Would you consider purchasing any stocks with
such high payout ratios?
Not exact matches
As
such, dividend growth in the next few years certainly won't match that last few, but I'm very content with that given the exceedingly
high current yield, my
high confidence in Textainer to ride the storm through to better times, and ultra-safe P / E and reasonable
payout ratio.
But some investors can be blinded by
high guaranteed returns and ignore the warning signs
such as unsustainable
payout ratios.
You can invest in industries that typically have
high dividend
payout and yield
ratios,
such as banking and utilities, or use to find companies with
high dividend payment rates.
However, utilities in general tend to have
higher payout ratios (they pay
higher percentages of their earnings to shareholders), because most do not undertake significant expansions or huge new investment
such that it is unnecessary to retain large percentages of their free cash.
He believes the best dividend stocks for
high income possess characteristics
such as healthy
payout ratios, conservative balance sheets, reliable cash flows, recession - resistant products, and a track record of consistently rewarding shareholders with dividend increases.
But I believe a fair proxy for reviewing the
payout ratio is to use the regular dividend and EPS for 2010, which works out to be a
payout ratio of under 60 %, which is reasonable for
such a
high yield.