Strong growth performance equals consistent payout
Another top-dividend stock from Greenlight’s portfolio is ENSCO PLC (NYSE:ESV) . The offshore-drilling company has been impressively consistent in paying dividends to its investors. In 2012, the annualized payout went up by 7.1%. The most recent payment, which stood at $0.50 per share for the first quarter of 2013, marks a 33% increase from the previous quarterly payment of only $0.375.
The company’s payout ratio based on cash flow for 2012 was only 15.8% and its quarterly revenue continues to grow at a double-digit rate. In fact, ENSCO PLC (NYSE:ESV)’s performance results have been exceeding consensus estimates for at least the past four quarters. It also registered positive cash flow in 2012 after having negative free cash flow in the preceding years, indicating its ability to maintain the dividend record. This stock is up for grabs with its low P/E ratio of 11.1, a forward P/E ratio of only 7.7, and an outstanding profit margin of approximately 27.6%.
Overall, Greenlight’s top-dividend stocks show a balanced mix that an investor aiming for safe dividend income can consider. These companies have the necessary requisites to maintain their remarkable records in providing stable and increasing dividends. They have positive market vibes, reasonable payout ratios, high profitability, and huge growth prospects. Do check them out while they’re still hot.
The article Greenlight Capital’s Dividend Stock Picks originally appeared on Fool.com.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.