Tuesday, December 9, 2014

Last 2014 Dividend Machine

This article is about two stocks I am evaluating as potential Dividend Machines for 2014. Both are worthy of consideration.  By the way, this will probably be the last DM (Dividend Machines) I name for 2014 which will bring the number of 2014 Dividend Machines to seventeen.  

Everyone should take a break from “work” and take a serious look at their portfolio.   I will be doing this over the next month or so.   Last minute portfolio moves are a consideration.   For instance, will you fund your favorite charity with IRA money if the Senate extends that tax rule?  Have you measured the true income you get from your investments?   The end of the year is a good time for portfolio reflection

Two stock to consider adding in 2014 are profiled below.

Maiden Holdings symbol MHLD

FerdiS wrote an article on Seeking Alpha about 2014 dividend increases. http://seekingalpha.com/article/2735515-dividend-increases-november-2014#comment-44464005. I read these kinds of articles but rarely do I find a stock that just might be a Dividend Machine and that has not shown up on my radar.   But FerdiS got it done.   

One of the stocks he/she (I do not know this person) listed is Maiden Holdings, symbol MHLD.   Maiden is a reinsurer that serves the global market.  MHLD has paid dividends since 2008.  It is a small cap stock.

As you know I use only four criteria to screen for Dividend Machines and MHLD’s data are presented in the table below.


Source:  Price, Earnings, Dividends Nasdaq.  Source: D/E ratio MSN 

Laclede, symbol LG

The other stock I am considering is Laclede, symbol LG.  The label LG implies an appliance company but the stock symbol LG refers to a gas company.    This is not the first time that Laclede, symbol LG, qualified as a Dividend Machine.   November 2012, LG was added to the 2012 Dividend Machine portfolio.  http://www.themoneymadam.com/2012/11/laclede-group-inc-dividend-machine-for.html.

I hinted at Laclede as my next 2014 Dividend Machine on November 30 and I wish I had added it to the portfolio then because today it is 4% higher than it was when I hinted at including it in the portfolio.    Like all investors, I have a lot of excuses as to why I did not pull the trigger that day.

Today, both LG and MHLD remain Dividend Machine candidates and they will be my last picks of 2014.   The portfolio will be closed.   No stocks will be bought or sold.   Dividends will not be reinvested.   I will follow this portfolio and report on its performance over time. 

LG’s Dividend Machine fundamentals are presented below.


November 30, 2014 LG Hint

Disclosure:   Long LEG no position MHLD