09-30-2014, 08:24 AM
(This post was last modified: 09-30-2014, 08:26 AM by Dividend Watcher.)
I've been looking into them now and again for the last few months, Eric mentioned over in the portfolio section that he recently put it in his portfolio and now you. I like the numbers for the most part and the yield sure looks yummy.
One that concerns me is the debt/equity over 300%. CLX and KMB both have operated for a long time with high debt/equity but they're also much larger corporations with products people use frequently and have to buy repeatedly. I'm still using Tupperware my mother bought over 40 years ago. I have to admit, they have a pricy product but the quality is great. Of course, they also have their other brands, the only one which I'm familiar with is BeautiControl. Don't know about repeated purchases in these other brands.
The 50% payout ratio target seems to be already met according to Finviz (53%). Yahoo has a 56% payout ratio. So what does this augur for the dividend growth rate? Both estimate a 12% EPS growth rate going forward. S&P is estimating a high single digit EPS growth for the next couple years.
Just thinking out loud here but I'm wondering if we're missing anything material.
One that concerns me is the debt/equity over 300%. CLX and KMB both have operated for a long time with high debt/equity but they're also much larger corporations with products people use frequently and have to buy repeatedly. I'm still using Tupperware my mother bought over 40 years ago. I have to admit, they have a pricy product but the quality is great. Of course, they also have their other brands, the only one which I'm familiar with is BeautiControl. Don't know about repeated purchases in these other brands.
The 50% payout ratio target seems to be already met according to Finviz (53%). Yahoo has a 56% payout ratio. So what does this augur for the dividend growth rate? Both estimate a 12% EPS growth rate going forward. S&P is estimating a high single digit EPS growth for the next couple years.
Just thinking out loud here but I'm wondering if we're missing anything material.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan