Important news for shareholders and potential investors in Adelaide Brighton Limited (ASX:ABC): The dividend payment of A$0.16 per share will be distributed into shareholder on 13 April 2018, and the stock will begin trading ex-dividend at an earlier date, 29 March 2018. Should you diversify into Adelaide Brighton and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. Check out our latest analysis for Adelaide Brighton

Here’s how I find good dividend stocks

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

• Does it pay an annual yield higher than 75% of dividend payers?

• Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

• Has the amount of dividend per share grown over the past?

• Can it afford to pay the current rate of dividends from its earnings?

• Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

Does Adelaide Brighton pass our checks?

The company currently pays out 73.22% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 82.04%, leading to a dividend yield of around 4.20%. Furthermore, EPS should increase to A$0.32. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward. 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. Although ABC’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Shareholders would have seen a few years of reduced payments in this time. Compared to its peers, Adelaide Brighton generates a yield of 3.76%, which is high for Basic Materials stocks but still below the market’s top dividend payers.

Next Steps:

Considering the dividend attributes we analyzed above, Adelaide Brighton is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that 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. I’ve put together three pertinent factors you should further research: