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
