On the 13 July 2018, Kimball International Inc (NASDAQ:KBAL) will be paying shareholders an upcoming dividend amount of $0.07 per share. However, investors must have bought the company’s stock before 22 June 2018 in order to qualify for the payment. That means you have only 2 days left! Is this future income a persuasive enough catalyst for investors to think about Kimball International as an investment today? Below, 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 Kimball International
5 checks you should do on a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
-
Does it pay an annual yield higher than 75% of dividend payers?
-
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
-
Has the amount of dividend per share grown over the past?
-
Does earnings amply cover its dividend payments?
-
Will it have the ability to keep paying its dividends going forward?
How does Kimball International fare?
The company currently pays out 29.03% of its earnings as a dividend, according to its trailing twelve-month data, 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. Dividend payments from Kimball International have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. These characteristics do not bode well for income investors seeking reliable stream of dividends. Compared to its peers, Kimball International produces a yield of 1.71%, which is on the low-side for Commercial Services stocks.
Next Steps:
Now you know to keep in mind the reason why investors should be careful investing in Kimball International for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering 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 relevant factors you should look at:
-
Valuation: What is KBAL 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 KBAL is currently mispriced by the market.
-
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Kimball International’s board and the CEO’s back ground.
-
Dividend Rockstars: Are there better dividend payers with stronger 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.