Shares of Jardine Lloyd Thompson Group plc (LON:JLT) will begin trading ex-dividend in 2 days. To qualify for the dividend check of UK£0.13 per share, investors must have owned the shares prior to 23 August 2018, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. Should you diversify into Jardine Lloyd Thompson Group and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail.
Check out our latest analysis for Jardine Lloyd Thompson Group
5 questions to ask before buying a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
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Does it pay an annual yield higher than 75% of dividend payers?
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Does it consistently pay out dividends without missing a payment of significantly cutting payout?
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Has it increased its dividend per share amount over the past?
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Does earnings amply cover its dividend payments?
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Will it have the ability to keep paying its dividends going forward?
How does Jardine Lloyd Thompson Group fare?
The company currently pays out 65.96% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. However, going forward, analysts expect JLT’s payout to fall to 46.25% of its earnings, which leads to a dividend yield of around 2.67%. However, EPS should increase to £0.63, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
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 JLT it has increased its DPS from £0.20 to £0.34 in the past 10 years. It has also been paying out dividend consistently during this time, as you’d expect for a company increasing its dividend levels. This is an impressive feat, which makes JLT a true dividend rockstar.
Compared to its peers, Jardine Lloyd Thompson Group generates a yield of 2.37%, which is on the low-side for Insurance stocks.
Next Steps:
With these dividend metrics in mind, I definitely rank Jardine Lloyd Thompson Group 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, 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. There are three fundamental factors you should look at: