05-21-2015, 11:59 AM
(05-21-2015, 11:50 AM)stewardinlife Wrote: As I have mentioned earlier, I have so far KO, JNJ, PM and my recent additions of UNP and OHI. I am a sort-of a late starter to the game at 41, and do want to get a good footing/starting. I researched the ones I have so far, and they seem to generally fit in the yield vs yield growth in the same category as you have outlined. Although PM has an increasing payout ratio and is currently over 80%.
I own all but JNJ. I think PM will be just fine in the long run, if you take out currency effects they are growing earnings at a high single digits rate. I expect those effects to normalize over time and I think the payout ratio will get back into line.
Also keep in mind that tobacco companies traditionally have high payout ratios compared to other industries.