Only 3 Days Left To Cash In On Kohl’s Corporation (NYSE:KSS) Dividend, Should You Buy?

On the 27 June 2018, Kohl’s Corporation (NYSE:KSS) will be paying shareholders an upcoming dividend amount of $0.61 per share. However, investors must have bought the company’s stock before 12 June 2018 in order to qualify for the payment. That means you have only 3 days left! 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 Kohl’s’s most recent financial data to examine its dividend characteristics in more detail. View our latest analysis for Kohl’s

5 checks you should use to assess a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

• Does it pay an annual yield higher than 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?

• Can it afford to pay the current rate of dividends from its earnings?

• Will the company be able to keep paying dividend based on the future earnings growth?

NYSE:KSS Historical Dividend Yield Jun 8th 18

Does Kohl’s pass our checks?

The current trailing twelve-month payout ratio for the stock is 43.16%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect KSS’s payout to increase to 49.31% of its earnings, which leads to a dividend yield of 3.40%. Furthermore, EPS should increase to $5.4. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. The reality is that it is too early to consider Kohl’s 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. In terms of its peers, Kohl’s produces a yield of 3.14%, which is high for Multiline Retail stocks but still below the market’s top dividend payers.

Next Steps:

If you are building an income portfolio, then Kohl’s is a complicated choice since it has some positive aspects as well as negative ones. 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 urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Below, I’ve compiled three key aspects you should further research:

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

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

3. 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.