Wednesday, December 26, 2012

Dividend Machine for week of 12/24/2012 Republic Services, RSG




2012's Final Dividend Machine - Republic Services, Inc. RSG

            When you return from Christmas celebrations, you might want to consider adding this week’s dividend machine company to your income portfolio quickly because it goes ex-dividend.  If you own Republic Services, symbol RSG, by December 28, 2012, you will receive their quarterly dividend of $.235 on January 16, 2013.

            I do not actually believe anyone should rush into buying a stock.  However, investing on a regular basis leads to a well balanced portfolio, so if you are in the habit of adding to your income portfolio on a weekly basis, or even a monthly basis, and RSG is a good fit, this would be a good time to buy.   Buying this close to the dividend means you tie up your principle for a very short time before you get a paycheck.

            RSG is not an investment that will provide covered call income. It is a pretty boring company.  RSG has been a steady dividend payer and has increased the dividend every year for 5.7 years.   The stock closed on Christmas Eve. at $29.74.  Their annualized dividend yield at that price is 3.16%.  RSG manages debt well; their D/E ratio is .92.

            The table below presents the dividend machine fundamentals for RSG.







DIVIDEND MACHINE
12/24/2012


Republic Services
RSG


Price when profiled
$29.74


Last 4 Qtrs Earnings
$1.71


Last 4 Qtrs Dividends
$0.94


Current Qtr Dividend
$0.24


Annualized Div Yield
3.16%


No. Years Div Increase
5.7


Debt/Equity ratio
92.00%






            I will be back in 2013 to continue to share my income investing strategy and share my picks with you.   I have not yet decided on the format for 2013.   One of my goals for 2013 is to analyze and publish reports on how the two portfolios (2011 Dividend Machines and 2012 Dividend Machines) performed.   After all, without measuring results, this strategy is incomplete.


Very Truly Yours,
       



TheMoneyMadam