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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,
TheMoneyMadam
A new dividend machine every Monday!
