Thursday, March 13, 2014

Dividends & Income 2014 Dividend Machine XEL

Readers, we have another stock that meets all four 2014 Dividend Machine criteria.   Earnings per share are greater than the dividend and that has been a pattern for this stocks for a long time.   Current dividend and dividend increases over time are very good.   D/E ratio is consistent with other stocks in this industry.  I like it. 

 Let’s take a look at my newest 2014 Dividend Machine Xcel Energy, symbol XEL.

Xcel Energy Inc.’ story

When I started my Dividend Machine project in 2010, I was concerned that I would end up with all utilities and big pharmaceuticals.   The proverbial “widows and orphans” stocks.  That was not the case.  Of the fifty two stocks that made up the 2011 Dividend Machine Portfolio only about 10% are utilities.

Xcel Energy is an energy stock; it is a utility; it has proved to be facile in working with multiple sources of energy production and distribution.  Read Xcel’s own description of their business.

Responsible by Nature
Safe, reliable energy at a competitive price
Xcel Energy is a major U.S. electric and natural gas company, with annual revenues of $10.1 billion. Based in Minneapolis, Minn., the company operates in eight states and provides a comprehensive portfolio of energy-related products and services to 3.4 million electricity customers and 1.9 million natural gas customers.
At Xcel Energy, we work hard to deliver clean, safe, reliable energy at a competitive price. We recognize that energy is fundamental to the quality of people lives and the economic health of our communities. We also know that our customers rely on us around the clock, and we take that responsibility seriously.

In 2014, I will add this energy/utility stock to my Dividend Machine portfolio.

Xcel’s Dividend Machine Fundamentals.

In February Xcel Energy approved a 7% dividend increase.   This has been the pattern for this stock for at least 10 years.    Trading around $30.23 today, XEL’s yield is 3.7%.   Over the past five years, dividend increases have been 5.26% per year.   Earnings per share are $1.92 per share with the last four quarter dividends equal to $1.12.   With the new dividend increase to $.30 per quarter is an annualized dividend of $1.20.   Note that XEL will be ex-dividend on March 20, 2014.   See the table below for XEL’s Dividend Machine Fundamentals.

Consider this energy company for the income producing portion of your investment portfolio.