Wednesday, March 31, 2010

Record Revenues Are a Good Thing (Especially Now)!

As this article from SmartMoney points out, record levels of revenue really shouldn't be that big of a deal, but in the current economic climate they are.

The reason is that given steady economic growth, a given company should be able to increase its revenue year over year. The rate of increase may not be a new record, but even a tepid 2% growth year over year would create "record levels or revenue" for a company.

When you have periods like we've had in the past 2 years - where revenues have taken double digit hits in some cases - record levels of revenue is indeed something to be celebrated. In fact, the S&P 500 index is still down around 18% less than its 2008 peak.

All of this makes the 3 companies covered in the article that much more notable. Besides, these companies have two other factors that make them worth watching:

  1. They've been profitable during the recession.

  2. They pay dividends and trade at a discount.


So who are these winners?

Baxter International


Dividend yield: 2.2%
Sales growth last quarter: 11%

Baxter International is in the healthcare industry and makes: treatments for immune disorders and blood-related diseases, vaccines and wound-care products; intravenous systems and pre-mixed drugs; products to treat irreversible kidney disease.

Hasbro


Dividend yield: 2.6%
Sales growth last quarter: 12%

Hasbro is the toy company you've grown up with, and has enjoyed a boost in sales due to the seemingly endless supply of action figure based movies coming out of Hollywood these days - G. I. Joe, Transformers , and Iron Man to name a few.

Raytheon


Dividend yield: 2.6%
Sales growth last quarter: 10%

Raytheon is in the defense industry and makes radar equipment, missile systems, spy systems and more. It would seem a solid play in the current environment of global threats.

Read more: 3 Stocks With Record Revenues at SmartMoney.com

0 comments:

Post a Comment