New Criteria for Ranking Dividend Darlings: A Look at BDCs

It is quite common for a major financial website to post a link of "dividend darlings". A dividend darling list typically involves a group of companies that have a strong history of paying increasing dividends over their lifespan. If you look on Forbes, Investopedia or Seeking Alpha you will see lists containing some chosen companies. This article will include a "dividend darling" list that is exclusively focused on BDCR-followed companies. Not only will the current dividend high-rollers be highlighted, but I will rank the companies based on history and dividend coverage. All of the information gathered is available on the SEC website and/or your favorite financial website (Yahoo, Google, DailyFinance, etc). I want to reward companies that have been around for awhile and ding those that... more

9 Dividend Kings in Warren Buffett's Portfolio

It's no surprise Buffett loves dividend kings. He's made a career buying out of favor stocks, then watching shares appreciate and dividends grow. We took a look at The Oracle's portfolio to point out the dividend kings he currently holds. As always, use the list below as a starting point for your own due diligence. The Coca-Cola Company (KO): Buffett is heavily invested in this global beverage producer and distributor. He currently holds 200 million shares of Coca-Cola, which makes up almost 25% of his portfolio. Coca-Cola sells products in over 200 countries through more than 500 brand names. It also has a market cap of $155.90 billion. The current quarterly dividend is $0.47 and a projected annual dividend yield of 2.7%. Coca-Cola has $12.28 billion in cash and $26.22 billion in... more

6 High Yield Large Cap Energy Utilities: Recent Performance and Dividend Growth Analysis

Before those pension funds, widows and orphans all got sophisticated and started to swap debt obligations, these long-term investment groups were primarily associated with utility investments. Utilities are purveyors of necessities, and usually at a government regulated price and restricted competition. Due to the government regulated pricing and distribution of utilities, they are considered generally reliable and predicable businesses, though issues such as the recent renewed concern over nuclear power can occur. Nonetheless, the regulated nature of their businesses tends to make utility dividends reasonably secure, though this security means that the dividends are unlikely to grow at a rapid pace. Utilities are also generally far less volatile than the market, and the demand for... more

S&P 500 High Yield Financials: Recent Performance, 5-Year Dividend Growth Analysis

Many investors seek out high yielding investments, but a high yield with strong dividend growth is often better than a temporarily high dividend. With this in mind, I continue to review the 5-year dividend payout history of companies that come up through high-yield screens. This article is a review of the performance of companies within the financial sector that currently yield at least 4% and which are included in the S&P 500 (SPY). Below are the six financials within the S&P 500 that met this profile, along with their 5-year dividend growth history, current yield percentage and 2011-to-date performance.
1. Cincinnati Financial Corp. (CINF) Industry: Property & Casualty Insurance Yield: 5.7% 2011 Performance: -12.21%... more

5-Year Dividend Growth Analysis of the 2011 Dow Dogs

Many investors have been craving higher yielding investments lately. The interest rate most banks now offer for cash and CDs is nearly nothing, and getting lower all the time. Additionally, short and intermediate term U.S. Treasuries aren’t much better, according to the Department of the Treasury’s daily yield curve rates. Worse yet, U.S. debt is facing downgrade fears. As a result, many investors are avoiding the bond markets and the potential depreciation there-- should we finally enter a higher rate environment-- and looking for stable large-cap equities that can fill the fixed income portion of their portfolio. There are literally thousands dividend paying equities and funds (of the mutual, closed-end and exchange traded varietals). At least a few must be terrible investments... more

5 Low Beta Dividend Stocks Yielding Over 5%

The U.S. economy continues to have significant headwinds (e.g., high unemployment, end of QE2, weak housing market, debt ceiling debate, etc.) and signs are definitely pointing toward further weakness in the equity market.In the current market environment, it is important for income investors to choose their dividend stocks wisely as they are putting new money to work. As volatility increases (especially downside volatility), investors may want to add some low beta stocks to their holdings to help dampen portfolio volatility. In general, companies with low betas will tend to be less volatile than the general market.With that in mind, we did a screen with the following parameters to find companies that had high dividend yields, low betas, and P/E ratios under 20: Dividend Yield > 5% ... more

Valero's Dividend Is Safe

Here, we'll highlight a given company and its closest competitors to see just how safe their dividends are, with a little help from three crucial tools: The interest coverage ratio, or earnings before interest and taxes, divided by interest expense. The interest coverage ratio measures a company's ability to pay the interest on its debt. An interest coverage ratio less than 1.5 is questionable; a number less than 1 means that the company is not bringing in enough money to cover its interest expenses. The EPS payout ratio, or dividends per share divided by earnings per share. The EPS payout ratio measures the percentage of earnings that go toward paying the dividend. A ratio greater than 80% is worrisome. The FCF payout ratio, or dividends per share divided by free cash... more

Caterpillar's Dividend Is Safe

Here, we'll highlight a given company and its closest competitors to see just how safe their dividends are, with a little help from three crucial tools: The interest coverage ratio, or earnings before interest and taxes, divided by interest expense. The interest coverage ratio measures a company's ability to pay the interest on its debt. An interest coverage ratio less than 1.5 is questionable; a number less than 1 means that the company is not bringing in enough money to cover its interest expenses. The EPS payout ratio, or dividends per share divided by earnings per share. The EPS payout ratio measures the percentage of earnings that go toward paying the dividend. A ratio greater than 80% is worrisome. The FCF payout ratio, or dividends per share divided by free cash... more

General Electric's Dividend Is Safe

Dividend investors know that it pays to follow how much of a company's money goes toward funding its payouts. A nice yield now won't matter much if the company can't keep making those payments going forward. Here, we'll highlight a given company and its closest competitors to see just how safe their dividends are, with a little help from three crucial tools: The interest coverage ratio, or earnings before interest and taxes, divided by interest expense. The interest coverage ratio measures a company's ability to pay the interest on its debt. An interest coverage ratio less than 1.5 is questionable; a number less than 1 means that the company is not bringing in enough money to cover its interest expenses. The EPS payout ratio, or dividends per share divided by earnings per share.... more

UPS's Dividend Is Safe

Dividend investors know that it pays to follow how much of a company's money goes toward funding its payouts. A nice yield now won't matter much if the company can't keep making those payments going forward. Here, we'll highlight a given company and its closest competitors to see just how safe their dividends are, with a little help from three crucial tools: The interest coverage ratio, or earnings before interest and taxes, divided by interest expense. The interest coverage ratio measures a company's ability to pay the interest on its debt. An interest coverage ratio less than 1.5 is questionable; a number less than 1 means that the company is not bringing in enough money to cover its interest expenses. The EPS payout ratio, or dividends per share divided by earnings per share.... more