Monday, September 26, 2011

Dividend Machine for September 26, 2011 Landauer, symbol LDR

Patient treating room for neutron radiation th...Image via Wikipedia

                When I started this simple income investing  project that includes  finding at least one company per week that qualifies as a dividend machine, my theory was that 52 companies are just about the right number of companies for a large portfolio.  Fewer companies are okay but you risk too much concentration in one company or industry.  More than 52 and you have trouble tracking them.  I know this much from my many years of investing my money and that of others, you need to diversify; never risk everything on one endeavor.  Equally, portfolios with 100 holdings usually underperform as far as income is concerned; and income in the sole purpose of this investing for income blog.

                We are now up to week 45 and the pickings are getting slim.  My dividend machine selection this week is Landauer, symbol LDR.  Landauer produces and provides scientific and technical instruments for use in environmental radiation exposure measurements.  They are a global company and they are a volatile company.  In spite of their very volatile price range, LDR has raised their quarterly dividend every year for at least five years and has sweetened the dividend during the good times.

                Landauer earns $2.54 per share per year and pays out $2.20 in dividends per year.  At the closing price on Friday, September 23, 2011 of $46.68, the yield is 4.52%.    Landauer’s .15 debt to equity ratio is why LDR prevailed this week.    I could have picked a few other companies but each had high D/E ratios.  We income investors want high income but we also want to invest in companies that just might make it through the European debt crisis

Very Truly Yours,
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