Dividend Stocks That Make the Grade

Published Wed, 20 Apr 2011 18:45:10 GMT on The Motley Fool

The initial criteria I used for my screen were: Return on assets of 1% or more (to eliminate inefficient financials). Dividend yield of 3% or higher. Debt to equity ratio of 50% or less. We don't want high-risk debt-laden companies with dividends likely to be cut or disappear. Five-year dividend growth rates in the 70th percentile. You want companies that have shown a track record of increasing their payouts. Dividends to free cash flow of around 50% or less. This one I check for manually after the initial screening. There were 62 stocks that came up based on the first four criteria. Here are five that passed the final test and are worth a closer look, based on safety of the dividend and long term catalysts.... Read more


Stock name                                 ISIN Last trade   P/E Earnings/Share Dividend/Share Dividend yield
TERRA NITROGEN
US8810052014 124.01   12.3 10.06 11.52 9.45
CAL-MAINE FOODS
US1280302027 52.41   7.0 7.49 1.76 3.48
INTEL
US4581401001 30.61   13.0 2.35 1.04 3.43