Important news for shareholders and potential investors in Ocean Wilsons Holdings Limited (LSE:OCN): The dividend payment of $0.7 per share will be distributed into shareholder on 08 June 2018, and the stock will begin trading ex-dividend at an earlier date, 10 May 2018. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at Ocean Wilsons Holdings’s most recent financial data to examine its dividend characteristics in more detail. View our latest analysis for Ocean Wilsons Holdings
5 questions I ask before picking a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
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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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Is it able to pay the current rate of dividends from its earnings?
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Will it have the ability to keep paying its dividends going forward?
How well does Ocean Wilsons Holdings fit our criteria?
The company currently pays out 31.61% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. Going forward, analysts expect OCN’s payout to increase to 42.32% of its earnings, which leads to a dividend yield of around 4.85%. However, EPS is forecasted to fall to $1.53 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time. In terms of its peers, Ocean Wilsons Holdings generates a yield of 4.44%, which is high for Infrastructure stocks.
Next Steps:
Considering the dividend attributes we analyzed above, Ocean Wilsons Holdings is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. 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 pertinent aspects you should look at:
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Future Outlook: What are well-informed industry analysts predicting for OCN’s future growth? Take a look at our free research report of analyst consensus for OCN’s outlook.
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Valuation: What is OCN 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 OCN 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.