Ex-Dividend Stocks: IBM, TJX
NEW YORK (TheStreet) -- The following stocks go ex-dividend Tuesday, meaning an investor must purchase the shares Monday to qualify for the next dividend payment: IBM
The technology company reported on April 17 first-quarter earnings of $2.78 a share on revenue of $24.67 billion, up from year-earlier earnings of $2.41 a share on revenue of $24.6 billion.
"While we are disappointed by IBM's flat Q- 1 12 pre-tax income growth, the company's profit growth should improve in the second half of the year as it benefits from its introduction of its new Pure Systems integrated software/hardware solutions (including cloud computing, storage, networking, virtualization, and industry solutions)," Davenport analysts wrote in an April 18 report.
Forward Annual Dividend Yield: 1.6%
The retailer is scheduled to report first-quarter earnings on May 15. Analysts, on average, expect earnings of 52 cents a share on revenue of $5.71 billion.
"The margin recovery story at TJX is now in the later innings (seemingly the 9th or maybe extras) and, as a result, the multiple investors are willing to pay for TJX is always in question as EBIT margins move beyond 11% (vs. 9.4% 5-year average)," JPMorgan analysts wrote in a report Thursday. "However, the benefit that TJX has over rival ROST is its portfolio of smaller concepts and international footprint. This is especially true as the TKMaxx and Canadian businesses have seemingly turned a corner and have seen comps and margins begin to improve. TKMaxx represents the square footage growth vehicle for TJX, and following 13 months in a row without a positive comp (execution issues and macro weakness) the business is back on track. Inventory continues to be well-managed across the company, which leads us to believe that despite merch margins that are currently at record highs, further reductions in markdowns seem plausible. Traffic continues to grow, as does the availability of goods, and the stability of the model should continue to act as a boon for investors."
Forward Annual Dividend Yield: 1.1%
American Electric Power
The utility reported on April 20 first-quarter earnings of 80 cents a share on revenue of $3.6 billion, up from year-earlier earnings of 73 cents a share on revenue of $3.7 billion.
"AEP shares are attractive on a P/E basis trading at an 18.5% discount to other regulated companies," Jefferies analysts wrote in a report Thursday. "Using EV/EBITDA metrics the company's valuation is more in line with peers. If the company's proposal to move two Ohio Power plants to West Virginia is approved by the Ohio Commission, the EBITDA contribution of non-regulated businesses would be substantially reduced making AEP a mostly regulated company."
Forward Annual Dividend Yield: 4.8%
The semiconductor company reported on April 19 first-quarter earnings of $115.8 million, or 35 cents a share, down from year-earlier earnings of $224.1 million, or 68 cents.
"Altera reported a nearly 10% revenue miss from 1Q12 preannounced guidance and consensus, but guided for a sharp 2Q12 recovery that falls just shy of consensus revenue," ThinkEquity analysts wrote in an April 20 report. "We believe ALTR results remain challenged by weaker infrastructure demand, and that investors need to adjust to a more measured revenue recovery. Our price target of $40 now represents 22x our newly introduced CY13 EPS estimate of $1.85 and a PEG of 1.4x, in line with the comparable average, which we feel is justified given the company's strong competitive position."
Forward Annual Dividend Yield: 0.9%
The electrical power production company reported on April 26 a first-quarter loss of $151.7 million, or 86 cents a share, a reversal from year-earlier earnings of $248.7 million, or $1.38 a share.
"We came away with the impression that ETR is likely to secure approval to join the Midwest ISO, but that securing approval for the ITC transaction will be as challenging as we initially expected," Deutsche Bank analysts wrote in a report Tuesday. "We believe ETR is trading around fair value, absent the deal, and reiterate our Hold rating."
Forward Annual Dividend Yield 5%
Hudson City Bancorp
The bank reported first-quarter earnings on April 25 of $73 million, or 15 cents a share, a swing from a year-earlier loss of $555.7 million, or $1.13 a share.
"We expect quarterly earnings will continue to trend lower to $0.14 then $0.13 per share, before improving in late 2013 once HCBK begins to implement strategic changes," Guggenheim analysts wrote in an April 26 report.
Forward Annual Dividend Yield: 4.7%
Penske Automotive Group
The car parts retailer reported on April 25 first-quarter earnings of $46.8 million, or 52 cents a share, up from year-earlier earnings of $33.9 million, or 37 cents.
"Following Penske Automotive Group, Inc.'s (PAG-NYSE) 1Q12 earnings release and subsequent conference call, we are downgrading to HOLD from BUY based entirely on valuation as the stock has effectively reached our price target," KeyBanc Capital Markets analysts wrote in an April 25 report. "We continue to believe the longer-term outlook remains solid based on our belief that: 1) the outlook for U.S. light vehicle sales growth remains solid, although we are somewhat more cautious on PAG's new unit sales given underperformance in 1Q12; 2) contrary to investor concerns about potentially weaker U.K. light vehicle sales, PAG's U.K. new vehicle sales continue to perform well growing by nearly 7% as luxury sales outperformed the broader market; 3) SG&A as a percentage of gross profit is likely to improve from both leverage on increased sales and targeted operational changes; 4) PAG continues to post margin improvement in Parts & Service margins driven by the strength in reconditioning of used vehicles and retail repair; and 5) management has demonstrated that acquisitions remain a top priority with a recent acquisition of Isaac Agnew Group in the U.K. with $500 million in incremental annual revenue."
Forward Annual Dividend Yield: 1.6%
The fluid power systems manufacturer reported on April 24 third-quarter earnings of $312.7 million, or $2.01 a share, up from year-earlier earnings of $281.6 million, or $1.68.
"Based on earnings upside in the quarter and good momentum across both North American Industrial and Aerospace, we are raising our estimates," KeyBanc Capital Markets analysts wrote in an April 24 report. "Our revised FY12E of $7.43 assumes core growth of 6.4% and operating margins of 12.5%. Our model contemplates a continuation of demand strength in Industrial North America and Aerospace, somewhat offset by softness at Industrial International and Climate & Industrial Controls. We have incorporated approximately $300 million in buybacks into our fiscal 4Q12 estimate, assuming an average price of $85 (implies 3.5 million shares repurchased)."
Forward Annual Dividend Yield: 1.9%
The coatings company reported on April 19 first-quarter earnings of $13 million, or 8 cents a share, down from year-earlier earnings of $228 million, or $1.40 a share.
"We highlighted in our earnings note that were it not for the Nylon-12 issues at the time that were threatening the auto industry (to which PPG has mid-teens % exposure) we would have upgraded the stock," Credit Suisse analysts wrote in an April 30 report. "So, with those supply issues apparently less of an issue than expected, we are upgrading PPG to Outperform as PPG should post EPS in 2012/13 that exceeds the consensus, which along with solid cash flows that we expect will be used to drive shareholder value and cheap valuation (especially relative to their coatings peers) offers investors a compelling risk/reward profile."
Forward Annual Dividend Yield: 2.2%
-- Written by Alexandra Zendrian
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