Wednesday, December 26, 2012

Dividend Machine for week of 12/24/2012 Republic Services, RSG




2012's Final Dividend Machine - Republic Services, Inc. RSG

            When you return from Christmas celebrations, you might want to consider adding this week’s dividend machine company to your income portfolio quickly because it goes ex-dividend.  If you own Republic Services, symbol RSG, by December 28, 2012, you will receive their quarterly dividend of $.235 on January 16, 2013.

            I do not actually believe anyone should rush into buying a stock.  However, investing on a regular basis leads to a well balanced portfolio, so if you are in the habit of adding to your income portfolio on a weekly basis, or even a monthly basis, and RSG is a good fit, this would be a good time to buy.   Buying this close to the dividend means you tie up your principle for a very short time before you get a paycheck.

            RSG is not an investment that will provide covered call income. It is a pretty boring company.  RSG has been a steady dividend payer and has increased the dividend every year for 5.7 years.   The stock closed on Christmas Eve. at $29.74.  Their annualized dividend yield at that price is 3.16%.  RSG manages debt well; their D/E ratio is .92.

            The table below presents the dividend machine fundamentals for RSG.







DIVIDEND MACHINE
12/24/2012


Republic Services
RSG


Price when profiled
$29.74


Last 4 Qtrs Earnings
$1.71


Last 4 Qtrs Dividends
$0.94


Current Qtr Dividend
$0.24


Annualized Div Yield
3.16%


No. Years Div Increase
5.7


Debt/Equity ratio
92.00%






            I will be back in 2013 to continue to share my income investing strategy and share my picks with you.   I have not yet decided on the format for 2013.   One of my goals for 2013 is to analyze and publish reports on how the two portfolios (2011 Dividend Machines and 2012 Dividend Machines) performed.   After all, without measuring results, this strategy is incomplete.


Very Truly Yours,
       



TheMoneyMadam

Wednesday, December 19, 2012

Dividend Machine for week of 12/17/2012 York Water Company, YORK



York Water Company’s most recent quarterly report says a lot about this company being included in my list of dividend machines for 2012.


 News Release


THE YORK WATER COMPANY ANNOUNCES AN INCREASED 568th DIVIDEND
196 CONSECUTIVE YEARS: LONGEST DIVIDEND RECORD IN AMERICA
York, Pennsylvania, November 20, 2012: The York Water Company's (NASDAQ:YORW) 
President and CEO, Jeffrey R. Hines, announced today that the Board of Directors at their 
November 19th meeting declared a quarterly dividend of $0.1383 per share, an increase of 3.5%.
The annualized dividend yield based on yesterday’s stock market closing is about 3.2%. The dividend is
payable January 15, 2013 to shareholders as of record date December 31, 2012.
This is the 568th consecutive dividend to be paid by The York Water Company and is the sixteenth
consecutive year that the Company has increased its dividend. York Water, which is the oldest investor
owned utility in the nation, has paid dividends for 196 consecutive years beginning in 1816. 
This is believed to be the longest record of consecutive dividends in America.


It should be no surprise that YORK was a 2011 dividend machine: I have provided a link to that post here.  http://www.themoneymadam.com/2011/05/dividend-machine-york-water-co-symbol.html

YORK’s dividend machine criteria are presented in the table below.






DIVIDEND MACHINE
12/18/2012


York Water Company
YORK


Price when profiled
$17.49


Last 4 Qtrs Earnings
$0.70


Last 4 Qtrs Dividends
$0.52


Current Qtr Dividend
$0.14


Annualized Div Yield
3.16%


No. Years Div Increase
196


Debt/Equity ratio
86.00%








Consider this little company for the income producing portion of your investment portfolio.
                                                                                                   

Very Truly Yours,


TheMoneyMadam

Thursday, December 13, 2012

Portland Electric symbol POR Dividend Machine for week of December 10, 2012


Portland Electric (POR) is my Dividend Machine for week of December 10, 2012

           

            My dividend project requires me to add the first company that qualifies as a dividend machine to my weekly list.   I do not search every day.    When I search for a dividend machine, I use several sources including TheStreet.com’s ex-dividend calendar; the Wall Street Journal’s dividend change feature, and sometimes I just run across a company through press releases or general news.   This week I started with TheStreet.com and found this company in the first group of stocks I researched.

 

            Portland Electric is an electric utility in the Northwest.  Today it traded around $27.28.  If you own it by December 21, 2012, you will receive the quarterly dividend of $.27 on January 15, 2012.  This is an annual dividend yield of 3.97%.

 

            Fundamentally, Portland Electric is a solid dividend machine.  POR’s earnings for the last four quarters were $1.87 and dividends paid out for the same period were $1.07.  Dividends have increased every year for six years.  Debt to equity ratio (D/E) is 1.01.  These data are presented in the table below.

 






DIVIDEND MACHINE
12/12/2012


Portland Electric
POR


Price when profiled
$27.28


Last 4 Qtrs Earnings
$1.87


Last 4 Qtrs Dividends
$1.07


Current Qtr Dividend
$0.27


Annualized Div Yield
3.95%


No. Years Div Increase
6


Debt/Equity ratio
101.00%





           

            I never try to sell my dividend picks.   Remember the dividend machine project requires discipline and therefore specific rules.   I do not pick the best dividend machine each week; I profile the first one that complies with my rules.  With that said, I occasionally provide the fifth dimension which is my or another person's opinion in support or dissent.

 

            In support of POR is David Dreman.   Read his review from Seeking Alpha in this link.http://seekingalpha.com/article/1057481-5-value-dividend-stocks-for-investing-like-a-contrarian?source=msn

 

Consider POR for the income producing portion of your portfolio and fear not going over the “fiscal cliff.”

 

Very Truly Yours,

 

TheMoneyMadam