With the bear market in full swing our Undervalued category is swelling with companies that haven’t offered good value in a very long time, suggests Kelley Wright, dividend specialist and editor of Investment Quality Trends — and a participant in The MoneyShow Orlando, October 30 to November 1. Register here.
The stocks featured below are for four such companies:
Together with its subsidiaries, Sensient Technologies (SXT) develops, manufactures, and markets colors, flavors, and fragrances in North America, Europe, the Asia Pacific, and internationally.
The company offers flavor-delivery systems, and compounded and blended products; ingredient products, such as essential oils, natural and synthetic flavors, and natural extracts; fragrance products; and natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and and cosmetics.
Texas Instruments (TXN) is the world’s fourth-largest semiconductor company with a diverse product portfolio that is used to accomplish many different things, such as converting and amplifying signals, interfacing with other devices, managing and distributing power, processing data, canceling noise, and improving signal resolution.
This broad portfolio includes approximately 80,000 products that are integral to almost every type of electronic equipment. TXN has effectively divested its less-profitable businesses over the past several years, adding to the company’s relatively variable annual sales patterns.
Gross margins have widened as TXN focused on higher-margin businesses and efficiently managed internal capacity. TXN’s balance sheet is healthy with more cash than debt, rising operating profits, revenues, and free cash flow, which has been directed toward dividends.
UGI Corporation (UGI) distributes, stores, transports, and markets energy products and related services in the United States and internationally. The company operates through four segments: AmeriGas Propane; UGI International; Midstream & Marketing; and UGI Utilities.
The company distributes propane to approximately 1.4 million residential, commercial and industrial, motor fuel, agricultural, and wholesale customers through 1,600 propane distribution locations.
UGI also manages natural gas pipeline and storage contracts, develops, owns, and operates pipelines, and gathers infrastructure and gas storage facilities. UGI Corporation is based in King of Prussia, Pennsylvania, and has paid uninterrupted dividends since 1971.
Woodward Inc. (WWD) designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems.
The Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, and sensors. These products are used on industrial gas turbines, steam turbines, compressors, and reciprocating engines. The company was founded in 1870 and has paid dividends since 1973.