I often say that growth and income growth are two major items in wealth creating. Another criterion is the debt level. A company with indebtedness has many more possibilities to grow or to create something special. Companies with a huge debt load must create management teams to handle this debt and look for new finance rounds. I love it when stocks have a low debt to equity ratio. But it’s only an additional stone in the wall of corporate finance and valuation.
oday I highlight the highest dividend paying stocks (over 5% dividend yield) with more than five years of consecutive dividend growth and a debt to equity ratio of less than one. The ratio is not really low, but it’s okay for a higher-yielding company in my view. What matters in this area is the expected growth. Growth destroys debt. A growing income makes it easier to pay back the loans. Here are my favorite stocks: Boardwalk Pipeline Partners (BWP), AstraZeneca (AZN) and Reynolds American (RAI).
Source: Guru Focus
Related Articles:
- Defense Stocks May Not Be Defensive Stocks
- 10 Dividend Stocks That Gave Me A 20%+ Annualized Return
- All Investments Carry Risk
- 9 Stocks Delivering The Dividend Dream
- 10 Quality Dividend Stocks Trading Below Their Fair Value
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Do you need more income? Join the crowd. It seems everyone is scouring the landscape these days for decent income investments to beef up the...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
While I've invested a decent portion of my portfolio into growth stocks, a significant part of my holdings consists of dividend-paying s...
-
All too often when a cheap stock offers a high dividend yield, it's too good to be true. Perhaps the stock has plunged with good reason,...
-
Stocks can make for amazing investments, offering better long-term returns than bonds, precious metals, and most other commonly available in...
-
If it's dividends you're after, there are plenty of top companies to consider, particularly those on the Dow Jones Industrial Averag...
-
Investors hear about dividend aristocrats all the time. It’s a fantastic thing if a company raises its dividend every year for 25 years runn...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
To alert investors of stocks that have the highest risk of reducing their current dividend in the future, Simply Safe Dividends created a Di...
0 comments
Post a Comment
Post a Comment