Have you been keeping an eye on Marine Products Corporation’s (NYSE:MPX) upcoming dividend of $0.1 per share payable on the 09 March 2018? Then you only have 4 days left before the stock starts trading ex-dividend on the 08 February 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Marine Products can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for Marine Products
5 questions I ask before picking a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
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Is it paying an annual yield above 75% of dividend payers?
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Has it paid dividend every year without dramatically reducing payout in the past?
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Has it increased its dividend per share amount over the past?
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Does earnings amply cover its dividend payments?
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Will it have the ability to keep paying its dividends going forward?
How well does Marine Products fit our criteria?
The company currently pays out 55.97% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward. 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. Whilst its per-share payments have increased during the past 10 years, there has been some hiccups. Shareholders would have seen a few years of reduced payments in this time. Relative to peers, Marine Products generates a yield of 2.58%, which is high for Leisure stocks but still below the market’s top dividend payers.
Next Steps:
Taking all the above into account, Marine Products is a complicated pick for dividend investors given that there are a couple of positive things about it as well as negative. However, if you are not strictly just a dividend investor, the stock could still offer some interesting investment opportunities. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three pertinent factors you should further examine:
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1. Future Outlook: What are well-informed industry analysts predicting for MPX’s future growth? Take a look at our free research report of analyst consensus for MPX’s outlook.
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2. Valuation: What is MPX 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 MPX is currently mispriced by the market.
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3. 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 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.