Today we’ll take a closer look at The Progressive Corporation (NYSE:PGR) from a dividend investor’s perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Progressive is a new dividend aristocrat in the making. We’d agree the yield does look enticing.
To summarise, shareholders should always check that Progressive’s dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. First, we think Progressive has an acceptable payout ratio and its dividend is well covered by cashflow. Next, earnings growth has been good, but unfortunately the dividend has been cut at least once in the past. Progressive has a number of positive attributes, but it falls slightly short of our (admittedly high) standards. Were there evidence of a strong moat or an attractive valuation, it could still be well worth a look.
Source: Simply Wall St.
Related Articles:
- 5 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends
- 3 Exceptional Dividend Growth Stocks With Quality Financials
- Three Keys For Successful Dividend Growth Investing
- Are You Patient Enough To Be Wealthy? These 6 Dividend Stocks Will Help You Wait
- 5 Dividend Stocks With A Quick Payback
Is The Progressive Corporation (NYSE:PGR) An Attractive Dividend Stock?
Posted by D4L | Sunday, June 09, 2019 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
The best dividend stock nobody is talking about is an undervalued, high-dividend chemical company poised to grow at an exponential rate. Wit...
-
If any investor has stood the test of time, it is Warren Buffett. For years, the “Oracle of Omaha” has had a rock-star-like presence in the ...
-
A full-blown recession, or the late-year rally in Wilson’s view – the natural move for investors will be toward defensive stocks, moves to p...
-
The Dividend Kings, which are those stocks with at least 50 years of dividend growth, is an excellent place to find high quality names. Ther...
-
This company has raised its dividend for 62 years straight. Dividend stocks are an excellent way to build your wealth over time. According t...
-
When it comes to valuation, most investors fall back on things like the price-to-earnings (P/E) ratio. Earnings are too variable for me, so ...
-
Investors need to seek out stocks of established companies that have a track record of delivering consistent, reliable returns to shareholde...
-
Investing in dividend growth stocks is an excellent strategy to build sustainable wealth for the long haul. This is because only the best st...
-
Downturns are a great time to load up on high-quality dividend stocks. Falling share prices pump up dividend yields, and that means you'...
-
We've got 3 picks with dividend yields from 7.5% to 13.1%. Each share also has a significant discount to either projected current book v...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.