Yahoo Finance Cohort plc (LON:CHRT): Ex-Dividend Is In 2 Days
Investors who want to cash in on Cohort plc’s (LON:CHRT) upcoming dividend of UK£0.029 per share have only 2 days left to buy the shares before its ex-dividend date, 31 January 2019, in time for dividends payable on the 27 February 2019. Is this future income a persuasive enough catalyst for investors to think about Cohort 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 Cohort
5 checks you should use to assess a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Is its annual yield among the top 25% of dividend-paying companies?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share amount increased over the past?
Is its earnings sufficient to payout dividend at the current rate?
Will the company be able to keep paying dividend based on the future earnings growth?
How well does Cohort fit our criteria?
Cohort has a trailing twelve-month payout ratio of 55%, meaning the dividend is sufficiently 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 assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. A company with strong cash flow, relative to earnings, can sometimes sustain a high pay out ratio.
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 CHRT it has increased its DPS from £0.015 to £0.082 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, Cohort generates a yield of 2.1%, which is on the low-side for Aerospace & Defense stocks.
Next Steps:
Keeping in mind the dividend characteristics above, Cohort is definitely worth considering for investors looking to build a dedicated income portfolio. 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 pertinent factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for CHRT’s future growth? Take a look at our free research report of analyst consensus for CHRT’s outlook.
Valuation: What is CHRT 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 CHRT 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.
