National Presto Industries: Dividend Dynamo or Blowup?http://www.fool.com/investing/general/2012/02/03/national-presto-industries-dividend-dynamo-or-blo.aspx Ilan Moscovitz
February 3, 2012
Dividend investing is a tried-and-true strategy for generating strong, steady returns in economies both good and bad. But as corporate America's slew of dividend cuts and suspensions over the past few years has demonstrated, it's not enough simply to buy a high yield. You also need to make sure those payouts are sustainable.
Let's examine how National Presto Industries (NYSE: NPK ) stacks up. In this series, we consider four critical factors investors should examine in every dividend stock. We'll then tie it all together to look at whether National Presto is a dividend dynamo or a disaster in the making.
While you won't see the figure reported on most financial websites, if you include National Presto's "special" annual dividends, the stock yields 8.3%, considerably higher than the S&P 500's 2.1%.
2. Payout ratio