Hey, everyone, the last couple of weeks have been a bumpy ride on the stock market, with a lot of nice buying opportunities. As I mentioned in my lasts posts my main investment focus is now on companies with a lower payout ratio with enough room for dividend future dividend growth. Until the end of the year, I have now a focus on three dividend stocks.

The J.M. Smucker Company (SJM)

This company engages in manufacturing and marketing branded food products primarily in the United States, Canada, and internationally. The company's product portfolio includes coffee, peanut butter, fruit spreads, shortening and oils, baking mixes and ready-to-spread frostings, canned milk, flour and baking ingredients, juices and beverages, frozen sandwiches, toppings, syrups, and pickles and condiments. Famous brand are among others Dunkin' Donuts, Millstone, Café Bustelo, Café Pilon, Smucker's, Jif, Hungry Jack.

• Dividend: Currently the company pays a yearly dividend of 3.40USD which equals a yield of 3.29%. The latest dividend increase was at 8.9%, which is above my goal to have an average dividend increase of 7.5%. SJM has increased its dividend for the last 16 years.
• Payout Ratio: The current payout ratio is at 40.3% which is on a very healthy level and gives enough room for future dividend growth.
• Financial health: With an equity ratio of 46.76% and debt to equity ratio of 0.73 the company’s financial situation is more than stable.

Exxon Mobil

Exxon Mobil Corporation (XOM) is a manufacturer and marketer of commodity petrochemicals. The company offers several specialty products including olefins, aromatics, polyethylene, and polypropylene plastics. XOM includes a few divisions which include Exxon Mobil, Exxon, Esso and Mobil. XOM was founded in 1882 and is based in Irving, TX.

• Dividend: Currently the company pays a yearly dividend of 3.28USD which equals a yield of 4.15%. The latest dividend increase was at 6.5%, which is slightly below my goal to have an average dividend increase of 7.5%. XOM has increased its dividend for the last 35 years.
• Payout Ratio: The current payout ratio is at 71.3% which is a bit higher than expected by more or less in line with ones from the past.
• Financial health: With an equity ratio of 54.68% and debt to equity ratio of 0.11 the company’s financial situation is more than stable.

Philipps 66

Phillips 66 (PSX) is a holding company created through the repositioning of ConocoPhillips. PSX has three segments: Refining and Marketing, Midstream, and Chemicals. The company focuses on producing natural gas liquids (NGL) and petrochemicals. PSX was founded in 1917 and is based in Houston, TX.

• Dividend: Currently the company pays a yearly dividend of 3.20USD which equals a yield of 3.45%. The latest dividend increase was at 14.3%, which is way above my goal to have an average dividend increase of 7.5%. PSX has increased its dividend for the last6 years.
• Payout Ratio: The current payout ratio is at 41.0% which is similar to SJM on a very healthy level and gives also some room for future dividend growth.
• Financial health: With an equity ratio of 43.66% and debt to equity ratio of 0.47 the company’s financial situation is more than stable.

Conclusion

As you can see I am looking now for financial very stable companies, which have at the same enough potential for decent dividend increases in the future. Honestly, I want to buy all three of them, but let’s which one it will be in the end. XOM, for example, has been on my watch list since I began with dividend investing. Nevertheless, I can not go wrong with any of those companies.

What do you think about those companies and which ones are on your watch list?