Why Dividend Hunters Love Boiron SA (EPA:BOI)

There is a lot to be liked about Boiron SA (EPA:BOI) as an income stock, over the past 10 years it has returned an average of 2.00% per year. The company is currently worth €1.34b, and now yields roughly 2.20%. Should it have a place in your portfolio? Let’s take a look at Boiron in more detail. See our latest analysis for Boiron

5 questions I ask before picking a dividend stock

When researching a dividend stock, I always follow the following screening criteria:

• Is their annual yield among the top 25% of dividend payers?

• Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

• Has dividend per share amount increased over the past?

• Is is able to pay the current rate of dividends from its earnings?

• Will it have the ability to keep paying its dividends going forward?

ENXTPA:BOI Historical Dividend Yield June 21st 18

How does Boiron fare?

The current trailing twelve-month payout ratio for the stock is 37.69%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 38.10%, leading to a dividend yield of 2.34%. Furthermore, EPS is forecasted to fall to €4 in the upcoming year.

If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of BOI it has increased its DPS from €0.55 to €1.6 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.

In terms of its peers, Boiron produces a yield of 2.20%, which is on the low-side for Pharmaceuticals stocks.

Next Steps:

With these dividend metrics in mind, I definitely rank Boiron as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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. I’ve put together three important aspects you should further research:

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

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

3. 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.