Dividend Stocks with Growing Payouts

While dividend yields continue to be depressed due to rising prices in known income stocks, there are some stocks flying under the radar with good dividend prospects.  These stocks are frequently overlooked by income investors who are looking at the widely held blue-chip stock selections.  These companies continue to focus on growing their business in their core areas year after year.  Investors should take a look at these 2 companies that are producing excellent income growth and increasing dividends.

Calumet Specialty Products Partners (CLMT) is a master limited partnership and is a leading independent producer of high-quality, specialty hydrocarbon products in North America. Calumet processes crude oil and other feed stocks into customized lubricating oils, solvents, waxes and asphalt used in consumer, industrial and automotive products. Calumet also produces fuel products including gasoline, diesel and jet fuel.

Calumet is growing sales through business acquisitions including the recent agreement to acquire Royal Purple, Inc., a manufacturer of lubricants for automotive and industrial applications, for a total consideration of $335 million and an agreement to acquire Montana Refining Company, Inc. for aggregate consideration of $120 million.  Calumet is projected to have an earnings growth rate of 29% over the next 3-5 years.  Yet, Calumet is currently trading at a PE of 8.27 compared to the industry average of 13.

For the six months ended June 30, 2012, Calumet reported net income of $117.6 million compared to a net loss of $3.5 million for the same period in 2011.  We see specialty products sales increasing 13% to 14% in 2012, based on improving demand and contributions from recent acquisitions. We believe the partnership will benefit from the continued strength in the drilling fluid market, reflecting higher shale production.

On July 20, 2012, the Company declared a quarterly cash distribution of $0.59 per unit on all outstanding units or $35.9 million for the second quarter of 2012. This quarterly distribution represents an increase of 5.4% over the first quarter of 2011 and a 19.2% increase from the second quarter of 2011.

Calumet has a dividend yield of 9.1% and has increased its dividend 31% over the last 3 years.  Calumet has a 12-month price target of $30, a 15% increase from the current trading price.

Healthcare Services Group, Inc. (HCSG) provides housekeeping, laundry, linen, facility maintenance, and dietary services to nursing homes, retirement complexes, rehabilitation centers, and hospitals in the United States.  Healthcare Services Group, with a market cap of $1.43 billion, continues to grow revenues and income while increasing dividends each quarter.

Healthcare Services Group reported that revenues for the three months ended June 30, 2012 increased over 26% to$267,108,000 compared to the same 2011 period.  Net income for the three months ended June 30, 2012 increased 15% to $11,320,000 or $0.17 per share, compared to the 2011 second quarter.  Healthcare Services Group is projected to increase EPS 21% next year.

Healthcare Services Group increased its quarterly cash dividend to $0.16375 per common share. This represents the 37th consecutive regular quarterly cash dividend payment, as well as the 36th consecutive increase since the Company’s initiation of regular quarterly cash dividend payments in 2003.  Healthcare Services Group has a current dividend yield of 3.11% with a 5-year average dividend growth rate of 18%.

Healthcare Services Group has a 12-month price target of $24 based on projected EPS.  Healthcare Services Group has an equity summary score of 7.7 out of 10 for a Bullish outlook.

4 Companies with Bullish Outlooks Increasing Dividends

As we roll through earnings season, more companies are increasing their dividends.  For income investors, the stocks listed below are rated bullish or better by their equity summary score.  These stocks are worth a look as candidates for a dividend growth portfolio.

CBS (CBS) is boosting its quarterly dividend by 20%, to 12 cents a share. The additional quarterly payout of two cents will cost the company roughly $51.9 million more a year.  The dividend is payable on October 1, 2012 to shareholders of record on September 10, 2012.  CBS also boosted its share repurchase program by 57% to $4.7 billion and added to its quarterly dividend, as it seeks to increase shareholder returns.

Bottom line: CBS has a dividend yield of 1.43%.  CBS has an equity summary score of 9.7 out of 10 for a VERY Bullish outlook.

Calumet Specialty Products Partners, L.P. (CMLT) announced an increase in its quarterly cash distribution to $0.59 per unit ($2.36per unit on an annualized basis) for the quarter ended June 30, 2012 on all of its outstanding limited partner units. This distribution represents an increase of 5.4%.  The distribution will be paid on August 14, 2012 to holders of record of such units at the close of business on August 3, 2012.

Bottom line: CLMT has a dividend yield of 9.41% and has increased dividends for 8 straight quarters.  CLMT has an equity summary score of 9.0 out of 10 for a Bullish outlook.

Baxter International (BAX) raised its quarterly divided by 34% and approved a new share repurchase program of up to $2 billion of the company’s stock as the health-care company looks to boost shareholder value.  The medical-products company raised its quarterly divided to 45 cents a share from 33.5 cents, a move that will cost an added $253 million a year.  Last week, the company reported second-quarter earnings rose 7.5%, although it said currency impacts weighed on its revenue growth.

Bottom line: BAX has a dividend yield of 3.02% with a 5-year average dividend growth of 21.85%.  BAX has an equity summary score of 7.8 out of 10 for a Bullish outlook.

Holly Energy Partners, L.P. (HEP) has declared a cash distribution of $0.91 per unit for the second quarter of 2012. For the prior quarter, $0.895 was distributed to unitholders.  Holly Energy has increased its distribution to unitholders every quarter since becoming a public partnership in July 2004. This marks the thirty-first consecutive quarterly increase. The distribution will be paid August 14, 2012, to unitholders of record August 7, 2012.

Bottom line: HEP has a dividend yield of 5.71% with a 5-year average dividend growth of 5.69%.  HEP has an equity summary score of 7.1 out of 10 for a Bullish outlook.

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