Wednesday, January 29, 2014

Dividends & Income - Canadian Telecom SJR



Telecom as a sector is down over six percent over the last three months and that is where I am looking for opportunities.  Yet, I do not want to own AT&T (T).   

Where, then should we look?




The only non U.S. stocks I have profiled are telecoms.   Telus (TU) and BCE (BCE) are both Canadian telecoms that have passed the Dividend Machine criteria hurdle in the past.   See Posts: http://www.themoneymadam.com/2011/03/dividend-machine-bce-inc-symbol-bce.html  &  http://www.themoneymadam.com/2011/08/dividend-machine-telus-company-symbol.html.



BCE was profiled early in this blog when my criteria were based on the most recent quarterly results.   In 2014 my criteria are more strict and I want not only a minimal dividend yield of 3.5% which BCE pays (5.33%) but I also want a history of a four percent dividend increase average over the past five years and BCE is a little bit spotty in that area.


Telus, also profiled early in this blog also has a funky dividend history but the board of directors has announced that dividend increases will be twice a year until 2016 with the increases to average 10% per year.   Should this come true, TU just may be a Dividend Machine again.


CURRENCY EXCHANGE


The problem with foreign stocks, even when they are ADR’s or ADS’s, is the usually conduct business in their own currency and the exchange rate between their currency and our dollar will affect your income.


With that in mind I am going to name Shaw Communications, symbol SJR, as the next Canadian Telecom company to be a Dividend Machine.


DIVIDEND HISTORY


SJR pays a monthly dividend.  This is good for people who need more predictable cash flow.  To evaluate the dividend history, I used full year dividend payouts from five years ago and most recently to determine that the dividend has increased about 4.6% per year.  Current yield is about 4.3%.  Earnings clearly exceed dividends and the D/E ratio is 1.040 well within industry standards.   For comparison purposes, AT&T makes less than it pays out in dividends and Verizon has a ton of debt.


DIVIDEND MACHINE FUNDAMENTALS


The Table below presents SJR’s Dividend Fundamentals.





Consider Shaw Communications (SJR) for the income producing portion of your portfolio.


The Money Madam

Monday, January 27, 2014

TEVA, MPC, KMB Dividends & Income Ideas

January 24, 2014   Teva Pharmaceuticals

I happened to be in San Francisco during JP Morgan's health care conference and they were enthused by TEVA's recent performance.

I have suffered with TEVA. It pays a 2.96% yield but it is an international company so the dividend varies with factors such as currency exchange.

Look at the Dividend Increase table below then look at the call option that I use.






January 24, 2014 Marathon Petroleum

Funny how calls get active in a down market. Call buyers (we are sellers) like to get into the market by using calls instead of buying the stock because it is a lot cheaper.

Here is how to make a quick 3.25% in less than a month.



Just another idea.

January 24, 2014  Kimberly Clark

Kimberly Clark (KMB) announced another dividend increase that will be effective in April, 2014. This will be the 42nd annual increase.

More significant to me is their average annual dividend increase. I say that because KMB is such a quality company that it is hard to buy it at a price where the dividend yield is 3.5% or above. That means I cannot name it to my Dividend Machines 2014 portfolio.

However, I can invest in it and I would do so based on the 3% yield combined with their history of nearly an eight percent annual income increase to me.

Take a look at the facts:



Good Income Investing

TheMoneyMadam



Friday, January 24, 2014

Dividend Machines in a down market

I believe in Dividend Machines.   During this last week the market has not been kind to stocks.  Let's see how Dividend Machines performed.  

Jan 24, 2014 Dividend Machine Portfolios Values are posted.

TheMoneyMadam

Dividend Aristocrats and The Money Madam's Dividend Strategy

January 20, 2014

I just read a Seeking Alpha Article about nine dividend companies for yield and growth. (click to read article)
I applied my four Dividend Machine Criteria and here is what I found.

On a pass/fail basis we have seven that fail the Dividend Machine criteria and two that are close.

Take a look at the data.



If I were going to buy something that is not quite a Dividend Machine due to a yield that is too low, I would go with the stock that the greatest dividend increase over the past five years.

And those companies are: MCD, CVX, KMB, PG, and KO

The Money Madam
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