Friday, September 17, 2010

A few dividend stocks I am looking into

I am looking into these three dividend paying stocks. The current filter criterion is dividend and nothing else. If this screen test passes I shall look into other matrices.
The graphic above tells the dividend paid as percent. This can help us analyze the dividend trend, stability and deviation (I use standard deviation to measure deviation).

I make a dividend portfolio which will give me a stable income after a few years, I am much interested in stable (if not increasing trend). I will put "Andhra Sugar" off based on this criterion. Having left with Castrol & Valson, it is imperative to understand yield part of the dividend. I will use today's prices to calculate the dividend yield. This will help me understand the trend.
Valson has been giving consistent dividends of more than 8%, it is much more than any A grade bond and FD provides today. At this stage I will place this stock in my to further screening criterion.
A closer look as Castrol dividend yield chart reveals that is has picked up an increasing trend. The financial health of the company is good and the brand image is good. I have multiple reasons to believe that it will yield 8+ % in coming 5 years. This should go to my dividend portfolio for sure.

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