3 Days Left To Cash In On Scorpio Tankers Inc (NYSE:STNG) Dividend, Is It Worth Buying?
Shares of Scorpio Tankers Inc (NYSE:STNG) will begin trading ex-dividend in 3 days. To qualify for the dividend check of $0.01 per share, investors must have owned the shares prior to 09 March 2018, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Scorpio Tankers’s latest financial data to analyse its dividend attributes. Check out our latest analysis for Scorpio Tankers
Here’s how I find good dividend stocks
When researching a dividend stock, I always follow the following screening criteria:
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 is able to pay the current rate of dividends from its earnings?
Will it be able to continue to payout at the current rate in the future?
Does Scorpio Tankers pass our checks?
Scorpio Tankers has a negative payout ratio, meaning that the company is not yet profitable and is paying dividend by dipping into its retained earnings. 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 Scorpio Tankers as a dividend investment. It has only been consistently paying dividends for 8 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. Compared to its peers, Scorpio Tankers generates a yield of 1.81%, which is on the low-side for Oil and Gas stocks.
Next Steps:
After digging a little deeper into Scorpio Tankers’s yield, it’s easy to see why you should be cautious investing in the company just for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering 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 key factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for STNG’s future growth? Take a look at our free research report of analyst consensus for STNG’s outlook.
Valuation: What is STNG 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 STNG 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 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.
