Stock Pick of the Week: Icahn Enterprises LP (IEP)

Icahn Enterprises LP, stock ticker IEP, provides an excellent investment opportunity for the masses. With a current 7.20% dividend yield, $1.00 per share, IEP is currently undervalued. IEP's 52 week high is $90.75 and 52 week low is $37.22. So with a current share price of $55.52, IEP is in a sweet spot.

IEP's net assets are worth twice as much as its market cap!

Icahn Enterprises LP is essentially a diversified holding company. IEP owns subsidiaries, which are engaged in Investment, Gaming, Automotive, Railcar, Real Estate, Food Packaging, Metals, and Home Fashion. IEP is like a mini mutual fund that pays a sweet dividend.

IEP owns a 99% limited partner interest in Icahn Enterprises Holdings LP. All of IEP assets and liabilities are owned through Icahn Enterprises Holdings and all of their operations are conducted through Icahn Enterprises Holdings and its subsidiaries. Icahn Enterprises G.P. Inc. (Icahn Enterprises GP), the Company’s sole general partner, owns a 1% general partnership interest in both Icahn Enterprises Holdings and Icahn Enterprises.

During the year ended December 31, 2011, the Company acquired additional shares of common stock of Federal-Mogul Corporation and owned approximately 77.2% of the common stock of Federal-Mogul as of December 31, 2011.

Billionaire Carl C. Icahn is the Chairman of the Board of Icahn Enterprises GP. Check out the videos below for more information regarding Mr. Icahn. His track record speaks for itself! Between 1996 and 2004, Mr. Icahn invested in 56 companies, with an average stock gain of 53%. The market is ripe for more of his astute acquisitions. Click on this link to learn more about Mr. Icahn.

Current IEP Statistics (as of April 6th, 2013):

52 week $37.22 - $90.75
Avg. Volume 213,014.00
Mkt cap 6.00B
P/E 15.68
Div/yield $1.00/7.20%
EPS 3.54
Shares 108.03M
Beta 1.03
Inst. own 96%


Feel free to visit Icahn Enterprises LP homepage, here. Also, analyze their Investor Relations page, here. Enjoy the videos below and you'll see why this stock is a winner! Go ahead and pick up a bunch of shares of IEP. Let's secure our financial future by trusting in Mr. Icahn's wise investment decisions. IEP is on the rise!

Until next time, spend within your means, reinvest your dividends within a ROTH IRA stock portfolio, and have a great day!

Carl Icahn: The Takeover Man (60 Minutes Interview)

Carl Icahn Shares Advice To Graduates (2008)

Dell To Give Carl Icahn A Look At Their Books (March 2013)

BlackRock, Inc. - BLK

BlackRock, Inc., stock ticker BLK, is currently paying a $1.50 quarterly dividend to their loyal shareholders. That calculates to a current dividend yield of 3.02%, which qualifies them as an excellent company for the Common Man's stock portfolio. BLK has been increasing their dividend since March 5th, 2004 and it does not look like they are going to stop anytime soon!

BLK is an industry leading independent investment management firm. They serve their clients as a fiduciary, and derive all of their revenues from client business. BLK focuses on investment management and risk management. They invest in capital markets globally. Clients include taxable, tax-exempt and official institutions, retail investors and high net worth individuals. Their platform brings together active investments with index products and risk management to develop tailored solutions for clients. BLK's products range includes single and multi asset class portfolios investing in equities, fixed income and money market instruments.

In January of 2010, BLK completed the acquisition of Helix Financial Group LLC. During October of 2010 they completed the acquisition of all of the net assets of Primasia Investment Trust Co., LTD. Then again in March of 2012 they acquired Claymore Investments, Inc. from Guggenheim Partners, LLC. These are all signs that BLK management are on the prowl for new opportunities and maximize shareholder profits!

Please see below for BLK's statistics as of March 22nd, 2012:

52 week range $137.00 - $207.42
Mkt cap $35.58B
P/E 16.03
Dividend/Dividend yield $1.50/3.02%
EPS 12.38
Beta 1.49
Inst. own 64%

BLK has good growth prospects and a growing market share within their industry. Their P/E is still at recession lows. Their target retirement date funds continue to grow and show great growth in their iShares ETFs. BLK is definitely a powerhouse!

As previously stated, BLK continues to grow their dividend which is excellent for your Roth IRA. Their management team makes solid decisions and have proven results in every economic environment. In the last year BLK stock is up 10%. Additionally, earnings projections have increased over the past few months.

Feel free to click here to learn more about BlackRock, Inc. Also, click here to learn how to Invest for a "New World" (See video below as well). BlackRock is here to stay and in my opinion would be a great addition to your retirement Roth IRA stock portfolio. Let their dividend compound year after year and watch your money work for you!

BP plc - BP

BP p.l.c., stock ticker BP, is one of the largest international oil and gas company's in the world. They operate in more than 80 countries, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products. BP operates in two sectors: Exploration and Production (E&P) and Refining and Marketing (R&M). E&P activities include oil and natural gas exploration, field development and production; midstream transportation, storage and processing; and the marketing and trading of natural gas, including liquefied natural gas, together with power and natural gas liquids. R&M activities include the supply and trading, refining, manufacturing, marketing and transportation of crude oil, petroleum and petrochemicals products and related services. BP has been around since the early 1900's!


BP Statistics as of 2/26/12
52 week range $33.62 - $49.09
Market cap $148.62B
P/E 5.82
Quarterly Dividend/Dividend yield  0.48%/$4.09
EPS 8.07
Beta 1.20
Institutally Owned 12%


Recent acquisitions:
April 2011 - acquired 83% of Companhia Nacional de Acucar e Alcool.
December 2010 - acquired Verenium’s lignocellulosic biofuels business

BP has weathered the storm from the unfortunate oil spill in the Gulf coast, however they will move on like Exxon did after it's incident. It is highly probable that they will reach a settlement with the United States Government pertaining to the civil and criminal charges in the near future related to the Gulf oil spill. In no way is that a reason to purchase BP. I like BP strictly because of their dividend and what they are now doing in the Gulf. Click here to learn about how BP is helping the Gulf coast.

An additional positive story about BP is that a federal judge in December 2001 ended BP's three-year probation for the negligent discharge of oil in Alaska in 2007. This allows BP to resume drilling in that territory and should provide a psychological lift to the stock as well.

BP pays a healthy 4.09% dividend and given their improving cash flow they should begin raising their dividend once again. Their dividend went from 84 cents to 42 cents on February 9th, 2011. I strongly believe they will aggressively raise their quarterly dividend to get some ground back on where it used to be. I think this stock is a value stock with room for growth and has a healthy growing dividend.

Click here to listen to BP CEO Bob Dudley discussing their 4th quarter 2011 and full year results. They are well positioned to make acquisitions, buy back their own stock, and continue to increase guidance during 2012.

I urge you to visit BP's Investor Relations webpage here, to learn more about this dividend aristocrat. Also, if you are not a believer yet, watch the three videos below, especially the one with BP's CEO Bob Dudley on earning back America trust. Until next time friends, reinvest those dividends and watch your smart investment decisions work for you!

PNC Financial Services - PNC

PNC Financial Services Group, Inc., stock ticker PNC, is a diversified financial services company in the United States. PNC is engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking, providing many of its products and services nationally. Their primary geographic markets included Pennsylvania, Ohio, New Jersey, Michigan, Illinois, Indiana, Kentucky, Florida, Virginia, Maryland, Missouri, Delaware, Washington, D.C., and Wisconsin. PNC also provides certain products and services internationally.

Most recently, PNC was given a buy rating by Morgan Stanley (MS). MS believes that due to PNC's ability to offset lower yields and if they are able to close the RBS Bank USA deal earnings per share can rise. PNC has a much lower risk loan portfolio than their competitors. Additionally, PNC pays a 35 cent quarterly dividend, which is a healthy 2.43% dividend yield. Back in 2005 their share price the exact value as it is today, however they paid a 50 cent dividend and before the Great Recession PNC was paying a 66 cent dividend. Now if that doesn't tell you that there will be more dividend increases over the next few years then I'm not sure what else to tell you. PNC's dividend increases make them a great value play.

PNC makes good solid positions and have gone after the Generation X market in a big way, rather than just going after them for credit cards. Their relationship and products with colleges students, for example, the Virtual Wallet, will bring them more customers. PNC is a conservatively managed bank and are expanding in an efficient, smart way. They have a stable deposit base, recent acquisitions were at reasonable prices, and the best part about PNC is that their exposure to troubled loans is considerably less than many banks (ahem Citigroup, ahh-chew Bank of America).

What I have noticed about PNC is that they are able to hold onto their customers. Their customer retention levels are much higher than their competitors. PNC is, like Destiny's Child says, a "survivor". They will not give up, they will work harder for their customers. When PNC acquired National City Bank they had a few bad quarters. They suffered due to a weakening of their credit portfolio, due largely to the residual issues from National City's acquired portfolio. As these bad loans were gradually erased from their books, they found, and continue to find, themselves with their traditionally strong franchise, yet now with an expanded footprint obtained on the cheap per the National City Bank acquisition.

In closing, please do your due diligence on this one. Banks are a tad risky right now, but for the long term you need to have at least one bank held within your Roth IRA stock portfolio. Similar to Wells Fargo, PNC was once a regional bank, but they are ready to play with the big boys who have fallen (C, BAC) and are ready to fly high! Please visit their website, here, and watch the videos below to learn more about this solid bank. Thank you for your time.

Hershey Company - HSY

The Hershey Company, stock ticker HSY, is the sweetest producer of chocolate and sugar confectionery products. They pay a delicious 34 cent per share dividend, which is currently a tasty 2.32% dividend yield. HSY is a very reliable stock to place in you Roth IRA stock portfolio. They have a strangle hold on chocolate game and I do not foresee them every letting go. HSY's theme park is the place to go during the summer time in Pennsylvania!

Hershey's principal product groups include chocolate and confectionery products, gum and mint refreshment products, and pantry items, such as baking ingredients, toppings and beverages. Their diversified product line allows them to make money in every market. HSY operates as a single segment in manufacturing, marketing, selling and distributing various package types of chocolate and sugar confectionery products, pantry items, and gum and mint refreshment products under more than 80 brand names. They operate in the United States, Canada, Mexico, Brazil, and other international locations, such as India, Korea, Japan, the Middle East, China and the Philippines. They markets their products in 60 countries.

Come on, admit it! During economic booms and busts we love chocolate! HSY is a very well know brand throughout the world. They have been around for about 125 years old. You should have a great deal of confidence in Hershey's long term stability. HSY is directed by the Hershey Trust Company, established in 1905 by the founder Milton Hershey to oversee the school that he established for orphans. Years later the Trust took control over the chocolate company. Now ponder this, how many companies are there that are guided by a Board of Directors that are as concerned with directing both the largest residential school for needy children as well as the largest chocolate factory in the world? 

Fact: In 2002, when the Trust wished to sell its controlling interest, Pennsylvania politicians, citizens, philanthropists, and the entire city of Hershey rebelled. More than half of the Trust member's were removed. 

Fact: All of the indicators of the company are consistent and strong. For example debt/equity, PE, gross profit margin, etc, and the essential fact is that there is no ten year period that it hasn't beat the S&P and Dow!

Please click here to visit Hershey's website, as well as here to visit their Investor Relations website. Also, feel free to watch the entertaining videos below. Hershey's really is a great stock to purchase and hold forever. Collect those dividend and let your money grow year after year! Go pick up some Hershey's stock and chocolate on Monday. Have a great weekend!

Emerson Electric Co. - EMR

Emerson Electric Co., stock ticker EMR,  is a diversified global technology company. Emerson was founded in 1890 in St. Louis, Missouri, as a manufacturer of electric motors and fans. Emerson has approximately 127,700 employees and 240 manufacturing locations worldwide. EMR designs and supplies product technology and delivers engineering services and solutions in a range of industrial, commercial and consumer markets around the world. They have five business segments:

• Process Management - provides measurement, control and diagnostic capabilities for automated industrial processes producing items.
• Industrial Automation - provides integrated manufacturing solutions to diverse industries worldwide.
• Network Power - provides power conditioning and environmental control to help keep telecommunication systems, data networks and other business applications operating.
• Climate Technologies - provides household and commercial comfort, as well as food safety and energy efficiency.
• Tools and Storage - provides tools for professionals and homeowners, home and commercial storage systems, and appliance solutions.

EMR has been on a good run and although it has slowed and pulled back some recently it still remains an interesting long term investment. The company trades pretty closely with the market and unfortunately has rode the market down since the beginning of August 2011. The weakening of Emerson’s share price has started to put it on the radar for dividend investors.

EMR has grown its dividend payout over the last five years, even during the Great Recession. They pay shareholders $0.34 per share, which is a 3.02% dividend yield. EMR is currently trading at only 11.7 time forward earnings. They look like a nice purchase for the "Common Man" dividend value investor. EMR has a diverse product line and worldwide market share. Click here to learn more about the diversity of their products and why they are just so great! Also, their Investor Relations page, here. Picking up this stock for your Roth IRA stock portfolio is a must. Are you on the fence regarding whether this stock is right for you? Okay, watch below.