Top pick Barrick Mining just raised its dividend a whopping 140% as it generates record earnings and continues its strategic asset reorganization.
Warner Music Group Corp. is well-positioned for higher-margin catalog revenues, added streaming adoption, and new AI monetization opportunities.
ARC Resources keeps returning its cash flow to shareholders through a growing dividend and substantial share buybacks.
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AGILENT TECHNOLOGIES INC. $40 (New York symbol A; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 327.8 million; Market cap: $13.1 billion; Price-to-sales ratio: 3.2; Dividend yield: 1.2%; TSINetwork Rating: Average; www.agilent.com) makes testing equipment for medical research labs. In November 2015, the company paid $242 million for Seahorse Bioscience. This firm makes equipment that lab researchers use to measure cellular response to new drugs. That helps pharmaceutical firms develop new treatments for cancer and infectious diseases. The company also enhanced its product line by purchasing Cartagenia, a Belgian firm that makes software for Agilent’s medical-testing equipment. It paid $60 million euros for this business....
HP INC. $12 (New York symbol HPQ; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $20.4 billion; Price-to-sales ratio: 0.2; Dividend yield: 4.2%; TSINetwork Rating: Average; www.hp.com) earned $645 million in its fiscal 2016 first quarter, which ended January 31, 2016. That’s down 15.7% from $765 million a year earlier. Earnings per share fell 12.2%, to $0.36 from $0.41, on fewer shares outstanding. Sales declined 11.6%, to $12.2 billion from $13.9 billion. Personal computer sales (62% of the total) fell 12.8%. Weak demand for new machines forced HP to cut its selling prices. Sales of printers (38%) dropped 17.0%. HP holds cash of $3.7 billion, or $2.12 a share. Its long-term debt of $6.7 billion is a manageable 33% of its market cap....
MCKESSON CORP. $157 (New York symbol MCK; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 229.0 million; Market cap: $36.0 billion; Price-to-sales ratio: 0.2; Dividend yield: 0.7%; TSINetwork Rating: Above Average; www.mckesson .com) is buying the Rexall chain of 470 drug stores in Canada for $2.2 billion. The company expects to complete the purchase by the end of 2016. McKesson already distributes prescription drugs and other products to Rexall, and this familiarity helps cut the risk of an unpleasant surprise. Excluding integration charges and currency exchange rates, the company expects the new operations will add to its earnings in the first year. McKesson is a hold.
HEWLETT-PACKARD ENTERPRISE CO. $18 (New York symbol HPE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.7 billion; Market cap: $30.6 billion; Priceto- sales ratio: 0.6; Dividend yield: 1.2%; TSINetwork Rating: Average; www.hpe.com) sells computer servers and analytics software to businesses. It saw its earnings fall 14.9% in the quarter ended January 31, 2016, to $731 million from $859 million a year earlier. Per-share earnings declined 12.8%, to $0.41 from $0.47 on fewer shares outstanding. Revenue dipped 2.5%, to $12.7 billion from $13.1 billion. However, excluding currency rates, revenue rose 4%. The company’s long-term debt of $15.2 billion is a high 50% of its market cap. It also holds cash of $8.5 billion, or $4.91 a share. This new firm is in a strong position to profit as more businesses expand their e-commerce activities and buy cloud-based data storage services. The stock trades at 9.6 times the $1.88 a share it will probably earn in 2016. That low p/e reflects uncertainty over the growth of business spending on new technology this year. The $0.22 dividend yields 1.2%....