In This Article:
On the 18 May 2018, Riverstone Holdings Limited (SGX:AP4) will be paying shareholders an upcoming dividend amount of MYR0.06 per share. However, investors must have bought the company’s stock before 26 April 2018 in order to qualify for the payment. That means you have only 2 days left! Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Riverstone Holdings’s latest financial data to analyse its dividend attributes. View our latest analysis for Riverstone Holdings
5 questions I ask before picking a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
-
Is its annual yield among the top 25% of dividend-paying companies?
-
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
-
Has the amount of dividend per share grown over the past?
-
Can it afford to pay the current rate of dividends from its earnings?
-
Will the company be able to keep paying dividend based on the future earnings growth?
How does Riverstone Holdings fare?
Riverstone Holdings has a trailing twelve-month payout ratio of 40.65%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect AP4’s payout to remain around the same level at 39.31% of its earnings, which leads to a dividend yield of around 2.81%. Moreover, EPS should increase to MYR0.2. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. Although AP4’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Shareholders would have seen a few years of reduced payments in this time. Compared to its peers, Riverstone Holdings generates a yield of 2.18%, which is on the low-side for Commercial Services stocks.
Next Steps:
With these dividend metrics in mind, I definitely rank Riverstone Holdings as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. 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. I’ve put together three important aspects you should further research:
-
Future Outlook: What are well-informed industry analysts predicting for AP4’s future growth? Take a look at our free research report of analyst consensus for AP4’s outlook.
-
Valuation: What is AP4 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 AP4 is currently mispriced by the market.
-
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 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.