Important news for shareholders and potential investors in 360 Capital Group Limited (ASX:TGP): The dividend payment of A$0.01 per share will be distributed into shareholder on 30 January 2018, and the stock will begin trading ex-dividend at an earlier date, 28 December 2017. What does this mean for current shareholders and potential investors? Below, I will explain how holding 360 Capital Group can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for 360 Capital Group
How I analyze a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
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Is its annual yield among the top 25% of dividend-paying companies?
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Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
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Has dividend per share amount increased over the past?
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Can it afford to pay the current rate of dividends from its earnings?
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Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How well does 360 Capital Group fit our criteria?
360 Capital Group has a payout ratio of 22.06%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 100.00%, leading to a dividend yield of around 3.44%.
If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. Dividend payments from 360 Capital Group have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. This means that dividend hunters should probably steer clear of the stock, at least for now until the track record improves. Compared to its peers, 360 Capital Group generates a yield of 6.28%, which is high for reits stocks.
What this means for you:
Are you a shareholder? If 360 Capital Group is in your portfolio for cash-generating reasons, there may be better alternatives out there. It may be beneficial exploring other income stocks as alternatives to 360 Capital Group or even look at high-growth stocks to supplement your steady income stocks. I suggest continuing your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? If you are building an income portfolio, then 360 Capital Group is a complicated choice since it has some positive aspects as well as negative ones. But if you are not exclusively a dividend investor, the stock could still be an interesting investment opportunity. As with all investments, 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. Dig deeping in our latest free fundmental analysis to explore other aspects of 360 Capital Group.
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.