Dividend Stocks Picks for 2012
Its time to think about dividend paying stocks for 2012 that also offer growth potential. Identify the companies that have the best technology and products that will be used for the next 3 to 5 years. That comes down to three great companies: Microsoft (MSFT), Corning (GLW) and Verizon (VZ).
Trading at $13 a share pays out a 2.3% annual dividend yield. Corning shares are trading near the low of their 12 month range of $11.51 to $23.43.
What makes Corning so great is its traditional product lines and its rising star -- Gorilla Glass.
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Gorilla Glass is in everything from cell phones to televisions. The glass was used on some 200 million phones last year. Though managers at Corning say they can't confirm what Apple (AAPL) uses in its products, it is widely reported that much of the Gorilla Glass went to iPhones.
This year, Gorilla Glass sales could reach $1 billion — almost one-sixth of Corning's total sales last year (source: npr.org).
Barclay's believes Corning shares could hit $17 in the next 12 months. Buying GLW today could bank a 31% return if Barclay's is correct. The firm believes the potential for normalization in glass shipments with LCD TV demand coupled with near trough valuation levels, a share buyback program and an improving cash generation profile. All of this makes Corning (GLW) a buy recommendation by Barclays.
Verizon is trading close to its 52-week high, just under $40 per share. VZ currently yields a 5% annual dividend working out to 50 cents every quarter.
There's a reason VZ is trading less than 1% away from its 12 month high -- the company is rocking. They have their wireless division, the very popular FiOS cable service, and their 4G mobile broadband network. FiOS can be used with Microsoft (MSFT)'s XBOX Live Kinect interface, they were (are) the first cable provider to come online with the system. When it comes to wireless and iPhone 4 providers, Verizon wears the crown.
In 2012 Verizon will develop its own video-streaming service to challenge Netflix, Hulu, and traditional cable providers as early as next spring.
Simply put, Verizon is on top of its game and 2012 will bring even more success to keep shares climbing to new highs.
Microsoft (MSFT) has lost the faith of Wall Street, its shares have done nothing in the last 12 years. It remains a cash cow revenue producing machine that is overlooked every quarter.
Today Microsoft trades 8% away from its 52-week low around $25.70 a share. It packs a 3% annual dividend yield but then there's its Price to Earnings Ratio. MSFT's P/E is at 9.3 and when you take all their cash into consideration is more around 7.
Lucky number 7, hello value investors.
Why Mastery is warming up to Microsoft is they have a potential catalyst to finally move their shares in 2012 and convince the Street they are more valuable than they seem.
Enter Windows 8. It will run on tablets, PCs, smartphones, and laptops. The desktop and laptop version of Windows 8 is intended to run on systems that use traditional, x86 processors from Intel and AMD. Windows 8 will also run on Nokia's (NOK) phones next year, they have the advantage overseas but not here in iPhone America (for now).
Commentary on MSFT and VZ from theStockMasters.com (source: theStockMasters.com)