Friday, 12 April 2013

Chesnara's dividend policy looking strong but for how long

Chesnara, the insurance services provider, has maintained it's dividend policy and has again increased the dividend for the year having gone ex dividend a couple of days ago. Whilst it is worthwhile keeping an eye on this I am holding off taking a position as the dividend cover is only around 1.4 and I'm therefore unsure whether they will be able to continue this dividend policy should they hit a bump in the road. With a juicy 7.4% yield though it can't be overlooked and as such I will be keeping these on my watchlist monitoring their dividend policy.

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