Monday, August 27, 2007

Coachmen Industries: No Growth In This Dividend

When evaluating dividend paying stocks, the historical growth rate is as important as the fact the company pays a dividend. For Coachmen (COA) the dividend remained at 6 cents a share from the 3rd quarter of 2002 up through the 2nd quarter of 2006. The company then cut the dividend to 3 cents a share beginning with the 3rd quarter 2006 payment.

Today, Coachman announced it was suspending its dividend payments. An investor would have been wise to look at exiting the stock with the first announced cut as noted in the chart below.

(click on chart for larger image)

Coachmen stock chart August 27, 2007

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