Why Kuehne + Nagel International AG (VTX:KNIN) Is A Dividend Rockstar

Kuehne + Nagel International AG (VTX:KNIN) has pleased shareholders over the past 10 years, paying out an average dividend of 3.0% annually. The company currently pays out a dividend yield of 3.7% to shareholders, making it a relatively attractive dividend stock. Should it have a place in your portfolio? Let’s take a look at Kuehne + Nagel International in more detail.

Check out our latest analysis for Kuehne + Nagel International

5 checks you should use to assess a dividend stock

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

• Is it the top 25% annual dividend yield payer?

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

SWX:KNIN Historical Dividend Yield September 7th 18

How does Kuehne + Nagel International fare?

The company currently pays out 89.1% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. Going forward, analysts expect KNIN’s payout to remain around the same level at 87.0% of its earnings, which leads to a dividend yield of 4.2%. Furthermore, EPS should increase to CHF7.

When assessing the forecast sustainability of a dividend it is also worth considering the cash flow of the business. 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. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Investors have seen reductions in the dividend per share in the past, although, it has picked up again.

Compared to its peers, Kuehne + Nagel International has a yield of 3.7%, which is high for Shipping stocks.

Next Steps:

Keeping in mind the dividend characteristics above, Kuehne + Nagel International is definitely worth considering for investors looking to build a dedicated income portfolio. 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. There are three key factors you should further examine:

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

2. Valuation: What is KNIN 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 KNIN 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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.