3 Days Left Before Libbey Inc (LBY) Will Start Trading Ex-Dividend, Is It Worth Buying?
Shares of Libbey Inc (AMEX:LBY) will begin trading ex-dividend in 3 days. To qualify for the dividend check of $0.12 per share, investors must have owned the shares prior to 06 November 2017, 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 LBY 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 Libbey
5 questions I ask before picking a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Is it paying an annual yield above 75% of dividend payers?
Does it consistently pay out dividends without missing a payment of significantly cutting payout?
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?
Does Libbey pass our checks?
Libbey has a negative payout ratio, which means that it is loss-making, and paying its dividend from its retained earnings. In the near future, analysts are predicting a payout ratio of 43.16% and dividends yield to be around 6.54%.
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. Although LBY’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. Compared to its peers, LBY has a yield of 6.54%, which is high for household durables stocks.
What this means for you:
Are you a shareholder? If LBY is in your portfolio for cash-generating reasons, there may be better alternatives out there, preferably ones with a more robust and increasing payout over time. It may be valuable exploring other dividend stocks as alternatives to LBY or even look at high-growth stocks to complement your steady income stocks. I encourage you to continue your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? There not much to be excited about if we look at Libbey from a dividend stock point of view. But if you are not exclusively a dividend investor, LBY could still be an interesting investment opportunity. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. Dig deeper in our latest free fundmental analysis to explore other aspects of LBY.
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.
