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. To succeed as a dividend investor, you must find companies that can sustain and grow dividends by focusing on their ability to generate cash. You can fake earnings, but you can't fake cash.
Below are several stocks using real cash to raise their dividends:
The Coca-Cola Company (KO) manufactures, distributes, and markets nonalcoholic beverages worldwide. Feburary 16th the company increased its quarterly dividend 8.5% to $0.51 per share. The dividend is payable April 1, 2012, to shareowners of record as of March 15, 2012. This is the Company's 50th consecutive annual dividend increase. The yield based on the new payout is 3.0%.
Koppers Holdings Inc. (KOP) engages in the production and sale of carbon compounds and commercial wood treatment products and services to aluminum, railroad, specialty chemical, utility, rubber, concrete, and steel industries. February 16th the company increased it quarterly dividend 9% to $0.24 per share. The dividend is payable April 9, 2012, to stockholders of record as of the close of business on February 28, 2012. The yield based on the new payout is 2.6%.
The Bank of Kentucky Financial Corporation (BKYF) operates as the holding company for The Bank of Kentucky that provides various financial product and solutions. February 15th the company increased its semi-annual 7% to $0.30 per share.