Have you been waiting for Travelport Worldwide Limited’s (NYSE:TVPT) upcoming dividend of $0.08 per share? Then you only have to wait 3 more days before the stock pays out on 21 December 2017, and starts trading ex-dividend on the 06 December 2017. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine TVPT’s latest financial data to analyse its dividend characteristics. Check out our latest analysis for Travelport Worldwide
How I analyze a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
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Is it paying an annual yield above 75% of dividend payers?
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Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
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Has the amount of dividend per share grown over the past?
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Does earnings amply cover its dividend payments?
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Will the company be able to keep paying dividend based on the future earnings growth?
How well does Travelport Worldwide fit our criteria?
The current payout ratio for the stock is 41.36%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 20.59%, leading to a dividend yield of around 2.41%. However, EPS should increase to $0.81, 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. Unfortunately, it is really too early to view Travelport Worldwide as a dividend investment. It has only been consistently paying dividends for 3 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. In terms of its peers, TVPT has a yield of 2.28%, which is high for it services stocks but still below the market’s top dividend payers.
What this means for you:
Are you a shareholder? Whilst there are few things you may like about Travelport Worldwide from a dividend stock perspective, the truth is that overall it probably is not the best choice for a dividend investor. It may be valuable exploring other income stocks as alternatives to TVPT or even look at high-growth stocks to complement your steady income stocks. I encourage you to continue 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.
Are you a potential investor? Taking all the above into account, Travelport Worldwide is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. But if you are not exclusively a dividend investor, TVPT could still be an interesting investment opportunity. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Check our latest free fundmental analysis to explore other aspects of TVPT.
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.