Thursday, December 13, 2012

Portland Electric symbol POR Dividend Machine for week of December 10, 2012


Portland Electric (POR) is my Dividend Machine for week of December 10, 2012

           

            My dividend project requires me to add the first company that qualifies as a dividend machine to my weekly list.   I do not search every day.    When I search for a dividend machine, I use several sources including TheStreet.com’s ex-dividend calendar; the Wall Street Journal’s dividend change feature, and sometimes I just run across a company through press releases or general news.   This week I started with TheStreet.com and found this company in the first group of stocks I researched.

 

            Portland Electric is an electric utility in the Northwest.  Today it traded around $27.28.  If you own it by December 21, 2012, you will receive the quarterly dividend of $.27 on January 15, 2012.  This is an annual dividend yield of 3.97%.

 

            Fundamentally, Portland Electric is a solid dividend machine.  POR’s earnings for the last four quarters were $1.87 and dividends paid out for the same period were $1.07.  Dividends have increased every year for six years.  Debt to equity ratio (D/E) is 1.01.  These data are presented in the table below.

 






DIVIDEND MACHINE
12/12/2012


Portland Electric
POR


Price when profiled
$27.28


Last 4 Qtrs Earnings
$1.87


Last 4 Qtrs Dividends
$1.07


Current Qtr Dividend
$0.27


Annualized Div Yield
3.95%


No. Years Div Increase
6


Debt/Equity ratio
101.00%





           

            I never try to sell my dividend picks.   Remember the dividend machine project requires discipline and therefore specific rules.   I do not pick the best dividend machine each week; I profile the first one that complies with my rules.  With that said, I occasionally provide the fifth dimension which is my or another person's opinion in support or dissent.

 

            In support of POR is David Dreman.   Read his review from Seeking Alpha in this link.http://seekingalpha.com/article/1057481-5-value-dividend-stocks-for-investing-like-a-contrarian?source=msn

 

Consider POR for the income producing portion of your portfolio and fear not going over the “fiscal cliff.”

 

Very Truly Yours,

 

TheMoneyMadam