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Westshore Terminals Investment Corporation (TSE:WTE): Ex-Dividend Is In 3 Days

On the 15 October 2018, Westshore Terminals Investment Corporation (TSE:WTE) will be paying shareholders an upcoming dividend amount of CA$0.16 per share. However, investors must have bought the company’s stock before 27 September 2018 in order to qualify for the payment. That means you have only 3 days left! Should you diversify into Westshore Terminals Investment 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.

Check out our latest analysis for Westshore Terminals Investment

5 checks you should do on a dividend stock

When researching a dividend stock, I always follow the following screening criteria:

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  • Does it pay an annual yield higher than 75% of dividend payers?

  • Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

  • Has it increased its dividend per share amount over the past?

  • Is is able to pay the current rate of dividends from its earnings?

  • Based on future earnings growth, will it be able to continue to payout dividend at the current rate?

TSX:WTE Historical Dividend Yield September 23rd 18
TSX:WTE Historical Dividend Yield September 23rd 18

Does Westshore Terminals Investment pass our checks?

Westshore Terminals Investment has a trailing twelve-month payout ratio of 37.7%, 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.

If you want to dive deeper into the sustainability of a certain payout ratio, you may wish to consider the cash flow of the business. 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. Dividend payments from Westshore Terminals Investment have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. These characteristics do not bode well for income investors seeking reliable stream of dividends.

In terms of its peers, Westshore Terminals Investment has a yield of 2.4%, which is on the low-side for Infrastructure stocks.

Next Steps:

Now you know to keep in mind the reason why investors should be careful investing in Westshore Terminals Investment for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering 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 important factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for WTE’s future growth? Take a look at our free research report of analyst consensus for WTE’s outlook.

  2. Valuation: What is WTE 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 WTE is currently mispriced by the market.

  3. 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.