The coronavirus is going on and it looks like it will continue for April and May. Hopefully things will be better in the summer. In the meantime it is prudent to examine what companies provide work from home technology and are continuing to benefit from the changing work situation.
Scott Clayton works for a firm called TSI Network and used the following criteria:
US dividend payers offering well established software and services.
The TSI Dividend Sustainability Rating System:
one point for 5 years of continuous dividend payments
2 points for more than 5 years
2 points if the company raised the payment in the past 5 years
1 point for management’s commitment to dividend
1 point for operating in non-cyclical industries
1 point for limited exposure to foreign currency rates and freedom from political interference
2 points for a strong balance sheet, including manageable debt and adequate cash
2 points for a long term record of positive earnings and cash flow sufficient to cover dividend payments
1 point if the company is a leader in its industry
Company Div Sustain Points Div Share Price 1 year Mkt Cap
Rating Yield $ Tot Ret $ Bil
Microsoft Highest 10 1.4% 140.40 22.1 1,114.8
Cisco Above Average 9 3.9 37.35 -30.2 150.6
IBM Above Average 8 6.3 103.55 -26.2 94.7
Citrix Systems Above Average 7 1.1 130.5 29.2 15.6
LogMein Average 6 1.7 78.15 -5.6 3.9
Linking to dividend paying stocks, it is good to have some sort of rating system besides the company pays a dividend. There are always some companies that benefit from any crisis, the question is can they ramp up and then seemingly ramp down as the crisis ends. The key is taking your time and have reasons so if it does not work out, then you know when to exit.
There are more questions than answers, till the next time – to raising questions.