Hewlett-Packard'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
Is Aflac's Dividend 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 one 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
ExxonMobil'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
D4L-Data: 10 Highest Yielding Dividend Stocks
Information is powerful, but its sheer volume can be overwhelming. Screens and filters allow us to condense vast amounts of data into the targeted information we are looking for. This is the first installment of a new series where I screen for one or more attributes in my database (D4L-Data) and present the information in its raw form. Obviously, this is not a buy list but a potential idea list that will require additional due diligence.... more
20 Companies Expected to Hike Dividends in the Next 2 Months
In compiling the Dividend Champions list (found here), I get to see which 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. Format Modified With this article in the new twice-monthly format, I'm extending the forward look to a period of more than nine weeks. The previous article, which appeared on May 11th (it can be found here), extended the forward look from eight weeks to 60 days. But there were still some companies – such as Clorox (CLX) - that announced increases more than two months before the next Ex-Dividend Date, so I'm extending the “forward look” again and, if necessary, could aim for ten... more
6 Significant Dividend Yields in the Healthcare Industry
The healthcare industry, with increasing regulation, variably strong and weak pipelines, and substantial risk, can be a potentially lucrative sector. Blue chip healthcare companies, as a whole, generally lagged the overall market over the last two years. But prudent investors know that some of the best buys can be found when the consensus is not cheery, and that diamonds can be found in the rough of most out-of-favor industries. With an aging population in many developed nations, and the universal need for bodily and mental care, healthcare companies with strong fundamentals, reasonable growth prospects, and shareholder friendly management may be poised to offer significant overall shareholder returns over the long-term, both in the form of passive income and capital appreciation. Here... more
An Oil & Gas MLP Primer and 7 That Currently Yield Over 5%
A Master Limited Partnership (“MLP”) is a limited partnership that is publicly traded on a securities exchange. MLPs combine the tax structure of limited partnerships with the liquidity of publicly traded securities, as most private partnerships are relatively highly illiquid when compared to the public equity markets. MLPs usually provide their investors, the limited partners, with distributions. Oil & Gas MLPs MLPs are limited to certain businesses, mostly involving natural resources. The most popular recent form usually involves oil and gas drilling and/or transportation, though several real estate businesses may qualify as MLPs (the structure and tax requirements are similar to REITs). Several, private equity companies are also structured as MLPs. Most MLPs are... more
19 Highly Profitable High-Yield Stocks
If you’re interested in income investments, you may find this list very helpful. Here we report 19 stocks with high dividend yields above 4%. These stocks are also highly profitable, beating their industry averages of TTM gross, operating, and pretax margins.click on all images to expand Do you think these are attractive sources for income? Use this list as a starting-off point for your own analysis. List sorted by dividend yield.1. Kinder Morgan Energy Partners LP (KMP): Oil & Gas Pipelines Industry. Market cap of $23.35B. Dividend yield at 6.23%. Gross margin (TTM) at 39.00% vs. industry avg. of 33.20%. Operating margin (TTM) at 21.84% vs. industry avg. of 15.71%. Pretax margin (TTM) at 18.65% vs. industry avg. of 15.32%. The stock has gained 26.2% over the last year. 2. Pitney Bowes... more
Markets Have Jumped the Shark; 3 Dividend Stocks to Help You Still Make Money
One of the best pop culture idioms of the last 30 years would definitely be “jumped the shark” which, of course, references the 1977 season premiere of “Happy Days”. The episode’s climax featured the Fonz performing a water ski jump over a shark. The series pretty much went downhill from there. Although, I think the series went downhill when Al Molinaro replaced Pat Morita as the proprietor of Mel’s Drive In, but that‘s one man‘s opinion. That being said, markets and a lot of conditions that affect them have jumped the shark.The whole “OH GOD INFLATION’S COMIN’ AND IT’S GONNA BE LIKE GERMANY IN THE 20’S… AIEEEEEE!!!” argument has made the leap. Inflation’s happened and it sucks. But it’s far from Weimar Republic style (which was really Germany... more
30 Dividend Monsters That Hedge Funds Love the Most
We love high dividend stocks and consider them as one of the best options for conservative investors. We don't like Fed's inflationary monetary policy and Federal government's huge budget deficits. We think high dividend yielding stocks will perform much better than the 10-year Treasuries over the next 10 years. One of the ways of picking the best dividend stocks is to invest in what prominent hedge funds like. Insider Monkey tracks more than 300 hedge funds that mostly use fundamental analysis to make investment decisions. We look for at least a 5% dividend yield and $3 Billion in market cap. Here are the 30 dividend monsters that hedge funds love the most: Stock Ticker Yield Hedge Funds Eli Lilly & Co. LLY 5.1 30 Verizon... more