There are people who believe that when companies pay dividends it is a good indication that the company is making money. This is probably true, but it is not absolute. Generally when companies pay dividends, especially an increasing dividend it is a good indication of the company's profitability.
However, I have seen companies do such things as borrow money to keep up dividends. This is very unhealthy for the long term viability of a company. That is why I check dividends against the EPS and Cash Flow per Share (CFPS) values. Of course, some companies have fiddled with their books. That is why you diversify your portfolio.
On my other blog I am today writing about Evertz Technologies (TSX-ET, OTC-EVTZF) ... continue...
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