Important news for shareholders and potential investors in Garda Capital Group (ASX:GCM): The dividend payment of A$0.01 per share will be distributed into shareholder on 25 January 2018, and the stock will begin trading ex-dividend at an earlier date, 28 December 2017. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Garda Capital Group’s latest financial data to analyse its dividend attributes. View our latest analysis for Garda Capital Group
5 checks you should do on a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
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Does it pay an annual yield higher than 75% of dividend payers?
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Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
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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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Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does Garda Capital Group fare?
Garda Capital Group has a payout ratio of 36.78%, meaning the dividend is sufficiently 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 there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. The reality is that it is too early to consider Garda Capital Group as a dividend investment. It has only been paying out dividend for the past one year. Generally, the rule of thumb for determining whether a stock is a reliable dividend payer is that it should be consistently paying dividends for the past 10 years or more. Clearly there’s a long road ahead before we can ascertain whether GCM one as a stable dividend player. In terms of its peers, Garda Capital Group has a yield of 3.74%, which is on the low-side for capital markets stocks.
What this means for you:
Are you a shareholder? Investors may not have the best feeling about their investment in Garda Capital Group right now, in terms of its dividend attributes. It may be worth exploring other dividend stocks as alternatives to Garda Capital Group or even look at high-growth stocks to complement your steady income stocks. I suggest continuing your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.