Have you been waiting for MBT Financial Corp’s (NASDAQ:MBTF) upcoming dividend of $0.06 per share? Then you only have to wait 3 more days before the stock pays out on 16 November 2017, and starts trading ex-dividend on the 08 November 2017. Should you diversify into MBTF 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 MBT Financial
How I analyze a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
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Is their annual yield among the top 25% 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 it increased its dividend per share amount over the past?
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Is is able to pay the current rate of dividends from its earnings?
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Will it be able to continue to payout at the current rate in the future?
Does MBT Financial pass our checks?
The current payout ratio for the stock is 31.85%, which means that the dividend is covered by earnings. Analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect to see 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. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time. In terms of its peers, MBTF generates a yield of 1.90%, which is on the low-side for a banks stock.
What this means for you:
Are you a shareholder? Investors may not have the best feeling about their investment in MBTF right now, in terms of its dividend attributes. It may be beneficial exploring other dividend stocks as alternatives to MBTF or even look at high-growth stocks to complement your steady income stocks. I recommend continuing your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Now you know to keep in mind the reason why investors should be careful investing in MBTF for the dividend. On the other hand, if you are not strictly just a dividend investor, MBTF could still be offering some interesting investment opportunities. As always, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Check our latest free fundmental analysis to explore other aspects of MBTF.
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.