Yahoo Finance Only 3 Days Left To Kathmandu Holdings Limited (NZE:KMD)’s Ex-Dividend Date, Is It Worth Buying?
On the 22 June 2018, Kathmandu Holdings Limited (NZSE:KMD) will be paying shareholders an upcoming dividend amount of NZ$0.04 per share. However, investors must have bought the company’s stock before 07 June 2018 in order to qualify for the payment. That means you have only 3 days left! Should you diversify into Kathmandu Holdings 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. See our latest analysis for Kathmandu Holdings
5 checks you should use to assess a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Does it pay an annual yield higher than 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 amount increased over the past?
Does earnings amply cover its dividend payments?
Will it have the ability to keep paying its dividends going forward?
How does Kathmandu Holdings fare?
The company currently pays out 65.08% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 64.86%, leading to a dividend yield of around 5.84%. Moreover, EPS should increase to NZ$0.21. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. The reality is that it is too early to consider Kathmandu Holdings as a dividend investment. It has only been consistently paying dividends for 8 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. In terms of its peers, Kathmandu Holdings has a yield of 5.64%, which is on the low-side for Specialty Retail stocks.
Next Steps:
Whilst there are few things you may like about Kathmandu Holdings from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. 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. There are three fundamental factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for KMD’s future growth? Take a look at our free research report of analyst consensus for KMD’s outlook.
Valuation: What is KMD 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 KMD 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 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.
