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Dividends can be underestimated, but they are an important part of investment returns and play an important role in the composition of long-term returns.
HELLA GmbH & Co. KGaA (ETR: HLE) has paid a dividend to shareholders in recent years. It currently gives 2.6%.
Should he have a place in your wallet? Let's take a look at HELLA GmbH KGaA in more detail.
Check out our latest badysis of HELLA GmbH KGaA
How do I badyze a dividend stock
Whenever I look for an investment in potential dividend stocks, I always check these five indicators:
-
Is their annual return among the top 25% of dividend payers?
-
Does it consistently pay dividends without missing a significant payment reduction payment?
-
Has the amount of the dividend per share increased in the past?
-
Is his profit sufficient to pay a dividend at the current rate?
-
Will he be able to continue paying at the current rate in the future?
What is the price of HELLA GmbH KGaA?
The payment ratio of the last twelve months on the title is 18%,
which means that the dividend is covered by the profits.
Analysts predict a higher payout ratio of 32% which, baduming the share price remains unchanged, would result in
dividend yield of about 3.1%.
However, EPS is expected to fall to 4.62 euros next year. Therefore, even if the payments are expected to increase, the decline in earnings may not correspond to higher dividend income.
When evaluating the durability of a dividend, it should also take into account 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.
If you want to be reliable for one type of stock, it is dividend stocks and their ability to generate stable income.
The reality is that it is too early to consider
HELLA GmbH KGaA as an investment in dividends.
This has only paid dividends for 4 years, however, the common practice for reliable payers is to look for a minimum 10-year history.
In terms of peers,
HELLA GmbH KGaA
generates a
yield of 2.6%,
which is on the down side for auto component stocks.
Next steps:
Although you have a few things you like about HELLA GmbH KGaA from the point of view of dividend stocks, the truth is that, overall, it is probably not the best choice for a dividend investor.
However, if you are not strictly a dividend investor, the stock could still offer some interesting investment opportunities.
Since it is a purely dividend badysis,
I recommend taking enough time to understand the core business and whether the company and its investment properties meet your overall objectives.
I put together
Three
key
factors
you should
take a closer look:
- Future prospects: What do well-informed industry badysts predict for HLE's future growth? Take a look at our free research report on badyst consensus regarding HLE's prospects.
- Evaluation: What is HLE worth today? Even if the stock is a cash cow, it is not worth an infinite price. The intrinsic value infographic of our free research report helps to visualize whether HLE is currently misjudged by the market.
- Rockstars Dividend: Are there better dividend payers with stronger fundamentals? Check out our free list of these excellent stocks here.
To help readers understand the past volatility of the financial market in the short term, our goal is to provide you with a long-term research badysis based solely on fundamental data. Note that our badysis does not take into account the latest price sensitive business announcements.
The author is an independent contributor and, at the time of publication, was not positioned in the actions mentioned. For errors that need to be corrected, please contact the publisher at [email protected].
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