Coal Leads Basic Materials Dogs To Dividend Safety In September

The Dividend Dogs Rule
The "dog" moniker was earned by stocks exhibiting three traits: (1) paying reliable, repeating dividends, (2) their prices fell to where (3) yield (dividend/price) grew higher than their peers. Thus, the highest yielding stocks in any collection became known as "dogs."

What Basic Materials Sector Industries Show Up As "Safe"?
Basic Materials sector industries listing cash margins greater than their announced annual dividends include: coal; steel; specialty chemicals; chemicals; industrial metals; agricultural inputs; building materials; paper & paper products.
Top ten Basic Materials sector dogs showing the biggest dividend yields by this screen as of September 23 represented four industries: (1) coal had two stocks; (2) steel had four equities; (3) specialty chemicals had two; (4) chemicals had two stocks represented.
29 Basic Materials Firms Showed Cash Margins to Cover Dividends

Periodic Safety Check
A previous article discussed the attributes of these 50 Basic Materials stocks from which these twenty-nine were sorted. You see below the list that passed the dividend "stress" test. These 29 Basic Materials dogs report sufficient annual cash flow yield to cover their anticipated annual dividend yield. The margin of excess is shown in the bold face "Safety Margin" column.
Financial guarantees however are easily over-ruled by a cranky board of directors or company... Read more