David I. Templeton

81 Dividend Growers to Consider

I do not think ROE or coverage can be looked at on a standalone basis. ROE provides an investor with a GAAP looked at earnings return while coverage provides some insight into the quality of the company's actual "cash flow". An important aspect of dividend growth investing is it does provide a window into the cash flow quality of a company.


On Jun 26 08:29 AM Living4Dividends wrote:

> Hi - terrific article - I like the focus on dividend safety and dividend
> supportability (dividend coverage).
>
> Question: The dividend coverage ratio is the classically used gold
> standard for predicting dividend safety. David - A while ago you
> published a terrific article that said ROE was a good predictor of
> dividend safety.
>
> Because I am an income investor, I am very interested in dividend
> safety. David - In your opinion, which is better, ROE or coverage?
> Have you seen any studies to support a conclusion?
>
> I

81 Dividend Growers to Consider

Esstentially the dividend payout ratio is less than 50% based on 2009 and 2010 earnings estimates.


On Jun 24 08:18 AM BlueOkie wrote:

> 2009 estimated coverage and 2010 ratio of at least 2-to-1 (based
> on street estimates divided by the current 12 month indicated dividend
> rate)
>
>
> I have no idea what this means