2 Days Left Before Energizer Holdings Inc (NYSE:ENR) Will Start Trading Ex-Dividend, Should You Buy?
Attention dividend hunters! Energizer Holdings Inc (NYSE:ENR) will be distributing its dividend of US$0.29 per share on the 12 September 2018, and will start trading ex-dividend in 2 days time on the 15 August 2018. Should you diversify into Energizer Holdings and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail.
See our latest analysis for Energizer Holdings
5 checks you should do on a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
Is it paying an annual yield above 75% of dividend payers?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has dividend per share risen in the past couple of years?
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?
Does Energizer Holdings pass our checks?
Energizer Holdings has a trailing twelve-month payout ratio of 54.73%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 31.93%, leading to a dividend yield of around 1.92%. However, EPS should increase to $2.51, 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 Energizer Holdings 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, Energizer Holdings generates a yield of 1.85%, which is on the low-side for Household Products stocks.
Next Steps:
If Energizer Holdings is in your portfolio for cash-generating reasons, there may be better alternatives out there. 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 fundamental factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for ENR’s future growth? Take a look at our free research report of analyst consensus for ENR’s outlook.
Valuation: What is ENR 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 ENR is currently mispriced by the market.
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.
