This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Should You Buy It? Diebold

Editor's note: Friday, Feb. 27, David Peltier will be on Stockpickr Answers to answer questions posed by members of the Stockpickr community. Not a member? Join the Stockpickr community today -- free.

With more companies cutting their dividends these days, I've paid special attention to the ones that have actually increased their payout in 2009. Diebold (DBD - Get Report) is one such name, as the company boosted its quarterly dividend on Feb. 11 to 26 cents a share (4.6% yield).

But what makes Diebold stand out from the rest is that management has increased the dividend 56 consecutive years -- the longest current streak in this country.

And it appears that maker of automated teller and electronic voting machines can cover the payment 2.1 times with expected 2009 earnings of $2.19 a share. Free cash flow also came in 26% ahead of reported earnings in 2008. Diebold also has a decent balance sheet with $362.8 million of cash compared with $605.2 million of debt.

But is a good dividend enough reason to buy the stock these days? One of the reasons why the company's yield is so high is because Diebold shares are down nearly 20% year-to-date. The stock closed Wednesday near nine-year lows at $22.63.

With that in mind, I'm here to answer readers' questions: Should you buy it? Does Diebold offer value at current levels or should investors focus elsewhere?
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DBD $34.58 0.00%
HNI $44.97 0.00%
MLHR $32.14 0.00%
PBI $21.06 0.00%
SCS $20.23 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs