This last quarter I've spent time reviewing my usual dividend list.
My candidates for purchase this quarter were as follows:
- Standard Life
- France Telecom
FirstGroup - FGP.L - this company is in the transportation sector. It made it onto the review list with a very strong dividend at 10.82. Unfortunately the payout ratio is high at over 90.
Standard Life - SL.L - this is a life insurance company. The dividend isn't the strongest, at 3.8, but the 1 year and 5 year growth are strong at 2.85 and 19.05 respectively.
France Telecom - FTE - this telecommunications company made it onto the list with an enormous 9.45 dividend. It is let down with a payout ratio well over 200 raising some concerns about how sustainable this dividend will be.
Unilvever - ULVR.L - a global giant in nutrition, hygiene and personal care makes it onto the list with a low dividend of 2.9 but a very healthy EPS and P/E result.
I pushed all the figures through a formula I've been putting together.
The formula is a combination of EPS, P/E, Yield, 1 year growth, 5 year growth and a few other factors.
The results were as follows:
Standard Life - 17.5
First Group - 17.36
Unilever - 15.47
France Telecom - 14.37.
My winner for this quarter is Standard Life.