Monday, January 24, 2011

Dividend Machine Mine Safety Appliances MSA

January 24, 2011

Mine Safety Appliances symbol MSA manufactures health appliances used around the world in the fire service, homeland security, construction, and other industries, as well as the military. MSA has been in business since 1914 but its approach to health safety is not old. MSA has generated record growth in revenue in nine of the past 10 years and they do it with very little debt. MSA is number 10 of the 52 dividend machines for your income investing portfolio I will profile over a year.

Currently MSA earns about $1.08 per share per year. MSA, priced at $30.15 as of the close on Friday, January 21, 2011 will pay a quarterly dividend of $.25 per share on March 10, 2011 provided you own it by February 11, 2011. The dividend yield is 3.32%. D/E ratio is a mere .28. We talk all the time about debt to equity ratio and you know that .28 is very low.

MSA is a recent addition to my portfolio. It is small and not volatile so the opportunity for writing covered calls is minimal. Therefore, I think of this stock as a dividend machine. It has raised the dividend every year for at least 5 years. The average dividend growth rate is 2.2%. The company has global sales and a solid growth pattern that suggests to me I will receive bigger and bigger dividends as time goes on. MSA, a safe, solid, dividend machine; check it out.

Very Truly Yours,