(Disclaimer: I am a shareholder in France Telecom plc and Total Produce plc) Finally, in terms of the best entries I've seen in the blogosphere of late, John McElligott has an interesting piece asking if European telecoms
dividends are sustainable; while Wexboy has conducted even more detailed research on Total Produce.
CNBC's Jackie DeAngelis digs into the latest with Chevron, Exxon Mobil and if
their dividends are sustainable.
Even with the free cash flow depressed,
the dividend is sustainable and capable of growing.
There has always been a question of whether
its dividend is sustainable.
It is easy to predict whether or not a company's
dividend is sustainable in the short run, by evaluating EPS trends, dividend payout ratios and cash flows.
C ratings still generally provide investors with a reasonable margin of safety that
the dividend is sustainable, but many signs are beginning to appear that a cut could potentially be on the way, it is important for investors to do further research before owning these names, as a dividend cut would likely bring a stock price decline.
How are you evaluating whether or not
a dividend is sustainable that a company is paying?
The payout ratio can help you determine whether
a dividend is sustainable
Now, as a pretty hardcore dividend growth investor, one of my primary concerns is whether or not a company pays a dividend, the size of the payout, how much and how often they increase that dividend, and whether or not
the dividend is sustainable.
Not exact matches
Lloyds said it
was confident of
being able to deliver a progressive and
sustainable ordinary
dividend in 2016, but Greenwood said the bank might reconsider its special
dividend promised for the end of the year in order to fund the deal.
All of the Bellwether strategies
are guided by our Investment Committee which seeks to invest in high quality, compelling companies that have strong balance sheets with proven
sustainable earnings and
dividend growth.
At its core, this approach
is based on the premise of investing in companies with a history of paying a
sustainable dividend.
They can also lose a lot of money by investing in high
dividend yielding stocks if those
dividends are not
sustainable.
... Going out and saying I
'm going to cut a
dividend, make a one - time buyback, these
are sort of like parlor tricks, they aren't
sustainable.»
Low
dividend payouts relative to earnings suggest that companies don't believe that their own reported profit margins
are sustainable.
If they believe that the payout
is sustainable (the company will continue to make enough profit to pay, or «service» its
dividend in industry speak), they
are going to
be inclined to invest.
If you come across a company that
's paying out
dividends at a much higher rate than its competitors, you'll have to ask yourself whether that
's really
sustainable.
Along the same lines, the lower the volatility of a stock, the more
sustainable should
be its
dividend.»
The business
is solid, the
dividend payment
is sustainable and this situation will remain stable for several years.
US markets
are on a tear but our James Swanson thinks the current rally may not
be sustainable amid pricey valuations and contracting
dividend yields.
You
're absolutely right with your fact of boring lower yielding but
sustainable dividends.
Typically, I like this ratio to
be well below 80 % as it would indicate a
sustainable dividend yield with room for future growth based on current earnings.
As you mentioned, simply looking for a company with growing earnings, growing
dividends and a
sustainable payout ratio selling at good value should
be enough for most.
How
sustainable is the
dividend, can Consolidated Water afford to pay it from its earnings today and in 3 years (Payout ratio less than 90 %)?
How
sustainable is the
dividend, can Pan American Silver afford to pay it from its earnings today and in 3 years (Payout ratio less than 90 %)?
How
sustainable is the
dividend, can Artesian Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90 %)?
After all, what good
is a
dividend distribution if it
is not
sustainable and gets cut or worse eliminated?
How
sustainable is the
dividend, can Marvell Technology Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90 %)?
If elected, the plan would
be to assess operations, governance and management, while exploring debt reduction initiatives and determining if the
dividend - plus - growth model
is sustainable.
A diversity of
sustainable dividends Exposure to multiple industries and global locations
is a vital component of portfolio construction.
In addition, it has delivered three consecutive years of positive free cash flow, which suggests its
dividend could
be sustainable.
In fact, I
'm actively tilting my portfolio towards solid,
sustainable dividend paying industrial stocks.
«We think the recently lowered
dividend payout
is sustainable, providing investors with an attractive 6 per cent fully franked yield at current prices... we view the risks facing Telstra as more than reflected in the current stock price, trading at 12 times forward earnings per share and 5.5 times earnings before interest, tax, depreciation and amortisation,» the analysts said.
The
dividend cuts taught me to focus more on earrings and cash flow than simply chasing stocks with the highest yield, and my strategy has changed to focus on
dividends that
are sustainable.
These
are not
sustainable numbers, but they do suggest that Cisco has a strong commitment to its
dividend.
I would count on consuming
dividends from stocks with a reasonable degree of certainty that it will keep pace with inflation (that
's the long - term record, the double - digit increases of the recent past
were not
sustainable anyway).
However, one caveat
is that stocks that pay abnormally high
dividends (6 % or higher) may
be giving off signals of future problems and that the
dividend is not
sustainable.
The typical academic literature
is even backed up by the «
sustainable growth model» measure of valuing stock prices, which suggests that future growth
is largely supported by the percentage of retained earnings that
is reinvested in the corporation (and not paid out as
dividends).
It
was Dream Office REIT, an undervalued REIT that pays a juicy,
sustainable dividend.
Ever wonder how to get
dividends that
are the most secure and
sustainable?
Under 1,
dividends are being paid from retained earnings, which
is normally not
sustainable.
The rest of the S&P's highest - paying
dividend stocks yield 5.6 % or less — but their yields
are often more
sustainable.
While I
'm not sure if a 50 + %
dividend growth rate
is sustainable, VLO
is certainly in a good position to continue their
dividend increases.
For me a downturn
is a good time to reaffirm my long term goal of a
sustainable monthly
dividend income and market volatility doesn't change that.
For my money I tend to focus on a solid history of paying
dividends, a decent yield that
is also
sustainable and long term growth potential.
Our preferred method
is to invest in
dividend paying companies with a long track record of
sustainable growth in earnings and
dividend payments.
If a company pays out over 100 % of earnings in
dividends, the
dividend may not
be sustainable in the long term.
Oil and gas exploration and production (E&P) companies that have instituted buyback programs and
dividend increases have outperformed over the past several months in cases where the programs
are funded by
sustainable free cash flow generation.»
This
is one of the few instances in which I've seen massive
dividend growth over a long stretch of time actually look so
sustainable and rational.
The benchmarks will track high
dividend - paying stocks which
are screened to target
sustainable income.