Yahoo Finance Only 2 Days Left Until Popular, Inc. (NASDAQ:BPOP) Trades Ex-Dividend
Investors who want to cash in on Popular, Inc.’s (NASDAQ:BPOP) upcoming dividend of US$0.30 per share have only 2 days left to buy the shares before its ex-dividend date, 07 March 2019, in time for dividends payable on the 01 April 2019. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine Popular’s latest financial data to analyse its dividend characteristics.
View our latest analysis for Popular
5 checks you should use to assess a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
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?
Can it afford 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 Popular fare?
The current trailing twelve-month payout ratio for the stock is 16%, which means that the dividend is covered by earnings. Going forward, analysts expect BPOP’s payout to remain around the same level at 15% of its earnings. Assuming a constant share price, this equates to a dividend yield of around 2.2%. Moreover, EPS is forecasted to fall to $5.98 in the upcoming year.
When thinking about whether a dividend is sustainable, another factor to consider is the cash flow. Companies with strong cash flow can sustain a higher payout ratio, while companies with weaker cash flow generally cannot.
Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. BPOP has increased its DPS from $0.80 to $1.2 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 BPOP a true dividend rockstar.
In terms of its peers, Popular produces a yield of 2.1%, which is on the low-side for Banks stocks.
Next Steps:
Taking into account the dividend metrics, Popular 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. I’ve put together three essential aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for BPOP’s future growth? Take a look at our free research report of analyst consensus for BPOP’s outlook.
Valuation: What is BPOP 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 BPOP 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
