Tuesday June 19, 2012
by Vita Nelson, editor MoneyPaperIgnore the noise; at any given moment, stock market commentary revolves around the latest fiscal crisis, politics, or seasonal trading patterns, among many other headline-grabbing factors.
So while it may seem important, for example, that oil and gas prices are soaring or diving, the more important consideration is what may happen over the long haul.
Industries may go in and out of favor, but consumers and businesses will need their products and services on a regular basis that translates into profit to be passed on to shareholders.
What we need to do is look past the latest report of prices at the gas pump and consider the billions (or trillions?) of barrels that will be used over the decades ahead.
In this light, our latest dividend reinvestment stock of the month is
Baker Hughes (
BHI), which provides drilling, production, and reservoir products and services for the oil and gas industries in more than 80 countries, operating two segments.
In 2011, about 52% of the $19.8 billion in annual revenues came North America. Revenues have doubled since 2009, largely due to the 2010 acquisition of rival BJ Services.
Consensus estimates call for BHI to earn about $3.64 per share this year, down from $4.20 in 2011, but to rebound to earn about $4.59 in 2013, and Value Line projects earnings per share of about $7 in 3-5 years.
Learn more about this financial newsletter at Vita Nelson's MoneyPaper.Related articles:
