Yahoo Finance Are You An Income Investor? Don’t Miss Out On Schweiter Technologies AG (VTX:SWTQ)
Schweiter Technologies AG (VTX:SWTQ) has pleased shareholders over the past 10 years, paying out an average dividend of 3.0% annually. The company is currently worth CHF1.69b, and now yields roughly 3.4%. Let’s dig deeper into whether Schweiter Technologies should have a place in your portfolio.
See our latest analysis for Schweiter Technologies
5 checks you should do on a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Is it the top 25% annual dividend yield payer?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has the amount of dividend per share grown over the past?
Is is able to pay the current rate of dividends from its earnings?
Will it have the ability to keep paying its dividends going forward?
How does Schweiter Technologies fare?
The company currently pays out 72.5% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect SWTQ’s payout to increase to 80.2% of its earnings, which leads to a dividend yield of 3.9%. However, EPS is forecasted to fall to CHF51.1 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. SWTQ has increased its DPS from CHF9 to CHF40 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes SWTQ a true dividend rockstar.
In terms of its peers, Schweiter Technologies produces a yield of 3.4%, which is high for Building stocks but still below the market’s top dividend payers.
Next Steps:
Taking into account the dividend metrics, Schweiter Technologies ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. 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. There are three fundamental aspects you should further examine:
Future Outlook: What are well-informed industry analysts predicting for SWTQ’s future growth? Take a look at our free research report of analyst consensus for SWTQ’s outlook.
Valuation: What is SWTQ 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 SWTQ 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.
