Monday, June 25, 2012

Boost your yield on CVX to over four percent this year!

Chevron (CVX) Dividend Machine for week of June 25, 2012


Chevron, symbol CVX, is a wonderful dividend machine.  Just look at the fundamentals presented below to see how CVX performs on our four key dividend machine criteria.  Earnings over the past four quarters have been a robust $13.62 per share; paid dividends were $3.30 per share.   At today’s stock price of about $98.90 the dividend yield is 3.64%.   CVX just raised the quarterly dividend from $.81 per share to $.90 per share.  CVX has raised the dividend every year for 19 years; moreover, this company performs like this with only a 3% D/E ratio.

Thursday, June 21, 2012

Measuring 2012 Dividend Machine Performance

Measuring 2012 Dividend Machines


Purdue University taught me the problem solving approach and it has served me well.   One of the steps to successful problem solving is to measure your results; evaluate your progress; determine if you have failed or if your approach has merit.  With that in mind, I looked at the 2012 dividend machine effort that I write about every week.  In 2012, I committed to profiling one dividend machine per week throughout 2012 with 4 weeks dedicated to analysis.  So far, I have profiled twenty four dividend machines in 2012.  I will profile forty eight dividend machines before the end of the year.

  Since the problem we want to solve is to create income of at least 3 percent I used that measure to determine how well we have done.   Today, June 21, 2012 the twenty four 2012 dividend machines are yielding 3.94%.    I am very happy with that result.  I will not change my rules for selecting, profiling, and investing in dividend machines for the remainder of this year.

Thursday, June 14, 2012

Southern Company, CO - Utilities, the mother's milk of income investments

Dividend Machine for week of June 11, 2012 Southern Company (SO)
           
            Utilities, which are the mother’s milk of income investments, have not shown up too often on my dividend machine screens and I think that is because the dividend investment strategy is a crowded one right now.    Everybody who invests for income is hungry for yield and they have driven up the cost of income instruments.   Bonds are the most expensive but dividend stock prices have also been affected by this trade.

Friday, June 8, 2012

Even better than a typical dividend machine! NHI

Dividend Machine for week of June 4, 2012 National Health Investors, Inc. (NHI)
           
            I need to find a new term for a company like National Health Investors, (NHI.)  It is a cash cow and a good fit for investors searching for dividend yield.

Tuesday, June 5, 2012

RENT

Dividend Stocks for rent:


If you own stock in a company that has reliably paid a dividend over a long time and the stock price is volatile, you own a stock that can you can rent.  When you sell covered calls, you rent your stock with an option to buy.  You will find stocks to rent by looking for dividend machines.   Your research will reveal companies that are not quite dividend machines but are darn good companies that pay dividends.

Monday, June 4, 2012

6.7 Percent Yield in this market? Where?

How to get a 6.7% yield in this market


                Every once in a while, an opportunity in income investing presents that is hard to turn down.   I noticed this trade late on Friday and it is still available today.   You can invest a minimal amount of principal, about $2,350 in a company that has paid dividends every year since 2002.  This is a company with very little debt.  It sports a D/E ratio of .17.    Because the dividend is less than three percent and it has not increased the dividend every year, this company does not qualify as a dividend machine.   However, I have made a lot on income on companies I call almost dividend machines by selling covered calls.