tag:blogger.com,1999:blog-2371295367923834063.post4997127492389174682..comments2009-04-19T07:55:14.699-05:00D4Lnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2371295367923834063.post-82597315259575148462009-04-19T07:55:00.000-05:002009-04-19T07:55:00.000-05:00

Michael: 200% is very high. sometimes a high payout ratio can be a plus if it is a one off. It shows that the company is committed to maintaining its dividend even in a down year. However, payout ratios over 100% can't be maintained forever.<br /><br />Best Wishes,<br />D4L

Dividends4Lifehttp://dividendsvalue.com/noreply@blogger.comtag:blogger.com,1999:blog-2371295367923834063.post-76983989121585373242009-04-19T01:10:00.000-05:002009-04-19T01:10:00.000-05:00

When I evaluate a prospective stock for long-term dividend income, I look at these factors:<br />1. Strong Balance Sheet<br />2. Low payout ratio, hopefully &lt;60%, so earnings can cover the dividend.<br />3. Strong Cash Flow<br />4. No Debt<br />5. Long history of steadily paying dividends, with no cuts, and no stagnation.<br />6. Long history of healthy dividend increases.<br /><br />My

Michael L. Shuman, M.D.noreply@blogger.com