Shares of Calian Group Ltd (TSX:CGY) will begin trading ex-dividend in 3 days. To qualify for the dividend check of CA$0.28 per share, investors must have owned the shares prior to 28 November 2017, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. What does this mean for current shareholders and potential investors? Below, I will explain how holding CGY can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. View our latest analysis for Calian Group
What Is A Dividend Rock Star?
It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically: It is paying an annual yield above 75% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its has increased its dividend per share amount over the past It is able to pay the current rate of dividends from its earnings It has the ability to keep paying its dividends going forward
High Yield And Dependable
I previously mentioned Calian Group’s dividend yield stands at 3.24%, which is high for commercial services and supplies stocks. But the real reason Calian Group stands out is because it has a proven track record of continuously paying out this level of dividends, from earnings, to shareholders and can be expected to continue paying in the future. This is a highly desirable trait for a stock holding if you’re investor who wants a robust cash inflow from your portfolio over a long period of time.
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. In the case of CGY it has increased its DPS from CA$0.48 to CA$1.12 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes CGY a true dividend rockstar. The current payout ratio for the stock is 55.21%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 41.35%, leading to a dividend yield of 3.24%. Moreover, EPS is also forecasted to fall to CA$2.02 in the upcoming year. The lower EPS on top of a lower payout ratio will lead to a fall in dividend payment moving forward.
What this means for you:
Are you a shareholder? With Calian Group producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a top dividend generator moving forward. But, depending on your current holdings, it may be beneficial exploring other dividend stocks to enhance your diversification, or even look at high-growth stocks to complement your steady income stocks. I recommend continuing your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.