Schweitzer-Mauduit International Inc (NYSE:SWM) is a true Dividend Rock Star. Its yield of 4.08% makes it one of the market’s top dividend payer. In the past ten years, Schweitzer-Mauduit International has also grown its dividend from 0.3 to 1.72. Below, I have outlined more attractive dividend aspects for Schweitzer-Mauduit International for income investors who may be interested in new dividend stocks for their portfolio. See our latest analysis for Schweitzer-Mauduit International

What Is A Dividend Rock Star?

It is a stock that pays a reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market. More specifically: It is paying an annual yield above 75% of dividend payers It consistently pays out dividend without missing a payment or significantly cutting payout Its dividend per share amount has increased over the past It can afford to pay the current rate of dividends from its earnings It is able to continue to payout at the current rate in the future

High Yield And Dependable

The company’s dividend yield stands at 4.08%, which is high for Forestry stocks. But the real reason Schweitzer-Mauduit International stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.

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 SWM it has increased its DPS from $0.3 to $1.72 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. These are all positive signs of a great, reliable dividend stock. The company currently pays out 65.35% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. However, going forward, analysts expect SWM’s payout to fall to 50.65% of its earnings, which leads to a dividend yield of 4.29%. However, EPS should increase to $3.2, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.

Next Steps:

Schweitzer-Mauduit International’s strong dividend attributes make it, without a doubt, a stock dividend investors should be considering for their portfolios. However, given 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 essential factors you should look at:

• 1. Future Outlook: What are well-informed industry analysts predicting for SWM’s future growth? Take a look at our free research report of analyst consensus for SWM’s outlook.

• 2. Valuation: What is SWM 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 SWM is currently mispriced by the market.

• 3. Other Dividend Rockstars: Are there strong dividend payers with better 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.