Sunday, November 25, 2012

Laclede Group Inc. dividend machine for Nov. 26, 2012

Laclede Gas - Thing...
Laclede Gas - Thing... (Photo credit: stlphotoblogger)

Laclede Group, Inc., LG is my Dividend Machine for week of November 26, 2012


            I hope you all had an enjoyable Thanksgiving holiday.  While I always look for opportunities like covered calls when the market is open, I don’t always have to buy, sell or trade every week.  I took this week’s low volume market as a chance to relax; but my dividend machine project continues with five more dividend machines expected in 2012.


This week, the first company I found is another new one for me.  Laclede Group, Inc. is a gas utility in Missouri.  They have a strong history of paying dividends and even provided some stock splits.  The dividend has been increased every year for the past eight years and the company has worked on adding more “non-regulated” utility activity to hopefully provide more growth in the future.  For income investors, more growth of the company should provide more growth of our dividend income.


            If you own LG by December 7, 2012, you will receive the quarterly dividend of $.425 on January 3, 2013.  This is an annual dividend of $1.70; at the closing price of $39.01 on Friday 11/23/2012, the yield is 4.3%.  During the past four quarters, EPS (earnings per share) were $2.79 and dividends paid were $1.66.  D/E is within reason at 1.31 and income has increased consistently for the past eight years.


            The table below presents LG’s dividend machine values. 



Laclede Group
Price when profiled
Last 4 Qtrs Earnings
Last 4 Qtrs Dividends
Current Qtr Dividend
Annualized Div Yield
No. Years Div Increase
Debt/Equity ratio



            Income investors who like defensive industries with safe dividend income, might consider LG for their portfolios.


Very Truly Yours,

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