Monday, August 15, 2011

Cullen and Frost, symbol CFR, dividend machine for August, 15, 2011

State Seal of TexasImage via Wikipedia

Dividend machine, Cullen and Frost Bankers, symbol CFR, has been on my radar screen for quite a while.  CFR was just a bit too expensive for me and I was too nervous to buy it at a recent low of $43.04 in February of 2009.

I should have bought it at $43.04 in 2009.  When CFR corrected again to $46.12, I should have bought it.  On Friday, August 12, 2011, CFR closed at $49.71 and I am going to consider it as a buy at around $49.50

My rationale is that I have missed an opportunity to buy a very reliable and increasing dividend producing company.  CFR earns $3.52 per share per year.  CFR's dividend is $1.84 per share per year; based on Friday’s closing price of $51.54, the yield is 3.57 percent.  Not only does CFR meet our dividend machine criteria of at least a three percent yield and earning more money per share than it pays us in a dividend, CFR has a very respectable D/E ratio (debt to equity ratio) of .44; furthermore, CFR meets our final hurdle of having increased the dividend every year for at least five years.

CFR provides banking services in Texas.  When I think of investing in banks, I want to run and hide, but CFR has a wonderful record of accomplishment.  Any company that meets TheMoneyMadam’s four very strict criteria as a dividend machine deserves consideration as an investment for the income producing portion of your portfolio.

Very Truly Yours,


A new dividend machine every Monday!
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