General Electric Company (GE) & More: Are These Machinery Dividends Going to Break Down?

Koninklijke Philips Electronics NV (ADR) (NYSE:PHG)
Philips (which I will be calling Philips for remainder of this article so I don’t accidentally butcher the name) starts off on the right foot by being a Dutch company. I love companies that are headquartered in other countries because I’m under-diversified in American holdings. I like how Philips is the biggest manufacturer of lighting in the world, and I also like how the company is streamlining by getting rid of most of its consumer electronics business. Consumers are very finicky and notoriously unreliable… unless you’re Apple Inc. (NASDAQ:AAPL), but that’s a rant for another day. Koninklijke Philips Electronics NV (ADR) seems to have a pretty good handle on continuing its 2.8% dividend, notwithstanding that the company’s environmental record is top notch.

But yeah, there is a catch. Koninklijke Philips Electronics NV (ADR) is barely turning a profit, pulling a .9% margin that rather sickens me. On top of that, the company’s trading at an earnings multiple of 93. That’s just sick. If Philips were trading in a reasonable range, I’d snatch it up fast enough to make your head spin. But as it is, I’m giving the company a pretty wide berth.

There’s a lot to like about electronics companies and their dividends. But the search goes on for reliable, ethical dividends that are trading at a reasonable price.

The article Are These Machinery Dividends Going to Break Down? originally appeared on Fool.com and is written by Chris Hodge.

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