Dividend Tree » UPS http://www.dividendtree.net My journey of planting dividend investment seeds and watching it grow.... Sat, 29 Oct 2011 00:17:01 +0000 en hourly 1 http://wordpress.org/?v=3.1 MCD and MMM Dividends are Covered http://www.dividendtree.net/commentary/mcd-and-mmm-dividends-are-covered/ http://www.dividendtree.net/commentary/mcd-and-mmm-dividends-are-covered/#comments Thu, 23 Jul 2009 16:18:00 +0000 Dividend Tree http://www.dividendtree.net/?p=832 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%.

3M Company (MMM): The 2Q09 earning per share was $1.12 (vs. $0.74 in 1Q09).

  • The key highlights were increased EPS, reduced overall income, and reduced revenue.
  • Increased EPS seems to be due to controlled operating expenses.
  • Quarterly dividend of $0.51/share is well covered with earnings. The quarterly payout ratio is 45%.


AT&T Inc. (T): The 2Q09 earning per share was $0.54 (vs. $0.53 in 1Q09).

  • The key highlights were reduced overall profits on y-o-y basis (vs. 0.63 in 1Q08) and reduced revenue.
  • Quarterly dividend of $0.41/share is barely covered with earnings. The quarterly payout ratio is close to 76%.
  • The payout ratios have increasing trends. Is this a warning sign?


United Parcel Service Inc. (UPS): The 2Q09 earning per share was $0.44 (vs. $0.40 in 1Q09).

  • The key highlights were reduced overall profits on y-o-y basis (vs. 0.85 in 1Q08) and reduced revenue.
  • Quarterly dividend of $0.45/share is not covered with these earnings. The quarterly payout ratio is more than 100%.
  • The quarterly payout ratios have been above 100% for two quarter in a row now.
  • Expect dividend cuts for UPS.


MCD and MMM continue to show strengths in their ability to manage during the downturn. Would you be investing in them?

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