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Shares of Sun TV Network Limited (NSE:SUNTV) will begin trading ex-dividend in 2 days. To qualify for the dividend check of ₹5.00 per share, investors must have owned the shares prior to 20 August 2018, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. Is this future income a persuasive enough catalyst for investors to think about Sun TV Network as an investment today? Below, I’m going to look at the latest data and analyze the stock and its dividend property in further detail.
Check out our latest analysis for Sun TV Network
5 checks you should use to assess a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
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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 dividend per share risen in the past couple of years?
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Is its earnings sufficient to payout dividend at the current rate?
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Will the company be able to keep paying dividend based on the future earnings growth?
Does Sun TV Network pass our checks?
The current trailing twelve-month payout ratio for the stock is 34.71%, which means that the dividend is covered by earnings. In the near future, analysts are predicting a higher payout ratio of 52.69%, leading to a dividend yield of around 2.70%. In addition to this, EPS should increase to ₹36.66. The higher payout forecasted, along with higher earnings, should lead to greater dividend income for investors moving forward.
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. Shareholders would have seen a few years of reduced payments in this time.
In terms of its peers, Sun TV Network has a yield of 2.56%, which is high for Media stocks.
Next Steps:
Considering the dividend attributes we analyzed above, Sun TV Network is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. 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. Below, I’ve compiled three key factors you should further examine:
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Future Outlook: What are well-informed industry analysts predicting for SUNTV’s future growth? Take a look at our free research report of analyst consensus for SUNTV’s outlook.
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Valuation: What is SUNTV 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 SUNTV is currently mispriced by the market.
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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.