Showing posts with label 2013 dividend machine. Show all posts
Showing posts with label 2013 dividend machine. Show all posts

Wednesday, July 24, 2013

Top Health Care Reit for your Retirement Income

Seniors are a growing population in the U.S. and other developed counties.  Here in the U.S., demand for senior independent living and assisted living options just continues to go up and that is why I like real estate investment trusts that own and operate these properties.   

One of the problems with this sector is that it is kind of expensive.   Average price earnings ratios for the industry are well above other industries; some companies have P/E ratios in the 40’s.    However, my four criteria for picking dividend stocks for retirement do not include P.E ratios.   

My four criteria include EPS (earnings per share), Yield (dividend yield), Growth (dividend increases over time) and Debt (debt to equity ratio.)   With those four criteria in mind I am adding National Health Investors, symbol NHI to my 2013 dividend stock portfolio.

NHI is a 2011 and 2012 Dividend Machine:

In both 2011 and 2012, NHI made the cut as a dividend machine and it does it again.   You can click on these links if you want to review the dividend fundamentals of this company in 2011 and 2012.  

2011 Dividend Machine:

2012 Dividend Machine:

NHI as a 2013 Dividend Machine:

Over the past eleven years, NHI has consistently delivered increasing dividends.   As a REIT (real estate investment trust) the company must distribute most of its earnings.    NHI has paid extra dividends as cash accumulates at the company.    I like that statistic.

In 2013, I want more than four percent in dividend yield and NHI’s annual dividend of $2.94 is a 4.61% yield on today’s price of $63.76.  Their D/E ratio is .44; very respectable.   I own this stock and added today on weakness.   See the table below for NHI’s 2013 Dividend Machine fundamentals.

Only you can decide if NHI is a good fit for your retirement income portfolio.    If NHI continues to execute their business plan in an environment of continued demand, we investors should be handsomely rewarded.

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Monday, July 8, 2013

DIVIDENDS GAS will ignite Dividend Income for 2013

What Dividend Stock Should You Buy To Ignite Your Income?

You are back from vacation and you are determined to invest for income starting today. 

What stock should you buy? 

If I was your adviser I would ask you to answer this question:  What kind of investor are you?   Do you need income with capital preservation?   Do you need income with growth?   Do you need to sell a little of your portfolio just to meet annual expenses?  

One investment that every type of income investor needs is Dividend Machine stocks because these stocks provide not just dividend income but income that consistently increases over time.   Moreover, these stocks have solid fundamentals and can provide principle preservation.

Dividend Machine Stocks

Stocks that I call dividend machines are companies that pay at least a three percent dividend every quarter and have done so for many years.    These companies have to earn more money than they pay out in dividends.   But even more important for income investors, the companies must have a history of increasing the dividend every year for at least five years.  Finally, these companies need to be financially solid as measured by D/E (debt to equity) ratio.   In other words, if you want income, invest in something that creates income.   Read on for an idea?

AGL Resources, Inc. Symbol, GAS

GAS is the first dividend machine I am profiling to ignite your second quarter income investment search.

GAS provides gas in Georgia.  On Friday, 7/5/2013, Gas closed at $42.65.  Annual earnings are $2.51 per share with dividend payout of $1.88 which is a yield of 4.42%.   Dividends have increased every year since 2003.    If you owned the stock in August of 2002 your quarterly dividend per share would have been $.27.   Today eleven years later you income would have increased to $.47 per share; almost twice as much.   Debt to equity ratio is a very acceptable .94.

AGL Resources Inc.
Price when profiled
Last 4 Qtrs Earnings
Last 4 Qtrs Dividends
Current Qtr Dividend
Annualized Div Yield
No. Years Div Increase
Since 2003
Debt/Equity ratio
GAS by definition is a dividend machine; it meets all the criteria, but are you concerned about interest rate pressure on dividend stocks like GAS?    You are wise to consider the threat of interest rate competition.  Yet, can any of us predict the future?   No, we cannot; we can only use history as our guide and what I like about GAS is their formidable sales and income growth.

History is not a perfect predictor but it does help.

Ignite your second quarter income investing by considering a position in GAS.

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