Debt coverage for sustainable dividends
Read the full article at: http://www.dividendgrowthinvestor.com/2009/10/debt-coverage-for-sustainable-dividends.html
Submitted by Dividend Growth... on Thu, 2009-10-15 10:29.
(via www.dividendgrowthinvestor.com)
Most companies use debt for a variety of reasons in their operations. It could be either short term or long-term obligations. If there’s anything the 2007-2009 financial crisis has taught us, it is that excessively leveraged companies could easily blow up after a chain of negative events. Thus it pays to know what the debt situation for a particular company you are investing in actually is.