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Important news for shareholders and potential investors in AP. Eagers Limited (ASX:APE): The dividend payment of A$0.23 per share will be distributed into shareholder on 18 April 2018, and the stock will begin trading ex-dividend at an earlier date, 28 March 2018. Should you diversify into A.P. Eagers 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 A.P. Eagers
How I analyze a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
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Does it pay an annual yield higher than 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 dividend per share risen in the past couple of years?
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Can it afford to pay the current rate of dividends from its earnings?
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Will it be able to continue to payout at the current rate in the future?
How well does A.P. Eagers fit our criteria?
The company currently pays out 71.56% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 70.66%, leading to a dividend yield of around 4.28%. Furthermore, EPS is forecasted to fall to A$0.5 in the upcoming year. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Relative to peers, A.P. Eagers produces a yield of 4.19%, which is on the low-side for Specialty Retail stocks.
Next Steps:
Taking into account the dividend metrics, A.P. Eagers ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three relevant aspects you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for APE’s future growth? Take a look at our free research report of analyst consensus for APE’s outlook.
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Valuation: What is APE worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether APE is currently mispriced by the market.
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Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
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.