Monday, January 28, 2013

Dividends from housing: two choices.



I look around my city and I see lots of dumpsters in front of houses being renovated.  I see many trucks with skilled workers using tools and lots of carpets being replaced.   An article about housing in today’s Wall Street Journal provided a nice list of companies whose sales are tied to residential construction and the aftermarket and I have found two companies I like.  

 
DuPont and Stanley Black and Decker

DuPont, symbol DD and Stanley Black and Decker, symbol SWK are two companies that are worth considering for their dividend income and maybe some capital gain if housing continues to recover.


DuPont (DD)



DuPont  DD
1/28/2013
Price when profiled
$48.15
Earnings Per Share
$2.95
Dividends Per Share
$1.72
Current Qtr. Dividend
$0.43
Annualized Div. Yield
3.56%
Dividend Increases
1 year
Dividends Paid Since
1904
Debt/Equity ratio
1.16
DuPont, symbol DD is a company I have owned for some time.  I need to put some money to work and I would prefer adding to current positions so I wanted to see if DuPont was still a good fit.

DuPont’s dividend yield is 3.56%.    Their dividend history is strong, having paid uninterrupted dividends since 1904; the dividend did not increase between 2007 and 2012 when DuPont again increased the dividend.    This is why DD has not been profiled as a dividend machine.   Not every company I invest in has to meet the very high hurdle of being a dividend machine.

                                                                             STANLEY BLACK & DECKER (SWK)


DIVIDEND COMPANY
1/28/2013
Stanley Black & Decker
SWK
Price when profiled
$76.58
Earnings Per Share
$5.32
Dividends Per Share
$1.96
Current Qtr. Dividend
$0.49
Annualized Div. Yield
2.55%
Dividend Increases
45 years
Dividends Paid Since
1877
Debt/Equity ratio
0.53
Stanley Black and Decker is a new company for me.   SWK’s dividend yield is 2.55%. 

Their dividend history is even stronger than DuPont’s.  SWK has paid dividends for 136 years and increased the dividend for the past 45 years. 

 This dividend history makes the mere 2.55% palatable.   Plus, SWK, is a combination of the old Stanley Tools Company and Black and Decker tools.   If the combined companies create more growth, dividend income will probably continue to increase and the potential for capital gain is real.

Consider these companies for your dividend income portfolio.

TheMoneyMadam

Friday, January 25, 2013

Sasol, SSL Natural Gas to Liquid Gas plus a dividend!



International companies pay dividends on a different schedule than American companies.  Here in the States we expect a dividend every quarter.   Foreign companies tend to pay twice a year.   During my two years of profiling dividend machines, I included only a few foreign companies (i.e. BCE); these companies paid dividends quarterly.  Today I profile company that is foreign, trades in the U.S., and pays dividends twice a year. 

You should consider investing in some international stocks and one that I like and just bought is Sasol, symbol SSL.    SSL pays dividends twice a year.  One dividend tends to be large and the other small.   When you add up the two dividends and look at the company's history, SSL has delivered a very good dividend over time.  The company is not technically a dividend machine because they paid a lesser dividend in 2008 than it did in 2009.   Since 2008, the dividend has increased every year.  

The table below presents SSL's company fundamentals.






DIVIDEND COMPANY
1/25/2013


SASOL
SSL


Price when profiled
$42.60


Earnings Per Share
$4.33


Dividends Per Share
$2.06


Current Qtr Dividend
$0.50


Annualized Div Yield
4.90%


Dividend Increases
       Since 2008


Debt/Equity ratio
0.13









            In addition to this company’s fundamentals, I like their business.  SSL is a South African Company that deals in chemicals, fuels, and oils.  They have created the technology for converting natural gas to liquid gas.  I feel this is the technology that will reap profit from the abundance of natural gas available around the world.
           
            Consider this international dividend company for the income producing portion of your portfolio.

TheMoneyMadam