Value Investing News

The latest 10-K filing by Alliance Holdings GP, L.P.

When analyzing the dividend increases announced for the past week, I noticed that the data confirms my expectations. Most of the higher yielding stocks that announced dividend increases have had slow distributions growth, with some exceptions. Master Limited Partnerships seem to be on a roll this month.

Are you looking for companies that can sustain and grow their dividend? In making that determination, a company’s Statement of Earnings is one of the last places you should look. Cash is king for the dividend investor and the Statement of Cash Flows is where astute investors begin when they want to understand the viability of a company.

Over the past week twenty-two companies announced that they would be rewarding shareholders with higher dividend payouts. Several solid blue chip companies such as IBM, Costco and Exxon Mobil raised their payouts as well.

In the U.S. and Canada, most companies pay dividends quarterly. In other parts of the world, it is not uncommon for companies to pay an annual or a semi-annual dividend. That is not to say that North American companies sometimes choose not to pay quarterly dividends. Though I prefer quarterly dividends, there is something more important than frequency...