Yahoo Finance Maxim Integrated Products Inc (NASDAQ:MXIM): Ex-Dividend Is In 3 Days, Should You Buy?
If you are interested in cashing in on Maxim Integrated Products Inc’s (NASDAQ:MXIM) upcoming dividend of $0.42 per share, you only have 3 days left to buy the shares before its ex-dividend date, 30 May 2018, in time for dividends payable on the 14 June 2018. Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at Maxim Integrated Products’s most recent financial data to examine its dividend characteristics in more detail. Check out our latest analysis for Maxim Integrated Products
5 checks you should use to assess a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is it paying an annual yield above 75% of dividend payers?
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has dividend per share risen in the past couple of years?
Is it 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?
How does Maxim Integrated Products fare?
The current trailing twelve-month payout ratio for MXIM is 100.72%, which means that the dividend is not well-covered by its earnings. In the near future, analysts are predicting a more sensible payout ratio of 56.37%, leading to a dividend yield of around 2.79%. In addition to this, EPS should increase to $2.43, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. 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. In the case of MXIM it has increased its DPS from $0.75 to $1.68 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. These are all positive signs of a great, reliable dividend stock. Relative to peers, Maxim Integrated Products generates a yield of 2.84%, which is high for Semiconductor stocks but still below the market’s top dividend payers.
Next Steps:
With this in mind, I definitely rank Maxim Integrated Products 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, 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 fundamental factors you should look at:
Future Outlook: What are well-informed industry analysts predicting for MXIM’s future growth? Take a look at our free research report of analyst consensus for MXIM’s outlook.
Valuation: What is MXIM 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 MXIM 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 pass 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.
