Every couple weeks stock analysis are published and the great thing for average investors is they give factors which can help lower the risk return level. Ian Tam of Morningside Research examined dividend paying stocks:

Earnings consistency – measured by the standard deviation of reported earnings per share over 5 years – lower the number the better.

Dividend yield – stock price divided by dividend

5 year dividend growth

5 year historical beta ( a measure of the stock’s price to an underlying index)

5 year earnings per share growth rate

Minimum a market cap of more than $ 500 million and a dividend payout ratio or less than 60%

Company                Mkt Cap     Earnings    5 year     5 yr dividend   5 yr EPS          Payout    Yield

$ Mil           consist        Beta         growth rate    growth rate   ratio %     %

GameStop Corp    3.251           3.78              0.96             51                      7.67                37        4.73

Cisco Systems      135.162        2.45              1.31               33                      7.27               40        3.87

Cracker Barrel         3.545        4.34              0.48              49                     16.96             53         2.97

Penske Auto            3.382        2.17               1.56               38                     22.35             26         2.75

J & J                          310.952      2.41              0.59                 6                        4.82            48        2.84

Wyndham                  7.982      2.13              1.3                    27                     20.82          34         2.82

T Rowe Price           18.597       3.17              1.21                   14                    13.45           46         2.88

3M                           101.628        1.98             1.1                     19                      6.97           53         2.64

Hershey                   20.106       2.67             0.19                 13                       9.97           54         2.51

Amgen                   117.589       3.67              0.84                44                      17.81          36         2.56

Linking to dividend paying stocks, the list has a minimum of 20 but by learning what metrics to look at including free cash flow you will can narrow the choices. All companies which sell stocks have great access to information and these tables help you lose less money. Not losing money should be one the first goals of most of your investments and investing in companies which have consistently paid dividends and have an expected future payouts is a good thing. Start with the top ten on the list or make your own top 10 and you will be investing for all the correct reasons.

There are more questions than answers, till the next time – to raising questions.