Canadian Imperial Bank of Commerce - CM

I am a huge fan of non U.S. bank stocks. No offense to the good old red, white and blue, but investing in non U.S. stocks will provide your Roth IRA stock portfolio with true diversification in the banking sector. It is not wise to hold all of your eggs in one basket. Enter... Canadian Imperial Bank of Commerce, stock ticker CM. I strongly believe that Canadian banks should trade at a premium to U.S. banks, because of their stronger regulatory system. You gotta love those Canadian bank dividend yields!

Canadian Imperial Bank of Commerce a.k.a. CIBC is a world-wide financial institution. CIBC has three strategic business units: retail and business banking, wealth management, and wholesale banking. Retail and business banking provides financial products, advice and services through nearly 1,100 branches, as well as automated banking machines, mobile sales forces, telephone banking, online and mobile banking. Wealth management comprises asset management, retail brokerage and private wealth management businesses. Wholesale banking provides credit, capital markets, investment banking, merchant banking and research products and services. On August 31, 2011, CIBC acquired 41% of American Century Investments (ACI) and has a $30,740,000,000.00 market cap ($30.74 billion dollars).

With a consistent quarterly dividend payment of 90 cents per share, a current dividend yield of 4.60%, CM is a winner in my book. And my book is not full of many bank stocks. Bank stocks have been risky since the Great Recession, but in order to succeed and live the retirement of your dreams you will need to invest in a few bank stocks since they are selling on the CHEAP! Short term CM may provide you with some up and down swings, however long term, with the high dividend and good fundamentals, I foresee this diamond in the rough outperforming in a major way. Diamonds are forever! (click HERE for some theme music while you read the rest of this post).

CM was selling for $106.08 per share back in October of 2007 and is currently selling at $76.73 as of February 10th, 2012. Now of course you should not buy CM just because it used to be worth $30.00 more a while ago, but it is something to consider. Since September 26th, 2006 CM has not missed a dividend payment and just think of all the trouble the banking sector has gone through since that time. CM did not crumble during the Great Recession. There is no greater test when researching which bank stock to invest into than determining if they have shafted shareholders over the past ten years. CM put shareholders first. Even when their share price went to $29.20 on March 6th, 2009 they kept paying their dividend. A steady 87 cents per share from that point on, until they raised it to 90 cents on September 26th, 2011!

"The honor is in the dollar kid" - Quote from the movie Boiler Room. Yes, it is important to listen to company quarterly conference calls, however if a company continues to pay you to hold onto their shares and then increases their dividend when their competitors are cutting their yield or eliminating their dividend all together, well then it's time to invest. Get in when CM is at a low and hold for life. Let that 90 cents per share compound and your money will work for you, instead of you working for it!

Simply put, CM has strong price momentum, and is supported by a healthy dividend, which qualifies as a winner for the Common Man trying to survive.

Until next time friends, keep investing as much as you can each week into high yielding dividend aristocrats  with a moat of money. Do not get discouraged and know that we are in this together. Have a great remainder of the weekend and watch the videos below to learn a little bit more about Canadian Imperial Bank of Commerce! Check out their website, here.

 

Update: Stock Picks for the week of 1/31/12 to 2/7/12

Welcome back to Dividend Stock Investing for the Common Man. Thank you stopping by and supporting the idea of investing in dividend paying stocks for the long term. I wanted to recap last week's picks for you since it is important to review all investments on a weekly, if not daily, basis. As you can see below, it was a profitable 12 for 16 week, however it was a roller-coaster ride. Some selections decreased in value while others had a pretty nice percentage gain for the week. SJM, KO, CVX and MCD were this past week's clear winners, however O had a great week. The over all net gain for the week of 1/31/12 to 2/7/12 was $9.35. 

As a rule of thumb, always invest in high yielding dividend paying stocks for your retirement years. Continue to hold on to your stocks for the long term so the dividends have plenty of time to compound. Feel free to watch the videos below featuring J.M. Smucker Company and Chevron Corporation. Both will inject your Roth IRA stock portfolio with stability and profits. Until next time, happy investing, reinvest those dividends and let your smart investment decisions work for you!

Stock/Stock Ticker.. Quote @ 1/31/12..  Quote @ 2/7/12..  Gain of $9.35

Entertainment Properties Trust (NYSE:EPR) $44.51 $44.53 +$0.02
Universal Health Realty Income Trust (NYSE:UHT) $40.00 $40.37 +$0.37
The Coca-Cola Company (NYSE:KO) $67.46 $68.55 +$1.09
The Hershey Company  (NYSE:HSY) $61.70 $60.45 -$1.25
Merck & Co., Inc. (NYSE:MRK) $38.89 $38.63 -$0.26
Unilever plc (NYSE:UL) $32.56 $32.57 +$0.01
H.J. Heinz Company (NYSE:HNZ) $51.92 $51.82 -$0.10
JPMorgan Chase & Co. (NYSE:JPM) $37.01 $37.87 +$0.86
Plum Creek Timber Co. Inc. (NYSE:PCL) $40.08 $39.51 -$0.57
NIKE, Inc. (NYSE:NKE) $103.39 $104.23 +$0.84
The J.M. Smucker Company  (NYSE:SJM) $78.32 $79.32 +$1.00
Annaly Capital Management, Inc. (NYSE:NLY) $16.80 $17.12 +$0.32
Realty Income Corp (NYSE:O) $36.34 $37.28 +$0.94
Chevron Corporation (NYSE:CVX) $103.41 $106.83 +$3.42
Starbucks Corporation (NASDAQ:SBUX) $48.48 $48.92 +$0.44
McDonald's Corporation (NYSE:MCD) $98.69 $100.91 +$2.22

H.J. Heinz Company - HNZ

Recession proof. Long term stability. 25 years of quarterly dividend payouts. Company founded in 1869! That's right, I am describing yet another stock to hold within your well-diversified Roth IRA stock portfolio. Today's and tomorrow's winning stock is none other than H. J. Heinz Company, stock ticker HNZ. With a current dividend yield of 3.70% and by dollar cost averaging your hard earned funds into HNZ on a weekly basis you can create a lifetime of wealth and security. Always reinvest your dividends to maximize your compound interest!

HNZ, together with its subsidiaries, manufactures and markets a range of food products throughout the world. Their principal products include that tasty one of a kind ketchup, sweet condiments and mouth watering sauces, frozen food, warm hearty soups, beans and pasta meals, infant nutrition and various other food products. Click here for a complete listing and be amazed.

Heinz operates in various countries: North America, Europe, and Asia. Recent acquisitons? See below.
April 2011: acquired 80% stake in Coniexpress S.A. Industrias Alimenticias
November 2010: acquired Foodstar Holding Pte (Foodstar)

Founder of Heinz, Henry John Heinz, once said “To do a common thing uncommonly well brings success." Well, Heinz has been providing that "Uncommon Quality Since 1869"! Yes, they have been around for what feels like forever. The best thing about Heinz's tomato ketchup is that it is unlikely to be made obsolete through future technologies. Just think about what you will put on your french fries when your in your retirement years? This company will be paying you a hefty dividend at that point. Enjoy your Heinz ketchup, kick your feet up and be proud of your decision to invest in a dividend aristocrat like Heinz.

I suggest that you visit Heinz's homepage, here, as well as their Investor Relations page, here. While at their Investor Relations page check out all of those product logos which power Heinz. Think of them as a group of employees working for you, to infuse quality quarterly dividends into your own business, your Roth IRA!

In closing, I believe there will be an increased demand for inexpensive convenience foods globally. Heinz is a staple in America. As always here at Dividend Stock Investing for the Common Man, enjoy these hand picked Heinz videos from YouTube. Enjoy!

Oracle Corporation - ORCL

Oracle Corporation, stock ticker ORCL, is a future dividend aristocrat. No ifs, ands or buts about it. Even though they currently pay a 6 cent dividend, which is a 0.83% dividend, I strongly believe dividend increases will continue year after year. ORCL is always a great value play. Their shares sell for $28.87 and are on the up and up.

ORCL is an elite enterprise software company. They develop, manufacture, market, distribute and service database and middleware software, applications software and hardware systems, consisting primarily of computer server and storage products. There are three segments to ORCL: 1) Software 2) Hardware systems and 3) Services. Oracle's software business consists of new software licenses and software license updates and product support. Their hardware systems business consists of hardware systems products and hardware systems support. Their service business included consulting, Cloud Services and education. In January of 2011, Oracle completed the acquisition of Art Technology Group and in August of 2010 ORCL completed the acquisition of Phase Forward Incorporated (Phase Forward), a provider of applications for life sciences companies and healthcare providers.

Per Oracle's webpage, "With more than 380,000 customers—including 100 of the Fortune 100—and with deployments across a wide variety of industries in more than 145 countries around the globe, Oracle offers an optimized and fully integrated stack of business hardware and software systems." Sounds good to me!

Here are some stats about ORCL which are pleasing to the eyes:
52 week trading range $24.72 - $36.50
Mkt cap 144.79B (cash cow!)
P/E 15.85
Div/yield $0.06/share/0.83%
EPS 1.82
Beta 1.10
Inst. own 63% (nice to see)

ORCL is a high quality company with a strong competitive position. Their shares were beat down last quarter because of minor disappointing results. Long term, Oracle has consistently demonstrated their ability to provide great engineered and stable tools needed to build IT infrastructure or support business backroom operations. Oracle has demonstrated year over year their ability to execute against their very aggressive plans. The silliest reason to sell a stock is because of earnings missing analyst expectations. ORCL is an outstanding company trading at a reasonable valuation. This stock will definitely outperform in the long run.

Keep ORCL in mind if you want to invest in a future dividend beast, but are willing to wait a few years. If you have years to wait then you are in a great position to reap the benefits of a steady company on the rise. Check out the videos below and visit Oracle's Investor Relation website, here. I hope you have a great weekend!