Yahoo Finance Only 2 Days Left Until Port of Tauranga Limited (NZSE:POT) Trades Ex-Dividend,
Have you been keeping an eye on Port of Tauranga Limited’s (NZSE:POT) upcoming dividend of NZ$0.14 per share payable on the 05 October 2018? Then you only have 2 days left before the stock starts trading ex-dividend on the 20 September 2018. Is this future income a persuasive enough catalyst for investors to think about Port of Tauranga 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.
View our latest analysis for Port of Tauranga
Here’s how I find good dividend stocks
When researching a dividend stock, I always follow the following screening criteria:
Is it the top 25% annual dividend yield payer?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share risen in the past couple of years?
Is is able to pay the current rate of dividends from its earnings?
Will it be able to continue to payout at the current rate in the future?
How well does Port of Tauranga fit our criteria?
Port of Tauranga has a trailing twelve-month payout ratio of 90.5%, which means that the dividend is not well-covered by its earnings. In the near future, analysts are predicting a payout ratio of 95.5%, leading to a dividend yield of around 3.0%. In addition to this, EPS should increase to NZ$0.15.
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.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of POT it has increased its DPS from NZ$0.060 to NZ$0.18 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes POT a true dividend rockstar.
Compared to its peers, Port of Tauranga generates a yield of 3.4%, which is on the low-side for Infrastructure stocks.
Next Steps:
Whilst there are few things you may like about Port of Tauranga from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. There are three fundamental factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for POT’s future growth? Take a look at our free research report of analyst consensus for POT’s outlook.
Valuation: What is POT 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 POT is currently mispriced by the market.
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.
