Sunday
evening is a good time to look for stocks for income. Once I find a stock that meets all four of
my Dividend Machine criteria, I profile it here on my blog and I quite often
invest in the stock myself.
Often
times I can go through 20 stocks and find nothing. But today it took only three.
Stocks
that did not make the grade.
I
use “TheStreet.com’s” dividend calendar as my first source for finding a new
Dividend Machine. I simply click on any
stock with a yield around 3.5% or higher.
I avoid funds, floating rate notes, and even real estate investment
trusts. I concentrate on individual
stocks. I found three stocks right away
that pay a dividend greater than 3.5%.
I dug deeper into my analysis to determine if indeed these stocks meet
all four of my criteria. The results
are listed below.
DUK (Duke Energy) 4.41 % yield -
Earnings less than dividend.
SJR (Shaw Communications) 4.02%
yield - Already a 2014 Dividend Machine. And still a Dividend Machine
STO (Statoil) 3.58% yield - spotty
dividend history
Target Corporation, TGT, the next 2014
Dividend Machine
Then I found TGT, Target corp., with a 3.44%
yield. Do you know that their dividend
growth averaged 45% every year from $.16 per quarter in Aug. 2008 to $.52 in
Aug. 2014? Earnings are $2.96 with dividends of $2.08 and their D/E ratio is a
very respectable.85%. By every measure
TGT is a Dividend Machine and I will add it to the model portfolio.
Clearly,
TGT's stock price has collapsed from $72 to just over $60 because of their credit
card security issues as well as the inherent difficulties of retail. But as I always remind you, for the purposes
of these model portfolios, I do not use any other variables then the four
criteria that make a stock a Dividend Machine.
TGT’s
Dividend Machine Fundamentals are presented in the table below.
Consider
Target, TGT, for the income producing portion of your 2014 portfolio.
TheMoneyMadam
