Yahoo Finance FFI Holdings Limited (ASX:FFI): Ex-Dividend Is In 3 Days
Important news for shareholders and potential investors in FFI Holdings Limited (ASX:FFI): The dividend payment of AU$0.10 per share will be distributed to shareholders on 28 September 2018, and the stock will begin trading ex-dividend at an earlier date, 17 September 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into FFI Holdings’s latest financial data to analyse its dividend attributes.
View our latest analysis for FFI Holdings
5 questions to ask before buying a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is it paying an annual yield above 75% of dividend payers?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
Has dividend per share amount increased over the past?
Does earnings amply cover its dividend payments?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
Does FFI Holdings pass our checks?
The current trailing twelve-month payout ratio for FFI is 92.0%, meaning the dividend is not sufficiently covered by its earnings. In the near future, analysts are predicting a more sensible payout ratio of 85.5%, leading to a dividend yield of around 6.0%.
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. Companies with strong cash flow can sustain a higher payout ratio, while companies with weaker cash flow generally cannot.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time.
Relative to peers, FFI Holdings generates a yield of 4.9%, which is high for Food stocks but still below the market’s top dividend payers.
Next Steps:
Taking all the above into account, FFI Holdings is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. 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 recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. I’ve put together three essential aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for FFI’s future growth? Take a look at our free research report of analyst consensus for FFI’s outlook.
Valuation: What is FFI 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 FFI 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.
