If the goal of dividend investing is to find and buy dividend stocks that will continue to raise their dividends, it is not enough to only look at a company’s free cash flow. Many companies generate significant free cash flow, but often that cash is already spoken for in the form of debt obligations.
Five Stocks With A Low Debt To Total Capital
The Few, The Proud, The Dividend Raisers!
This last week was similar to each of the two prior weeks in that we saw another large bank slash its dividend by more than 80%. Last Friday, Wells Fargo & Company (WFC) cut its dividend by 85% to $0.05. The company said it would help them retain an additional $5 billion in common equity each year.
Stock Analysis: Microsoft Corporation (MSFT) A 4-Star Buy On Dips
This article originally appeared on The DIV-Net November 3, 2008.
Linked here is a PDF copy of my detailed analysis of Microsoft Corporation (MSFT). Below are some highlights from the above linked analysis:
Company Description: Microsoft is the world’s largest software company. It develops PC software, including the Windows operating system and the Office application suite.
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Vornado Realty (VNO) Raises Qtr. Dividend 5.3% and Others
Sometimes a cash rich company will declare a special one-time dividend to eliminate surplus cash. These special dividends are generally ignored when evaluating a company’s dividend growth performance. An example, of this would be Microsoft’s (MSFT) special $3.00/share dividend in 2005. Most analysts in-the-know exclude the $3.00/share special dividend use the $0.32/share regular dividend when calculating a dividend growth rate for Microsoft.
Never Look a Gift Dividend in the Mouth
Sometimes a cash rich company will declare a special one-time dividend to eliminate surplus cash. These special dividends are generally ignored when evaluating a company’s dividend growth performance. An example, of this would be Microsoft’s (MSFT) special $3.00/share dividend in 2005. Most analysts in-the-know exclude the $3.00/share special dividend use the $0.32/share regular dividend when calculating a dividend growth rate for Microsoft.
Microsoft (MSFT) Raises Qtr. Dividend 18% (2.00% yield) and Others
Have you ever pondered the concept of forever or infinity? It is truly mind boggling! What is even more astonishing is that when I buy a stock, my target holding period is forever. For most people, myself included, that is hard to grasp and to carry out. When things start going bad, our primal instinct of flight kicks in and we want to sell. In many cases that is the time to be buying. Owning companies that systematically raise their dividends each and every year makes it much easier to hold them through the tough times.
Below are several select companies that recently made their shareholders smile by raising their cash dividends:
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The Next Great Company
There have always been companies that stand head-and-shoulders above their peers and the competition. They are loved by their shareholders, hated by the competition and known by all. Who are these companies and how can I find the next great company? All the great companies have something in common. Let’s look at a few of them:









Dividend Payout vs. Free Cash Flow Payout
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