2 Dividends I Love and 1 That Should Go Away: ConocoPhillips (COP)

Turn off the gas
As you can tell, I like secure and growing dividends. That’s why I don’t understand why Chesapeake Energy Corporation (NYSE:CHK) even offers a payout to its investors. The company has a well-documented cash flow problem and is weighed down by debt. It’s been shedding billions of dollars in assets to fund its ambitious growth plans while profits are squeezed by low natural gas prices. Why bother with a token dividend when that cash could be reinvested into the business? With new management on the horizon it would make sense to turn this dividend off until the repositioning is complete and natural gas prices move higher.

My Foolish take
There you have it, two great dividends you can buy today and one dividend payer you should really avoid. Great dividend payers are hard to come by so when you do find one its best to hold on for as long as you can. If you do, you can sit back in your retirement and fondly remember the words of Mr. Rockefeller. Though, instead of enjoying the pleasure of the dividend checks, you can use them to fund whatever you find pleasurable in your retirement.

The article 2 Dividends I Love and 1 That Should Go Away originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo owns shares of Phillips 66, Enterprise Products Partners L.P., and ConocoPhillips. The Motley Fool recommends Enterprise Products Partners L.P. The Motley Fool has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.