Important news for shareholders and potential investors in Gattaca plc (AIM:GATC): The dividend payment of £0.17 per share will be distributed into shareholder on 19 January 2018, and the stock will begin trading ex-dividend at an earlier date, 21 December 2017. Should you diversify into Gattaca 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 Gattaca
Here’s how I find good dividend stocks
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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Does it consistently pay out dividends without missing a payment or significantly cutting payout?
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Has the amount of dividend per share grown over the past?
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Is its earnings sufficient to payout dividend at the current rate?
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Will it be able to continue to payout at the current rate in the future?
Does Gattaca pass our checks?
The current payout ratio for GATC is 100.81%, meaning the dividend is not sufficiently covered by its earnings. In the near future, analysts are predicting a more sensible payout ratio of 52.77%, leading to a dividend yield of around 7.88%.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. GATC has increased its DPS from £0.14 to £0.23 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 GATC a true dividend rockstar. Relative to peers, Gattaca generates a yield of 7.88%, which is high for professional services stocks.
What this means for you:
Are you a shareholder? Investors of Gattaca can continue to expect strong dividends from the stock moving forward. With its favorable dividend characteristics, Gattaca is one worth keeping around in your income portfolio. However, depending on your current holdings, it may be valuable exploring other income stocks to enhance your diversification, or even look at high-growth stocks to supplement your steady income stocks. I recommend 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? With these dividend metrics in mind, I definitely rank Gattaca as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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. Another aspect to consider is how much it’s actually worth. Can you buy Gattaca for a great price? Take a look at our latest free analysis to find out!
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.