Monsanto Company (NYSE:MON)
Another dividend stock in Lone Pine Capital’s portfolio that has caught my attention is Monsanto. This company has grown its dividend payment by an average rate of 11.61% from 2009 to 2012. It exhibits its ability to raise dividends through its low payout ratio based on cash flow at 21%. With the current double-digit profit margin and an impressive quarterly revenue growth of over 20% year-over-year, any dividend income investor would be pleased with Monsanto Company (NYSE:MON)’s current performance. No wonder its EPS has exceeded the consensus estimate in the latest quarter by a wide margin of 67%.
Recent news of Monsanto’s coming to terms with DuPont on the antitrust and patent rift between the two will positively impact the company. The two companies came up with a licensing agreement that asks DuPont to make annual royalty payments to Monsanto amounting to $1.752 billion within the period 2014 to 2023. If you have not seriously considered taking a look at Monsanto Company (NYSE:MON) yet, you better start now. Strong and safe dividend income awaits you.
Source: Nasdaq.com
QUALCOMM, Inc. (NASDAQ:QCOM)
Qualcomm has also significantly increased its dividend payment through the years, averaging 11.72%. This company can hardly go unnoticed for its payout ratio based on cash flow of 26.33%, which is fairly sustainable given its recent performance in profitability and revenue growth. The company is outstanding, with a profit margin of over 28% and a quarterly revenue growth of 26% year-over-year. Indeed, the company has shown positive earnings surprises in the last two quarters. There is no reason to believe that dividend payment will not grow in the same direction as it did in the previous years because QUALCOMM, Inc. (NASDAQ:QCOM)sits on an increasing amount of free cash flow, and this growth came mainly from its core business operations. With the leading mobile chipset maker expanding into new markets like Vietnam, a commanding lead in 4G wireless communication technology, and a lower-than-normal P/E ratio of 20.10, the best time to ride the huge potential growth is now.
Source: Nasdaq.com
Lone Pine Capital’s portfolio has these powerful dividend income generators in it. I would not wait to take on QUALCOMM, Inc. (NASDAQ:QCOM) for its outstanding performance and huge growth prospects. But the rest are equally attractive as well, and each can potentially put on a great show in 2013. I strongly suggest you take a look at all of them, and do so fast.
The article Top Dividend Stocks from Lone Pine Capital’s Portfolio originally appeared on Fool.com and is written by Aubrey Tabuga.
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