Tupperware Brands: Growth And Income Buy Alert

Tupperware Brands Corporation (TUP) has performed well since it was last covered in mid-February and has seen Wall Street estimates climb higher. In February, analysts were forecasting full-year 2008 earnings estimates of $2.55 per share. Two months ago, projections were higher at $2.59. Current expectations are pegged at $2.75.

Income

The company declared a quarterly dividend of 22 cents per share in mid May, noting that the dividend is payable on July 7, 2008 to shareholders of record as of June 12, 2008.

Growth

In late April, Tupperware reported first-quarter earnings of 56 cents per share, beating the year-prior 36 cents and exceeding the consensus estimate by 12%. Sales were up 19% year-over-year. Read our Feb 15 analysis.

Last Week’s Growth and Income Zacks Rank Buy Stocks

Nucor (NUE) is a good growth and income play on the robust steel industry. The company recently issued an increased second-quarter earnings guidance, ranging between $1.75 to $1.80 per share, and analysts followed suit. Nucor’s ROE of 29% reflects solid growth, especially considering that the industry average is at 17%. The steel producer also sports healthy income. Its dividend yield of 1.7% is well above the industry average as the majority of the steel industry pays no dividends. NUE recently declared its 141st dividend in the amount of 52 cents per share, which is the sum of a regular quarterly dividend of 32 cents and a supplemental dividend of 20 cents.

Mastercard Incorporated (MA), a Zacks Rank #1 (Strong Buy) company, continues to reward investors with both growth and income. The company posted an outstanding first quarter in late April and boasts a ROE of 30%, squashing the industry average of 9%. Analysts see more growth ahead as evidenced by a hike in 2008 earnings forecasts of 15% over the past three months. The company’s dividend yield of 0.2% is a competitive one within its industry as MA operates in a space that offers very little in terms of dividend income.

United States Steel Corporation (X) rewards shareholders with income that is higher than the industry average, currently yielding 0.6%. The yield is based on a recently declared dividend of 25 cents per share. U.S. Steel also demonstrates solid growth as it pays income. In late April, the company posted first-quarter net income of $235 million, which soared past the fourth-quarter net income of $35 million. Net sales reached a record $5.2 billion.

Abbott Laboratories (ABT), which recently released positive data about its blockbuster drug Humira, is a solid pick for those in search of both growth and income. The company recently declared its 338th quarterly dividend in the amount of 36 cents per share. The dividend translates into a yield of 2.7%, which remains quite competitive within its industry as most pharmaceuticals do not pay a dividend. First-quarter results were announced in mid-April, demonstrating strong growth. Excluding special items, earnings totaled 63 cents per share, beating the year-prior result while matching the consensus estimate.

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