In 2013
I changed my dividend machine strategy.
I still use the same four criteria to screen for these stocks that I
used in 2011 and 2012. The difference
is that in 2011 I picked one stock every week with no regard for anything other
than the four criteria. I did not try
to diversify, I did not try to buy on dips, I did not select a stock that was
trendy. In 2012, I used that same technique,
but I picked 48 stocks over the year instead of one per week. My approach in 2013 has changed.
2013
Dividend Machine Strategy change:
You can
see both income portfolios (see pages on 2011 DIVIDEND MACHINES and 2012
DIVIDEND MACHINES) and see that the technique created two successful portfolios. The portfolios are diversified, their
income is nearly four percent and growing and they each have capital
gains. In 2013, I am simply picking
stocks as I find a stock that meets all four criteria and that I think is a
good fit based on either industry or price for me instead of picking based on a
schedule.
When I
find a stock that I want to add to my holdings, I profile it in my 2013
DIVIDEND MACHINE list. We will see over
time if this more personal technique, which I think is more similar to how most
investors buy stocks, beats the scheduled technique.
With
that in mind, the next 2013 Dividend Machine is profiled below:
DIVIDEND MACHINE
|
4/26/2013
|
BCE Telecom
|
BCE
|
Price when profiled
|
$46.13
|
Last 4 Qtrs Earnings
|
$3.45
|
Last 4 Qtrs Dividends
|
$2.33
|
Current Qtr Dividend
|
$0.568
|
Annualized Div Yield
|
4.921%
|
No. Years Div Increase
|
since 2006
|
Debt/Equity ratio
|
1.15%
|
BCE
Company, symbol BCE 2013 Dividend Machine:
BCE
Company is Canada’s largest communications company. I like to own several companies in one arena.
I already own AT&T, it is an income
investor’s dream, but with the stock price at or near highs and the challenges
it faces, I have a stop on it. I own
two China telecoms and Vodafone so adding BCE is a good fit.
BCE
Dividend Machine Fundamentals:
I remain
committed to stocks that meet all four of my dividend machine criteria and BCE
fills the bill. Based on the closing
price on 4/29/2013 of $46.20 the annualized dividend is $2.33 for a yield of
4.92%. Earnings far exceed the
dividend; their last four quarter earnings were $3.45. Debt to equity ratio (D/E) is within
industry standards at 1.15. The table on
the right clearly illustrates why BCE will be in my portfolio soon.
Income
investors, if you want income to retire, consider BCE for your portfolio.
TheMoneyMadam
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