Dividends4Life: The Best Dividend Stocks

The Best Dividend Stocks

Posted by D4L | Friday, September 16, 2011 | | 0 comments »

We’re all hearing about dividend payers being the best bet right now, but how do you filter out the right ones? Fred Fuld of Stockerblog.com shares his method and one of his favorite picks. Well, Fred, tell me what I should be looking for.

Well, one of the things that I look for is dividend coverage. In other words, how much operating income they receive versus how much they send out in dividends to their shareholders. As long as that margin is not decreasing on a regular basis or it’s not right at the edge, you’re at pretty good shape. Any other things that I should be looking for? Management? History of dividend payouts? Yes, definitely history of dividend payouts is a good thing to look at. There are companies like Kinder Morgan (KMP). As an example, they’ve been paying dividends for many years. They’re in the business of transporting petroleum, and not really owning the petroleum they don’t really have that market risk of whether the price of oil goes up and down. But they just transport the petroleum, and the stock yields in excess of 10%.

Source: Money Show

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