Important news for shareholders and potential investors in Haynes Publishing Group PLC (LON:HYNS): The dividend payment of UK£0.04 per share will be distributed to shareholders on 15 November 2018, and the stock will begin trading ex-dividend at an earlier date, 25 October 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Haynes Publishing Group can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes.
View our latest analysis for Haynes Publishing Group
Here’s how I find good dividend stocks
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
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Is it paying an annual yield above 75% of dividend payers?
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Does it consistently pay out dividends without missing a payment of significantly cutting payout?
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Has the amount of dividend per share grown over the past?
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Does earnings amply cover its dividend payments?
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Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How well does Haynes Publishing Group fit our criteria?
Haynes Publishing Group has a trailing twelve-month payout ratio of 76%, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 41%, leading to a dividend yield of around 3.8%.
When assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Not only have dividend payouts from Haynes Publishing Group fallen over the past 10 years, it has also been highly volatile during this time, with drops of over 25% in some years. This means that dividend hunters should probably steer clear of the stock, at least for now until the track record improves.
Compared to its peers, Haynes Publishing Group has a yield of 3.8%, which is high for Media stocks but still below the market’s top dividend payers.
Next Steps:
Whilst there are few things you may like about Haynes Publishing Group from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. 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. I’ve put together three key aspects you should look at: