My High Dividend Stocks Blog

My High Dividend Stocks
This is my high dividend stocks site where I help site members find high dividend stocks with earning power and strong balance sheets.

Should you buy Ford as Jim Cramer recommends?

Ford_balance_sheet_2006-2010

Jim Cramer was promoting Ford (F) on his Mad Money show tonight.  The Ford CEO has flowery things to say.  His company doesn't know how to make money.  Here is a quick valuation of Ford for those curious investors that are considering the non-dividend paying Ford.
 
Ford (F)
Market price: $13.95
Shares: 4.178 billion (diluted in 2010)
 
Dividend record
Dividend: none since 2006
Dividend yield: n/a
 
Earning power
5 yr average earnings: ($1.00)
10 yr average earnings: ($0.51)
Earnings are adjusted for changes in capitalization; Ford has been issuing shares for the last five years
          EPS      Net inc.         Adj. EPS
2006   ($6.72)   ($12,629 M)   ($3.02)
2007   ($1.38)   ($2,723 M)     ($0.65)
2008   ($6.50)   ($14,766 M)   ($3.53)
2009   $0.86     $2,717 M       $0.65
2010   $1.66     $6,561 M       $1.57
 
Ford has no proven earning power even when going back 10 years.
 
Balance sheet: declining assets, declining liabilities, and a slightly negative shareholder equity
Book value per share: ($0.16)
Price to book value per share: n/a because it is a negative number
Current ratio: 2.17 (over 2.0 is good)
Quick ratio: 2.07 (over 1.0 is good)
 
Conclusion: Ford pays no dividend and it is speculatively priced.  Don't buy Ford.  There are many better high dividend stocks like Safe Bulkers (SB).
 
Subscribe today for free at www.myhighdividendstocks.com/feed to discover high dividend stocks with earning power and strong balance sheets.
 
Be seeing you!

A Good High Dividend Stock in a Bad Neighborhood.

It's nice to see that I've found a great high dividend stock before Jim Cramer.  A caller asked him about Safe Bulkers the other day and Cramer responded that his didn't know the stock.  Here is what Cramer had to say after he learned more about Safe Bulkers (SB).
 
 Safe Bulkers (SB) has 16 dry bulk vessels and offers a 6.3% dividend. Cramer thinks the dividend is safe, since earnings are high enough to cover the dividend, the yield won't be raised again until 2012. SB is a good house in not such a good neighborhood, since the surplus of ships is an issue for the industry. With a 14% climb in just two weeks, Cramer might consider the stock an interesting buy on a pullback, but not at its current level.

 

 
I agree with Cramer that you should consider buying Safe Bulkers when it is in the low $8.00 to $7.00 range.  Any sizable market pullback should knock it down to that price range.  Here is the link to all the articles I've written on Safe Bulkers: http://www.myhighdividendstocks.com/category/high-dividend-stocks/sb.  I go into the issues in more detail than Cramer had time to expound upon on his show.
 
Disclosure: I don't own Safe Bulkers (SB) right now.  I'm waiting for a pullback.
 
Subscribe today for free at www.myhighdividendstocs.com/feed to discover high dividend stocks with earning power and stong balance sheets.
 
Be seeing you!

Even Jim Cramer is skeptical about AGNC.

Jim Cramer is now a critic of American Capital Agency Corp. (AGNC).

* * * * * * *

by Jason Smith | March 28th  |  Filed in: Dividend News

MORTGAGE REITS METRICS

Avg. Market Cap:

$1.3B

Avg. P/E Ratio:

10.9

Avg. Div Yield:

9.8%

Following comments by “Mad Money” host Jim Cramer about the group, the Mortage Investment Stocks is trading lower by 0.1% today.

Surprisingly, American Capital Agency (AGNC) is up 1% after Cramer questioned how the company can feature such a high yield. Shares of American Capital Agency currently yield a whopping 19.3% based on past distributions. Shares of Annaly Capital Management (NLY) are down about half a percent despite Cramer saying that is the one stock in the group that he recommends. “I feel real good about that one,” Cramer said in reference to Annaly.

Among other high-yielding mortgage REITs, Northstar Realty Finance (NRF) is up 2%. Those units now yield 8% based on past distributions. PennyMac Mortgage (PMT), with its 9.2% yield based on past distributions, is up 1%. Anworth Mortgage Asset (ANH), with a yield of 12.3% based on past distributions, is down 1% while Capstead Mortgage (CMO), which also sports a 12.3% yield based on past distributions, is down half a percent.

* * * * * * * *

Link to original article: http://www.tickerspy.com/newswire/?p=4245

AGNC has a whopping dividend, but diminishing earning power and a weak balance sheet.

Disclosure: I don’t own AGNC.

Subscribe today for free at www.myhighdividendstocks.com/feed to discover high dividend stocks with earning power and strong balance sheets.

Be seeing you!