With these credentials, it is hard to believe Freeport-McMoRan,
symbol FCX, is not a Dividend Machine.
Earnings are $2.45 per year with a dividend payout
of $1.25 for a yield of 3.49%.
Moreover, the dividend increases over the past 55 months average
23.6%. FCX also carries a very
manageable amount of debt; D/E (debt to equity ratio) is .9858. The data are presented in the table below.
FCX Dividend Machine Fundamentals
FCX fails as a Dividend Machine
So what is the problem? In 2009 during the period when major disruptions in all markets made stocks like Freeport to husband
their cash, FCX suspended the dividend
only to resume it with vigor in 2010.
Beginning in January 2010 with a quarterly dividend of $.15, FCX has
paid a dividend every quarter and increased it to the current quarterly payout
of $.3125. And, FCX paid extra dividends
of $1.00 in 2010; $.50 in 2011 and another $1.00 in 2013.
Income investors do not like to own a company that
could cut the dividend. Yet, we do like
financial strong companies that share profit with us.
FCX Covered Calls to Boost Income
I own Freeport and I just may add some more. The determining factor for me is to use
covered calls to boost my current income from FCX above the 3.49% they payout
in dividends. I need more incentive than
just the dividend to take the risk on FCX.
In the table below, you can review a call I used
today to boost my income from FCX.
Proceed with caution but consider a stock like FCX
for the income producing portion of your portfolio.
TheMoneyMadam
