Wednesday, March 28, 2012

Dividend Wish List

Dear Income Investors,

I have not yet found the dividend machine for this week.  Although this 2012 dividend project does not use stock price for any purpose other than making sure the yield is at least three percent, today's market made me take a peek at my dividend machines wish list.    I was fishing for yield.

I had no bites today, so I decided to simply list four of the stocks I am looking at.  Here they are:

  1. Chevron's (CVX) current annualized dividend  is $3.24 per share, at $103 your yield will be 3.14%.  I can live with that since CVX has increased the dividend every year for 19 years. 
  2. Coca Cola's (KO)  most recent annualized dividend is $2.04 per share, at $67.50 your yield will be 3.02%.  A meager yield but when compared with other beverage companies the D/E is the best of the group.
  3. Pepsi (PEP), speaking of other beverage companies has an annualized dividend of $2.06 but I want more than KO because PEP's D/E ratio is higher than KO and that is why we need more return to in order to offset the risk.
  4. Finally, Intel's (INTC) annualized dividend is $.84 per share.  At 27 the yield is 3.11%.  They have increased the dividend every year since they started paying out in 2004.
Just a few ideas to hold you over until I find the right dividend machine for this week.

Very Truly Yours,