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Semiconductor industry

Dividend-Rich Stocks to Watch: Intel, Pfizer, and CMS Energy

Strategic Insights

— 2 min read

Investors' love affair with dividend-paying stocks continues unabated, with several key companies ready to dispense their share of profits. Among those on the cusp of ex-dividend dates is Intel Corp (INTC), Pfizer Inc (PFE), and CMS Energy Corp (CMS). These companies boast impressive dividend histories, growing earnings, and a strong competitive edge, making them potential portfolio performers.

Key Takeaways:

  • Intel Corp (INTC) has a consistent dividend track record, paying out $0.45 annually even during the financial crisis, and has grown its dividend by 7% this year to $0.96 per share.
  • Pfizer Inc (PFE) has a history of steady dividend increases, with a current annual payout of $1.12, and has seen significant growth in its breast cancer drug Ibrance, receiving regulatory approvals two months ahead of schedule.
  • CMS Energy Corp (CMS) has consistently grown its dividend payouts from $0.05 in 2007 to $0.29 in 2015, with a healthy dividend yield of 3.2%.
  • Intel has outperformed the S&P 500 since September, with a 17% spike in the same period, and boasts a robust competitive edge with its state-of-the-art manufacturing processes.
  • Pfizer's possible acquisition of Allergan could translate to lower taxes and release funds stuck in international operations, while its breast cancer drug Ibrance has shown strong early growth.
  • CMS Energy has delivered impressive operating performance, with 57% year-over-year growth in quarterly earnings and improved gross and operating margins.
  • Argus Research is bullish on CMS Energy, citing the company's reliable capital investment plan and excellent cost optimization.

Statistics:

  • Intel's dividend yield is 3%, matching that of Microsoft and Cisco Systems.
  • Pfizer's last dividend increase was 8% over the last year, with a dividend yield of 3.31%.
  • CMS Energy's dividend payout has grown from $0.05 in 2007 to $0.29 in 2015.
  • Intel's price-to-earnings ratio is 14.5, lower than the industry average of 76.5.
  • CMS Energy's quarterly earnings have grown 57% year-over-year.
  • The S&P 500 Utilities index has fallen 8% and PHLX Utility Index has fallen 11% so far this year, while CMS Energy has jumped 3%.

Sources:

  • Intel Corp (INTC) data by YCharts (http://ycharts.com/companies/INTC/chart/#/?startDate=&calcs=include:true,id:price,,&endDate=&format=real&correlations=&zoom=ytd&securitylistSecurityId=&securities=include:true,id:INTC,,"es=true&units=false&maxPoints=575&splitType=single)
  • Pfizer Inc (PFE) data by YCharts (http://ycharts.com/companies/PFE/chart/#/?startDate=&calcs=include:true,id:price,,&endDate=&format=real&correlations=&zoom=ytd&securitylistSecurityId=&securities=include:true,id:PFE,,"es=true&units=false&maxPoints=575&splitType=single)
  • CMS Energy Corp (CMS) data by YCharts (http://ycharts.com/companies/CMS/chart/#/?startDate=&calcs=include:true,id:price,,&endDate=&format=real&correlations=&zoom=ytd&securitylistSecurityId=&securities=include:true,id:CMS,,"es=true&units=false&maxPoints=575&splitType=single)

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