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Strategies & Market Trends : Dividend investing for retirement

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To: chowder who wrote (5882)	9/21/2010 1:43:03 PM
From: Grommit	1 Recommendation Read Replies (1) of 34328

CAG. "when they raise the dividend at the same time they announce a warning about future earnings, the sell off is a huge buying signal." I do not buy into blanket statements like this. All I can say is companies like to offer some good news with the bad news. "A little bit of sugar helps the medicine go down, la la la..." And yes, it does show confidence that they can sustain the higher dividend. But the lower earnings growth says that long term dividend growth will be lower than otherwise. "competing fiercely with other food manufacturers to attract consumers... in a weak economy" That said. I bought some today and when the dust settles in a few days, I may buy some more. "For its fiscal May 2011, ConAgra said it would earn between $1.83 and $1.86 a share... The food maker’s June 24 forecast had projected earnings to be as high as $1.91 a share. " Dividends increased from 80 cents to 92 cents. Payout ratio at 0.92 / 1.85 = safe dividend. 0.92/21.17 = 4.3% about the same as many utilities. Good diversification for me. And although you folks don't care, their PE is acceptably low. :o)

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