2 Mining Dividends to Buy and 1 to Avoid
With investor interest in metals at its highest in years, many companies in the mining sector have turned to attracting investors by paying out a dividend. We don't often think of mining companies when we think of receiving a dividend, but make no mistake about it, there are companies in this sector making noise on the dividend front -- and you should be taking notice. On the flip side, there's one company in particular whose payout just may prove too good to be true. Newmont Mining (NYSE: NEM) -- Trust itThis isn't Las Vegas, but Newmont Mining is giving its shareholders the potential to cash in just like the pros.... more
McDonald's: Dividend Dynamo or Blowup?
Let's examine how McDonald's (NYSE: MCD) stacks up in four critical areas to determine whether it's a dividend dynamo or a disaster in the making. 1. YieldFirst and foremost, dividend investors like a large forward yield. But if a yield gets too high, it may reflect investors' doubts about the payout's sustainability. If investors had confidence in the stock, they'd be buying it, driving up the share price and shrinking the yield.... more
Snyder's-Lance: Dividend Dynamo or Blowup?
Let's examine how Snyder's-Lance (Nasdaq: LNCE) stacks up in four critical areas to determine whether it's a dividend dynamo or a disaster in the making. 1. YieldFirst and foremost, dividend investors like a large forward yield. But if a yield gets too high, it may reflect investors' doubts about the payout's sustainability. If investors had confidence in the stock, they'd be buying it, driving up the share price and shrinking the yield.... more
Pitney Bowes: Dividend Dynamo or Blowup?
Let's examine how Pitney Bowes (NYSE: PBI) stacks up in four critical areas to determine whether it's a dividend dynamo or a disaster in the making. 1. YieldFirst and foremost, dividend investors like a large forward yield. But if a yield gets too high, it may reflect investors' doubts about the payout's sustainability. If investors had confidence in the stock, they'd be buying it, driving up the share price and shrinking the yield.... more
36 Companies Likely to Raise Dividends in the Next 10 Weeks
In compiling the Dividend Champions list I get to see what companies are nearing the anniversaries of their previous dividend increases. Since most of these firms raise their payout about the same time every year, I can say with some confidence that they are likely to do so again. Quiet Time For the previous article in this series, I extended the forward look to a period of about 10 weeks. But as I explained in last week's article about the seasonality of dividend increases, we are in the slowest part of the year in terms of activity. But while the fewest increases carry a July Ex-Dividend Date (and August Pay Date), those coincide to some extent with June Announcements, so we may have passed the very slowest period of increases in terms of increased dividend declarations. Of the 28... more
Cincinnati Financial Corp. (CINF) Dividend Stock Analysis
This article originally appeared on The DIV-Net June 20, 2011. Linked here is a detailed quantitative analysis of Cincinnati Financial Corp. (CINF). Below are some highlights from the above linked analysis: Company Description: Cincinnati Financial Corp. markets primarily property and casualty coverage. It also conducts life insurance and asset management operations. Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number CINF is trading at a discount to only 4.) above. The stock is trading at a slight premium to its calculated fair value of $28.13. CINF... more
4 Dividend Stocks Showing You the Money
Readers of the Income Investor newsletter can certainly appreciate that kind of thinking. Let's take a closer look at some of the companies that inched their payouts higher this past week. Let's start with Best Buy (NYSE: BBY) . In a preemptive strike to appease its shareholders before the struggling consumer electronics giant's annual meeting, the superstore chain beefed up its stock buyback and juiced up its quarterly dividend by 7% to $0.16 a share.... more
5 Dividend Stocks With 50+ Years of Dividend Growth
A lot of dividend growth investors tend to be particularly attracted to the lists of Dividend Achievers, Aristocrats, Champions, and for good reason. A company that has enough staying-power, enough discipline, and enough success to consecutively increase regular annual dividends for decades can provide a strong psychological advantage to both investors and management. A long history of success is not necessarily an indicator of future performance, but a company’s culture and economic advantages can become apparent by studying such lists. Some companies go above and beyond even the most impressive of lists, and attain records of consecutive dividend growth that exceed 50 years. Presented below is a non-exhaustive summary of some of the top dividend payers that have managed to... more
8 Dividend Stocks Laying Golden Eggs for Shareholders
The story of the golden goose describes very well the world of dividend investing. On the outside, dividend stocks act like normal stocks as they go up in bull markets and go down in bear markets. On the inside however, these cash machines generate so much in excess cash flow that they are able to successfully reinvest in their business, while also paying higher dividends every year. Investors who hold onto their dividend growth stocks get a dividend check every quarter. Selling those dividend stocks and investing in the next hot tech stock would mean that investors would not be getting their golden eggs in a timely manner anymore, and would be at the mercy of the markets for their returns.Several golden geese, announced plans to deliver higher dividends ( larger golden eggs) to their... more
7 Stocks With Dividend Yields Over 5%, Low Debt Levels, And Stable Cash Flow
The U.S. economy continues to have significant headwinds (e.g., high unemployment, end of QE2, weak housing market, high debt levels, 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. A good place to start your analysis is a Company's financial statements. In general, companies with low levels of debt and stable cash flow will tend to have the stability to weather an economic storm. With that in mind, we did a screen with the following parameters to find companies that had high dividend yields, low debt levels, and stable cash flow: S&P 500 Stocks Dividend Yield > 5% Avg. 3m Volume > 1,000,000 Stock Price > $10.00 EBITDA >... more