Dividend-News

Daily dividend news for investors in dividend stocks


Altria's Dividend Is Safe


Here, we'll highlight a given company and its closest competitors to see just how safe their dividends are, with a little help from three crucial tools: The interest coverage ratio, or earnings before interest and taxes, divided by interest expense. The interest coverage ratio measures a company's ability to pay the interest on its debt. An interest coverage ratio less than 1.5 is questionable; a number less than 1 means that the company is not bringing in enough money to cover its interest expenses. The EPS payout ratio, or dividends per share divided by earnings per share. The EPS payout ratio measures the percentage of earnings that go toward paying the dividend. A ratio greater than 80% is worrisome. The FCF payout ratio, or dividends per share divided by free cash... more


The Motley FoolStock symbol(s): MO,RAI,PM,LO

Is Weyerhaeuser's Dividend Safe?

Here, we'll highlight a given company and its closest competitors to see just how safe their dividends are, with a little help from three crucial tools: The interest coverage ratio, or earnings before interest and taxes, divided by interest expense. The interest coverage ratio measures a company's ability to pay the interest on its debt. An interest coverage ratio less than 1.5 is questionable; a number less than one means that the company is not bringing in enough money to cover its interest expenses. The EPS payout ratio, or dividends per share divided by earnings per share. The EPS payout ratio measures the percentage of earnings that go toward paying the dividend. A ratio greater than 80% is worrisome. The FCF payout ratio, or dividends per share divided by... more


The Motley FoolStock symbol(s): WY,TIN,PCL,IP

Highest-Yielding Industrial Stocks (You Might Actually Want to Buy)

What's more, reinvesting dividends acts as a "bear-market protector and return accelerator," according to Siegel. The extra shares purchased and accumulated at higher dividend yields during down periods act as a protector in falling markets, and these extra shares rising in value turn into a "return accelerator" when prices rise. As the recent economic crisis illustrated all too well, however, you can't buy just any high-yielding stock. Dividends that get cut or suspended entirely can wreak havoc on a stock price -- and thus, your portfolio.... more


The Motley FoolStock symbol(s): EMR,ETN,GD,LMT,NOC,RSG,UPS

10 High Dividend Stocks With Strong Growth

In a previous article, we showed that many high dividend yielding utilities stocks achieved consistent dividend growth in the past 5 years. Since many defensive investors seek long records of dividend payments in high dividend yielding stocks, we believe the stocks that were able to increase dividends can be attractive to such conservative investors. Like the utilities sector, the consumer goods sector contains high dividend yielding stocks that achieved consistency in dividend payments. We compiled a list of US consumer goods stocks with high dividend yields and consistent dividend growth. The market data are sourced from Fidelity. All companies in this list increased their dividend payments every year since 2005. These stocks have market capitalization above $1 billion and... more


SeekingAlphaStock symbol(s): AVP,CLX,DBD,HNZ,KMB,LEG,PBI,PG,RAI,VGR

Technology Dividends of the Future

Alas, the day will soon be coming when some tech stalwarts will start paying nice dividends. Though these mature companies will likely leave their rule-breaking, 100%-share-appreciation days behind, a future filled with dividends isn't that bad either. For those who scoff at the power of dividends, you need only read Jeremy Siegel's The Future for Investors. In it, he writes: "Dividends matter a lot. Reinvesting dividends is the critical factor giving the edge to most winning stocks in the long run."... more


The Motley FoolStock symbol(s): BRCM,CSCO,CY,GLW,IDCC,QCOM,TLAB

Income Without the Dividend: A Strategy for Generating Income in a Down Market

As an investor, it is getting harder and harder to put new money to work in the current market environment. The U.S. economy continues to have significant headwinds (e.g., high unemployment, end of QE2, weak housing market, high debt levels, etc.) and signs are definitely pointing toward further weakness in the equity market. If you are an income investor utilizing dividend stocks for income, you are in a precarious position. If the equity market experiences a significant downturn, all stocks will likely decline in price (even high quality dividend stocks), and there is a chance that your entire dividend yield could be wiped out by a falling stock price (over the short-term). Generating Income in a Down Market We think that selling cash-secured puts on high-quality dividend stocks is a... more


SeekingAlphaStock symbol(s): ABT,COP,MO,PG,PM,T,VZ

10 IRA-Minded Stocks With Attractive Yields

The stocks in the following list have only two common features. They provide attractive yields and I either own each of them personally in an IRA or have purchased them for other family members in their IRAs. Most are corporations that pay common dividends although one is a REIT and two are partnerships where payouts are called distributions and based on earnings. Three are telcos, two are in the energy sector, one is a mortgage REIT and there are one each in food, entertainment, pharma and electric utility segments. Some dividends appear safe, others can be expected to grow, others require a belief in management statements and at least one can be expected to decline. AT&T (T) – AT&T is the first of three telcos on this list. Over the past 10 years it has increased the... more


SeekingAlphaStock symbol(s): BGS,FE,FTR,FUN,HNZ,IVR,MRK,PEP,SPH,T,VZ,XOM

5 Defensive Dividend Income Stocks

When the stock market becomes volatile, investors can find solace in defensive stocks. Often times, these stocks have a beta of .5 to .75. In other words, these stocks move upward or downward at 50% or 75% of the overall stock market. Defensive stocks have a business model which succeeds during economic booms and economic bust cycles. Examples of these types of business models include firms selling alcohol or tobacco, utility stocks, or fast food franchises. Altria Group Inc. (MO)Altria's sustainable competitive advantages clearly are focused upon two core product lines: Cigarettes: Market share leader Marlboro's. Smokeless tobacco: market share leaders Copenhagen and Skoal The tobacco industry's sustainable competitive advantage includes a modern, regulated industry.... more


SeekingAlphaStock symbol(s): DLR,GOV,MO,PM,SNH

Income Ideas: 6 Rallying Dividend Stocks With Low Debt

When companies carry less debt, they’re more likely to continue paying their dividends. This is because debtholders are always paid before dividends, so lower debt payments allow more flexibility to pay a dividend. The moral of the story: If you’re looking for dividend stocks, be sure to check the company’s debt levels. We ran a screen on rallying dividend stocks – stocks paying dividend yields between 2-7% based on the latest quarter, while trading above their 20-day, 50-day, and 200-day moving averages. We also controlled for a sustainable payout ratio below 35%. Among these stocks, we then searched for those with most recent quarter total debt less than 20% of the company’s capital structure. The screen produced 6 stocks, listed below.Your browser does not... more


SeekingAlphaStock symbol(s): BOBE,CIBH,MHLD,MON,NHC,VFC

12 Big Safe Dividend Stocks

Dr. Doom, Nouriel Roubini, warns that a "perfect storm" of economic disasters, which consists of the U.S. budget deficit, slowdown in China, European debt restructuring and Stagnation in Japan, may smash the global economy. However, investors could recession-proof their portfolios by investing in the high-quality dividend-paid stocks to hold up in looming bad economic conditions. 12 Dividend Stocks with Yields Over 3% Below are 12 stocks I screened from Big Safe Dividends website (http://www.bigsafedividends.com/). These are stocks with dividend yields greater than 3% and highest BSD scores. The score is based on factors such as payout ratio, interest coverage, cash flow, relative strength and growth, etc. Stock (Ticker) P/E P/E (Fwd 12... more


SeekingAlphaStock symbol(s): COP,CVX,DD,FL,FNF,HRB,INTC,JNJ,KO,LLY,NOC,OLN,PEP,PG,TWGP,...