04-17-2020, 12:33 AM
(04-16-2020, 03:46 PM)fenders53 Wrote:(04-16-2020, 03:10 PM)EricL Wrote:What's a good track record? Div growth the past 10 years looks pretty good. That's usually how far I look back. I do like aristocrats best but to get a good PE you gotta buy stocks like XOM and SKT borrowing their Divs.(04-16-2020, 11:34 AM)fenders53 Wrote: Anyone else like IP? (International Paper) Boring BIZ but the Div is almost as good as MO or T and the payout ratio around 50%. I like it down here. Or is cardboard packaging going away and I just don't realize it? I think I am going to add some more IP.
Keep in mind that the 50% payout is off trailing earnings. According to 2020 estimates, the payout ratio is nearly 90%, and that is questionable as earnings are a tossup at this point. IP doesn't have a great dividend track record, and its BBB credit rating doesn't leave a ton of wiggle room for a cyclical company.
IP's last dividend increase in October was only 2.5%, and that small increase was made prior to earnings estimates being cut in half.
Not saying it couldn't be a good pick or anything, I just don't put it in the same neighborhood as T or MO when it comes to dividend safety.