Dividend Growth Investor

Good Debt Coverage for Sustainable Dividends

LTW,

Did you actually read the article?

Here are some highlights for you:

Some investors typically focus on debt to total assets to gain a perspective on the amount of the leverage the company has. While this method is widely accepted by some investors, I believe that it has some shortcomings, which might prevent investors from seeing the bigger picture. Most importantly comparing debt to total assets does not tell whether a company could service its debt obligations or not.


Dividend investors should generally look for a higher coverage ratio of interest payments. A lower coverage indicates that a decline in earnings could generally make it difficult for the company to service its debt, which could not only jeopardize its dividend payments but also could lead to bankruptcy down the road.


On Oct 14 09:27 PM long term wag holder wrote:

> I don'tunderstand this article. I understand a lot about debt, but
> the numbers in this chart are not explained very well

6 Stocks Currently 'Cursed' with Increased Valuations

Well, the shortcomings of using a straight initial yield approach is that you essentially might end up comparing Apples to Oranges..

If you had to choose between Wal-Mart with its 2.1% yield and a utlity such as American States Water Company (AWR) which yields 3% but has anemic dividend growth, which one would you add to your portfolio?

It would take you about 4 years of 10% annual dividend increases just to get your WMT yield on cost equal to AWR's YOC (assuming that AWR grows dividends at only 1%/annually). What the 3% threshold doesn't tell you however is that if WMT keeps growing its dividend at 10% annually, your yield on cost would be 4.40% in 4 years, while AWR would likely still pay a YOC somewhere in the vicinity of 3%...

I would be writing a post on those factors soon.. Stay tuned :-)

These 47 S&P 500 Dividend Aristocrats Are Good Investment Opportunities

THofler,

Most Aristocrats would generate very good inflation adjusted streams of dividend income. For example some investors who purchased JNJ, PG, MCD, MO 15-20 years ago are now generating double digit yields on cost. MLPs are great for now, but what happens if the US government decides to abolish the MLP structure ( just like the canadian government decided to abolish the income tax structure iby 2011)? chances are yields on MLPs would drop..

In addition to that, when interest rates start increasing,MLPs might be affected negatively in the process.


On Jul 15 11:40 PM THofler wrote:

> I happily own 4 of the above, as well as a few Master Limited Partnerships.
> The more I learn about the MLPs the more I wonder why I should own
> anything else? They are tax advantaged & pay high distribution
> yields. Check out the info at the web site below, especially the
> presentations and publications page,
>
> naptp.org
>
> Why own the aristocrats? For diversification, of course, since MLPs
> are entirely in the energy space.
>
> I also like most any foreign high dividend stock with a good future.
> Since the dollar has recovered some of its value in the FX markets
> in recent months, now is a good time to move some of one's portfolio
> out of the dollar and into these foreign stocks ahead of the next
> dollar decline. I like the Euro integrated oils (BP, E, TOT) and
> recently picked up some of the Brazilian utility CPFL Energia (seekingalpha.com/symbo...).

These 47 S&P 500 Dividend Aristocrats Are Good Investment Opportunities

Avy,

There are several companies on your " list", which have cut dividends in 2009 several months ago.Ganett (GCI) and Legg Mason (LM) are such examples.

Rohm and Haas(ROH) which is also on your list, has been bought out by Dow Chemical several months ago as well.

Check these articles below for an up-to date list of the dividend aristocrats to avoid in 2009:

www.dividendgrowthinve...

www.dividendgrowthinve...

Best Regards,

Dividend Growth Investor

5 Companies with Potential for Higher Dividends

Well i guess cash is king. I do find the yields just right. Most of the highest yielding stocks of 2008 are currently spotting lower yields on cost or zero yields. The picks in this article have the potential to grow their distributions over time.

Dividends: The Secret to Long-Term Returns

Claudio,

Your response is very far from the truth. Asides from a few exceptions the only companies cutting dividends are financials. There are a ton of stocks raising their dividends, right under your nose.

Owning small portions of good businesses you understand (also called shares) has always been the way to prosper in this country. Few if any people have made much money with active trading ( now I exclude money managers and brokers, who make money no matter what by charging you commissions)




On Feb 04 10:59 AM [e-mail] wrote:

> The article is antiquated in light of the current market conditions.
> As previous posters have noted billion dollar banks are basically
> insolvent. Dividends have been cut or eliminated. Many companies
> which were stalwarts of industry are no longer in existence. For
> people investing under the old mentality your time has passed and
> if you continue to invest based on the past your in for a rude awakening
> and a lightening of your retirement account.

My Dividend Portfolio: I Like Beer

If you are a fan of alcohol stocks, have you considered Diageo (DEO) as a global dividend play?

www.dividendgrowthinve...

A Buy & Hold Forever Dividend Stock Portfolio

You have an interesting portfolio. Here's another take on a set it and forget it dividend portfolio.

www.dividendgrowthinve...

Attractive Dividend Stocks in the Buy Zone

Rich,

You might also want to check this article out.

seekingalpha.com/artic...

Attractive Dividend Stocks in the Buy Zone

For those investors who don't have any funds to invest now, they could re-invest their dividend payments or hold tight.

The hammer, actually most of the P/E's on the stocks in the list are below 15.

20 Top High-Dividend Growth Stocks

NTS and JET1C,

Thanks for your suggestions. While the tanker stocks do offer high current yields, their management is not committed to paying a consistent dividend check from quarter to quarter.

The 20 stocks above (with some exceptions) have been raising their payouts to shareholders for more than 25 consecutive years each. The dividend yields are above the market dividend rates. The growth in dividends in most of the stocks in my list above is above average; this will lead to most of them doubling their payment in 5-10 years.

What would you rather have a high dividend yield now which is erratic or a smaller dividend yield now which is growing rapidly?

I have found for myself that chasing high yields doesn't work for me. Thus I tend to stay away from tanker stocks and canadian trusts ( which doesn't mean they should be avoided).

Dividend Aristocrats Handily Outperforming Main Indexes in 2008

Great resource David!
It's great to see that dividends are cushioning the losses for investors this year. To everyone else who believes that this is a short term phenomenon, please check this link out:

dividendgrowth.blogspo...