This
post compares two stocks. One is an
almost Dividend Machine and the other is a bona fide Dividend Machine which I
will name as a 2014 DM.
DGAS – an almost
Dividend Machine
Delta
Natural Gas Company, symbol (DGAS) is an inexpensive, almost dividend machine
stock that could be worth a look. Dividend
Machine fundamentals are in the table below.
The reason DGAS is not a 2014 Dividend Machine is the five year annual
dividend increase is only 3.5% and there are no options.
Note
that DGAS is ex-dividend today so if you buy it, you have to wait a full 3
months before you are paid.
RAI – a 2014 Dividend
Machine
At
the risk of receiving damning emails, consider Reynolds American, symbol
(RAI.) This is a tobacco company. All of these companies generate tons of
cash, unlike biotech they do not “burn” through it, they share it. Look
at the Dividend Machine fundamentals table below and you will see that RAI is a
2014 Dividend Machine.
Moreover,
RAI has call options. See the call
option table below for an option available today.
These
are two ideas for income investors.
TheMoneyMadam
