Monday, April 6, 2015

George Soros' Top 5 Dividend Stock Picks for 2015

NEW YORK (Stockpickr) -- At Stockpickr, we track the top holdings of a variety of high-profile investors, such as Warren Buffett and Carl Icahn. One of our most popular professional portfolios is that of George Soros' Soros Fund Management. The fund conducts hundreds of transactions each quarter -- in the most recent quarter, it bought 41 new stocks and increased its position in 88. Today, we're highlighting some of its top dividend stock picks. Must Read: Warren Buffett's Top 10 Dividend Stocks What follows is a closer look at five of Soros' top 30 stocks. They all comprise at least 1% of Soros' portfolio as of the most recently reported quarter ended Dec. 31, 2014, and have dividend yields of at least 2.1%. They are ordered here by yield. 5. Teva Pharmaceuticals Teva Pharmaceuticals has a current yield of 2.1%, paying a quarterly dividend of 34 cents a share. Teva, Soros Fund Management's third-largest holding, comprised 3.1% of the portfolio as of Dec. 31. In the most recently reported quarter, Soros decreased his stake in the stock by 22% to 4.9 million shares. TheStreet Ratings team rates Teva Pharmaceuticals as a buy with a ratings score of A-. TheStreet Ratings team has this to say about its recommendation: "We rate Teva Pharmaceuticals (TEVA) a buy. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."Highlights from the analysis by TheStreet Ratings team include: Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year. Teva Pharmaceuticals reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, Teva Pharmaceuticals increased its bottom line by earning $3.56 versus $1.50 in the prior year. This year, the market expects an improvement in earnings ($5.14 versus $3.56). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 80.8% when compared to the same quarter one year prior, rising from $380.00 million to $687.00 million. The gross profit margin for Teva Pharmaceuticals is rather high; currently it is at 63.45%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.29% is above that of the industry average. You can view the full analysis from the report here: TEVA Ratings Report Must Read: 10 Stocks George Soros Is Buying 4. Motorola Solutions Motorola Solutions has a current yield of 2.2%, paying a quarterly dividend of 34 cents a share. Motorola Solutions comprises 1% of the Soros Fund Management portfolio as of Dec. 31. In the most recently reported quarter, Soros decreased his stake in the stock by 41.9% to 1.4 million shares. TheStreet Ratings team rates Motorola Solutions as a hold with a ratings score of C. TheStreet Ratings team has this to say about its recommendation: "We rate Motorola Solutions (MSI) a hold. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and weak operating cash flow."Highlights from the analysis by TheStreet Ratings team include: MSI's revenue growth has slightly outpaced the industry average of 0.0%. Since the same quarter one year prior, revenues slightly increased by 0.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The gross profit margin for Motorola Solutions is rather high; currently it is at 52.22%. Regardless of MSI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MSI's net profit margin of 11.02% is significantly lower than the industry average. In its most recent trading session, MSI has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Communications Equipment industry. The net income has significantly decreased by 41.2% when compared to the same quarter one year ago, falling from $342.00 million to $201.00 million. Net operating cash flow has significantly decreased to -$666.00 million or 189.87% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. You can view the full analysis from the report here: MSI Ratings Report Must Read: Warren Buffett's Top 10 Stock Buys 3. LyondellBasell Industries LyondellBasell Industries has a current yield of 3.2%, paying a quarterly dividend of 70 cents a share. LyondellBasell Industries comprises 2.5% of the Soros Fund Management portfolio as of Dec. 31. The 2.8 million-share positions was a new buy for the fund in the most recently reported quarter. TheStreet Ratings team rates LyondellBasell Industries as a buy with a ratings score of B. TheStreet Ratings team has this to say about its recommendation: "We rate LyondellBasell Industries (LYB) a buy. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."Highlights from the analysis by TheStreet Ratings team include: The debt-to-equity ratio is somewhat low, currently at 0.85, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.22, which illustrates the ability to avoid short-term cash problems. The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Chemicals industry and the overall market, LyondellBasell Industries' return on equity significantly exceeds that of both the industry average and the S&P 500. Net operating cash flow has increased to $2,016.00 million or 22.85% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.53%. LYB, with its decline in revenue, slightly underperformed the industry average of 5.7%. Since the same quarter one year prior, revenues slightly dropped by 7.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share. You can view the full analysis from the report here: LYB Ratings Report Must Read: 5 Tech Stocks George Soros Loves 2. General Motors General Motos has a current yield of 3.3%, paying a quarterly dividend of 30 cents a share. General Motors comprises 1.5% of the Soros Fund Management portfolio as of Dec. 31. In the most recently reported quarter, Soros increased his stake in the stock by 12% to 3.9 million shares. TheStreet Ratings team rates General Motors as a buy with a ratings score of B. TheStreet Ratings team has this to say about its recommendation: "We rate General Motors (GM) a buy. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations, increase in stock price during the past year, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."Highlights from the analysis by TheStreet Ratings team include: The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Automobiles industry. The net income increased by 91.0% when compared to the same quarter one year prior, rising from $1,040.00 million to $1,987.00 million. Net operating cash flow has slightly increased to $3,164.00 million or 3.46% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -24.41%. The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels. General Motors has improved earnings per share by 15.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, General Motors reported lower earnings of $1.64 versus $2.35 in the prior year. This year, the market expects an improvement in earnings ($4.59 versus $1.64). Regardless of the drop in revenue, the company managed to outperform against the industry average of 10.0%. Since the same quarter one year prior, revenues slightly dropped by 2.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share. You can view the full analysis from the report here: GM Ratings Report Must Read: 10 New Stocks Billionaire David Einhorn Loves 1. Dow Chemical Dow Chemical , Soros' fourth-largest holding, has a current yield of 3.5%, paying a quarterly dividend of 42 cents a share. Dow Chemical comprises 2.6% of the Soros Fund Management portfolio as of Dec. 31. In the most recently reported quarter, Soros increased his stake in the stock by 77.6% to 5.2 million shares. TheStreet Ratings team rates Dow Chemical as a buy with a ratings score of A-. TheStreet Ratings team has this to say about its recommendation: "We rate Dow Chemical (DOW) a buy. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."Highlights from the analysis by TheStreet Ratings team include: The debt-to-equity ratio is somewhat low, currently at 0.88, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.30, which illustrates the ability to avoid short-term cash problems. Net operating cash flow has increased to $2,757.00 million or 23.46% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.53%. Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.7%. Since the same quarter one year prior, revenues slightly dropped by 0.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share. Dow Chemical's earnings per share declined by 20.3% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, Dow Chemical reported lower earnings of $2.86 versus $3.61 in the prior year. This year, the market expects an improvement in earnings ($2.88 versus $2.86). You can view the full analysis from the report here: DOW Ratings Report Must Read: 10 Stocks Billionaire John Paulson Loves


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