Thursday, October 4, 2012

DIVIDEND MACHINE Week of October 1, 2012

Capitol, Washington DC
Capitol, Washington DC (Photo credit: Wikipedia)

Dividend Machine for week of October 1, 2012 WGL Holdings Inc. (WGL)
           
What a fun day I had searching for this weeks’ dividend machine.  During my search, I cannot help but run across information on companies that I have already included in my 2012 dividend machine list.   I found some lovely news about last week’s dividend machine, Watsco symbol (WSO), see side bar of this blog called The Money Madam’s Musings.
         
 This week, the first company I found that qualifies as a dividend machine is WGL Holdings Inc.  WGL is a gas utility that serves both residential customers of the Washington, D.C. area and also sells energy to the government.
         
 I am a little worried that their major customer is the government and the government is broke but may I remind you that for the purpose of selecting a dividend machine, a company that I believe will increase my income over time; I use no other criteria than earnings, dividends, and debt to equity ratio.  WGL meets all criteria and they are presented below.  Click on this link to see a graph, provided by the company, it shows your income growth if you used WGL as an income investment.


DIVIDEND MACHINE
WGL


Price when profiled
$39.89
Last 4 Qtrs Earnings
$2.50
Last 4 Qtrs Dividends
$1.58
Current Qtr Dividend
$0.40
Annualized Div Yield
4.01%
No. Years Div Increase
35
Debt/Equity ratio
45.00%

     
 As you look at WGL’s past, you will see that earnings clearly exceed dividends, the yield of four percent is enticing; their history of 35 years of increasing investor income and their very manageable debt to equity ratio of .45 makes WGL a consideration for income investing.

WGL will pay a $.40 quarterly dividend if you own it by tomorrow 10/5/2012.  The dividend record date is 10/10/2012 and the pay date is 11/01/2012.  



Very Truly Yours,

TheMoneyMadam
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