5 Must Own Stocks for Dividends and Growth
With recent market volatility we have received a lot of questions of where to put money for income investing. Making a few assumptions, that the U.S. figures out the debt ceiling issue before it explodes in the politicians’ faces and that Europe can keep Greece and the other PIIGS from the world’s financial news front pages, we feel comfortable putting this money to work in large-cap, dividend paying companies. We like the multinationals which have nice dividend and favorable growth prospects in emerging markets. Here are a few of the stocks we like: Whirlpool Corporation (WHR) The iconic appliance manufacturer under such brand names as Whirlpool, Maytag, KitchenAid, Amana and many others trades at an attractive price-to-earnings multiple of approximately 9.5 at the current price... more
International Paper'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
RadioShack'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
S&P 500 Stocks With High Yield, Persistent Dividends and Strong Charts
We think using a combination of price behavior and fundamental criteria is a good way to go about selecting stocks for a portfolio. We also think achieving a significant part of total return from cash dividends is a good thing too, at least for investors who need to draw on their portfolios to support lifestyle over the long haul. For a first pass at fundamentals, a long-term pattern of persistent, consistent dividends is a reasonable start. Along those lines of thinking, there are 15 members of the S&P 500 that could make some sense for equity income investors. The price behavior filter was: 200-day linear regression slope > 0 100-day linear regression slope > 0 price > 200-day average 100-day average > 200-day average price > midpoint of 63-day price channel ... more
Goldcorp'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
CMS Energy'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
Fidelity National Financial'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
6 Diversified Telecommunication Providers Paying Substantial Dividends
Within the service sector, I like the telecommunication stocks the most. Telecommunication stocks in global markets are among my favorites. I expect the telecom service providers to be a strong outperformer in the next 5 years. While the returns might not be speculatively high, with solid dividends, they will surely beat other stocks with a large margin. I particularly think the E.U.-based telecom service providers are undervalued due to debt concerns. Here, is a list of 6 diversified telecommunication providers paying substantial dividends (Data from Finviz, and current as of the June 7 close):AT&T (T) founded in 1983 and headquartered in Dallas, Texas, provides telecommunication services to consumers, businesses, and other service providers worldwide. While AT&T is known to be a U.S... more
6 Dividend Kings in Jim Simons' Portfolio
Jim Simons, founder of Renaissance Technologies, is one of the most successful hedge fund managers in the world. He is the CEO of the New York-based Renaissance Technologies. Simons is known as a mathematician, and he employs mathematicians, physicists, and statisticians with no financial background . According to Forbes, with net wealth of $10.6 billion, he ranks among the top 30 billionaires in U.S. According to Edgar Online, Renaissance Technologies LLC has $24.2 billion invested in U.S. equities. While one might think that a math-driven investment strategy invests in high-fliers, statistical analysis offers significant evidence that dividend paying stocks beat the market with lower volatility. It is not surprising to see his top stocks are also among the best... more
8 Dividend Champions With Bullish Short Trends
One helpful way to chose among dividend stocks is by finding those with long histories of raising their dividend. Not only is this preferable to income investors, but it also indicates a history of good company performance. Here we report eight “dividend champions,” companies that have consistently raised their dividend over the past 25 years. These companies also have seen bullish trends in the number of shares shorted, seeing sharp decreases month-over-month. (Note that all companies have greater than a 1% dividend yield.) Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Your browser does not support iframes. Use this list as a... more