New-Look Periodic Table Of Dividend Champions - Dividend Safety Edition

Toward the end of last year, I introduced a different periodic table. Instead of plotting yield vs. dividend growth rates, as I had in prior tables, I plotted yield vs. credit ratings. The idea was to identify high quality Dividend Champions with higher yields. The idea this time is similar. Except now I have a new tool that rates dividend safety.

Obviously, the reliability and predictability of dividends are very important factors when you are using dividend growth investing to provide growing income and/or good total returns. One stock jumped out at me as having an unexpected D rating: Consolidated Edison (NYSE:ED). I contacted Marc Lichtenfeld, the Chief Income Strategist for the Oxford Club. He told me that ED gets a D because of high payout ratios (270% and an expected 307% this year on free cash flow) and declining free cash flow growth.

Source: Seeking Alpha

Related Articles:
- Building Yield: 7 Consumer Goods Dividend Stocks
- 9 Higher-Yielding Financial Services Stocks With Rising Dividends
- Dividend Stocks vs. a Safe Distribution Rate
- 12 Under-Valued Dividend Stocks
- Successful Investors Take The Emotion Out