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Can These 5 Dividend Stocks Deliver?
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Published Sun, 12 Feb 2012 11:10:39 -0500 on Seeking Alpha
The following five companies all yield big dividends. To continue paying dividends at high rates, companies need to have growing or stable earnings that equate to positive cash flows. In this article, I will provide a brief analysis that should shed some light on whether these generous companies will be able to sustain these high dividends or if investors should expect a pullback in payouts. Merck & Company (MRK): Merck paid a $1.56 dividend at a 4.1% rate and is expected to increase that rate to 4.4% for the 2012 annualized yield. It has a payout ratio of 77%, which is on the higher end. A main competitor, Pfizer (PFE), yielded a 3.9% dividend and is expected to increase that to a rate of 4.2%. The difference here is the payout ratio. Pfizer is more conservative with a payout ratio of 63%. In the second quarter of 2011, dividends paid... Read more


