This is a solid way for more conservative investors to play the energy sector. Marathon Oil Corp. (NYSE: MRO) operates as an independent exploration and production company in the United States and internationally. It engages in the exploration, production and marketing of crude oil and condensate, natural gas liquids, and natural gas, as well as the production and marketing of products manufactured from natural gas, such as liquefied natural gas and methanol.
The company owns and operates 32 central gathering and treating facilities and the Sugarloaf gathering system, a 42-mile natural gas pipeline through Karnes and Atascosa Counties. The company was formerly known as USX Corporation and changed its name in December 2001.
Investors currently receive a 1.28% dividend. The company is expected to lift that dividend by a penny per share to $0.07.
Raymond James has the highest target on Wall Street, which is $27. Marathon Oil stock’s consensus target is $20.79, and it traded at $17.40 on Monday.
This lesser-known semiconductor capital equipment leader also could have solid upside potential. Teradyne Inc. (NYSE: TER) designs automatic test systems used to test semiconductors, wireless products, data storage and electronic systems in the consumer, wireless, auto, industrial, computing, communications and aerospace/defense markets. Industrial automation products include collaborative robots used by global manufacturing and light industrial customers to improve manufacturing efficiency and reduce costs.
Many analysts on Wall Street point to the company as a somewhat ancillary play to the sector and have often cited the growing robotics silo as more of a reason to own the shares than the fundamentals related to wafer fab equipment. The company also has consistently bought back stock, a huge positive for shareholders.
Shareholders are currently paid a 2.01% dividend. The company is expected to lift the dividend to $0.11 from $0.10.
BofA Securities’ Wall Street high $205 price target on Teradyne compares with a $165.67 consensus target. The shares traded at $140.65 early Monday.
These five top companies are expected to lift the dividends they pay to shareholders, and their stocks are rated Buy across Wall Street. Not only is increasing dividends and returning capital to investors important, but it also shows that the company is doing well and has the earnings and cash flow strength to increase the payouts.
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