As you may recall, we announced an all-new version of Simply Safe Dividends was available this summer. Nothing is changing with the original version of the website, but you always have the option of upgrading to the new website for free if you would like to (your membership terms would remain the exact same).
We wanted to let you know about an important new feature we launched on the new site today in case it makes you more interested in the free upgrade.
Specifically, we rolled out over a dozen financial charts for thousands of companies. This feature is an improved version of the fundamental charts you use in the Stock Analyzer today.
Instead of just showing financial data for metrics like payout ratios, margins, and debt metrics, descriptions are available for each one. When appropriate, we have also inserted our own benchmarks showing the level we prefer to see companies hit.
I really enjoy pulling up my different holdings to see how they stack up. Insights pop off the page. Having this data at my fingertips helps me stay the course by seeing why a business is of high quality, and I also like being able to see the key drivers behind dividend safety and growth.
Here are a few examples…
The chart below plots the net debt to EBITDA ratio for National Retail Properties (NNN), a REIT held in our Conservative Retirees portfolio. You can quickly see that not only has NNN’s leverage ratio become more conservative over the last decade, but it also remains comfortably below our preferred level of 6 times. It’s no surprise that NNN is conservatively managed and enjoys an investment-grade credit rating.
Johnson & Johnson (JNJ) is another holding of ours and has paid higher dividends for over 50 straight years, due in part to its excellent free cash flow generation. You can see that the firm’s free cash flow margin has towered above our preferred 5% level for more than a decade, demonstrating its ability to churn out cash like few other businesses can.
We can also see that J&J’s payout ratio remains nicely below our preferred level of 60% for most corporations, providing management with flexibility to continue using the firm’s free cash flow to grow the dividend at a healthy pace. These are reasons why J&J remains a fundamentally solid dividend growth stock.
But what about risky companies that conservative investors should probably avoid? Charts and our benchmarks help them stand out quickly, too. Take Dine Brands Global (DIN), for example.
The owner of the Applebee’s and IHOP restaurant chains cut its dividend by 35% in February 2018. Looking at the charts, you would have seen a business with a very strained balance sheet (net debt to EBITDA and interest coverage ratios well beyond our preferred levels).
Meanwhile, Dine Brands Global’s free cash flow was under pressure as its restaurants struggled, pushing its payout ratio well above a sustainable level. When combined with its high debt levels, this was a clear warning that a dividend cut was likely.
If you would like to try out the new Simply Safe Dividends website and the charts feature we just released, you can sign up for a trial here: https://2.simplysafedividends.com/signup
If you already took a trial, we would be more than happy to restart it for you. Just contact us to let us know.
Again, there is no obligation to upgrade. However, upgrading is 100% free and provides you with a number of improvements, including dividend email alerts, coverage of all U.S. securities (including mutual funds), dividend yield valuation charts.