EVRAZ plc (LON:EVR): Dividend Is Coming In 2 Days, Should You Buy?

If you are interested in cashing in on EVRAZ plc’s (LON:EVR) upcoming dividend of US$0.40 per share, you only have 2 days left to buy the shares before its ex-dividend date, 16 August 2018, in time for dividends payable on the 06 September 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine EVRAZ’s latest financial data to analyse its dividend characteristics.

View our latest analysis for EVRAZ

5 questions I ask before picking a dividend stock

When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

• 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 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?

LSE:EVR Historical Dividend Yield August 13th 18

How well does EVRAZ fit our criteria?

The current trailing twelve-month payout ratio for the stock is 67.69%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect EVR’s payout to remain around the same level at 62.59% of its earnings, which leads to a dividend yield of around 8.24%. In addition to this, EPS is forecasted to fall to $0.91 in the upcoming year.

If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. The reality is that it is too early to consider EVRAZ as a dividend investment. It has only been consistently paying dividends for 7 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.

Relative to peers, EVRAZ produces a yield of 8.22%, which is high for Metals and Mining stocks.

Next Steps:

With this in mind, I definitely rank EVRAZ as a strong dividend stock, and makes it worth further research for anyone who likes steady income generation from their portfolio. 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 relevant aspects you should further examine:

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

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

3. 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.