The Dividend Investor v.33 ”3 steady dispenser”

Reliable dividends are a popular feature among investors, like steady increases, but a strong confidence that the dividend is at least not reduced, it is valuable. For various reasons, may be dependent on the cash flow in the form of dividends and you do not want to have a spanner in the wheels just for the stock exchange surar little. Regardless of the market climate, you need their dividends and which companies you own can be a difference like night and day. A clear example is Swedbank and Handelsbanken in the financial crisis. Handelsbanken with its more conservative profile and a stronger financial position passed on by the financial crisis and raised its dividend, while the weaker and more risk-taking in Swedbank was on the brink of ruin, suspended its dividend entirely in a couple of years and made a new share issue in addition. Imagine the seat if you are dependent on the dividend, and be pulled in completely, no fun at all. For example, it may be institutions or pensioners, who pay food and subsistence for their dividends. In the year, you get no pay, no pay! Yes it want to avoid, and while you don’t get any guarantees on the stock exchange, one can in any case seek investments with a good likelihood they do not lower the dividend. Here comes the 3 steady issuer and with the steady referred to the dividend. The share prices of the fluctuating part of the time while the dividend increases or is unchanged in the steady issuer.

Atlas Copco is a Swedish engineering company that manufactures, among other, the compressed air and vakumprodukter. They have nice margins, good return on equity and is one of the most prestigious companies in the sector. Due to Atlas Copco’s usually a slightly higher score than sektorkollegorna but it is well deserved for they perform the better also. Atlas Copco has proven to be a very reliable issuer, and has not reduced its dividend in decades. Bonus payouts there have been a few times and usually they have raised the regular dividend. The key to this achievement is partly a good business which does not bind as much capital as many other companies and a good utdelningstäckning. For 2017 is expected to win just under 15 sek and a dividend of a little over 7 dollars. The profit covers the good and well the dividend, and even if the profits would fall sharply, there are plenty of vertical drop and still room for the dividend. For Atlas Copco b traded around 266 sek, is the yield approximately 2.6 percent, calculated on the dividend paid out in 2017.

VF Corp with the ticker VFC is an american company that owns a number of strong fashion brands. Lee and Wrangler are two jeansmärken most people are familiar with. They also owns The North Face who is the world’s largest and strongest brand name for friluftsprylar as clothing, backpacks, etc, VANS is still a strong brand, perhaps most known for their iconic sneakers but also make all sorts of garments and accessories. We swedes are maybe thinking of the arctic Fox Kånken when we think of backpacks, and a strong company at the front while VF Corp is a towering seriously, with a market share in the united states about 55 per cent with its brands Eastpak, Timberland and The North Face primarily in just backpacks. VF Corp is a so-called ”S&P500 Dividend Aristocrat,” which means that they raised their dividends every year for at least 25 years. The next step is called the Dividend Kings and then you have raised in at least 50 years, and VF Corp is approaching, actually, with its 44 years as they raised their dividend. The company owns a number of very strong brands and are not threatened by retaildöden as some dealers can be. VF Corp is a manufacturer and its brands are in demand on the network as well as in physical stores. In the days, the company announced the acquisition of some new brands including Dickies is one of them. The acquisition of just under a billion dollars paid in cash and expected to lead to higher earnings fairly promptly. The dividend yield is about 2.7% on the course at just under $63.

Investor is Sweden’s largest investment company, and may need to be no closer to the presentation but they have proven themselves to be a decent dispenser in later years. In the financial crisis, reduced its dividend slightly from sek 4.75 to sek 4 to later raise with one crown every year like a clock. Year after year raised Investor dividend by a penny to 11 sek, as it was in the spring. In the beginning of the utdelningsstreaken where dividend growth is very strong to drop year after year as the increase if the 1 crown was constant, while the dividend steady step. Last increase was from 10 to 11 sek, which means a 10 per cent dividend growth. Investor has flagged that the increase may be less next spring due to reduced dividend from Ericsson, among others. Now weighs the not Ericsson so heavily in Investor and it should not hit as hard but if it also would be a new issue of shares in Ericsson, which it speculated on it may affect more. Investor learn to increase the dividend again next spring, hopefully a crown but perhaps a bit less than that. In the course 376 sek is the dividend yield just under 3%, calculated on a dividend of sek 11 per share that was paid in the spring.

Like I said no warranty but a good company with good prospects and a good history is a reasonable indication, at least, about future dividends.

I own shares in the three companies, Atlas Copco, VF Corp and Investor.

Leave a Reply