Today’s article highlights an intriguing space to look for a top dividend stock: the infrastructure sector. Why? Well, let’s just say that U.S. infrastructure isn’t exactly in great condition. In fact, the American Society of Civil Engineers recently gave the nation’s infrastructure a grade of D+ in its recent infrastructure report card. Of course, as conservative income investors, we’d also like to see fat dividends being paid out to shareholders, a diversified business model, hefty cash flows, and a strong long-term track record of value creation. To be sure, there aren’t a lot of stocks that meet all of the criteria mentioned above. But I think I’ve found a company that comes very close to checking off all of those boxes...
Macquarie Infrastructure Corp (NYSE:MIC). Let’s dig into this top dividend stock, shall we? Of course, diversification is meaningless to us income investors if it doesn’t lead to stable cash flow. After all, if a company’s cash flow isn’t healthy, there is no way that the dividend can be. Happily for investors, Macquarie’s cash flow is in great shape. In Q1, adjusted free cash flow came in at $146.9 million. That is up 10.1% from $133.4 million in the year-ago period. Due to that strong production, management increased its first-quarter dividend 10% to $1.32 per share. In fact, Macquarie has grown its dividend at a prolific rate since 2011. Given a comforting free cash flow payout of about 75%, I don’t expect that growth to slow anytime soon.
Source: Income Investors
Related Articles:
- 5 Dividend Stocks To Buy And Hold, Not Buy And Forget
- All Investments Carry Risk
- Warren Buffett's Two Investing Rules For Dividend Investors
- Dividend Stocks vs. Dividend ETFs
- Managing Risk With Dividend Stocks
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
On the surface, AT&T (NYSE: T) may look like a compelling investment. It is one of the largest telecommunications companies in the world...
-
There’s nothing more satisfying that getting money for doing nothing. That’s why dividend stocks hold so much appeal for portfolios. Many of...
-
The truth is, some of the best dividend stocks can be found outside the United States. The world is filled with a variety of strong multinat...
-
We've broadened our search to the S&P 500, and also found two high-dividend stocks among the dividend yield leaders of that larger i...
-
I believe in dividend growth investing and consider holding strong companies will help me going through any stock market storm. I believe di...
-
Generally speaking, the higher the yield, the higher the risk involved. Since yield is a function of share price, a failing business model w...
-
Dividend stocks can be a great source of passive income. Not only do they deliver cash into your brokerage account on a recurring basis, but...
-
What kind of income-generating assets make the most sense? Obviously, those that appear undervalued with respect to the basket/group of stoc...
-
With bond rates already low and the Fed hinting at rate decreases, dividend stocks are in high demand these days, as alternatives in the fix...
-
Warren Buffett famously quipped that if you aren't willing to own a stock for 10 years, you shouldn't think about owning it for 10 m...
0 comments
Post a Comment
Post a Comment