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On the 25 March 2019, Lassila & Tikanoja Oyj (HEL:LAT1V) will be paying shareholders an upcoming dividend amount of €0.92 per share. However, investors must have bought the company’s stock before 15 March 2019 in order to qualify for the payment. That means you have only 4 days left! Should you diversify into Lassila & Tikanoja Oyj and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail.
View our latest analysis for Lassila & Tikanoja Oyj
5 questions I ask before picking a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
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Is it the top 25% annual dividend yield payer?
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Has it paid dividend every year without dramatically reducing payout in the past?
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Has it increased its dividend per share amount over the past?
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Does earnings amply cover its dividend payments?
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Will it be able to continue to payout at the current rate in the future?
How does Lassila & Tikanoja Oyj fare?
The company currently pays out 104% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is not well-covered by its earnings. Going forward, analysts expect LAT1V’s payout to reduce to 91% of its earnings. Assuming a constant share price, this equates to a dividend yield of 6.4%. However, EPS should increase to €0.98, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
When thinking about whether a dividend is sustainable, another factor to consider is the cash flow. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of LAT1V it has increased its DPS from €0.55 to €0.92 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.
Compared to its peers, Lassila & Tikanoja Oyj produces a yield of 6.1%, which is high for Commercial Services stocks.
Next Steps:
With this in mind, I definitely rank Lassila & Tikanoja Oyj as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Below, I’ve compiled three relevant factors you should further research: