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Subject:  Re: iPIG Portfolio FAQ v. 1.0.1 Date:  5/18/2013  12:53 AM
Author:  kelbon Number:  126 of 665

APD's dividends are covered by operating cash flow, just not free cash flow.

Exactly the same argument could have been made about Avon. Avon's operating cash flow was about twice their dividends. And, as is the case with Air Products & Chemicals, Avon's dividends exceeded their free cash flow. The rest is history; especially for "dividend growth investors."

If this is the benchmark ("dividends are covered by operating cash flow"), what's the point of being conservative about the payout ratio as it pertains to earnings? Operating earnings are always greater than net earnings.

There are some companies, in some indus