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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QUAKER CHEMICAL CORP. $85 (New York symbol KWR; Income Portfolio, Manufacturing & Industry sector; Shares outstanding: 13.2 million; Market cap: $1.1 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.5%; TSINetwork Rating: Average; www.quakerchem.com) make lubricants that keep mechanical parts from rusting. Sales in 2015 fell 3.7%, to $737.6 million from $765.9 million in 2014. That’s mainly due to unfavourable exchange rates and lower demand from steel producers. However, a cost-cutting plan lifted its earnings per share by 4.0%, to $4.43 from $4.26. Quaker needs oil to make its products, so lower crude prices are cutting its costs. Its earnings should improve to $4.58 a share in 2016. The stock trades at a reasonable 18.6 times that forecast....
SYMANTEC CORP. $19 (Nasdaq symbol SYMC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 652.2 million; Market cap: $12.4 billion; Priceto- sales ratio: 2.0; Dividend yield: 1.6%; TSINetwork Rating: Average; www.symantec.com) has launched a new service that aims to improve the security of Internet websites. Called “Encryption Everywhere,” this software makes it easier for web hosting firms to embed encryption when they create new websites. This will help protect users from cybercriminals and online intruders. Symantec is giving away this software for free. It feels this approach will encourage hosting firms to adopt the technology and eventually buy more security services and software. Just 3% of the world’s websites use encryption technology, so there’s plenty of room to grow. Symantec is a buy.
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) makes personal computers. It 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....
NEWMONT MINING CORP. $27 (New York symbol NEM; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 529.2 million; Market cap: $14.3 billion; Price-to-sales ratio: 1.9; Dividend yield: 0.6%; TSINetwork Rating: Average; www.newmont.com) has sold its 19.45% stake in Australian gold mining firm Regis Resources for $182 million. This sale is part of Newmont’s plan to sell less important assets, and use the proceeds to pay down its debt. Since 2013, it has sold $1.9 billion of assets. Newmont cut its long-term debt in 2015 by 6.1%, to $6.1 billion. That’s still a high 43% of its market cap. Newmont is a hold.