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Vianet Group plc (LON:VNET) is a true Dividend Rock Star. Its yield of 5.3% makes it one of the market’s top dividend payer. In the past ten years, Vianet Group has also grown its dividend from £0.050 to £0.057. Below, I have outlined more attractive dividend aspects for Vianet Group for income investors who may be interested in new dividend stocks for their portfolio.
Check out our latest analysis for Vianet Group
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:
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It is paying an annual yield above 75% of dividend payers
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It consistently pays out dividend without missing a payment or significantly cutting payout
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Its has increased its dividend per share amount over the past
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It can afford to pay the current rate of dividends from its earnings
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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 5.3%, which is high for Electronic stocks. But the real reason Vianet Group 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 there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. VNET has increased its DPS from £0.050 to £0.057 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. This is an impressive feat, which makes VNET a true dividend rockstar.
Vianet Group has a trailing twelve-month payout ratio of 87%, which means that the dividend is covered by earnings. However, going forward, analysts expect VNET’s payout to fall to 57% of its earnings, which leads to a dividend yield of 5.3%.
When thinking about whether a dividend is sustainable, another factor to consider is the cash flow. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
Next Steps:
Vianet Group ticks all the boxes for what I look for in a dividend stock. If you are looking to build an income focused portfolio, this could be one to include. 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. I’ve put together three fundamental factors you should further research: