GIE Holding Highlights
As GSK undergoes this transition to refocus its vaccines business, the company expects 2015 earnings per share in the high teens. But management said it will prioritize its dividend—currently yielding 5.9%—until 2017. The company also noted it plans to pay a special dividend of GBP0.20 in the fourth quarter of 2015.
With a stable dividend, GSK is a Buy up to $54.
After its U.S. business (power and gas networks in New York, Massachusetts and Rhode Island) posted a profit increase in the fiscal first half of 2015, National Grid (NYSE: NGG) said it will continue to boost spending in the country. Although management said it will focus on growing organically, it noted that acquisitions are not out of the question.
In 2014, National Grid invested $2.4 billion in its U.S. assets, generating an operating profit increase of 3% to $1.8 billion. Due to increased rate base growth and additional costs related to winter weather, its U.S.-regulated operations generated a return on equity of 8.4%.
Yielding 5%, NGG is a Buy up to $74.
Verizon’s (NYSE: VZ) $4.4 billion acquisition of AOL in May signaled its entry into the global advertising industry in a big way. The former tech giant and “you’ve got mail” originator’s digital ads platforms will allow Verizon to compete directly with Google and Facebook, companies that account for an overwhelming 40% of the market share.
Although Verizon still leads the wireless telecommunications market, it is faced with more competition from its cable business. Earlier this year, it announced it will offer limited cable packages to its subscribers. This move allows the company to keep up with change.
Yielding 4.6%, the nation’s largest wireless carrier is a Buy up to $59.
PDL BioPharma (NSDQ: PDLI) reported a solid first quarter with earnings increasing 15.9% to $84.5 million. Earnings per share rose 13.6% to $0.50 per share. The increase was driven by increased royalty revenues from its patents to other pharmaceutical companies like Roche Holding and Novartis.
Total revenues increased 9.4% to $149.7 million, with most of that coming from royalties, which rose 10% to $127.8 million.
With solid growth supporting its generous 9.5% yield, PDLI is a Buy below $14.
Shares of Westpac (NYSE: WBK) slid 11.5% in May because of weaker earnings and difficulties facing the Australian banking sector. The bank posted worse-than-expected H1 net profit of AU$3.61 billion ($2.82 billion) with solid mortgage growth offset by the weakness in its institutional segment.
Despite this weaker half of its business, management raised its interim dividend to $0.93 per share, which equates to a current yield of 6%.
Buy Westpac up to $34.
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