Eight companies buoyed by a new CEO

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We are looking for sustainable dividends from companies buoyed by a recent change in the C-suite

Sustainable dividends from companies buoyed by a recent change in the C-suite.This week’s return of former CEO Bob Iger to Walt Disney Co. spurred the stock to a 9 per cent gain. Still, the appointment is just one of several recent C-suite changes, across various industries, that have lifted market expectations as well as company prospects.

While some firms find chief executives from inside their organization, others bring in new blood. Beyond revenue and earnings gains, success ultimately hinges on the confidence new CEOs engender in the board of directors, but also in the teams they lead. We think the best new CEO hires make a big difference in the fortunes of their companies, including protecting and, indeed, deepening dividend sustainability.

We started this search with an extensive list of dividend-paying stocks, before singling out those with new CEOs, appointed this year, on the basis of proven track records and deep market knowledge.

Companies with 10 to 12 points have the most secure dividends, or the highest sustainability. Those with seven to nine points have above average sustainability; average sustainability, four to six points; and below average sustainability, one to three points.

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