Travelport Worldwide Limited (NYSE:TVPT): Ex-Dividend Is In 3 Days, Should You Buy?

If you are interested in cashing in on Travelport Worldwide Limited’s (NYSE:TVPT) upcoming dividend of $0.08 per share, you only have 3 days left to buy the shares before its ex-dividend date, 06 June 2018, in time for dividends payable on the 21 June 2018. Is this future income a persuasive enough catalyst for investors to think about Travelport Worldwide 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. See our latest analysis for Travelport Worldwide

How I analyze 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 paid dividend every year without dramatically reducing payout in the past?

• Has it increased its dividend per share amount 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?

NYSE:TVPT Historical Dividend Yield Jun 2nd 18

How does Travelport Worldwide fare?

The company currently pays out 32.45% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. However, going forward, analysts expect TVPT’s payout to fall to 19.49% of its earnings, which leads to a dividend yield of 1.78%. Furthermore, EPS is also forecasted to fall to $0.86 in the upcoming year. The lower EPS on top of a lower payout ratio will lead to a fall in dividend payment moving forward. 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. Unfortunately, it is really too early to view Travelport Worldwide as a dividend investment. It has only been consistently paying dividends for 4 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Relative to peers, Travelport Worldwide has a yield of 1.73%, which is high for IT stocks but still below the market’s top dividend payers.

Next Steps:

Whilst there are few things you may like about Travelport Worldwide from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. 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 important factors you should further examine:

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

2. Valuation: What is TVPT 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 TVPT 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.