For future growth, companies must re-invest at least 40 % of earnings back into the company to be considered a dividend growth company and at least 10 % of earnings back into the company to be considered
a sustainable dividend company.
Not exact matches
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.
Bellwether only invests in high quality, compelling opportunities with
companies that have strong balance sheets, proven
sustainable earnings growth and a track record of regularly increasing their
dividend or distribution.
Discipline refers to the rigorous quantitative and qualitative methodologies used in the identification and selection of
companies that have: better than average relative valuations; a track record of
dividend growth and a
sustainable payout level; and balance sheet strength.
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.
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.
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.»
We view this as a more
sustainable business strategy than many of the other players in the Real Estate space and believe the
company's commitment to grow its
dividend by 10 % per year makes Lamar an attractive opportunity.
The other defense mechanisms to ensure that
dividend income grows over time is by focusing your attention only on the
companies that can grow earnings over time, have
sustainable distributions and are acquired at reasonable prices.
This
dividend income stream is built from a variety of
companies that are properly valued, have
sustainable dividend payouts, and have managed to grow earnings and
dividends over time.
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.
Also, these
companies tend to pay nice
sustainable dividends, which is great for investors.
Whether an investor is looking for
dividends, value, quality, or
companies with
sustainable competitive advantages, the foundation of each strategy is finding
companies with a sound balance sheet.
Looks
sustainable based on earnings, but they haven't had a long enough
dividend history for me to tell if it's in the
company culture yet.
I think the
company realizes that and is doing a good job in investing in other sources of energy but I could see their growth not being
sustainable and that affecting valuations and
dividend growth.
Most importantly is
dividend sustainability, a high
dividend is only good when it is a
sustainable high
dividend, if the
company can not support the yield, and a
dividend cut is likely there is a good chance you will lose money holding the investment.
How are you evaluating whether or not a
dividend is
sustainable that a
company is paying?
The current
dividend is definitely
sustainable but a lot of investors are worried about the future of the
company.
This is why I also use another type of ratio to determine if the
company's
dividend growth potential is
sustainable or not.
When looking for
sustainable dividend stocks, I use four fundamental factors to find the
companies with the commitment and cash flow to keep putting money in my pocket.
Protecting your portfolio from falling stock prices and
dividend cuts today means finding
companies with
sustainable dividends from strong cash flows and a best - of - breed brand.
Finding
companies with
sustainable dividends comes down to a handful of fundamental factors such as cash flow, debt coverage, the payout ratio, and management's commitment to the
dividend.
They are typically high quality enduring
companies that are relatively cheap with a good
sustainable dividend.
Exposure to
companies in Switzerland with high
dividend yields and a
sustainable dividend policy.
Jim Cramer recently screened S&P 500 stocks looking for
companies selling below the market's P / E of 16 with an above - average 3.75 % yield and a
dividend that he thinks is not only
sustainable but can grow.
For perspective on the
dividend in relation to the
company's ability to pay it, the Q1 2018
dividend consumed about 50 % of the
company's free cash flow for over the same period, indicating a very healthy and
sustainable dividend.
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.
Your «high yield is likely to cut
dividends»
companies may pay off better if you buy their debt instead of their stock, whereas if you're buying stocks for
dividends, it's better to aim for other
companies that have
sustainable albeit lower
dividend yields.
«There are two indicators to look at when determining whether a
company's
dividends have growth potential and are
sustainable.»
Companies with
sustainable profits can pay and grow their
dividends.
Source: Income Investors Related Articles: - 3 Stocks Increasing
Dividends Like A Champion - The Next Great
Company - 5 Stocks With a
Sustainable Dividend -
Dividend Investing + Value Investing = Superior Returns - The Dark Side of
Dividends
With guidance from SOS's founders and the Sport's designers, Anne is applying a career's - worth of business savvy to build a robust,
sustainable company that generates not only profits but also social and environmental
dividends.