Absolutely no need to apologise Sergio H. Far more important and appreciated was the research that you did, and your sharing it with others.
With regard to payment of increased dividends, over the years I’ve come across several company analysis commentators who have regarded the payment of an ongoing and increasing dividend as an important criteria for stock selection.
A local stock investment advisor, Richard Cluver ( rcis.co.za ), grades local stocks in terms of those that have paid an increasing dividend, every year, for the last 10 years, followed by those that have paid an increasing dividend for the last 5 years.
Seeing as those 10 companies you listed have been around for many years, surviving the ups and downs in the market place, I thought I’d see how nine of them stacked up in terms of Warren Buffett’s target percentage requirements for a company’s Income Statement performance, as shown in the following link and table. The numbers come from the company's latest Annual results ….
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More than half the stocks satisfy the "GROSS PROFIT", "DEPRECIATION" and "INTEREST EXPENSE" requirements (See the bold numbers). However, none of them can meet NET EARNINGS to be greater than 20% of REVENUE, although MMM comes closest. |
