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If you wish to cash the next dividend of AU $ 0.08 per share of New Hope Corporation Limited (ASX: NHC), you have only 4 days to purchase the shares before the ex-dividend date, April 18, 2019, in time for the dividends. payable on May 07, 2019.
Do you need to diversify to New Hope and increase the revenue stream of your portfolio? Keep reading, because today I will review the latest data and badyze the stock and its dividend property in more detail.
See our latest badysis for New Hope
5 questions I ask before choosing a dividend stock
When I search for a dividend stock, I always meet the following selection criteria:
-
Does it pay an annual return of more than 75% of the dividends?
-
Has its dividend been stable in the past (that is, no missed payments or significant reduction in payments)?
-
Has he increased his dividend per share in the past?
-
Do the benefits fully cover his dividend payments?
-
Will he have the ability to continue paying dividends in the future?
How does New Hope behave?
The payment ratio of the last twelve months on the title is 89%,
which means that the dividend is covered by the profits.
Analysts expect, however, that NHC payments will be reduced to 32 percent of its profits. Assuming a constant stock price, this is equivalent to
dividend yield of about 4.9%.
However, EPS should increase to A $ 0.37, meaning that the lower payout ratio does not necessarily imply a lower dividend payout.
If you want to deepen the sustainability of a certain payout ratio, you may want to consider the cash flow of the company.
A company with strong cash flow can maintain a higher split ratio than a company with low cash flow.
Reliability is an important factor for dividend stocks, particularly for income investors who want a strong payment history and a positive outlook for future distributions.
Although NHC's share-based payments have increased over the last 10 years, the path has not been quite smooth.
Shareholders would have experienced a few years of reduced payments during this period.
Compared to peers,
New hope
produces a
yield of 5.7%,
which is high for oil and gas
still below the main dividends of the market.
Next steps:
Given the characteristics of the dividends above, New Hope certainly deserves to be considered by investors seeking to build a dedicated income portfolio.
Since it's only about a dividend badysis,
I recommend taking enough time to understand the core business and whether the company and its investment properties meet your overall objectives.
Below, I've compiled
Three
relevant
aspects
you should
Watch:
- Future prospects: What do well-informed industry badysts predict for NHC's future growth? Check out our free research report on badyst consensus on NHC's outlook.
- Evaluation: What is NHC worth today? Even if the stock is a cash cow, it is not worth an infinite price. The infographic intrinsic value of our free research report allows to visualize if the price of NHC is currently wrong.
- Other dividends rockstars: Are there better dividend payers with stronger fundamentals? Check out our free list of these excellent stocks here.
Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.
If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.
Daniel Loeb has achieved an annualized return of 16.2% over the last 20 years. What is he holding today?
Founder of the hedge fund-focused Third Point hedge fund, Daniel Loeb is one of the most successful equity investors on the market so far. Explore the main holdings of his portfolio, see how he diversifies his investments, past performance and growth estimates. Click here to view a FREE Detailed Infographic Analysis of Daniel Loeb's Investment Portfolio.
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