Dividend-News
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Measuring Dividend Safety
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Published Tue, 29 May 2012 16:40:36 -0400 on Seeking Alpha
One investing goal is finding undervalued companies where the dividend is not only safe but has the ability to grow going forward, providing a steady income stream. The idea for this article came after reading David Van Knapp's article titled, "Modern Dividend Theory Explained Part 2: Risk And Diversification." David stated: I am not aware of an analogous mathematical measure of the risk that a dividend stream will be reduced. Clearly, it is a function of the stability and predictability of dividends themselves. For now, I do not have nor am I going to attempt to invent a mathematical function that describes the risk to dividends or to dividend growth. Common experience suggests that the risk to dividends is far lower than price risk, but I don't know how to quantify that. The following is certainly not a complicated mathematical algorithm that would make a derivative expert blush but an... Read more
Stock name ISIN Last trade P/E Earnings/Share Dividend/Share Dividend yield FRONTIER COMMUNICATIONS 
US35906A1088 4.32 28.2 0.16 0.40 9.26 AT&T
US00206R1023 37.22 29.2 1.28 1.80 4.84 VERIZON COMM
US92343V1044 52.74 134.1 0.40 2.06 3.91 MCDONALDS
US5801351017 101.54 18.8 5.39 3.08 3.03 MICROSOFT
US5949181045 35.08 18.0 1.94 0.92 2.62