You can't spend earnings. At first glance, this probably seems like an odd statement, possibly even incorrect. However, it is not only correct, but an important investing axiom for any type of investor. Through fraud and manipulation an income statement can be made to look quite impressive.
An increasing cash dividend keeps pressure on management to ensure the company is well run. If there are too many missteps, then eventually a dividend will slip. Earnings can be manufactured, cash can not. Always follow the cash and it just might lead you to a great company. Here are eight stocks striving to be a great by raising their cash dividends:
After running these companies through my D4L-PreScreen.xls model, the Dividend Achiever UHT is worthy of a more complete evaluation with a NPV of MMA Differential of $9,282. None of the other companies' NPV of MMA Differentials were close enough to warrant a more complete evaluation.
Disclosure: No position in the aforementioned stocks.
(Photo: Steve Woods)
Related Articles:
Eight Stocks Raising Dividends During The Market Downturn
Posted by D4L | Friday, December 05, 2008 | commentary | 1 comments »________________________________________________________________
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I am impressed that you were able to find eight stocks that are increasing dividends and I am even more impressed that you have your own toolbox to analyze those eight stocks.