Belden Inc. (BDC), Pacific Coast Oil Trust (ROYT), Texas Roadhouse Inc (TXRH): 3 Upcoming Dividends — Which Should You Pick?

In terms of cash flow, the company generated $61 million in 2012, and paid 44% of that — $27 million — in dividends. This is promising, because it shows the company is neither burning all its funds at once, nor withholding all but the tiniest of table scraps.

While Texas Roadhouse Inc (NASDAQ:TXRH) errs on the side of conservative — it yields 1.9% and has a payout ratio of 44%, compared to the restaurant industry’s average of 2.3% yield and 44% payout — it is certainly a happy medium between Pacific Coast Oil Trust (NYSE:ROYT)’s big monthly payments, and Belden Inc. (NYSE:BDC)’s quarterly nickels.

Finding the right payday
Texas Roadhouse Inc (NASDAQ:TXRH) may be the most sensible of these companies approaching payout dates, but there are many, many more companies that offer dividends, whether quarterly, monthly, or biannually. When looking for the right dividend stock, it’s useful to make sure a company pays within their cash flow means, and also has a yield that is in accordance with what the rest of its industry, as well as the overall market in general, is paying. That way, investors can rest assured they’re taking home a sustainable healthy payout without fear that their companies might soon combust.

The article 3 Upcoming Dividends — Which Should You Pick? originally appeared on Fool.com.

Fool contributor Caroline Bennett has no position in any stocks mentioned. The Motley Fool recommends Texas Roadhouse. 

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