Yahoo Finance Income Investors Should Know The ABM Industries Incorporated (NYSE:ABM) Ex-Dividend Date
If you are interested in cashing in on ABM Industries Incorporated’s (NYSE:ABM) upcoming dividend of US$0.17 per share, you only have 4 days left to buy the shares before its ex-dividend date, 03 October 2018, in time for dividends payable on the 05 November 2018. Is this future income a persuasive enough catalyst for investors to think about ABM Industries 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 ABM Industries
How I analyze a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is it paying an annual yield above 75% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has dividend per share risen in the past couple of years?
Can it afford to pay the current rate of dividends from its earnings?
Will the company be able to keep paying dividend based on the future earnings growth?
How does ABM Industries fare?
The company currently pays out 53.6% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is 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.
When considering the sustainability of dividends, it is also worth checking the cash flow of a company. A business with strong cash flow can sustain a higher divided payout ratio than a company with weak cash flow.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of ABM it has increased its DPS from $0.50 to $0.70 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.
Relative to peers, ABM Industries has a yield of 2.2%, which is high for Commercial Services stocks but still below the market’s top dividend payers.
Next Steps:
With these dividend metrics in mind, I definitely rank ABM Industries as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. Given that 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 important factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for ABM’s future growth? Take a look at our free research report of analyst consensus for ABM’s outlook.
Valuation: What is ABM 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 ABM is currently mispriced by the market.
Other 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
