Attention dividend hunters! Titan Cement Company SA (ATH:TITK) will be distributing its dividend of €0.05 per share on the 02 July 2018, and will start trading ex-dividend in 1 days time on the 25 June 2018. Is this future income a persuasive enough catalyst for investors to think about Titan Cement as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. View out our latest analysis for Titan Cement
5 questions to ask before buying a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
- Does it pay an annual yield higher than 75% of dividend payers?
- 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?
- Can it afford to pay the current rate of dividends from its earnings?
- Will it be able to continue to payout at the current rate in the future?
How does Titan Cement fare?
The current trailing twelve-month payout ratio for the stock is 8.49%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 37.60%, leading to a dividend yield of around 2.70%. In addition to this, EPS should increase to €1.31. 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. Not only have dividend payouts from Titan Cement fallen over the past 10 years, it has also been highly volatile during this time, with drops of over 25% in some years. These characteristics do not bode well for income investors seeking reliable stream of dividends.
Relative to peers, Titan Cement has a yield of 2.44%, which is on the low-side for Basic Materials stocks.
If you are building an income portfolio, then Titan Cement 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, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. Below, I’ve compiled three key aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for TITK’s future growth? Take a look at our free research report of analyst consensus for TITK’s outlook.
- Valuation: What is TITK 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 TITK 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 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.