11 Dividend Boosting Utilities Stocks

In a recent article, we provided a list of large-cap Consumer Goods stocks with high dividend yields and a recent dividend growth. Although high dividend yields are usually the most important criteria in picking defensive stocks, some conservative investors may also seek a recent dividend boost. Since a recent dividend growth may suggest further increases in dividend yields, the stocks with dividend boost have decent potential upsides in the upcoming inflationary environment. Hence, we believe high dividend yielding stocks that increased their dividend payouts in the last year are appealing to conservative investors that seek some inflation protection. Like Consumer Goods sector, Utilities sector also contain many stocks with a dividend boost last year. We compiled a list of... more

Lawson Products' 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 flow per... more

ConocoPhillips: Dividend Dynamo or Blowup?

Let's examine how ConocoPhillips (NYSE: COP) 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

Should You Avoid These 7 Debt-Laden Companies?

Some sectors come with a predisposition to debt. Railroads, utilities, shipping, and oil exploration, to name a few, all represent sectors that have little choice but to dip into debt to purchase the infrastructure needed to grow their businesses. But some companies leave you scratching your head, wondering if that mountain of debt on their balance sheet is sustainable or eventually a deal breaker. Below I've highlighted seven companies that exhibit significantly higher than normal debt-to-equity ratios either in relation to their peers or to the market in general. Some of these companies do indeed have bright futures, while others may be on the downswing of their existence as a publically traded company. While I can't tell you whether you should buy or sell these companies, I can... more

Verizon: Dividend Dynamo or Blowup?

Let's examine how Verizon (NYSE: VZ) 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

Cincinnati Financial: Dividend Dynamo or Blowup?

Let's examine how Cincinnati Financial (Nasdaq: CINF) 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

Heartland Express' 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

CMS Energy: Dividend Dynamo or Blowup?

Let's examine how CMS Energy (NYSE: CMS) 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

R.R. Donnelley & Sons: Dividend Dynamo or Blowup?

Let's examine how R.R. Donnelley (Nasdaq: RRD) 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

Cato'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