Rent A Cop Dividend Stocks

A few weeks ago I wrote an article titled, “Open Fire On These Dividend Stocks,” and discussed the notion of investing in dividend paying companies in the firearms and ammo sector. Expanding on this concept of personal safety and security I want to highlight several other dividend paying companies that are involved in providing security services for commercial and residential customers as well as armored transportation services. While there are many companies that provide these security services, the vast majority of them are private. With that being said, let’s highlight some potential public dividend paying candidates that might find a home in your dividend portfolio.

First up is one of the largest names in the security business, Tyco International Ltd. (TYC). TYC is a name many people are already familiar with as many homes and businesses rely upon their security services. Besides its vast offering of security services, TYC also offers fire detection, fire suppression, video surveillance systems and various smoke, heat and chemical detectors. TYC currently offers a relatively low 1.70% yield with a moderately low payout ratio of 36.4% on an EPS of 2.21. While a current low yielding stock, TYC does have an impressive ten year annualized dividend growth rate of 19.81%. Don’t buy this stock for the current yield rather hold on to it for great dividend growth. On the valuation side of things TYC has a current PE of 19.76 which is slightly higher than the market as a whole but doesn’t appear to be too overvalued.

Next is another company that doesn’t need much of an introduction as their signs are in front of many homes and businesses, The ADT Corporation (ADT). While providing much of the same security services as TYC, ADT also offers personal emergency response services and can contact medical personnel for health related emergencies. Currently yielding a decent 2.17% with a moderate payout ratio of 40.6% on an EPS of 1.65, ADT does not have a long dividend history. It is on the path of being able to continue to raise its dividend going forward though. From a PE perspective ADT is slightly more expensive than the market and its peers at 22.27. Forward PE looks a lot more attractive at 17.20.

1 2 3
View single page >> |

Disclosure: Long IR, ALLE.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.