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Investors who want to cash in on Carr’s Group plc’s (LON:CARR) upcoming dividend of UK£0.011 per share have only 2 days left to buy the shares before its ex-dividend date, 23 August 2018, in time for dividends payable on the 05 October 2018. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Carr’s Group’s latest financial data to analyse its dividend attributes.

Check out our latest analysis for Carr’s Group

Here’s how I find good dividend stocks

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

• Is their annual yield among the top 25% of dividend payers?

• Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

• Has the amount of dividend per share grown over the past?

• Is its earnings sufficient to payout dividend at the current rate?

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

How well does Carr’s Group fit our criteria?

Carr’s Group has a trailing twelve-month payout ratio of 40.14%, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 34.20%, leading to a dividend yield of 3.14%. However, EPS should increase to £0.12, 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. 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.

In terms of its peers, Carr’s Group generates a yield of 2.94%, which is high for Food stocks but still below the market’s top dividend payers.

Next Steps:

Keeping in mind the dividend characteristics above, Carr’s Group is definitely worth considering for investors looking to build a dedicated income portfolio. 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. Below, I’ve compiled three relevant factors you should further research:

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

2. Valuation: What is CARR 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 CARR 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.