Thursday, August 23, 2012

Dividend Machine for week of 8/20/2012 CINF

The Ohio state seal.The Ohio state seal. (Photo credit: Wikipedia)
            Catastrophes come and go but insurance companies seem to be able to weather most storms.  At least Cincinnati Financial symbol (CINF) has been around for a long, long time having weathered many storms. 

            Using my four dividend machine criteria (see the left hand column to review these criteria); you can see that CINF easily makes the grade.

            CINF is located in Ohio.  This well managed company has paid a dividend since 1954 and increased the dividend every year for the past
51 years.  Increasing the dividend every year, even during some very difficult times, suggests to me that future dividends are safe.  Moreover, it suggests that if I invest in CINF, I have a good chance of seeing my income increase on a regular basis.  

            All income investors have to respect their need to keep increasing income.  In today’s economic environment, dividends have proved to be one of the most reliable sources of consistent income increases.

            This week’s dividend machine, CINF closed today at $38.86.  Their previous four quarters of earnings were $1.67 and they paid out $1.61.  CINF anticipates earnings increases and has just increased their quarterly dividend to yield 4.19 percent.  If you own CINF by September 17, 2012, you will receive that quarterly dividend on October 15, 2012.  CINF has a D/E ratio (debt to equity ratio) of 16%.

            The table below presents CINF’s dividend machine data. Consider CINF for the income portion of your portfolio.

Cincinnati Financial (CINF)



Price when profiled
$38.86
Last 4 Qtrs Earnings
$1.67
Last 4 Qtrs Dividend
$1.61
Current Dividend Yld
4.12%
No. of Years increased
51
Debt/Equity ratio
16.00%


Very Truly Yours,


TheMoneyMadam
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