Dividends Keep Inching Upwards

Among quite a few dividend raises this quarter, following were few selected ones that I was have been reading about as potential dividend growth opportunities.

Verizon Communication (VZ): The 2Q09 earning per share was $0.52 (vs. $0. in 1Q09).

  • The key highlight was reduced earnings on y-o-y basis (vs. $0.66 in 1Q08).
  • There was y-o-y growth in operating revenue (11.3%) and free cash flow.
  • Quarterly dividend of $0.46/share is barely getting covered with earnings. This quarter’s payout ratio is at 88%.

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CBY – Stock Analysis for Dividend Growth Portfolio

cadbury_logoCadbury Plc (CBY), a UK-based Company, is world’s leading confectionery company. In year 2008, it divested its beverage business into separate entity. Now Cadbury Plc is solely a confectionery company. It offers chocolate, gum/mints, and candy products under various brand names, including Bubbaloo, Cadbury Creme Egg, Cadbury Dairy Milk, Clorets, Dentyne, Eclairs, Flake, Green & Blacks, Halls, Hollywood, Stimorol. It operates in 60 countries.

CBY is an international dividend achiever has been raising its dividends for last 11 years. The most recent dividend increase was in February 2009. CDY can play a role of international equity in a dividend portfolio. It can also be viewed as a hedge for dollar and emerging markets (20% revenue from emerging markets). My objective here is to analyze if CDY still continues to be a good dividend growth stock and how does it rate on my scale of risk-to-dividends. continue reading rest of the article….

MCD and MMM Dividends are Covered

The season for reporting second quarter earnings is warming up. I hope to see somewhat better picture of the state-of-economy and who is coming out with flying colors. I am following few selected ones based on my holdings and/or my potential opportunities.

McDonalds Corporation (MCD): The 2Q09 earning per share was $0.98 (vs. $0.87 in 1Q09).

  • The key highlight was reduced overall profits on y-o-y basis (vs. $1.04 in 1Q08) due to fluctuations of exchange rates.
  • Quarterly dividend of $0.50/share is well covered with earnings. The quarterly payout ratio is 51%.

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IBM’s Successful Transformation – Going the Softway

IBM logoContinuous evolution and adapting to one’s environment is key to survival. This was first stated by Darwin in the context of life form on Earth. However, the essence of its meaning can very well be applied to businesses and corporations. Great many American corporations that failed to adapt with changing business environment have perished. IBM is one company that seems to understand Darwinism. I believe IBM is a one of success stories of business transformation.

IBM was the company that invented and helped develop many of the electronics and semiconductor industry’s significant technologies. It had been one of the early adopter of the concept of using electronics in actual products for ease of computing. Examples are personal computers, DRAM memories, hard disk drives, and numerous other component hardware technologies. It flourished with those electronic products. However, today’s IBM gets less than 20% of its revenue (which is continuously decreasing) from hardware products. continue reading rest of the article….

ADM – Stock Analysis for Dividend Growth Portfolio

ADMlogo2This article originally appeared on The DIV Net, on July 9, 2009.

Archer Daniels Midland (ADM) is one of the world’s leading agribusiness companies, with significant market presence in agriculture processing and merchandising. ADM has approximately 230 plants location worldwide. It is one of the world’s largest processors of agricultural commodities, such as oilseeds, corn, wheat, protein meal, corn sweeteners, flour, biodiesel, ethanol, and other food and feed ingredients.

ADM is a dividend aristocrat and has been raising its dividends for last 34 years. The most dividend increase was in February 2009. I view ADM in dividend portfolio as a proxy for commodity asset class. Considering the recent turmoil in commodities sectors, my objective here is to analyze if ADM still continues to be a good dividend growth stock and how does it rate on my scale of risk-to-dividends.

Trend Analysis
Here I am looking at trends for past 8 years of corporation’s revenue and profitability. These parameters should show consistently growth trends. The trend charts and data summary are shown in images below.

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