Have you been waiting for Aegean Marine Petroleum Network Inc’s (NYSE:ANW) upcoming dividend of $0.02 per share? Then you only have to wait 3 more days before the stock pays out on 13 December 2017, and starts trading ex-dividend on the 28 November 2017. Is this future income a persuasive enough catalyst for investors to think about ANW as an investment today? Below, 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 Aegean Marine Petroleum Network
How I analyze a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
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Is it paying an annual yield above 75% of dividend payers?
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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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Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How well does Aegean Marine Petroleum Network fit our criteria?
The current payout ratio for the stock is 22.92%, which means that the dividend is covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. In the case of ANW it has increased its DPS from $0.04 to $0.08 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes ANW a true dividend rockstar. Compared to its peers, ANW has a yield of 2.08%, which is on the low-side for oil, gas and consumable fuels stocks.
What this means for you:
Are you a shareholder? Whilst there are few things you may like about Aegean Marine Petroleum Network from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. It may be beneficial exploring other income stocks as alternatives to ANW or even look at high-growth stocks to complement your steady income stocks. I suggest continuing your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? If you are building an income portfolio, then Aegean Marine Petroleum Network is a complicated choice since it has some positive aspects as well as negative ones. However, if you are not strictly just a dividend investor, ANW could still offer some interesting investment opportunities. As with all investments, 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. Take a look at our latest free fundmental analysis to explore other aspects of ANW.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.