Monday, May 2, 2011

Westwood Holdings Group, symbol WHG Dividend Machine May 2, 2011


To know me is to know that I do not like mutual funds.  However, I know that a lot of people invest in mutual funds. I know that very wealthy families and foundations pool their funds to enjoy the benefits of economies of scale and influence. For ordinary investors, however, I have not been fond of mutual funds.  I will write more about that in the future.  Look, mutual funds are popular with ordinary investors and with larger groups.  It is a growing business.  The companies that own and run mutual funds make money.

We income investors like companies that are successful at what they do and Westwood Holdings Group, Inc., symbol WHG is one of the best.  The point of selecting WHG as one of our 52 dividend machines is that we get to share in this successful company's earnings.  WHG has paid a dividend for almost 10 years.  WHG meets our criteria as a dividend machine.  It makes more money than it pays out; earnings per share (EPS) are $1.67 per share per year and the dividend is $1.40.  

WHG’s dividend yield, based on the closing price of $37.65 is 3.72%.  WHG has increased the dividend consistently and holds no debt.   

As a dividend machine, WGH fits all our criteria and provides just a little more diversification.  We have been through tough financial times lately and finding an investment advisory company that was able to continue to pay the dividend and consistently increase the dividend during that period is a nice opportunity.

Very Truly Yours,
TheMoneyMadam

Enhanced by Zemanta