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.
TheMoneyMadam
