Attention dividend hunters! Omnicom Group Inc (NYSE:OMC) will be distributing its dividend of $0.6 per share in 5 days time, on the 09 January 2018, and will start trading ex-dividend on the 18 December 2017. Should you diversify into OMC 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. View our latest analysis for Omnicom Group
What Is A Dividend Rock Star?
It is a stock that pays a reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market. More specifically: Its annual yield is among the top 25% of dividend payers It consistently pays out dividend without missing a payment or significantly cutting payout Its dividend per share amount has increased over the past It is able to pay the current rate of dividends from its earnings It is able to continue to payout at the current rate in the future
High Yield And Dependable
I previously mentioned Omnicom Group’s dividend yield stands at 3.27%, which is high for media stocks. But the real reason Omnicom Group stands out is because it has a proven track record of continuously paying out this level of dividends, from earnings, to shareholders and can be expected to continue paying in the future. This is a highly desirable trait for a stock holding if you’re investor who wants a robust cash inflow from your portfolio over a long period of time.
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. OMC has increased its DPS from $0.6 to $2.4 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes OMC a true dividend rockstar. The company currently pays out 43.50% of its earnings as a dividend, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 35.52%, leading to a dividend yield of around 3.20%. However, EPS should increase to $5.3, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
What this means for you:
Are you a shareholder? Investors of Omnicom Group can continue to expect strong dividends from the stock. With its favorable dividend characteristics, if high income generation is still the goal for your portfolio, then OMC is one worth keeping around. However, depending on your current holdings, it may be worth exploring other dividend stocks to increase diversification, or even look at high-growth stocks to supplement your steady income stocks. I recommend continuing your research by taking a look at my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.