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Fri. Nov. 14, 2008

Looking for the Perfect Dividend Stock *

In an utopian world, the perfect dividend stock would be one that is both high-yield and provide a high dividend growth rate. Its share price would appreciate ratable with its increasing dividend. All of this would be driven by increasing earnings and cash flow.

I haven’t found the perfect dividend stock yet. However, here are several stocks that recently raised their raised their cash dividends:

  • Community Trust Bancorp (CTBI) Boosts Qtr. Dividend by 3.45% to $0.30/Share (4.11%)
  • Baxter International (BAX) Raises Qt Dividend 20% to $0.26/Share (1.76%)
  • Automatic Data Processing (ADP) Increases Qtr. Dividend 13% to $0.33/Share (3.88%)
  • Massey Energy (MEE) Boosts Qtr. Dividend 20% to $0.06/Share (1.43%)
  • Bob Evans Farms (BOBE) Raises Qtr. Dividend by 14.3% to $0.16/Share (3.83%)
  • Equity LifeStyle Properties (ELS) Increases Qtr. Dividend by 25% to $0.25/Share (2.29%)
  • CNB Financial (CCNE) Boosts Qtr. Dividend by 3% to $0.165/Share (5.28%)
  • BorgWarner (BWA) Raises Qtr. Dividend 9% to $0.12/Share (2.80%)
  • New Jersey Resources (NJR) Increases Qtr. Dividend by 10.7% to $0.31/Share (3.15%)
  • Adams Resources & Energy (AE) Boosts Annual Dividend by 6% to $0.50/Share (2.82%)

After running these companies through my D4L-PreScreen.xls model, none of the above stocks qualified as the perfect dividend stock or even justified a more complete evaluation. CTBI, ADP and BWA had positive NPV of MMA Differentials, but below the level that would warrant a more detailed evaluation. I guess I will have to keep looking for the elusive perfect dividend stock.

Disclosure: No position in any of the aforementioned stocks.

(Photo: Steve Woods)


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